When the business environment becomes turbulent, diversified firms' senior managers:
A)Generally lack the skills to deal with the situation
B)Tend to be unable to react quickly enough through inefficient decision making structures
C)Turn on each other and play personal politics
D)Generally are so out of touch that they do not realize anything is wrong

Question

Quizplus · Accepted Answer

Diversified firms often have complex and decentralized decision-making structures, which can slow down their ability to react to a changing business environment. This inefficiency is compounded when the environment becomes turbulent, leading to a greater likelihood of missed opportunities, delayed responses, and ineffective decision-making. Therefore, option B is the most suitable answer.

When the Business Environment Becomes Turbulent, Diversified Firms' Senior Managers