Exam 4: The External Environment

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Trend-setting toy companies or high-fashion clothing manufacturers have in common:

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D

The organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization.

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True

When organizations depend on the environment but strive to acquire control over resources to minimize their dependence, it is referred to as cooptation.

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False

The purpose of task roles is to absorb uncertainty from the environment.

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List and describe three organizational adaptations to environmental uncertainty.

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As part of the "green movement," Nike began making shoes with recycled materials and eco-friendly glues. The big oil company Valero is using windmills to run its refineries more efficiently and produce petroleum-based fuels more easily. These examples belong to which sector of the general environment?

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____ means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence.

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A company in a highly uncertain environment is more likely to need a formal integrator.

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Which of the following is a proper dimension of the framework for assessing environmental uncertainty?

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Transferring or exchanging executives offers a method of establishing favorable linkages with external organizations.

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____ can be used to erect regulatory barriers against new competitors or to squash unfavorable legislation.

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The purpose of boundary-spanning roles is to absorb uncertainty from the environment.

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Explain how the international context of organizations is bringing the international sector more and more into the task environment of organizations today.

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An organization's domain is the chosen environmental field of action, or the organization's niche that has been staked out for itself with respect to products, services, and markets served.

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Incompetence means that decision makers do not have sufficient information about environmental factors.

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The international environment includes sectors with which the organization interacts directly and that have a direct impact on the organization's ability to achieve its goals.

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An acquisition is the unification of two or more organizations into a single unit.

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The following examples illustrate how various sectors can impact organizations:

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Which of the following means that decision makers do not have sufficient information about environmental factors and they have a difficult time predicting external change?

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____ refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant.

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