Question 1

An organization can reduce environmental uncertainty by entering into global markets.

Accepted Answer

A) True 
 B)False

Question 2

Typically, when a company gets associated with a third-party linkage mechanism, ________.

Accepted Answer

A)  the richness of the company's environment decreases 
B)  the company can react more easily to the dynamism of the environment 
C)  the complexity of the company's environment increases 
D)  it loses its ability to enter into a strategic alliance 
A)  the richness of the company's environment decreases 
B)  the company can react more easily to the dynamism of the environment 
C)  the complexity of the company's environment increases 
D)  it loses its ability to enter into a strategic alliance

Question 3

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

Accepted Answer

A)  Organization A is dependent on organization B for scarce resources. 
B)  The environment of organization A is richer than the environment of organization B. 
C)  Organization A provides a service to organization B that only a few organizations can replicate. 
D)  The environment that both organizations operate in is stable. 
A)  Organization A is dependent on organization B for scarce resources. 
B)  The environment of organization A is richer than the environment of organization B. 
C)  Organization A provides a service to organization B that only a few organizations can replicate. 
D)  The environment that both organizations operate in is stable.

Question 4

Which of the following is most likely to increase the environmental dynamism for a company?

Accepted Answer

A)  the company increases the level of employee empowerment 
B)  the company changes its organizational structure from functional structure to matrix structure 
C)  the company enters into a long-term contract with one of its suppliers 
D)  the company enters into a foreign market with new products 
A)  the company increases the level of employee empowerment 
B)  the company changes its organizational structure from functional structure to matrix structure 
C)  the company enters into a long-term contract with one of its suppliers 
D)  the company enters into a foreign market with new products

Question 5

Environmental richness is a function of how much and how quickly forces in the specific and general environments change over time and thus increase the uncertainty an organization faces.

Accepted Answer

A) True 
 B)False

Question 6

Two computer manufacturing companies, operating in the same industry, pool their resources to develop a new computer technology. This is an example of ________.

Accepted Answer

A)  licensing 
B)  an interorganizational linkage 
C)  franchising 
D)  a symbiotic interdependency 
A)  licensing 
B)  an interorganizational linkage 
C)  franchising 
D)  a symbiotic interdependency

Question 7

Economic forces, such as interest rates, are considered to be specific environmental forces rather than a general environmental forces.

Accepted Answer

A) True 
 B)False

Question 8

The richer the environment, the more difficult it is for organizations to obtain resources.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about the difference between transaction cost theory and resource dependence theory is true?

Accepted Answer

A)  Transaction cost theory proposes the use of a merger as an interorganizational strategy but resource dependence theory advocates the use of joint venture. 
B)  Transaction cost theory explains how to manage symbiotic interdependencies but resource dependence theory explain how to manage competitive interdependencies. 
C)  Transaction cost theory is a better predictor than a resource dependence theory of why companies choose a certain form of interorganizational strategy. 
D)  Resource dependence theory proposes the use of strategic alliances, but transaction cost theory recommends not using alliances. 
A)  Transaction cost theory proposes the use of a merger as an interorganizational strategy but resource dependence theory advocates the use of joint venture. 
B)  Transaction cost theory explains how to manage symbiotic interdependencies but resource dependence theory explain how to manage competitive interdependencies. 
C)  Transaction cost theory is a better predictor than a resource dependence theory of why companies choose a certain form of interorganizational strategy. 
D)  Resource dependence theory proposes the use of strategic alliances, but transaction cost theory recommends not using alliances.

Question 10

An increase in the level of environmental richness leads to an increase in the environmental uncertainty.

Accepted Answer

A) True 
 B)False

Question 11

Internal transaction costs are called ________ costs to distinguish them from the transaction costs of exchanges between organizations in the environment.

Accepted Answer

A)  historic 
B)  sunk 
C)  opportunity 
D)  bureaucratic 
A)  historic 
B)  sunk 
C)  opportunity 
D)  bureaucratic

Question 12

Strategic alliances are a linkage mechanism that can be used to manage both competitive and symbiotic interdependencies.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following methods of managing competitive interdependencies is most likely to be used by an organization to monopolize an industry and become the sole player in the industry?

Accepted Answer

A)  enter into a cartel 
B)  enter into a joint venture 
C)  enter into a merger 
D)  enter into a long-term contract 
A)  enter into a cartel 
B)  enter into a joint venture 
C)  enter into a merger 
D)  enter into a long-term contract

Question 14

Define organizational domain.

Accepted Answer

The term organizational domain refers to

Question 15

In a rich, stable, and simple environment, resources are easy to come by and uncertainty is low.

Accepted Answer

A) True 
 B)False

Question 16

An organization's environment will be more uncertain when ________.

Accepted Answer

A)  specific and general forces in the environment become interconnected 
B)  the number of stakeholders in the specific environment decreases 
C)  the company decreases the number of products it manufactures 
D)  the company begins to follow the cost leadership strategy 
A)  specific and general forces in the environment become interconnected 
B)  the number of stakeholders in the specific environment decreases 
C)  the company decreases the number of products it manufactures 
D)  the company begins to follow the cost leadership strategy

Question 17

Which of the following strategies is most likely to be used for managing symbiotic resource interdependencies?

Accepted Answer

A)  collusion 
B)  third-party linkage mechanism 
C)  cartel 
D)  minority ownership 
A)  collusion 
B)  third-party linkage mechanism 
C)  cartel 
D)  minority ownership

Question 18

An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. By making this change, the organization has reduced its environmental ________.

Accepted Answer

A)  dynamism 
B)  complexity 
C)  richness 
D)  depth 
A)  dynamism 
B)  complexity 
C)  richness 
D)  depth

Question 19

A ________ is a business authorized to sell a company's products in a certain area.

Accepted Answer

A)  cartel 
B)  joint venture 
C)  franchise 
D)  collusion 
A)  cartel 
B)  joint venture 
C)  franchise 
D)  collusion

Question 20

Differentiate between specific environment and general environment.

Accepted Answer

The specific environment consists of for

An organization can reduce environmental uncertainty by entering into global markets.

Typically, when a company gets associated with a third-party linkage mechanism, ________.

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

Which of the following is most likely to increase the environmental dynamism for a company?

Environmental richness is a function of how much and how quickly forces in the specific and general environments change over time and thus increase the uncertainty an organization faces.

Two computer manufacturing companies, operating in the same industry, pool their resources to develop a new computer technology. This is an example of ________.

Economic forces, such as interest rates, are considered to be specific environmental forces rather than a general environmental forces.

The richer the environment, the more difficult it is for organizations to obtain resources.

Which of the following statements about the difference between transaction cost theory and resource dependence theory is true?

An increase in the level of environmental richness leads to an increase in the environmental uncertainty.

Internal transaction costs are called ________ costs to distinguish them from the transaction costs of exchanges between organizations in the environment.

Strategic alliances are a linkage mechanism that can be used to manage both competitive and symbiotic interdependencies.

Which of the following methods of managing competitive interdependencies is most likely to be used by an organization to monopolize an industry and become the sole player in the industry?

Define organizational domain.

In a rich, stable, and simple environment, resources are easy to come by and uncertainty is low.

An organization's environment will be more uncertain when ________.

Which of the following strategies is most likely to be used for managing symbiotic resource interdependencies?

An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. By making this change, the organization has reduced its environmental ________.

A ________ is a business authorized to sell a company's products in a certain area.

Differentiate between specific environment and general environment.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 3: Organizing in a Changing Global Environment

An organization can reduce environmental uncertainty by entering into global markets.

Typically, when a company gets associated with a third-party linkage mechanism, ________.

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

Which of the following is most likely to increase the environmental dynamism for a company?

Environmental richness is a function of how much and how quickly forces in the specific and general environments change over time and thus increase the uncertainty an organization faces.

Two computer manufacturing companies, operating in the same industry, pool their resources to develop a new computer technology. This is an example of ________.

Economic forces, such as interest rates, are considered to be specific environmental forces rather than a general environmental forces.

The richer the environment, the more difficult it is for organizations to obtain resources.

Which of the following statements about the difference between transaction cost theory and resource dependence theory is true?

An increase in the level of environmental richness leads to an increase in the environmental uncertainty.

Internal transaction costs are called ________ costs to distinguish them from the transaction costs of exchanges between organizations in the environment.

Strategic alliances are a linkage mechanism that can be used to manage both competitive and symbiotic interdependencies.

Which of the following methods of managing competitive interdependencies is most likely to be used by an organization to monopolize an industry and become the sole player in the industry?

Define organizational domain.

In a rich, stable, and simple environment, resources are easy to come by and uncertainty is low.

An organization's environment will be more uncertain when ________.

Which of the following strategies is most likely to be used for managing symbiotic resource interdependencies?

An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. By making this change, the organization has reduced its environmental ________.

A ________ is a business authorized to sell a company's products in a certain area.

Differentiate between specific environment and general environment.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters