Deck 3: Organizational Environments and Cultures

Question 1

In the context of changing environments, identify a true statement about environmental uncertainty.

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.

Answer 1

C

Question 2

The country Grupindor recently experienced a drastic increase in inflation. This led to the depreciation in the value of its currency and affected trade and business drastically. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological changes in the country
B) political condition of the country
C) economy of the country
D) sociocultural aspect of the country

Answer 2

C

Question 3

In the context of the internal and external forces that affect business, which of the following is a difference between stable environments and dynamic environments?

A) The stable environment of a company is only related to the external factors affecting the company, whereas the dynamic environment of a company is only related to the internal factors affecting the company.
B) In stable environments, fundamental changes are observed in the environment, whereas in dynamic environments, incremental changes occur.
C) In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.
D) Companies with stable environments experience changing customer preferences and attitudes, whereas companies with dynamic environments experience a fixed set of customer needs.

Answer 3

C

Question 4

Managers feel confident that they can understand, predict, and react to the external forces affecting their businesses when:

A) resource scarcity is low.
B) environmental change is extensive.
C) the industry is not at an equilibrium state.
D) environmental complexity is high.

Question 5

Cheizza, a pizza vendor in the country of Wisbane, believes that the taste of fresh cheese in its pizzas is its unique selling point. However, recently there has been a rise in the number of pizza vendors in Wisbane who have also started using fresh cheese to prepare their pizzas. This has led to a drastic increase in the demand for cheese. However, the amount of milk produced in the country is insufficient to meet the increased demand for cheese. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 6

Paperflamen, the largest manufacturer of notebooks in the country Delonofia, uses softwood trees to produce high-quality paper. However, because of the high demand for paper and shortage of softwood trees in the country, Paperflamen has been facing difficulties. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 7

Potanta is a company that manufactures herbal soaps. Over the years, the availability of aloe vera pulp, which is the key ingredient of the company's best-selling aloe vera soaps, has reduced. As a result, the company has to slow down its production of aloe vera soaps, and this affects the company's income. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 8

Environmental uncertainty in an organization is high when:

A) resource scarcity is low.
B) environmental change is extensive.
C) environmental complexity is low.
D) industry regulations are strict.

Question 9

Many people in Rhenasia spend less as there are only a few well-paid jobs in the country. Many businesses in the country are adversely affected as the purchasing power of consumers has drastically reduced. The organizational environmental characteristic that is affecting businesses in Rhenasia is associated with the _____.

A) technological changes in the country
B) political condition of the country
C) economy of the country
D) media in the country

Question 10

The country Bornizia recently experienced a drop in inflation. This change facilitated sales for many organizations and also increased employment. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological changes in the country
B) political condition of the country
C) economy of the country
D) sociocultural aspect of the country

Question 11

Bagfur is a manufacturer of original leather handbags. Its business has dropped as the use of leather has been banned in a lot of countries. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 12

According to forecasts, different parts of the country Frecciatona are likely to be affected by water shortage. Following this news, the chief operations officer of Frantef Appliances, a company that manufactures and supplies household devices in Frecciatona, plans to introduce a new model of dishwasher that makes efficient use of small amounts of water. In the context of changing environments, this scenario best illustrates _____.

A) generational change
B) technological lockout
C) environmental uncertainty
D) buyer dependence

Question 13

Citrine Inc. is a manufacturer of electrical home appliances. The company is facing a serious shortage of copper scrap that is used in its manufacturing process. Hence, the manufacturing process at Citrine has come to a halt. In the context of external environments, which of the following characteristics is illustrated in this scenario?

A) Punctuated equilibrium
B) Environmental inertia
C) Resource scarcity
D) Buyer dependence

Question 14

_____ is the abundance or shortage of critical organizational resources in an organization's external environment.

A) Resource equilibrium
B) Resource leveling
C) Resource augmentation
D) Resource scarcity

Question 15

In the context of the external environments that influence organizations, which of the following is a difference between the general environment and the specific environment?

A) Unlike the specific environment, the general environment includes customers, competitors, and suppliers.
B) Unlike in the specific environment, in the general environment, proactive monitoring takes place that addresses customers' needs before they occur.
C) Unlike the specific environment, the general environment is responsible for indirectly affecting all organizations.
D) Unlike in the specific environment, in the general environment, a shrinking economy is directly related to consumers willing to spend more to purchase products.

Question 16

In the context of the number and the intensity of external factors in the environment that affect organizations, a(n) _____ is defined as an environment with few environmental factors.

A) dynamic environment
B) simple environment
C) complex environment
D) uncertain environment

Question 17

Which of the following is true of business confidence indices?

A) They show how sure actual managers are about future business growth.
B) They indicate how businesses have been performing over the previous years.
C) They show how confident customers are about the companies they do business with.
D) They indicate general economic statistics over the previous years.

Question 18

Chocorrect, a gourmet chocolate manufacturer, imports the best quality cocoa for its chocolates from the country Jescavia. However, Jescavia has recently stopped exporting cocoa because of the increase in the demand for cocoa in the country. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 19

Which of the following is a component of the general environment that indirectly affects all organizations?

A) Political/legal trends
B) Customers
C) Industry regulations
D) Suppliers

Question 20

The economy is a part of the _____ that influences all organizations.

A) specific environment
B) general environment
C) niche environment
D) internal environment

Question 21

Because of a financial crisis, Isaavne, an automobile manufacturer, terminated 200 factory employees without prior notice. As a result, the labor union filed a suit against the company on the grounds of wrongful termination, and it had to pay a large amount as fine. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component

Question 22

Fabtabtix, a designer clothing brand, has been selling clothes in the country of Grolania for over 30 years. With more number of people becoming fashion-conscious, the sale of designer wear has increased. As a result, Fabtabtix's business has been rapidly growing over the past few years. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 23

Coastwed is a company that sells traditional wedding accessories in the country Calpontus. Over the past 10 years, the company has been experiencing a gradual drop in its business because of fewer people opting for marriage. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 24

An automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. In the context of organizational environment, this new invention is a development in the _____ of the general environment.

A) technological component
B) sociocultural component
C) legal component
D) economic component

Question 25

Which of the following exemplifies a sociocultural component in the general organizational environments?

A) New FDA regulations on food handling and storage in fast food chains
B) Increase in the number of fast food chains offering similar menus
C) Increasing popularity of weight management programs
D) Shortage of spice suppliers

Question 26

In the context of the specific environment of an organization, which of the following is a difference between reactive customer monitoring and proactive monitoring of customers?

A) Unlike reactive customer monitoring, proactive monitoring of customers involves listening closely to customer complaints and responding to customer concerns.
B) Unlike reactive customer monitoring, proactive monitoring of customers involves identifying potential customers and seeking ways to attract them to indulge in a product or service.
C) Unlike reactive customer monitoring, proactive monitoring of customers includes the use of an advocacy tactic that revolves around product boycotting.
D) Unlike reactive customer monitoring, proactive monitoring of customers identifies and addresses customer needs before they occur.

Question 27

When solar panels became popular in the market, Dabbanth, a company that manufactures and sells kitchenware, developed containers fitted with solar panels to keep the food in the containers heated for longer. Following this innovation, Dabbanth became a leading brand name. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 28

Tradcuisie Souvenirs is a company that manufactures souvenirs that represent the traditional arts of the country Yeingir. For the past few years, the business of Tradcuisie Souvenirs has been declining because of a shortage of artisans who have learned traditional crafts. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 29

Ken was fired from his job at a paper mill for taking one week off from work even though his leave had been approved by his manager. As this action is a violation of the terms of job security, Ken filed a suit against the paper mill. He won the case, and the paper mill suffered losses as it had to pay a hefty sum to Ken as compensation. In the context of the general environment, this scenario illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component

Question 30

When Jane appeared for an interview at Incogyn Inc., she was promised a monthly pay of $7,500 after all tax deductions. However, after her first month at work, she received only $7,230. She filed a suit against the company on the grounds of misrepresentation of information, and the company incurred losses because of the amount it had to pay as fine. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component

Question 31

A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general environment.

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

Question 32

Merchargy is a firm that supplies garments to apparel stores. Merchargy discovered that one of its customers, Apricoress, a large apparel store, had been selling the products sourced from Merchargy at exorbitant rates. As this was a violation of their trade contract, Merchargy filed a suit against Apricoress on the grounds of fraud and won the case. Apricoress incurred huge losses because of the compensation it had to pay Merchargy. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component

Question 33

Mathew, a team manager at Weltono Inc., requested the company's senior management for additional resources for a project. However, he was denied the additional resources, and as a result, the project failed. During a company gathering, a senior manager publicly attributed the failure of the project to Mathew's incompetence. He filed a suit against the company on the grounds of public defamation and won the case. The company incurred losses because it had to pay a hefty sum to Mathew as compensation. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component

Question 34

In case of book publishing, identify an example of a sociocultural component in the general organizational environments that can indirectly influence all the organizations.

A) An increase in the number of competitors
B) The number of book distributors in a particular location
C) A trend toward reduced leisure time
D) An advocacy group supporting free books for children

Question 35

When Zaprogs, a start-up, used the e-wallet system to develop an application for easy cashless transactions, a majority of people completely switched to online banking. As a result, a number of organizations that relied on hard cash transactions began to lose their business. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 36

_____ involves identifying and addressing customer needs, trends, and issues before they occur.

A) Customer due diligence
B) Reactive customer monitoring
C) Proactive monitoring of customers
D) Cognitive mapping

Question 37

Which of the following exemplifies a political/legal trend in the general organizational environments?

A) Scarcity of medical equipment suppliers
B) Recruitment of highly skilled nurses
C) Regulations concerning the disposal of biological wastes
D) High attrition rate of medical staff

Question 38

When agricultural machines were introduced, a number of industries benefited from them. At the same time, a number of farmers and small organizations that relied on manual labor and traditional methods of agriculture lost their business. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 39

Which of the following forms a component of the specific environment of an organization?

A) The suppliers
B) The political component
C) The technological component
D) The customers

Question 40

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

A) Competitors
B) Lobbies
C) Intermediaries
D) Sponsors

Question 41

Redd Publications Inc. has been buying ink cartridges and printing papers from Haven Corp. for several years. Both companies make an effort to keep their transactions fair and transparent. This has helped them maintain mutually beneficial business ties. It can be said that Redd Publications and Haven exhibit _____ toward each other.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) compromising behavior

Question 42

Optalama, a leading chain of optical stores, follows the practice of conducting surveys to study the strategies used by other optical stores in the city in which it operates. To maintain its position as the market leader, it monitors the other stores' strengths, weaknesses, and advertising and marketing campaigns. In this scenario, which of the following is Optalama most likely using?

A) Demographic segmentation
B) Corporate governance
C) A cost-benefit analysis
D) A competitive analysis

Question 43

The city of Busslia has many cosmetics manufacturers but only one store, Venwanz, that sells cosmetics. All the manufacturers of cosmetics in Busslia are highly dependent on Venwanz to sell their products. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Buyer dependence
C) Supplier dependence
D) Internal dependence

Question 44

Chocblur is the only wholesaler of cooking chocolate in the town of Wescanso. Klemmy's, a famous dessert shop in Wescanso, purchases cooking chocolate only from Chocblur because transporting the chocolate from other towns would increase its overall expenses. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 45

In the context of the specific environment of an organization, which of the following is a difference between supplier dependence and buyer dependence?

A) Supplier dependence relates to the difficulty of finding consumers for a particular product, whereas buyer dependence relates to the difficulty of finding dealers of a particular product.
B) Supplier dependence is the degree to which a company relies on a dealer for the dealer's product, whereas buyer dependence is the degree to which a supplier relies on a consumer.
C) Supplier dependence takes into account the importance of a consumer to a supplier's sales, whereas buyer dependence takes into account the importance of a manufacturer's products to a company.
D) A high degree of buyer dependence can lead to opportunistic behavior, whereas a high degree of supplier dependence does not lead to opportunistic behavior.

Question 46

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

A) Transactional behavior
B) Opportunistic behavior
C) Advocacy behavior
D) Relationship behavior

Question 47

Stonecioust, an apparel store, plans to open a store in the city of Afbanca in the current fiscal year. Before setting up the store, the brand manager of Stonecioust conducts a survey to study the business tactics, strengths, and weaknesses of the apparel stores that operate in Afbanca. In this scenario, which of the following is Stonecioust most likely using?

A) Demographic segmentation
B) Corporate governance
C) A cost-benefit analysis
D) A competitive analysis

Question 48

_____ is the degree to which a supplier relies on a customer because of the importance of that customer to the supplier's sales and the difficulty of finding other customers for its products.

A) Buyer dependence
B) Customer due diligence
C) Resource dependence
D) Supplier dependence

Question 49

Jipmor, an interior décor store in the city of Jeswayde, manufactures designer white oak furniture. Jipmor is highly dependent on Casode, which is the only store in Jeswayde that sells white oak wood, for the timely delivery of good-quality wood. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 50

Bringwo is a computer brand whose computers are compatible with a variety of processors. Patfon, a manufacturer of computer processors, makes processors that are compatible only with Bringwo's computers and is therefore highly dependent on Bringwo. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Buyer dependence
C) Supplier dependence
D) Internal dependence

Question 51

Ecru Inc. is a company that regularly provides dairy products and meat to a fast-food chain. In this scenario, Ecru Inc. is a _____ of the fast-food chain.

A) supplier
B) competitor
C) buyer
D) internal stakeholder

Question 52

Homespar is an e-commerce site that sells home décor and kitchenware. It sources all its wooden articles, such as coasters, serving trays, and photo frames, from a rural carpentry firm because the firm charges much lower prices than other carpentry firms. The firm is also reliable in terms of quality and delivery time. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 53

Glittenra is the largest local silver store in the town of Casempton. Famegems, a large silver jewelry chain of stores, wants to set up an outlet in Casempton. Before finalizing the decision to set up the store, the marketing team of Famegems conducts a detailed study on the business, marketing strategies, and customer base of Glittenra. In this scenario, which of the following is the marketing team of Famegems most likely using?

A) Demographic segmentation
B) Corporate governance
C) A cost-benefit analysis
D) A competitive analysis

Question 54

Zimway Inc. is a small-scale manufacturer of linen. Couture Corp., a big apparel brand, purchases linen from Zimway in large quantities. Zimway, otherwise, has very few clients, and most of them purchase linen occasionally and in minimal quantities. Therefore, business ties with Couture is crucial for Zimway's survival and success. In the context of the specific environment, which of the following concepts is illustrated in the scenario?

A) Buyer dependence
B) Supplier dependence
C) Regulator dependence
D) Internal dependence

Question 55

_____ 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) Regulator dependence
D) Supplier dependence

Question 56

Veghub produces organic vegetables in the city of Relvatti. Tandwan, the only store in the city that sells organic vegetables, purchases vegetables from Veghub and other such organic food producers. Veghub is highly dependent on Tandwan for its business. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Buyer dependence
C) Supplier dependence
D) Internal dependence

Question 57

Luis designs clothes for Vongowd, an apparel store. Vongowd sells clothes designed by a number of designers. However, Vongowd is Luis's only option to sell his clothes. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Buyer dependence
C) Supplier dependence
D) Internal dependence

Question 58

Muffton, a patisserie in Jewarmet, is best known for its blueberry muffins. As blueberries are not easily available in Jewarmet, Frutmarc, the only convenience store in Jewarmet that sells blueberries, is the only store from where Muffton can purchase blueberries. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 59

Pencilpop, a stationery store, has been purchasing all its paper products from Tigreto, a wholesaler of paper products, for over a decade. Tigreto gives Pencilpop seasonal discounts and sells its products on a credit basis. Pencilpop does not source its paper products from any other wholesaler because of the low price and the consistent quality that Tigreto offers. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 60

Opulent Inc., a furniture design company based in Winona, designs a wide range of office and household furniture. Umber Corp. has recently started offering custom-made furniture in the same city. The managers at Opulent conduct a research to find out the strengths and weaknesses of Umber. The managers also try to figure out the strategies used by Umber. In the given scenario, which of the following strategies is being used by the managers at Opulent Inc.?

A) Demographic segmentation
B) A cost-benefit analysis
C) Proactive monitoring
D) A competitive analysis

Question 61

Thyimach, a machinery manufacturing company, has been purchasing iron shafts from Metaljun, a supplier of iron and steel materials, for over a decade. When Thyimach designs new models of machinery, Metaljun manufactures shafts with new specifications without asking for advance payments. Thyimach, in turn, uses only Metaljun's materials to manufacture its machinery. In the context of the supplier component of a specific environment, this scenario best illustrates _____ between Thyimach and Metaljun.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) dissonant behavior

Question 62

_____ is a tactic that typically involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.

A) A product boycott
B) Distributive bargaining
C) Proactive monitoring
D) Media advocacy

Question 63

Thutmach is a manufacturer of potato chips. It has been purchasing potatoes from Vegofaz, a vegetable wholesaler, for about a decade. Vegofaz offers discounts and benefits to Thutmach, and Thutmach, in turn, purchases potatoes only from Vegofaz even when other wholesalers approach Thutmach with better offers. In the context of the supplier component of a specific environment, this scenario best illustrates _____ between Thutmach and Vegofaz.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) dissonant behavior

Question 64

The _____ component of the specific environment of an organization consists of rules that govern the business practices and procedures of specific businesses and professions.

A) sociocultural
B) media advocacy
C) industry regulation
D) business confidence

Question 65

In the context of the external environment of a firm, _____ involves searching the environment for important events or issues that might affect an organization.

A) environmental scanning
B) environmental zoning
C) environmental designing
D) environmental testing

Question 66

In the context of federal regulatory agencies and commissions, the _____ stops companies from engaging in unfair workforce practices.

A) Federal Trade Commission
B) National Labor Relations Board
C) Equal Employment Opportunity Commission
D) Occupational Safety and Health Administration

Question 67

In the context of the specific environment of organizations, which of the following is a similarity between the public communications approach and a product boycott?

A) Both are more aggressive than media advocacy.
B) Both typically involve framing a group's concerns as public issues.
C) Both are advocacy group tactics.
D) Both create controversies that are likely to receive extensive news coverage.

Question 68

Which of the following is a tactic in which an advocacy group actively tries to persuade consumers not to purchase a company's goods or services?

A) A class action lawsuit
B) Company divestment
C) Media advocacy
D) A product boycott

Question 69

Safefen, a safety assurance and standards association in the country of Eilenst, made it mandatory for all the toy manufacturers in the country to display the recommended age limit for each toy on its cover. In the context of the specific environment, this scenario best illustrates the effect of the _____ on organizations.

A) competitor component
B) supplier component
C) technological component
D) industry regulation component

Question 70

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

A) Supplier groups
B) Advocacy groups
C) Competitor groups
D) Employee groups

Question 71

Earlinwex, an apparel wholesaler, wants to set up a warehouse in a neighboring country that levies taxes at a low rate. Before setting up the store, the operations manager of the company travels to the country to study the political scenario that affects wholesale businesses, the regulations governing the textile industry, and the business strategies of the existing players in the market. Which of the following concepts does this scenario best illustrate?

A) Punctuated equilibrium
B) Opportunistic behavior
C) Environmental scanning
D) Transfer pricing

Question 72

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

A) Punctuated equilibrium
B) Opportunistic behavior
C) Environmental scanning
D) Transfer pricing

Question 73

Which of the following is the least aggressive tactic used by advocacy groups?

A) Public communications
B) Media advocacy
C) Distributive bargaining
D) Class action lawsuits

Question 74

In the context of the specific environment of an organization, identify a difference between the public communications approach and a media advocacy approach.

A) The public communications approach can force organizations to change their practices, whereas a media advocacy approach cannot force organizations to change their practices.
B) The public communications approach is much more aggressive than a media advocacy approach.
C) The public communications approach relies on voluntary participation by the advertising industry to send out an advocacy group's message, whereas a media advocacy approach involves framing a group's concerns as public issues.
D) The public communications approach creates controversies that are likely to receive extensive news coverage, whereas a media advocacy approach relies on discretionary participation by the news media.

Question 75

The health awareness board in the country of Gelhanwa made it mandatory for all brands that sell tobacco and tobacco products to display a disclaimer highlighting the dangers of tobacco on their product covers. In the context of the specific environment, this scenario best illustrates the effect of the _____ on organizations.

A) competitor component
B) supplier component
C) technological component
D) industry regulation component

Question 76

Klumpro, a supplier of organic milk products, sells its products to Sweedinth, a dessert store and Klumpro's long-term customer, at discounted prices. Sweedinth, in turn, features Klumpro's products in its advertisements. In the context of the supplier component of a specific environment, this scenario best illustrates _____ between Klumpro and Sweedinth.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) dissonant behavior

Question 77

Mintribes, a silver jewelry shop that specializes in tribal jewelry, wants to move its store to a location near tourist attractions. To decide on the location, Mintribes's store manager went to some tourist spots to analyze buyer behavior, learn about the products of the existing jewelry shops in those areas, and study the spending pattern of tourists and locals in those areas. Which of the following concepts does this scenario best illustrate?

A) Punctuated equilibrium
B) Media advocacy
C) Environmental scanning
D) Transfer pricing

Question 78

In the context of the specific environment of an organization, which of the following is a difference between opportunistic behavior and relationship behavior?

A) Opportunistic behavior is observed when both buyers and sellers show least reliability on the other, whereas relationship behavior is observed when both buyers and sellers believe in creating short-term client relationships.
B) A low degree of buyer or seller dependence can lead to opportunistic behavior, whereas a high degree of buyer or seller dependence can lead to relationship behavior.
C) In opportunistic behavior, either the buyer or the seller benefits at the expense of the other, whereas in relationship behavior, both the buyer and the seller mutually benefit.
D) Opportunistic behavior leads to compromises that both the supplier and the buyer agree upon, whereas relationship behavior leads to development of new business relationships when existing ones fail to work.

Question 79

In the context of the external environment of a firm, which of the following statements is true of environmental scanning?

A) Managers scan their firm's environment to reduce uncertainty.
B) It remains unaffected by organizational strategies.
C) CEOs in poorer-performing firms scan their firms' environments more frequently than CEOs in better-performing firms.
D) It is reactive in nature and leads to the detection of environmental problems after they become organizational crises.

Question 80

While setting up his new office, an attorney ordered thick, frieze carpets for the floor. However, the building inspector had him remove the expensive carpeting. The building inspector stated that according to federal law, the office must be wheelchair accessible as it is a public area. He further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. This scenario illustrates how an organization is influenced by the _____ component of its specific environment.

A) sociocultural
B) economic/demographic
C) technological
D) industry regulation