Global Management Studies (GMS) 200 Practice Exam

Environmental uncertainty describes the lack of information about the external environment of a business or organization. It happens when factors outside the firm—such as market trends, competitors’ actions, regulatory changes, or economic shifts—are unpredictable or not well understood, making it hard to forecast outcomes. This uncertainty shapes how organizations gather information, monitor external signals, and design flexible strategies to adapt.

By contrast, strategic positioning is about how a firm competes—its chosen value proposition and activities to differentiate itself—while a manager or top manager refers to person or role within the organization, not the condition of knowing the outside environment.