Environmental uncertainty
Categories: Econ, Tax, Regulations, Ethics/Morals
Environmental uncertainty is the degree to which an organization lacks factual or competent information concerning the internal and external operating environment for the organization. Simply, it is the unknown in the organization and in the field of business relevant to company operation.
This set of challenges refers to the business environment; it's not about the extinction of polar bears. Some environments are rich and lavish but highly rivalrous (like internet search circa 1999); others are desert wastelands with ecosystem room for only one real player (like rare disease cure drug discovery).
Why is this notion important in strategic planning? To be a sustainable organization is to accurately anticipate change, and plan accordingly for the immediate future. Environmental uncertainty makes every decision...riskier.