The Dynamic Environment (Scenario)
A group of shareholders at Company EZ has strongly suggested that the firm update its planning practices to include more participative decision making and greater feedback to employees.
-Company EZ's business is technology- related and the environment is very dynamic. Management at Company EZ argues that formal planning ____________ .
A) ignores the employees
B) is not as effective in static environments
C) focuses managers' attention on tomorrow's survival instead of today's competition
D) can't be developed for dynamic environments

Question

Quizplus · Accepted Answer

Dynamic environments are constantly changing, making it difficult to predict and plan for the future. Formal planning may not be as effective in these situations as it relies on static assumptions and predictions. In dynamic environments, plans need to be flexible and able to adapt to changes quickly, which can be difficult to achieve through formal planning. Therefore, it may not be possible to develop a comprehensive formal plan in a dynamic environment.