As Environmental Uncertainty Increases, Managers Must Develop Techniques and Methods

question 142

Essay

As environmental uncertainty increases, managers must develop techniques and methods for collecting, sorting through, and interpreting information about the environment. Discuss four of these methods, explaining when and why each would be used.

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Definitions:

Utilities

Services such as electricity, gas, water, and sewage treatment that are provided to consumers and businesses.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Profit Centers

Divisions or units within a business that are directly responsible for generating profits.

Contribution Margin

The difference between sales revenue and variable costs of production, used to cover fixed costs and generate profit.