Final answer:
Among the given options, the statement that companies compete in complex environments is true due to the proliferation of globalization and information technology. This complex competitive landscape demands that firms address a larger set of challenges, including international competition, technological changes, and varied consumer expectations. Option 1 is correct answer.
Step-by-step explanation:
In addressing the question about the current global business environment, we can see that the forces of globalization and new communications and information technology have had a disruptive impact. These shifts have increased the degree of competition that companies face, as borders become less relevant and firms must consider competitors from across the globe. As a result, the traditional, simpler competitive environments have been replaced by more complex landscapes.
Therefore, the statement that companies compete in complex environments is the true one. This complexity arises from factors like the ease of access to international markets through the internet, the interconnection of global supply chains, and increased customer awareness and expectations. Firms must navigate diverse regulatory environments, cultural differences, and respond to rapid technological changes while also facing competitors that were once restricted by geographical boundaries.
While individual companies may vary in their preparedness to deal with these challenges, as a general trend, the current business environment requires heightened agility, strategic foresight, and innovation. Companies cannot rely on past success formulas in such a dynamic setting. Although some companies may be willing to take significant risks to achieve their goals, particularly in high-growth industries or emerging markets, it cannot be broadly stated that all companies are equally equipped to do so or maintain such an approach sustainably.