Complexity is the number of variables in the environment and their interdependency. It refers to factors that can influence the operations and outcome of the organization.

Examples of external conditions are: market conditions for products and inputs, prices, quality requirements, financial conditions, and governmental relations, among many others.

The environment is complex when there are a lot of environmental factors to monitor.

Characterize the number of environmental factors as follows:

• Simple   - between 1-5
• Complex - between 6-10
• Highly complex - more than 10