Deck 2: The Management Environment

Question 1

The U.S.economy has been the primary model for economic systems around the world.

Answer 1

True

Question 2

The capitalistic system that the United States uses is thought to be perfect by most economists.

Answer 2

False

Question 3

The U.S.housing market been identified as a major cause of the economic meltdown that began in 2008.

Answer 3

True

Question 4

The corporate model of ownership and organization originated in the United States.

Question 5

High interest rates have been identified as a major cause of the economic meltdown that began in 2008.

Question 6

The external environment of an organization includes factors and forces that can affect how the organization operates.

Question 7

Experts believe that the U.S.economy should have no trouble getting back to "business as usual" when the current recession ends.

Question 8

Experts now agree that the role of government in the U.S.economy will be greatly diminished in the years to come.

Question 9

A major cause of the shutdown of a BMW assembly plant in South Carolina in 2010 was a bank crisis in Iceland.

Question 10

The components of an organization's external environment include a technological component and a political component.

Question 11

The symbolic view of management holds that an organization's performance is based solely on the decisions of managers.

Question 12

One element of Zappos' success is that it has limited selection, focusing on quality rather than a great number of different brands and styles.

Question 13

The omnipotent view of management holds that good managerial decisions result in an organization's success.

Question 14

One of Zappos' key features is free returns on shoes that don't fit.

Question 15

The sociocultural component of the external environment of an organization includes trends and traditions, but not basic attitudes and values.

Question 16

One of Zappos' goals is to deliver WOW to its customers.

Question 17

The quarterback of a football team assumes a largely symbolic role for his team because his performance largely determines the outcome of the game.

Question 18

Prior to the recession that began in 2008, many businesses became highly leveraged, which is another term for a company with a high debt-to-assets ratio.

Question 19

The overall trend toward globalization is part of the political component of an organization's external environment.

Question 20

In the economic meltdown of 2008, most American managers assumed the role of omnipotent managers by failing to take responsibility for events and blaming problems on "external circumstances."

Question 21

Employees learn organizational culture by reading official organization documents and histories.

Question 22

How employees dress has nothing to do with an organization's culture.

Question 23

The age of a population is one of its most important demographics.

Question 24

The age of a population is one of its most important demographics.

Question 25

Strong organizational culture can eliminate the need for rules and bylaws.

Question 26

The business world cannot count on regulation to reform the economy.

Question 27

A good manager considers the interests of all stakeholders equally when making an important decision.

Question 28

At Cranium, a Seattle board game company, the term chiff reminds employees to be innovative in everything they do.

Question 29

Gen Xers are generally the children of the Baby Boomers.

Question 30

The phrase "demographics is destiny" refers to the idea that older nations get tired, which causes their performance to slip.

Question 31

Environmental complexity refers to the number of components that an organization must deal with.

Question 32

An industry with a dynamic business environment that is also highly complex faces the maximum amount of environmental uncertainty.

Question 33

Given a choice, managers would prefer to operate in an environment that has a minimum of uncertainty.

Question 34

Strong cultures make a manager's job easy because all organizational policies, practices, and traditions are provided in writing for easy reference.

Question 35

An organization's founder has little influence on its culture.

Question 36

Nike's account of Bill Bowerman pouring rubber into his wife's waffle iron is an example of an organizational ritual.

Question 37

The cell phone industry faces a stable business environment.

Question 38

Technology has changed the way managers manage by forcing them to keep track of employees in remote locations at all times of the day and night.

Question 39

Having a strong culture can allow an organization to avoid any worry about ethics violations.

Question 40

A company's organizational culture refers to a system of shared political beliefs.

Question 41

In a ready-fire-aim culture, managers will endlessly analyze a situation before taking action.

Question 42

What is WOW, and how does Zappos deliver it to its customers?

A)WOW is a sense of toughness and satisfaction that is gained primarily through low prices.
B)WOW is a sense of delight and satisfaction that is gained primarily through excellent service.
C)WOW is a sense of astonishment that is gained primarily through selling shoes that no other company has.
D)WOW is a sense of wonder that is gained primarily through a sense of corporate spirituality.

Question 43

According to Zappos' management, this is the secret to Zappos' success.

A)strong organizational culture
B)a brilliant business plan
C)low prices
D)technology

Question 44

Which kind of company would you expect to pay its CEO the most?

A)a company with a symbolic view of management
B)a company with a liberal view of management
C)a company with a semipotent view of management
D)a company with an omnipotent view of management

Question 45

Which innovation did the United States NOT introduce to the world's economic system?

A)mass production methods
B)a safety net for workers
C)corporate organizational practices
D)corporate ownership

Question 46

A ban on gay marriage is an example of a change in which components of an organization's external environment?

A)political/legal and technological
B)economic and demographic
C)sociocultural and global
D)sociocultural and political/legal

Question 47

The market crash in 2008 was largely a result of ________ the free market system.

A)newfound confidence in
B)indifference toward
C)new curiosity in
D)an erosion of trust in

Question 48

Which of the following is most likely to be the biggest change that the "new economy" will usher in?

A)organizations taking on more risk
B)fewer regulations
C)a smaller government role
D)a larger government role

Question 49

Which of the following is the best interpretation of Keynes' statement that in capitalism the most wicked men do "the most wickedest of things for the greatest good of everyone"?

A)Evil people become benevolent as a result of living in a capitalistic system.
B)The aggregate effect of selfish acts in an open market creates virtue.
C)The aggregate effect of unselfish acts in a closed market with a planned economy creates economic prosperity.
D)The aggregate effect of selfish acts in an open market creates economic prosperity.

Question 50

Which of the following is not involved with the demograpic component of an organization's external environment?

A)values
B)gender
C)race
D)income

Question 51

Which kind of company would be less likely to fire its CEO after a poor performance?

A)a company with a symbolic view of management
B)a company with a realistic view of management
C)a company with an external view of management
D)a company with an omnipotent view of management

Question 52

Which of the following identifies an outcome of the economic crisis of 2008?

A)fewer business regulation
B)increased business regulations
C)no business regulations
D)voluntary business regulations

Question 53

Which components of the external environment of the Nissan plant in South Carolina were disrupted by the eruption?

A)the demographic and global components
B)the political and legal components
C)the economic and global components
D)the sociocultural and demographic components

Question 54

Organizational culture largely determines how much risk members of an organization will take.

Question 55

Which event triggered the recession that began in 2008?

A)Consumers were unwilling to purchase electronic equipment.
B)Businesses were unable to make loan payments.
C)Homeowners were unable to make mortgage payments.
D)Renters were unable to find available housing.

Question 56

Which of the following contributed most to many companies becoming highly leveraged in the lead-up to the economic downturn in 2008?

A)high interest rates
B)low interest rates
C)limited liquidity
D)no liquidity

Question 57

What did the volcanic eruption in Iceland illustrate?

A)how much organizations depend on their banks
B)how much organizations depend on their external environment
C)how much organizations depend on corporate culture
D)how much organizations depend on a strong brand image

Question 58

Which view of management describes a situation in which managers are directly responsible for a company's success or failure?

A)the structural view of management
B)the symbolic view of management
C)the omnipotent view of management
D)the realistic view of management

Question 59

Which of the following is NOT a feature of the U.S.model of capitalism in the twentieth and twenty-first centuries?

A)open markets
B)large-scale operations
C)full lifetime job security
D)corporate model of ownership and organization

Question 60

Which innovation did the United States bring to the world's economic system?

A)a social welfare state
B)the corporate model of ownership
C)planned economies
D)income taxes

Question 61

What will cause countries such as Denmark to shrink with respect to the size of their economy, relative to other nations?

A)no social safety net
B)welfare payments
C)high birth rate
D)low birth rate

Question 62

A TV reality show program essentially puts out the same product episode after episode, year after year, with little change and few rivals.The show exists in a TV industry that has hundreds of different components to keep track of.Where does the show belong on the uncertainty matrix?

A)Cell 1
B)Cell 2
C)Cell 3
D)Cell 4

Question 63

Which demographic do managers pay closest attention to with respect to large-scale trends in the business world?

A)age
B)sex
C)employment status
D)geographic location

Question 64

Which of the following is LEAST likely to be considered a stakeholder for a newspaper company, The Daily Recorder?

A)the paper boy who delivers the paper to customers
B)critics who claim that all newspapers are biased and dishonest
C)customers who buy the paper at newsstands
D)subscribers

Question 65

Which kind of company has the lowest amount of environmental uncertainty in the environmental uncertainty matrix?

A)Cell 1
B)Cell 2
C)Cell 3
D)Cell 4

Question 66

A software company innovates constantly to keep up with new rivals that are constantly appearing on the scene.The software industry itself has an enormous number of players to deal with that includes retailers, online distributors, educational institutions, and government agencies.Where does the company belong on the uncertainty matrix?

A)Cell 1
B)Cell 2
C)Cell 3
D)Cell 4

Question 67

Which trend do most managers need to get used to in the coming years?

A)Most workers will be hired as permanent employees at a lower pay scale than they were in in the past.
B)Many workers will be hired as consultants rather than as freelance employees.
C)Most workers will be hired as permanent employees rather than on a freelance basis.
D)Many workers will be hired on a freelance basis rather than as permanent employees.

Question 68

Which of the following is likely to be the permanent result of the recent economic downturn in the United States?

A)Almost all of the jobs lost will not return.
B)About half of the jobs lost will not return.
C)About a quarter of the jobs lost will not return.
D)Almost all of the jobs lost will return.

Question 69

Which of the following are many managers concerned about as a result of increased government participation in the economy?

A)an overheated economy
B)a growing budget deficit
C)an enormous budget surplus
D)corrupt government officials taking bribes

Question 70

Which of the following identifies the best illustration of the phrase "demographics is destiny"?

A)India is experiencing explosive growth partly because its population is growing rapidly.
B)India is experiencing poverty because its population is growing rapidly.
C)The United States is experiencing slow growth partly because its population is growing rapidly.
D)The United States is experiencing healthy growth partly because its population is not growing and people are saving their resources.

Question 71

Why were the Baby Boomers so much more influential than other generations with respect to changing American tastes and culture?

A)The Baby Boomers came after World War II when lifestyles were really changing.
B)The Baby Boomers were a much more coherent group than other generations.
C)The Baby Boomers were a much larger group than other generations.
D)The Baby Boomers were a much more free-spirited group than other generations.

Question 72

Which of the following provides the best illustration of technology transforming how managers manage in the workplace?

A)Managers oversee very large design teams.
B)Managers must supervise design teams more closely.
C)Managers oversee very large clerical and secretarial staffs.
D)Managers oversee very small clerical and secretarial staffs.

Question 73

Which of the following best defines environmental uncertainty?

A)the amount of innovation and creativity in an organization's internal environment
B)the amount of resources and expertise in an organization's internal environment
C)the amount of change and confidence in an organization's external environment
D)the amount of change and complexity in an organization's external environment

Question 74

The greater the environmental uncertainty, the more an organization needs to become ________.

A)organic
B)mechanistic
C)stable
D)high-tech

Question 75

The Daily Recorder is trying to decide whether it will fire about 200 employees if things don't change in the near future.The paper is scheduling a meeting with the 200 employees.The employees want to include their own family members at the meeting.How should the paper respond?

A)Family members are internal stakeholders, so they should have a separate meeting with the paper without the employees.
B)Family members are internal stakeholders, but they not should be allowed to attend the meeting.
C)Family members are external stakeholders, so they should be allowed to attend the meeting.
D)Family members are not stakeholders, so they should not be allowed to attend the meeting.

Question 76

Which of the following nations is likely to experience the greatest population increase in the years to come?

A)Canada
B)Spain
C)Russia
D)Nigeria

Question 77

Which of the following is an internal stakeholder for the newspaper, The Daily Recorder?

A)the editor of The Daily Sun
B)the city council
C)shareholders in The Daily Sun
D)The Daily Recorder shareholders

Question 78

How are the "Post-Millennials" likely to be different from previous generations?

A)They require products that are completely customized to the individual.
B)They require products that are completely generic and not at all customized to the individual.
C)They require products that are serious and meaningful rather than frivolous and fun.
D)They require products that are of much higher quality than those required by individuals in previous generations.

Question 79

Which of the following best explains why increased regulations cannot be the complete solution to reforming the economy?

A)The regulators are all corrupt.
B)It is extremely difficult to write regulations.
C)There are too many transactions to keep track of.
D)There are too many regulations to keep track of.

Question 80

Which statement about the external environment and employment is true?

A)External environmental conditions improve employment during upswings and worsen employment during downturns.
B)External environmental conditions worsen employment during upswings and improve employment during downturns.
C)External environmental conditions have no effect on employment during upswings and worsen employment during downturns.
D)External environmental conditions worsen employment during upswings and have no effect on employment during downturns.