Exam 2: The External and Internal Environments

One firm buying another is called a(n)

________ occurs when a firm invests in different types of businesses or products or when it expands geographically to reduce its dependence on a single market or technology.

Mila, who works as a manager for a manufacturing company, investigates what computer programs her company's five biggest rivals use for placing and tracking customer orders. She then compares the features of those programs with the program her company uses. What process has Mila used?

Fatima recently got promoted to a managerial role in a bureaucratic organization. The industry was changing dramatically, and Fatima suggested that the management team encourage employees to develop confidence by giving them some control and authority in order to create a more flexible, adaptable organization. Here, Fatima is suggesting the use of ________ with employees.

Rabia proposed to her boss that their small firm build a new production plant to serve a large new global market. Her boss replied, "Rabia, several multinational firms, who are world-class in terms of global reach, influence, stability, and financial depth, will be going after that market. We be a new entrant among large established competitors; the barriers to entry are just too high for us. We are small and financial resource-limited, so we would be challenged to meet the market's ________ requirements."

A failure to develop a strategy that incorporates ________ may doom a firm to obsolescence.

Which of the following is an example of a potential substitute product?

The main difference between a final consumer and an intermediate consumer is that

________ costs are fixed costs buyers face if they change suppliers.

Venus was a low-cost airline that operated in the 1990s. Industry analysts state that although Venus was able to provide all the services the customers wanted, it was thrown out of business because of aggressive pricing from larger airline firms. Which of the following aspects of the competitive environment does this scenario illustrate?

Organizations must acquire a variety of resources in order to produce a product or service of value. These resources may include materials, equipment, financing, or even employees. The sources that provide these various resources are referred to as

Paolo has been offered jobs at two different retail companies and needs to decide which one to accept. Which of the following can be a useful clue about each organization's culture?

Discuss how immigration patterns influence the management of the U.S. labor force.

Organizations are ________ systems, which means that they are affected by and in turn affect their external environments.

The goal of ________ is having the right product in the right quantity at the right place at the right cost.

Explain how sustainability and natural environment affect the management of an organization.

Haru, a new manager at an electronics company, has been asked to focus on the competitive environment of the organization. Which of the following is a factor Haru should focus on?

The managers at Green Thumb Gardening Tools engage in an annual organizational assessment, trying to predict industry changes as well as possible opportunities and threats. They look at issues, such as who their competitors are, current entry barriers, and what substitutes exist for their products. This assessment is called

NBIC (National Bicycle Industrial Company)of Japan specializes in mass customization to cater to the changing demands of its customers. Customers can choose the frame and other parts of the bicycle and it is made according to their order. This is one example of how NBIC uses

Paul and his wife are investigating the possibility of starting a new restaurant in Beaufort, a small town in the South Carolina low country. It has been Paul's lifelong dream. Paul has won a lottery and is trying to decide if this is what he wants to do with the prize money. He decides to do an analysis of the competitive environment. After his analysis, he discovers several important issues. First, it will cost most of Paul's lottery winnings to finance a restaurant in Beaufort. Second, it will be difficult to attract new customers because they have so many eating choices available to them in Beaufort and the surrounding towns. Finally, the competition in the restaurant industry is considered fierce by industry analysts and this is frightening to someone, like Paul, who has never worked in that industry.Which of the following factors is indicated by the fact that it will require a large capital investment to start a new restaurant?