Managers at the American Red Cross are struggling with raising enough funds to cover expenses. Donations have been declining for several years, and major disasters have strained the organization's resources. Which of the following is considered responsible for the organizational decline at the American Red Cross?
A) Organizational atrophy
B) Environmental decline
C) Vulnerability
D) Downsizing

Question

Quizplus · Accepted Answer

Environmental decline refers to external factors that affect an organization, such as economic or social changes. In this case, declining donations and major disasters outside of the organization's control have contributed to the American Red Cross's financial struggles. Organizational atrophy refers to internal factors that lead to a decline, such as lack of innovation or outdated practices, and vulnerability refers to the potential for harm or risk. Downsizing refers to a deliberate reduction in size, which may or may not be a factor in the organization's decline in this case.

Managers at the American Red Cross Are Struggling with Raising