Deck 3: Organizational Environments and Cultures

Question 1

The general environment is unique to each firm's industry and directly affects the way it conducts day-to-day business.

Answer 1

False

Question 2

Changes in any sector of the general environment eventually affect most organizations.

Answer 2

True

Question 3

Public communications, media advocacy, and product boycotts are techniques used by advocacy groups to influence companies.

Answer 3

True

Question 4

Buyer dependence is the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product.

Question 5

Managers often do a poor job of identifying potential competitors.

Question 6

Managers often prefer economic statistics to business confidence indices as tools for managerial decision making because of their inherently greater accuracy.

Question 7

According to its rate of environmental change, an organization's environment can be either stable or dynamic, but not both.

Question 8

A decrease in either buyer dependence or supplier dependence can lead to opportunistic behavior.

Question 9

Advocacy groups cannot directly regulate organization practices.

Question 10

Environmental complexity refers to the degree of change in the external factors that affect organizations.

Question 11

Advocacy groups are typically composed of concerned citizens who have a strong feeling about a common issue even though the members' viewpoints differ significantly.

Question 12

The general environment consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations.

Question 13

Resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical organizational resources.

Question 14

Under conditions in which the rate of both environmental change and complexity go up while environmental resources become scarce, environmental uncertainty can be expected to increase.

Question 15

The specific segment of an organization's external environment is unique to its region of the country.

Question 16

The two kinds of external organizational environments are the general environment and the specific environment.

Question 17

Proactive customer monitoring is defined as identifying and addressing customer trends and problems after they occur.

Question 18

In contrast to the general segment of the external environment that directly influences an organization, changes in the specific segment of an organization's external environment indirectly affect the way a company conducts its business.

Question 19

Business confidence indices are a viable alternative to economic statistics for management decision making.

Question 20

The best way to manage legal responsibilities is to retain a large staff of legal specialists to defend the company against any charges.

Question 21

​_____ are defined as environments where the rate of environmental change is fast.

A)​Simple environments
B)​Stable environments
C)​Static environments
D)​Equilibrium environments
E)​​Dynamic environments

Question 22

After the company founders are gone, stories and heroes can help to sustain the founder's values, attitudes, and beliefs in the organizational culture.

Question 23

The term behavioral multiplication refers to the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

Question 24

Organizational heroes can be used to make sense of organizational events and changes.

Question 25

According to the ____, companies go through long, simple periods of environmental stability, followed by short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability.

A)supply chain theory
B)product cycle theory
C)punctuated equilibrium theory
D)theory of resource scarcity
E)environmental cycle

Question 26

​Venus LLC. is a transport service firm that ships raw materials from suppliers to bakeries. The company has been following a fixed business process for several years with almost no changes. Moreover, Venus does not have many strong competitors. Venus is most likely to be operating in a(n) _____.

A)uncertainty environment
B)complex environment
C)stable environment
D)dynamic environment
E)discontinuous change

Question 27

Which of the following companies is most likely operating in a dynamic environment?

A)a smartphone manufacturer
B)a bakery
C)a brewery
D)a manufacturer of pet food
E)a cereal manufacturer

Question 28

Organizational culture refers to the set of key values, beliefs, and attitudes shared by organizational members.

Question 29

_____ is the degree to which an organization's external environment has an abundance or shortage of critical organizational amenities.

A)Environmental dynamism
B)Environmental stability
C)Environmental capacity
D)​Resource scarcity
E)Differentiation opportunity

Question 30

Supernova Tech Inc. is a large manufacturer of appliances. The company is facing a serious shortage of skilled employees in its manufacturing plants. The managers at Supernova Tech have been spending great amounts of time in finding and recruiting employees with appropriate skills. Which of the following characteristics of the external environment is illustrated in this scenario?

A)Environmental stability
B)Slack resources
C)Resource scarcity
D)Surplus inventory
E)Environmental inertia

Question 31

Which of the following statements is true about environmental uncertainty?

A)It is most likely to be low when resource scarcity is high.
B)It is most likely to be high when environmental change is extensive.
C)It is most likely high when environmental complexity is low.
D)It is most likely high when the external environmental is at the equilibrium stage.
E)It is most likely high when the external environment is simple.

Question 32

Successful organizational cultures seem to be based solely upon consistency (i.e., "strength" of the organizational culture).

Question 33

Because external environments can be dynamic, confusing, and complex, managers use a three-step process to make sense of the changes in their external environments. Those steps are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on threats and opportunities.

Question 34

_____ refers to the number and the intensity of external factors in the environment that affect organizations.​

A)​Uncertainty
B)​Environmental change
C)​External environments
D)​Environmental complexity
E)​Environmental inertia

Question 35

Gadgetbug Inc. is a popular smartphone manufacturer that has several competitors. The company places a lot of emphasis on innovation to ensure that its products have the best features. Moreover, the company frequently upgrades its products so that they offer the most recent technological functionality. Gadgetbug's competitors have also been trying to come up with technologically superior products. It can be said that Gadgetbug operates in a _____.

A)technological lockout
B)stable environment
C)​dynamic environment
D)consumer inertia
E)constant equilibrium phase

Question 36

​_____ is the rate at which a company's general and specific environments alter.

A)Environmental inertia
B)Environmental change
C)Environmental lockout
D)Environmental equilibrium
E)​Environmental specificity

Question 37

Which of the following is a part of the general environment of an organization?

A)Political trends
B)Customers
C)Industry regulations
D)Suppliers
E)Advocacy groups

Question 38

Which of the following statements about environmental uncertainty is true?

A)It is most likely to be high when there is technological stability in the industry.
B)It is most likely to be high when the industry is at an equilibrium state.
C)It is most likely to be low when environmental complexity is at a low level.
D)It is most likely to be low when environmental change is extensive.
E)It is most likely to be high when resource scarcity is low.

Question 39

A primary source of organizational culture is the company founder.

Question 40

One way managers can begin to change corporate culture is by changing the visible artifacts of their old culture, such as the office design and layout, company dress code.

Question 41

A company has invented a new procedure of car manufacturing that requires minimal electricity and time. This is a development in the _____ component of the general environment.

A)technology
B)socio­cultural
C)economic
D)political/legal
E)demographic

Question 42

Which of the following is a component of a book publisher's general environment and will indirectly influence how it does business?

A)Other book publishing companies
B)Book buyers
C)An advocacy group supporting free books for children
D)A trend toward less leisure time
E)Paper and ink suppliers

Question 43

_____ refers to the knowledge, tools, and methods used to transform inputs (raw materials, information, and so on) into outputs (products and services).

A)Technology
B)Divestiture
C)Business confidence indices
D)Branding
E)Economy metrics

Question 44

​_____ refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.

A)​Environmental specificity
B)Environmental stability
C)​Environmental complexity
D)​Environmental uncertainty
E)​Environmental inertia

Question 45

Plush Extreme Inc. is a popular furniture designer that offers a wide range of furniture. Zara LLC., has recently started offering custom-made furniture in the same city. The managers at Plush Extreme are conducting a research to find out the strengths and weaknesses of Zara. the managers are also trying to find out the strategies that Zara is using. Which of the following concepts is illustrated in the scenario?

A)Divesting
B)Deskilling
C)Self­dealing
D)Reactive customer monitoring
E)Competitive analysis

Question 46

Environmental uncertainty is most likely to be lowest when:

A)environmental resource scarcity is low.
B)environmental change is maximum.
C)the environment is least complex.
D)the industry is at equilibrium.
E)the environment is stable.

Question 47

Business confidence indices:

A)show how confident customers are about companies they do business with.
B)​show how sure actual managers are about future business growth.
C)indicate general economic statistics over the past year.
D)indicate how businesses have been performing over the past year.
E)​indicate trends in the specific environment of a business.

Question 48

A court ruling regarding the unfair firing of employees is a development in the _____ component of the general environment.

A)technology
B)social
C)economic
D)political/legal
E)demographic

Question 49

​_____refers to identifying and addressing customer needs, trends, and issues before they occur.

A)​Demand analysis
B)​Reactive monitoring
C)​Proactive monitoring
D)​Discreet customer care
E)Customer inertia

Question 50

_____ are defined as companies in the same industry that sell similar products or services to customers.​

A)​Buyers
B)​Suppliers
C)​Competitors
D)​Advocacy groups
E)Industry regulators

Question 51

Which of the following is a part of the general environment of organizations?

A)Competitors
B)​Sociocultural trends
C)Industry regulation
D)Supplier relationships
E)Advocacy groups

Question 52

Many people in Rhenasia are cutting down on their spending. This is because of a lack of well-paying jobs in the country. Many businesses in the country are getting affected as the buying power of customers has drastically reduced. The environmental characteristic that is affecting businesses in Rhenasia is _____.

A)technological change
B)socio­cultural trends
C)the economy
D)political change
E)the competitive scenario

Question 53

Gamma LLC. sells printers and scanners. Recently, some of its products were returned by the customers who were unhappy with the product quality. Gamma is now closely reviewing the complaints to understand the quality issues and come up with solutions. Which of the following concepts is illustrated in the scenario?

A)Proactive customer monitoring
B)Consumer confidence forecasting
C)Rebranding
D)Reactive customer monitoring
E)Customer inertia

Question 54

Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?

A)legislation
B)competitive products
C)court decisions
D)regulation
E)customer­initiated lawsuits

Question 55

Which of the following is a component of the specific environment that would directly influence a restaurant's day-to-day operation?

A)Its regular customers
B)A new law about waste disposal
C)A social trend toward eating less fat
D)More rigid enforcement of food safety laws
E)A growth in the economy

Question 56

Which of the following is a trend in the general environment of a hospital?

A)Introduction of new facilities in the hospital
B)Scarcity of medical equipment suppliers
C)Recruitment of highly skilled nurses
D)New legislation concerning the disposal of biological wastes
E)Lower attrition rate among the medical assistance staff

Question 57

____ is used to refer to a company's practice of identifying and addressing customer trends and problems after they occur.

A)Consumer confidence analysis
B)Competitive analysis
C)Reactive customer monitoring
D)Proactive customer monitoring
E)Continuous data mining

Question 58

Which of the following is a part of the general environment of an organization?

A)Customers
B)Suppliers
C)Competitors
D)Technology trends
E)​Industry regulation

Question 59

Which of the following is a trend in the general environment of a fast food chain?

A)Lower attrition rates among waiters
B)Shortage of spice suppliers
C)Growing strength of advocacy groups who are against the use of animal products
D)Increase in the number of similar fast food chains
E)​Increasing popularity of weight­management programs

Question 60

Which of the following is true about a company's specific environment?

A)​It is unique to a particular firm's industry.
B)It has minimal impact on the day­to­day activities of a business.
C)It encompasses broad legal and political trends that affect businesses.
D)It includes sociocultural changes.
E)It deals with economy trends of the country in which a business operates.

Question 61

_____ refers to a transaction in which one party in the relationship benefits at the expense of the other.

A)Relational behavior
B)Transactional behavior
C)Altruistic behavior
D)​Opportunistic behavior
E)Competitive behavior

Question 62

____ is a tactic in which an advocacy group actively tries to convince consumers not to purchase a company's product or service.

A)Product promotion
B)Self­dealing
C)Public communications
D)Media advocacy
E)​Product boycott

Question 63

Which of the following is the least aggressive approach likely to be used by an advocacy group?

A)Media advocacy
B)​Public communications
C)Product boycotts
D)Class action lawsuits
E)Picketing

Question 64

An advocacy group for ethical treatment of animals has been protesting against a cosmetic company as there were reports about the company being involved in animal testing. The group has been persuading customers to stop buying cosmetics from the company. Which of the following advocacy group tactics is illustrated in the scenario?

A)Media communications
B)Public communications
C)Self­dealing
D)​Product boycotts
E)Lobbying

Question 65

_____ are companies that provide material, human, financial, and informational resources to other companies.​

A)​Buyers
B)​Suppliers
C)​Competetiors
D)​Substitutes
E)​New entrants

Question 66

_____ is the degree to which a company relies on a provider because of the importance of the provider's product to the company and the difficulty of finding other sources of that product.​

A)​Buyer dependence
B)​Internal dependence
C)Competence dependence
D)​Supplier dependence
E)​Regulator dependence

Question 67

_____ are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.​

A)Internal work groups
B)​Suppier groups
C)Competitor groups
D)​​Advocacy groups
E)Employee groups

Question 68

​_____ is the degree to which a supplier relies on a client because of the importance of that client to the supplier and the difficulty of finding other clients for its products.

A)​Buyer dependence
B)Competence dependence
C)​Internal dependence
D)Resource dependence
E)​Supplier dependence

Question 69

​_____ focuses on establishing a mutually beneficial, long-term connection between buyers and suppliers.

A)​Anti­competitive behavior
B)Competitive behavior
C)​Relationship behavior
D)​Opportunistic behavior
E)​Self­dealing

Question 70

​_____ refers to the protocols and guidelines that govern the business practices and procedures of specific businesses, and professions.

A)​Business divestiture
B)Business index
C)​Industry regulation
D)​Internal code
E)Organizational policy

Question 71

In setting up his new office, an attorney wanted furnishings that were elegant and that would make him look successful. He wanted thick, plush carpeting in his office, but federal regulations state that his office must be wheelchair accessible because it is a public area. Wheelchairs do not maneuver well in thick carpeting. The building inspector had him remove the expensive carpeting and replace it with a carpet that did allow for wheelchair maneuverability. This is an example of how the ____ component of a company's specific environment influences it.

A)socio­cultural
B)economic
C)demographic
D)supplier
E)industry regulation

Question 72

The _____ approach is an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to send out the advocacy group's message.​

A)​environmental scanning
B)​media advocacy
C)​product boycott
D)​industry regulations
E)​​public communications

Question 73

​A _____ approach is an advocacy group tactic that typically involves framing the group's concerns as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.

A)​petition
B)​public communications
C)​lobbying
D)​product boycott
E)​​media advocacy

Question 74

Zimway is a small manufacturer of linen. Couture Smart, a big apparel brand buys linen from Zimway in large quantities. Zimway, otherwise, has very few clients and most of them buy linen occasionally and in minimal quantities. Therefore, Couture Smart is crucial for Zimway's survival and success. Which of the following concepts is illustrated in the scenario?

A)Buyer dependency
B)Supplier dependency
C)Anti­competitiveness
D)Opportunism
E)Competence dependency

Question 75

Which of the following helps managers accurately analyze competition?

A)Refraining from underestimating the potential of competitors
B)Focusing only on well­known competitos with similar goals and resources
C)Focusing on the weaknesses rather than the strengths of the competitors
D)Refraining from scanning the industry for competitors from unconventional sources
E)Focusing exclusively on two or three major competitors

Question 76

MaxStar is a company that provides diary products and meat to a fast food chain. The fast food chain regularly buys these ingredients from MaxStar. In this scenario, MaxStar is most likely to be a(n) _____ of the fast food chain.

A)supplier
B)competitor
C)advocacy group
D)regulator
E)investor

Question 77

Redd Publications Inc. has been buying its ink and paper from Beta LLC. for several years. Both the companies make an effort to keep their transactions fair and transparent. This has helped both the companies maintain mutually beneficial business ties. It can be said that Redd Publications and Beta exhibit _____ towards each other.

A)antiloyalty
B)anti­competitive behavior
C)opportunistic behavior
D)relationship behavior
E)competitive advocacy

Question 78

Competitive analysis refers to:

A)identifying new social trends among customers.
B)analyzing the impact of advocacy groups.
C)identifying industry regulators.
D)identifying companies that sell similar products.
E)identifying internal competencies.

Question 79

The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify the factors that might have a significant influence on Alpha. Which of the following is illustrated in the scenario?

A)Environmental scanning
B)Deskilling
C)Opportunism
D)Downsizing
E)Anti­competitive behavior

Question 80

A high degree of buyer or seller dependence can lead to _____.

A)relationship behavior
B)transactional behavior
C)punctuated equilibrium
D)relational monopoly
E)opportunistic behavior