Question 1

An upscale department store agrees to sell a fashion designer's clothes. This is an example of ________.

Accepted Answer

A)  a joint venture 
B)  co-optation 
C)  a competitive interdependency 
D)  a symbiotic interdependency 
A)  a joint venture 
B)  co-optation 
C)  a competitive interdependency 
D)  a symbiotic interdependency

Question 2

Financial keiretsu is used to manage linkages among diverse companies. The benefits include all except:

Accepted Answer

A)  minority ownership. 
B)  sharing of information. 
C)  decreased profits for suppliers. 
D)  sharing activities. 
A)  minority ownership. 
B)  sharing of information. 
C)  decreased profits for suppliers. 
D)  sharing activities.

Question 3

Which of the following interorganizational strategies help an organization minimize transaction costs and avoid bureaucratic costs?

Accepted Answer

A)  Forming a joint venture 
B)  Obtaining minority ownership in other companies 
C)  Outsourcing 
D)  Merging with another company 
A)  Forming a joint venture 
B)  Obtaining minority ownership in other companies 
C)  Outsourcing 
D)  Merging with another company

Question 4

________ exist between an organization and its suppliers.

Accepted Answer

A)  Levels of hierarchy 
B)  Rites of passage 
C)  Competitive interdependencies 
D)  Symbiotic interdependencies 
A)  Levels of hierarchy 
B)  Rites of passage 
C)  Competitive interdependencies 
D)  Symbiotic interdependencies

Question 5

________ are a part of an organization's specific environment.

Accepted Answer

A)  Employees 
B)  Interest rates 
C)  Suppliers 
D)  Shareholders 
A)  Employees 
B)  Interest rates 
C)  Suppliers 
D)  Shareholders

Question 6

Customers would be considered an inside stakeholder group affecting an organization's specific environment.

Accepted Answer

A) True 
 B)False

Question 7

The ________ is/are the set of forces from outside stakeholder groups that directly affect an organization's ability to secure resources.

Accepted Answer

A)  economy 
B)  rites of passage 
C)  specific environment 
D)  government 
A)  economy 
B)  rites of passage 
C)  specific environment 
D)  government

Question 8

The range of goods and services that an organization produces and the customers that it serves are referred to as the organizational domain.

Accepted Answer

A) True 
 B)False

Question 9

When an organization relies on a small number of trading partners:

Accepted Answer

A)  bounded rationality decreases. 
B)  bounded rationality increases. 
C)  the risk of opportunism increases. 
D)  the risk in investing in specific assets decreases. 
A)  bounded rationality decreases. 
B)  bounded rationality increases. 
C)  the risk of opportunism increases. 
D)  the risk in investing in specific assets decreases.

Question 10

Competitors are a force in the general environment.

Accepted Answer

A) True 
 B)False

Question 11

How does Nokia insure that all factories are efficient?

Accepted Answer

A)  They use cartels to share information. 
B)  They implemented the latest technology regarding Global Supply Chain Management 
C)  It has a compensation plan that rewards managers based upon the collective performance of all factories. 
D)  They form strategic alliances with other technology firms. 
A)  They use cartels to share information. 
B)  They implemented the latest technology regarding Global Supply Chain Management 
C)  It has a compensation plan that rewards managers based upon the collective performance of all factories. 
D)  They form strategic alliances with other technology firms.

Question 12

By dramatically reducing their number of suppliers, Ford and General Motors were able to reduce the complexity of its environment by negotiating with the labor union.

Accepted Answer

A) True 
 B)False

Question 13

The transaction cost approach implies that an organization should:

Accepted Answer

A)  select a mechanistic structure to reduce costs. 
B)  change its domain to decrease transaction costs. 
C)  minimize dependence on others for scarce resources. 
D)  use relatively informal linkage mechanisms to avoid bureaucratic costs. 
A)  select a mechanistic structure to reduce costs. 
B)  change its domain to decrease transaction costs. 
C)  minimize dependence on others for scarce resources. 
D)  use relatively informal linkage mechanisms to avoid bureaucratic costs.

Question 14

A keiretsu significantly increases an organization's bureaucratic costs.

Accepted Answer

A) True 
 B)False

Question 15

The government attempting to control prescription drug prices would have reduced the uncertainty in that industry because competition would have decreased.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the least formal interorganizational strategy for managing symbiotic interdependencies?

Accepted Answer

A)  Network 
B)  Collusion 
C)  Co-optation 
D)  Strategic alliances 
A)  Network 
B)  Collusion 
C)  Co-optation 
D)  Strategic alliances

Question 17

The government attempted to control prescription drug prices during the 1990s. What effect would this have had on this industry?

Accepted Answer

A)  It would have enlarged the domain of this industry. 
B)  It would have made the environment more complex due to the reduction in profits. 
C)  It would have reduced competition, thereby reducing the complexity of this environment. 
D)  It would have increased the demand for drugs, thereby making the environment more dynamic. 
A)  It would have enlarged the domain of this industry. 
B)  It would have made the environment more complex due to the reduction in profits. 
C)  It would have reduced competition, thereby reducing the complexity of this environment. 
D)  It would have increased the demand for drugs, thereby making the environment more dynamic.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A frozen food manufacturer offers low-fat dinners. This company is responding to which of the following forces?

Accepted Answer

A)  Demographic and cultural 
B)  Environmental 
C)  International 
D)  Economic 
A)  Demographic and cultural 
B)  Environmental 
C)  International 
D)  Economic

Question 20

The general environment:

Accepted Answer

A)  contains forces that shape the specific environment. 
B)  is a reflection of an organization's domain. 
C)  consists of inside stakeholders. 
D)  consists of outside stakeholders. 
A)  contains forces that shape the specific environment. 
B)  is a reflection of an organization's domain. 
C)  consists of inside stakeholders. 
D)  consists of outside stakeholders.

An upscale department store agrees to sell a fashion designer's clothes. This is an example of ________.

Financial keiretsu is used to manage linkages among diverse companies. The benefits include all except:

Which of the following interorganizational strategies help an organization minimize transaction costs and avoid bureaucratic costs?

________ exist between an organization and its suppliers.

________ are a part of an organization's specific environment.

Customers would be considered an inside stakeholder group affecting an organization's specific environment.

The ________ is/are the set of forces from outside stakeholder groups that directly affect an organization's ability to secure resources.

The range of goods and services that an organization produces and the customers that it serves are referred to as the organizational domain.

When an organization relies on a small number of trading partners:

Competitors are a force in the general environment.

How does Nokia insure that all factories are efficient?

By dramatically reducing their number of suppliers, Ford and General Motors were able to reduce the complexity of its environment by negotiating with the labor union.

The transaction cost approach implies that an organization should:

A keiretsu significantly increases an organization's bureaucratic costs.

The government attempting to control prescription drug prices would have reduced the uncertainty in that industry because competition would have decreased.

Which of the following is the least formal interorganizational strategy for managing symbiotic interdependencies?

The government attempted to control prescription drug prices during the 1990s. What effect would this have had on this industry?

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

A frozen food manufacturer offers low-fat dinners. This company is responding to which of the following forces?

The 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 Environment

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Managing Innovation and Change

Organizational Birth, Growth, Decline, and Death

Decision Making and Organizational Learning

Managing Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 3: Managing in a Changing Global Environment

An upscale department store agrees to sell a fashion designer's clothes. This is an example of ________.

Financial keiretsu is used to manage linkages among diverse companies. The benefits include all except:

Which of the following interorganizational strategies help an organization minimize transaction costs and avoid bureaucratic costs?

________ exist between an organization and its suppliers.

________ are a part of an organization's specific environment.

Customers would be considered an inside stakeholder group affecting an organization's specific environment.

The ________ is/are the set of forces from outside stakeholder groups that directly affect an organization's ability to secure resources.

The range of goods and services that an organization produces and the customers that it serves are referred to as the organizational domain.

When an organization relies on a small number of trading partners:

Competitors are a force in the general environment.

How does Nokia insure that all factories are efficient?

By dramatically reducing their number of suppliers, Ford and General Motors were able to reduce the complexity of its environment by negotiating with the labor union.

The transaction cost approach implies that an organization should:

A keiretsu significantly increases an organization's bureaucratic costs.

The government attempting to control prescription drug prices would have reduced the uncertainty in that industry because competition would have decreased.

Which of the following is the least formal interorganizational strategy for managing symbiotic interdependencies?

The government attempted to control prescription drug prices during the 1990s. What effect would this have had on this industry?

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

A frozen food manufacturer offers low-fat dinners. This company is responding to which of the following forces?

The 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 Environment

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Managing Innovation and Change

Organizational Birth, Growth, Decline, and Death

Decision Making and Organizational Learning

Managing Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters