Deck 3: The Environment and Corporate Culture

Question 1

Two important sectors of the economic dimension of a firm's general environment are customers and competitors.

Answer 1

False

Question 2

Current employees, management, and especially corporate culture are part of an organization's internal environment.

Answer 2

True

Question 3

The most dramatic change in the international environment in recent years is the shift of economic power to Germany and France.

Answer 3

False

Question 4

The sociocultural dimension of the general environment includes societal norms and values.

Question 5

The two layers of an organization's external environment are the general environment and the task environment.

Question 6

The raw materials that organizations use to produce its outputs are provided by customers.

Question 7

PC makers are taking control back from Microsoft by selling desktop space to competing software and service providers and giving end users broader choices of software during setup.

Question 8

An example of part of the legal-political dimension of the general environment is a government's report on the decline of unemployment rate.

Question 9

The technological dimension of the external environment includes scientific and technological advancements in a specific industry as well as in society at large.

Question 10

The international dimension of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries.

Question 11

Economic problems in other parts of the world have a tremendous impact on U.S. companies.

Question 12

Other organizations in the same industry or type of business that provide goods or services to the same set of customers are referred to as suppliers.

Question 13

Xerox managers missed cues from the environment and lost market share in the 1990s.

Question 14

The outer layer, the general environment, is widely dispersed and affects organizations directly.

Question 15

The economic dimension of the general environment includes consumer purchasing power.

Question 16

President Clinton's signing of the telecommunications bill in 1996 deregulating the industry is an example of the legal-political dimension of the general environment.

Question 17

McDonalds, Burger King, and Checkers are competitors since all three sell fast food to individuals.

Question 18

According to Manager's Shoptalk in Chapter 3, the Chinese concept of guanxi is a supportive, mutually beneficial connection between two people

Question 19

The economic dimension of the general environment represents the demographic characteristics.

Question 20

Factors external to the organizations have been primarily the focus of management as a discipline.

Question 21

When an organization pays little attention to cultural values and instead focuses on business results, success will be difficult to sustain in the long run.

Question 22

A sales executive for General Motors fills an essential boundary-spanning role.

Question 23

A narrative based on rumors, within the organization that can lead to destructive results if not carefully controlled by management is called an organizational story.

Question 24

Competitive intelligence professionals are really just in-house snoops who obtain information about other companies.

Question 25

If Johnson Lumber provides trees for Westvaco Paper Manufacturing, then Johnson Lumber is considered a supplier for Westvaco.

Question 26

A figure that exemplifies the deeds, character, and attributes of a corporate culture is called a symbol.

Question 27

Symbols, stories, heroes, slogans, and ceremonies combine to create an organization's culture.

Question 28

People in the environment who can be hired to work for an organization make up the labor market.

Question 29

The achievement culture is a results-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results.

Question 30

Mergers and joint ventures rarely occur in the U.S. due to the stable environment and lack of technological change.

Question 31

A boundary-spanning role is an effort to spot trends that enable managers to predict future events.

Question 32

An achievement culture is found in an environment that is dynamic and requires high-risk decision-making.

Question 33

The clan culture is suited to organizations that are concerned with serving specific customers in the external environment but without the intense need for flexibility and rapid change.

Question 34

The internal environment within which managers work includes corporate culture, sociocultural aspects, and customers.

Question 35

The set of key values, beliefs, and norms, that are shared by members of an organization are combined to create the symbols of an organization.

Question 36

A story is a phrase or sentence that succinctly expresses a key corporate value.

Question 37

When an organization pays little attention to either cultural values or business results, it is unlikely to survive for long.

Question 38

A merger involves a strategic alliance or program by two or more organizations.

Question 39

The mythical sales representative at Robinson Jewelers who delivered a wedding ring directly to the church because the ring had been ordered late is an example of a hero.

Question 40

The bureaucratic culture has an external focus and a consistency orientation for a dynamic environment.

Question 41

Which of these is NOT a part of an organization's task environment.

A) Customers
B) Labor markets
C) Competitors
D) Employers
E) Suppliers

Question 42

In a recent survey of managers, __________ % said that multicultural experience is important for leaders.

A) 15
B) 18
C) 20
D) 28
E) 30

Question 43

According to Unlocking Innovative Solutions Through People in Chapter 3, the Brazil-based Semco Corp. was revived when the president turned control over to the employees.

Question 44

When Miami Herald launches a Spanish-language newspaper, El Nuevo Herald, with articles emphasizing Hispanic, Cuban, and Latin American news and sports, it is responding to changes in __________ environment.

A) sociocultural
B) technological
C) economic
D) competitors
E) suppliers

Question 45

__________ system draws resources from the external environment and releases goods and services back to it.

A) production
B) closed
C) open
D) information
E) management

Question 46

A cultural leader defines and use signals and symbols to influence corporate culture.

Question 47

The dimension of the general environment representing the demographic characteristics, norms, customs, and values of the population within which the organization operates is referred to as a(n)

A) legal-political dimension.
B) economic dimension.
C) technological dimension.
D) corporate culture dimension.
E) sociocultural dimension.

Question 48

The __________ environment represents the outer layer of the environment and affects organizations __________.

A) task; indirectly
B) general; directly
C) internal; directly
D) internal; indirectly
E) general; indirectly

Question 49

Microsoft appears poised to make the same mistake Xerox did by missing cues from

A) employees
B) the government
C) the environment
D) managers
E) technology

Question 50

Ally Likens received "The Employee of the Month" Award at Internal Workings Remodeling Service in April. Ally would be considered a part of which of these for Internal Workings?

A) General environment
B) Task environment
C) Economic environment
D) Internal environment
E) Political activity

Question 51

Which of these includes all elements existing outside the boundary of the organization that have the potential to affect the organization?

A) Organizational environment
B) Internal environment
C) Task environment
D) General environment
E) Technological environment

Question 52

Which dimension of the external environment represents events originating in foreign countries as well as opportunities for American companies in other countries?

A) National dimension
B) Global dimension
C) International dimension
D) Japan's dimension
E) U.S. dimension

Question 53

__________ is a part of Ford's, a U.S. auto manufacturer, task environment.

A) Inflation rate
B) Chrysler
C) Securities and Exchange Commission (SEC), a government regulating agency
D) Amazon.com, an online bookseller
E) Ford's corporate culture

Question 54

Which of these is NOT a part of an organization's general environment?

A) Technological
B) Economic
C) Competitors
D) Legal-political
E) Sociocultural

Question 55

In a high performance culture, organizations put high emphasis on both culture and solid business performance as drivers of organizational success.

Question 56

Scientific and technological advancements in a specific industry as well as in society at large are included in which general environment dimension?

A) Sociocultural dimension
B) Legal-political dimension
C) Economic dimension
D) Technological dimension
E) Corporate culture dimension

Question 57

When an organization puts emphasis on both cultural values and business results, success will be difficult to sustain in the long run.

Question 58

Which of these is a part of an organization's internal environment?

A) Its customers
B) Its salespeople
C) The consumer price index
D) Its suppliers
E) Its competitors

Question 59

The cultural leader articulates a vision for the organizational culture that employees can believe in and that generates excitement.

Question 60

According to Manager's Shoptalk in Chapter 3, anyone considering doing business in China should keep in mind all of the following rules except:

A) Business is always personal
B) Don't skip the small talk
C) Remember that relationships are not short-term
D) Be efficient with use of time
E) Make contact frequently

Question 61

When two or more organizations combine to become one, it is referred to as a

A) joint venture.
B) flexible structure.
C) mechanistic structure.
D) merger.
E) inorganic venture.

Question 62

Many organizations are adapting to the environment by developing more of a(n) __________ relationship rather than a(n) __________ relationship with competitors.

A) adversarial, partnership
B) partnership, adversarial
C) strategic, competitive
D) competitive, strategic
E) none of these

Question 63

A government inspection has required your company to upgrade the safety equipment in the manufacturing process of ice creamery. What dimension of the external environment has influenced these upgrades?

A) Technological
B) Legal-political
C) Task
D) Sociocultural
E) Economic

Question 64

The __________ represents people in the environment who can be hired to work for the organization.

A) competitors
B) labor market
C) suppliers
D) customers
E) government

Question 65

The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest rates is called the

A) legal-political dimension.
B) sociocultural dimension.
C) technological dimension.
D) economic dimension.
E) task dimension.

Question 66

What dimension of the general environment includes federal, state, and local government regulations?

A) Technological
B) Legal-political
C) Economic
D) Sociocultural
E) International

Question 67

Which of the following is an approach to boundary spanning which results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant

A) merger intelligence
B) business intelligence
C) competitive intelligence
D) partnership intelligence
E) environment intelligence

Question 68

Which of the following is NOT a part of adapting the organization to changes in the environment for coping with high environmental uncertainty?

A) Boundary-spanning roles
B) Advertising/public relations
C) Mergers/joint ventures
D) Interorganizational partnerships
E) All of these are a part of organizational response in adapting the organization to changes in the environment.

Question 69

Which statement below is correct?

A) When environment is dynamic, uncertainty is low.
B) When the environment is unstable, uncertainty is low.
C) A dynamic environment has more uncertainty than a stable environment.
D) The stability of the environment does not determine the structure of the firm.
E) None of these.

Question 70

Integrated Computers, Inc. wants to compile a profile of the customer it will target in its next promotional mailing. What environment would this be found in?

A) Internal environment
B) Task environment
C) Work environment
D) General environment
E) None of these

Question 71

Abraham's Applesauce is in the process of hiring sixty new workers. The personnel department has a large pool of unskilled labor to draw from due to the high unemployment rate in the local area. Which dimension of the external environment is involved here?

A) Sociocultural
B) Competitors
C) Technological
D) Labor market
E) Legal-political

Question 72

__________ are included in an organization's task environment.

A) Suppliers
B) Accounting procedures
C) Technology
D) Government
E) Demographic characteristics

Question 73

__________ environment consists of demographic factors, such as population density.

A) Technological
B) Sociocultural
C) Legal-political
D) Internal
E) Economic

Question 74

A recent significant trend in the economic environment is the frequency with which companies seem to be involved in __________.

A) mergers
B) bankruptcy
C) reorganizations
D) layoffs
E) expansions outside the United States.

Question 75

Based on the notion that organizations are dealing with a very turbulent and uncertain external environment, more organizations are requiring __________ to perform boundary-spanning activities.

A) top leaders
B) middle managers
C) line managers
D) all employees
E) suppliers

Question 76

For Southwest Airlines, all of the following can be suppliers EXCEPT

A) Exxon (providing jet fuel).
B) Citibank (providing finances).
C) Delta Airlines (providing competition).
D) Boeing (providing planes).
E) All of these are suppliers for Southwest Airlines.

Question 77

Sarah's Jewelry Shop has just hired a comparative shopper to visit other local jewelry stores to gain product pricing information. What strategy is this describing?

A) Boundary-spanning roles
B) A flexible structure
C) Unfair practice
D) Increase planning and forecasting
E) Joint venture

Question 78

An interest group that works within the legal-political framework to influence companies to behave in socially responsible ways is called a(n)

A) pressure group.
B) legal group.
C) political influence group.
D) social group.
E) none of these.

Question 79

The people and organizations in the environment who acquire goods or services from the organization are

A) competitors
B) suppliers
C) customers
D) employees
E) potential employees

Question 80

Companies can reduce boundaries and increase collaboration with other organizations by creating

A) flexible structures.
B) interorganizational partnerships.
C) new company cultures.
D) new supplier connections.
E) none of these.