Final answer:
A company faces L3 Uncertainty when it cannot accurately predict outcomes due to incomplete information, such as an employer assessing a job candidate's future performance or in the unpredictability of soldier behaviors during war. This type of uncertainty is also prevalent in economic situations subject to factors beyond individual control and requires adoption of flexible and adaptable strategies.
Step-by-step explanation:
A company may face L3 Uncertainty in situations where there is a lack of information or predictability that affects decision-making. This type of uncertainty can occur in scenarios such as employment hiring, where an employer must assess a candidate's potential performance without being able to observe them on the job firsthand. Employers must navigate this uncertainty by looking for indirect indicators of quality, such as academic and work history, or relying on trade schools and colleges to pre-screen candidates. However, despite these efforts, a degree of uncertainty will always remain.
In economic contexts, L3 Uncertainty can arise when economic risks are beyond an individual's control like natural disasters, wars, or massive unemployment. Companies operating in such environments often adopt strategies that remain flexible and viable under varying future scenarios to navigate this uncertainty.
Military strategists also deal with L3 Uncertainty, for example, when predicting soldiers' behaviors in combat. Since it's not possible to predict which soldiers will stay and fight and which will flee, strategists develop tactics to increase the likelihood of soldiers remaining loyal.
In summary, L3 Uncertainty is prevalent when precise outcomes cannot be accurately predicted due to the lack of information, requiring individuals, companies, and organizations to adopt flexible strategies to mitigate risks.