Exam 2: The External and Internal Environments

Marla's Basement is a small retail store that specializes in antique figurines and decorative knickknacks. In analyzing the environment, Marla has uncovered the following interesting findings:1. Marla has recently purchased more inventory than in the past. The people from whom she buys are selling off more knickknacks because their children are not interested in this type of decorative items and they would prefer to liquidate unnecessary household items to help them with their daily expenses.2. Marla discovered that her business is in a historical preservation district. As she considers remodeling the shop, she realized that she must pay attention to the guidelines set forth in the governing laws.3. Marla's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern decor, so the customer base to which she sells is shrinking.4. Marla has been told that she should consider selling her inventory via the Internet, but she does not own (or understand how to use)a computer.5. In reading a survey of regional business, Marla discovered that there are no other antique knickknack stores within 200 miles. Which of the following elements of the macroenvironment is most closely associated with the findings about the historical preservation district?

Differentiate between unattractive and attractive competitive environments, using Porter's model of the competitive environment.

What are the clues to understanding an organization's culture? List the characteristics of a strong culture.

Which of the following is true about using forecasts?

________ lead to new products, advanced production facilities, and better ways of managing and communicating.

The entrance by a company into another market or industry for which it has an existing expertise is called

Parker Brothers is a high-end furniture manufacturer located in the Midwest. Mr. Herbert "Bud" Parker started the firm as a young man in the 1960s. The firm has grown, but with growth, it has never forgotten the vision of Mr. Parker: to be creative in all that the firm does while rewarding employees who show innovation and entrepreneurial leadership. Each year the Budding Genius Award is given to the employee who comes up with the best design or marketing idea. New employees are told of the organization's history of product innovation and are taken on a tour of the "Wall of Parker Legends," where pictures of outstanding employees are hung with descriptions of their accomplishments. Managers at the firm encourage their team members to take risks in proposing new ideas. The company prides itself on its product leadership.Which of the following is an example of passing along organization culture through the stories people tell?

________ refers to management of the network of facilities and people that obtain materials from the outside, transform them into products, and distribute the products to customers.

Aunt Lucy's Style is a company that sells different types of costume jewelry. When Aunt Lucy's Style spends its own money to promote the costume jewelry industry as a whole, the company is practicing

Randall, senior product development manager at WasteTech Corporation, is considering the acquisition of a new waste treatment technology from a small development firm. The asking price is $10 million. However, the environmental uncertainty of the waste treatment marketplace is both complex and dynamic. Randall wants to acquire the new technology but seeks to manage the risk associated with his decision, or "hedge his bets." Key elements of his risk management strategy might be to

Bettie's Bags buys leather and lesser quantities of canvas, zippers, metal snaps, and other materials to manufacture purses. Which of the following is Bettie's Bags' output?

Tammi Sloane, owner of a licensed supplier of advanced self-driving vehicle technology, independently influences her company's business environment. Determine which action below is not among the ways that Tammi independently influences her business environment.

Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts, and jams from mixtures of tropical fruits. She reports to the CFO. It is her job to predict the costs of raw materials for the next five years. She uses various research sources, including the news, to learn who the competitors are and what they have been doing. In fact, she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe. Every month she develops a spreadsheet for her boss indicating the likely costs of fruits and nuts given the type of weather conditions expected in each area of the world and thus the availability of particular crops. She is also involved in a team that is investigating how to cut production costs. They have recently met with Spicy Sides, a company that produces jars of condiments. Spicy Sides is considered the top company in the condiment industry, especially in its knowledge of how to pack food products in jars. Jimena's team is comparing their processes to those of Spicy Sides to see how they might improve.The spreadsheet that Jimena uses gives her a chance to examine different projections, which is a form of

When a brand advertises its products as being superior to that of its competitors, it is demonstrating

Explain how technology can help an organization.

Which of the following combinations can result in a best-case scenario?

Loyalty Management Consulting uses the services of QuickBite, which runs the employee cafeteria in the building and also caters business meetings at a discounted rate because of the volume of business it does with Loyalty. The other available cafeteria services do not provide catering. In this case, if Loyalty decides to terminate QuickBite's contract and shift to some other service, it is likely to create

Little Learners is a company that designs and manufactures fun and educational toys. The company makes it a point to stress to its employees that innovation is its core strength. The employees even get an hour a day to brainstorm and come up with out-of-the-box ideas. This highlights the ________ of the company.

Karl's office has always used Bentley computers. His technical people have suggested that he switch all his employees over to Best computers. Karl is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone. Karl is worried about

A firm's ________ includes its rivals, suppliers, customers, new entrants, substitutes, and complementary products.