Question

What is an example of acquiring direct control over the source of uncertainty in reducing environmental uncertainty?

a) Outsourcing critical functions to external partners.
b) Investing in technologies to control market changes.
c) Avoiding any involvement in uncertain domains.
d) Forming alliances to share uncertainties.

Answer 1

Investing in technologies to control market changes is an example of direct control over sources of uncertainty to reduce environmental uncertainty, contrasting with other non-direct control strategies.

Step-by-step explanation:

An example of acquiring direct control over the source of uncertainty in reducing environmental uncertainty is investing in technologies to control market changes. This approach is about gaining direct control over uncertain factors, rather than sharing or outsourcing that uncertainty. By investing in market-controlling technologies, companies can better predict, manage, and adapt to changing market conditions, thereby reducing the degree of uncertainty they face. This contrasts with other strategies, such as outsourcing or forming alliances, which do not offer the same level of direct control over the uncertainties.