Exam 2: Managing the Organizational Environment

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The organization's internal environment is divided into the task environment and the general environment.

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An organization's competitors can have an important impact on the success of the organization.Discuss how IKEA was greatly impacted by this environmental force.

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Differences in customer preferences result in many companies standardizing products for different national markets.

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Pressures from competitors are handled by:

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An organization's "competitors" are those organizations which try to sell their goods to the same customers as the organization is trying to sell its goods.

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The power of a distributor may get stronger if there are too many options for manufacturers and wholesalers to sell their products directly to customers.

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The free-trade doctrine predicts that if each country agrees to specialize in the production of the goods and services that it can produce most efficiently, this will make the best use of global capital resources and will result in lower prices.

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Changes in technological forces are handled by:

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Sales and service department managers handle pressures from customers.

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Which of the following is an example of a political and legal force in the environment?

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Overseas suppliers can pose a threat to managers of organizations in all but one of the following ways:

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Organizations which help other organizations to sell their goods and services to customers are known as distributors.

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Which of the following is included in the organization's general environment?

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Modern communications and transportation technologies have done all but this:

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Managers face a number of challenges in the global environment, including:

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When a competitor negotiates a long-term contract with a supplier of raw materials, this is an example of an impact on your organization's:

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A shift in the age distribution of the population of Canada is an example of a demographic force.

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Changes in technological forces are dealt with by Research and Development department managers.

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The establishment of free-trade areas creates an opportunity for manufacturing organizations because it lets them reduce their costs.

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The task of the top-management team in reducing the impact of environmental forces, is to create strategies that will take advantage of opportunities and counter threats.

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