GMS Week 4 Lecture Notes Environment, organizational culture and diversity Environmental uncertainty: is a lack of complete information regarding what exists and what developments may occur in the external environment Two dimensions of environmental uncertainty (refer to matrix in textbook) 1. Complexity (for example: heavy competition) 2. Rate of change (for example: IT industry has a very high rate of change) Canadas growth rate is 1.5%, whereas Chinas is around 9.5-10% What constitutes the external environment of organizations? 1. Economic a. Companies price their products in accordance with the countrys disposable 2. Income a. E.g.: during the recession, Kia made a very smart move. Kia came into North America and provided a warranty of 7 years, much more than average number of years. 3. Socio-Cultural a. Kraft - sell processed foods, contain trans-fats. May affect sales. b.