Exam 2: The External and Internal Environments

A more diverse workforce presents managers with challenges as well as opportunities.

Scenario C.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?

U.S.government policies impose strategic constraints on business organizations,such as the requirement that businesses with 50 or more full-time employees offer health insurance.Juan is the manager of a small factory with 75 employees.Juan sees these government regulations and laws as a detriment to his business and its profitability.What is Juan missing in his assessment of government regulations and laws and their impact on his business?

The immediate environment surrounding a firm is known as its

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

Supply chain management refers to the

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

Kate,the manager of Halpern Tooling Company,wants to create a stronger,more positive culture at the company.How might Kate promote and encourage a stronger culture?

A customer who purchases raw materials or wholesale products before selling them to other parties is known as a(n)

________ create alternative combinations of different factors into a total picture of the environment and a firm.

Paul runs a large,publicly owned automotive supply company called KarParts Inc.His stockholders have demanded to know why KarParts Inc.'s earnings expectations were not fulfilled in the previous year,and they demand to know how Paul is prepared to improve earnings for the current year.Paul suspects the problem is that the company is experiencing environmental uncertainty.In that case,which of the following would be most helpful for Paul to consider?

The recent legalization of same-sex marriage has major implications for how companies manage their labor force.For example,companies must now make sure their benefit packages include all types of family structures.This is an example of how ________ trends affect businesses.

Leveling normal fluctuations at the boundaries of the environment is called

When two or more companies work together to manage their external environment,they are using

One firm buying another is called a(n)

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

Scenario D.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 information Jimena is using to compete in a better way is called

Conditions that may prevent new firms from entering an industry are referred to as

Raw materials are an example of inputs.

Scenario D.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. -Which of the following are Jimena and her team using when they learn from Spicy Sides about its packing process?