Deck 2: Environmental Contraints on Managers

Question 1

Only when a country's legal/political environment is unstable or revolutionary is it of concern to managers.

Answer 1

False

Question 2

Economic conditions are part of the organization's specific environment.

Answer 2

False

Question 3

The part of the environment that is directly relevant to achievement of an organization's goals is the specific environment.

Answer 3

True

Question 4

Power distance refers to the degree to which a society encourages people to be tough,confrontational,assertive,and competitive.

Question 5

The legal/political environment is an important factor of managing in a foreign environment.

Question 6

To a national television network like the CBC,your home DVD player could be considered a competitor.

Question 7

Through the creation of the EU,each member country now has increased border controls,nationalist policies,and protected industries.

Question 8

The three original partners of NAFTA are Canada,the United States,and Mexico.

Question 9

Shareholders are defined as any constituency in the organization's external environment that may be affected by the organization's decisions and actions.

Question 10

People in a society that is high in uncertainty avoidance don't feel threatened by uncertainty and experience low levels of anxiety,stress,and aggressiveness.

Question 11

The General Agreement on Tariffs and Trade (GATT)was signed in 1992 to create the EU.

Question 12

The World Trade Organization was formed in 1995 and evolved from the Maastricht Treaty,an agreement in effect since the end of World War II.

Question 13

The term suppliers includes providers of financial and labour inputs.

Question 14

NAFTA has strengthened the economic power of all three member countries.

Question 15

A planned economy is one in which resources are primarily owned and controlled by the private sector.

Question 16

Research indicates that organizational culture has a stronger impact on employees than national culture.

Question 17

Demographic conditions are part of the organization's general environment.

Question 18

Canada is an example of a country with small power distance.

Question 19

Millennials are referred to as competitive,idealistic,team players.

Question 20

The European Union (EU)and the North American Free Trade Agreement (NAFTA)have both created regional trading alliances.

Question 21

The specific environment of organizations consists of external forces that have a direct impact on managers' decisions and actions.The main forces are customers,suppliers,competitors,and ________.

A)legislators
B)pressure groups
C)employees
D)lawyers
E)shareholders

Question 22

The external environment consists of the global environment,________.

A)organizational culture,and the general environment
B)specific environment,and the general environment
C)primary environment,and the secondary environment
D)primary environment,and the general environment
E)national culture,and the specific environment

Question 23

Licensing and franchising typically follow the export-import phase of globalization.

Question 24

The Environmental Uncertainty Matrix ranges in complexity from "stable to dynamic" on the horizontal axis and from "simple to complex" (degree of change)on the vertical axis.

Question 25

Transnational corporations run their businesses from their home country.

Question 26

Global outsourcing refers to the practice of purchasing materials or labour from around the world wherever it is cheapest.

Question 27

When organizations go global,they often start by simply exporting products to one or more foreign countries.

Question 28

Setting up a foreign subsidiary involves a higher degree of risk and commitment than franchising.

Question 29

After the outsourcing stage,companies that are going global often turn to exporting and importing goods across international borders.

Question 30

Multinational corporations became commonplace in the mid-1960s.

Question 31

"Born globals" are companies that choose to go global from inception; they commit resources up front (material,people,financing)to do business in more than one country.

Question 32

Transnational corporations run their businesses from their home country.

Question 33

Multinational corporations maintain significant operations in two or more countries simultaneously.

Question 34

Importing is an approach to going global that involves making products at home and selling them overseas.

Question 35

In a strategic alliance,companies join together to form a separate entity to produce a product.

Question 36

An organization's specific environment ________.

A)is unique and changes with conditions
B)is the same regardless of the organization's age
C)is determined by the top level of management
D)includes demographic and technological conditions that may affect the organization
E)includes economic and global conditions that may affect the organization

Question 37

Cultures with a high assertiveness rating tend to have people who are timid and shy.

Question 38

Multidomestic corporations use one strategy for all global operations based on the different domestic influences that are present in the firm's original home market.

Question 39

A society with high uncertainty avoidance relies on rules and trusts its social institutions to deal with an uncertain future.

Question 40

By decentralizing management authority to the local country,the transnational corporation reflects an ethnocentric attitude.

Question 41

Which of the following is usually part of an organization's general environment?

A)weather conditions
B)political conditions
C)competitors
D)suppliers
E)pressure groups

Question 42

When researchers discovered a link between trans fatty acids and heart disease,many consumers became concerned.As a result,Ontario-based Voortman's Cookies decided to eliminate all trans fats from its products.Voortman's was responding to changing ________ conditions.

A)political/legal
B)economic
C)technological
D)sociocultural
E)competitive

Question 43

The primary goal of managers when dealing with suppliers is to ensure a steady flow of ________.

A)cash from investors into the organization
B)inputs at the lowest price available
C)customers at the distribution outlets
D)industry entrants to help maximize the competition among suppliers
E)cheap labour to produce products at the lowest possible cost

Question 44

Neighbourhood activists who protest against the building of "big box" stores would be considered which factor in the specific environment for Walmart or Home Depot?

A)competitor
B)pressure group
C)customer
D)government agency
E)supplier

Question 45

Which of the following is an example of a force in the general environment?

A)customers
B)demographics
C)suppliers
D)competitors
E)pressure groups

Question 46

To a cable television provider like Shaw Cablesystems,a satellite TV company like Bell would be considered a ________.

A)customer
B)supplier
C)pressure group
D)competitor
E)regulator

Question 47

The global environment of an organization includes which of the following?

A)demographic conditions
B)issues directly relevant to achieving organizational goals
C)stakeholders
D)suppliers
E)pressure groups

Question 48

Sociocultural conditions consist of the ________.

A)demographic profiles of an organization's suppliers
B)laws that govern human rights and the competitive activities of organizations in a society
C)level of unemployment and real economic incomes of workers
D)changing expectations of the society in which organizations operate
E)socialization processes that help to maintain organizational cultures

Question 49

Which Act makes it illegal for employers to discriminate on the basis of race,national or ethnic origin,colour,religion,age,sex,marital status,mental or physical disability,or sexual orientation?

A)Canada's Human Rights Act
B)Canada's Employment Equity Act
C)Canada's Competition Act
D)Canada's Civil Liberties Act
E)Canadian Charter of Rights and Freedoms

Question 50

For an amusement theme park like Paramount Canada's Wonderland in Toronto,an insurance provider would be an example of which factor in its specific environment?

A)competitor
B)customer
C)pressure group
D)government agency
E)supplier

Question 51

Why should organizations be concerned with managing external stakeholder relationships?

A)external stakeholders engage in direct transactions with the organization
B)they are sources of outputs (goods and services)
C)they are sources of inputs (resources)
D)it may lead to less environmental change

Question 52

For an organization such as a hospital that needs nurses,the labour union and the local labour market are examples of which factors in its specific environment?

A)pressure group and supplier
B)customer and special-interest group
C)both are examples of suppliers
D)government agency and competitor
E)pressure group and competitor

Question 53

As employees have begun to seek more balance in their lives,organizations have had to adjust by offering family leave policies,more flexible work hours,and even on-site child care facilities.This is an example of how changing ________ conditions can affect an organization.

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

Question 54

Which of the following is an example of a secondary stakeholder?

A)customers
B)creditors
C)suppliers
D)media
E)shareholders

Question 55

According to the textbook,the ________ environment includes those external forces that have a direct and immediate impact on managers' decisions and actions and are directly relevant to the achievement of the organization's goals.

A)general
B)specific
C)secondary
D)forward
E)primary

Question 56

The Canadian Human Rights Act is an example of a ________.

A)sociolegal condition
B)political/legal condition
C)political/sociological condition
D)sociocultural condition
E)demographic condition

Question 57

A downturn in contributions from the public to the United Way charity is an example of the impact from what factor in the charity's general environment?

A)political
B)sociocultural
C)technological
D)economic
E)global

Question 58

Which of the following is included in an organization's specific environment?

A)interest rates
B)government legislation
C)demographics
D)competitors
E)inflation

Question 59

Interest rates,inflation rates,and stock market indexes are all examples of what factor in an organization's general environment?

A)economic
B)political
C)sociocultural
D)technological
E)legal

Question 60

United Parcel Service represents which factor to Canada Post in its specific environment?

A)competitor
B)supplier
C)customer
D)government agency
E)pressure group

Question 61

The WTO is a global organization that evolved from ________.

A)NAFTA
B)GATT
C)the Maastricht Treaty
D)ASEAN
E)EEC

Question 62

According to Hofstede,managers and employees vary on five dimensions of national culture.Which of the following represents one of the five dimensions that Hofstede identified?

A)masculinity vs femininity
B)freedom vs.restraint
C)open-minded vs.close-minded
D)power avoidance

Question 63

Through the creation of the EU,member countries now have ________.

A)border controls
B)government subsidies
C)nationalistic policies
D)protected industries
E)a single market

Question 64

The cultural dimension of ________ measures the degree to which the members of a society expect power to be unequally shared.

A)power distance
B)achievement
C)in-group collectivism
D)uncertainty avoidance
E)humane orientation

Question 65

Human resources managers are increasingly using the Internet to search for qualified candidates through online résumé systems and job-posting websites.This is an example of how changing ________ conditions can affect an organization.

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

Question 66

Which of the following would be likely to be TRUE in a country with a high power distance?

A)Hundreds of statues,billboards,and posters of the leader would appear all over the capital.
B)The leader's likeness would appear only in the newspaper from time to time.
C)Top managers and employees would dress in similar ways.
D)Rather than employ a driver,top managers would drive their own cars to work.

Question 67

A country with a high uncertainty avoidance ________.

A)is highly structured and depends on rules and social institutions to cope with uncertainty
B)is highly structured and does not depend on rules and social institutions to cope with uncertainty
C)has no rules
D)has no structure or social institutions

Question 68

From a cultural standpoint,research indicates that ________ has a greater effect on employees than ________.

A)organizational culture; national culture
B)organizational culture; religion
C)employment law; religion
D)national culture; employment law
E)national culture; organizational culture

Question 69

Which of the following is a trading alliance of Southeast Asian nations?

A)NAFTA
B)Mercosur
C)Southern Cone Common Market
D)ASEAN
E)FTAA

Question 70

As more consumers have become aware of the use of rendered feed and the poor treatment of chickens in many large-scale poultry farms,some farm managers have switched to all-natural feed and "free range" breeding methods.This is an example of how changing ________ conditions can affect an organization.

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

Question 71

Societies which highly value achievement would tend to be ________.

A)passive
B)excessively polite
C)competitive
D)uncertain

Question 72

In France,a culture with a high power distance,status within a corporation would largely be ________.

A)measured in the same way it is in the United States
B)based on how much money a person makes
C)based on such things as seniority and educational level
D)based on an individual's personal accomplishments

Question 73

Canada's economy is best described as ________.

A)a planned economy with no private sector control
B)a planned economy with some private sector control
C)a market economy with no government control
D)a market economy with some government control
E)a planned economy with some government control

Question 74

________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society.

A)Power distance
B)Collectivism
C)Individualism
D)Uncertainty avoidance

Question 75

The cultural dimension of ________ measures the degree to which a society relies on social norms and procedures to alleviate the unpredictability of future events.

A)power distance
B)assertiveness
C)performance orientation
D)uncertainty avoidance
E)future orientation

Question 76

Three economic issues that a global manager might need to understand include ________.

A)tax policies,political stability,and cultural differences
B)tax policies,employment laws,and cultural differences
C)employment laws,currency exchange rates,and political stability
D)currency exchange rates,inflation rates,and tax policies
E)inflation rates,tax policies,and political stability

Question 77

In a country with a low uncertainty avoidance,people cope with uncertainty ________.

A)by following rules and depending on social institutions
B)by making new rules
C)largely without rules or strong social institutions
D)by looking to the religious teachings

Question 78

The enhanced speed and quality of managerial decision making due to improvements in office automation is an example of the impact of which general environmental factor?

A)global
B)sociocultural
C)political
D)technological
E)demographic

Question 79

For most organizations,the most rapidly changing factor has been ________ conditions.

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

Question 80

In his study of differences in cultural environments,Geert Hofstede found that ________.

A)people are largely the same from culture to culture with respect to values
B)the views of managers differ greatly from those of employees with respect to values
C)the views of IBM employees differ widely from the general population with respect to values
D)people vary from culture to culture in six value categories