MGMT Ch.6 Quiz

Which of the following statements supports the fact that Candlewick Inc. operates in a task environment with a high barrier to entry?

Candlewick Inc. is able to sell its products easily, even though they are overpriced.

Superior Power is a new company in the electrical industry, and the company has shown success and is building a strong reputation. What impact will this company have on the other companies in the electrical industry?

Competition will increase and prices and profits will decrease.

Which of the following is the result of globalization?

Globalization weakens cultural barriers and reduces dissimilarities between nations.

Clara belongs to a society which values assertiveness, performance, competition, and results. Her society also encourages freedom of expression and personal success, but makes few provisions for the welfare of the weak. According to Hofstede's model of national culture, which of the following is true about her society?

Her society has an achievement orientation and is high on individualism.

Max belongs to a society which is rigid and skeptical about people whose behaviors or beliefs differ from the norm. His society also values warm, personal relationships over success and performance. According to Hofstede's model of national culture, which of the following is true about his society?

His society is high on uncertainty avoidance and has a nurturing orientation.

Which of the following is true about the general environment?

It includes the wide-ranging global, technological, sociocultural, and political forces that affect organizations.

Holly belongs to a culture which values the subordination of individuals to the group. The national culture also values personal stability and living for the present. Which of the following, according to Hofstede, is true about Holly's culture?

It is high on collectivism and has a short-term orientation.

Which of the following is true about political capital?

It is the flow of power and influence around the world using diplomacy, persuasion, aggression, and force of arms.

_____ are outcomes of changes in the skills and equipment managers use to design, produce, or distribute goods and services.

Technological forces

What benefits does the global environment offer organizations?

The global environment provides organizations with several opportunities to increase efficiency and effectiveness.

Which of the following, according to Hofstede, is characteristic of societies with low power distance?

The government uses taxation and social welfare programs to reduce inequality.

Which of the following statements supports the fact that Toy Track operates in a task environment with a low barrier to entry?

The task environment within which Toy Truck operates is easy to enter.

In what way is the task environment similar to the general environment?

They are both a set of forces and conditions that operate beyond an organization's boundaries.

Which of the following is true about folkways?

They concern the routine social conventions of everyday life.

Which of the following is true about regional trade agreements?

They expose companies based in one member country to increased competition from companies in other member countries

Which of the following is true about regional trade agreements?

They expose companies based in one member country to increased competition from companies in other member countries.

_____ are beliefs about what a society considers to be good, right, desirable, or beautiful.

Values

Which of the following is an example of a supplier?

a bank or financial institution

Which of the following is an example of individualism values?

a high regard for individual entrepreneurs

According to Hofstede, collectivist societies

adhere to the principle that people should be judged by their contribution to the group.

Which of the following is a value of nurturing orientation?

assertiveness

Dolphin's Diner, a famous seafood chain, has opened its newest restaurant in a small town. It soon finds that the only customers it attracts are tourists, because the locals prefer to go to The Clam Café—an older but more expensive restaurant. The Clam Café enjoys significant

brand loyalty

_____ refers to customers' preference for the products of organizations currently in the task environment.

brand loyalty

As the only store to design and sell curtains in the suburb of Oakland, the merchandise sold by Plush Parade is overpriced. Noticing this, Diana's Draperies sets up a showroom in the same suburb, reasoning that with lower prices, they would be able to attract more customers. Diana's Draperies is Plush Parade's

competitor.

Jeremy has a personal library with over 5,000 novels of various genres, most of them bought from Benison's Book House. He is an example of a Benison Book House's

customer

A decline in the number of young people joining the workforce and an increase in the number of active employees who are postponing retirement are examples of _____ forces in the general environment.

demographic

Which of the following forces are outcomes of changes in or changing attitudes toward the characteristics of a population?

demographic

Amethyst, an Italian house of high fashion, designs and creates luxury items like jewelry and hair accessories. It sells its merchandise only through Fiesta, a multinational retail store. Fiesta acts as Amethyst's

distributor.

_____ are organizations that help other organizations sell their goods or services directly to customers

distributors

Inflation is an example of a(n) _____ force in an organization's environment.

economic

Leo wants to improve the costs for his business, so he chooses to buy inputs in bulk and manufacture products in larger quantities. This is an example of

economies of scale.

Apple Inc. contracts with companies in Taiwan to make inputs such as the chips, batteries, and LCD displays that power its digital devices at lower costs. This strategy is an example of

global outsourcing.

Lobo belongs to a society which values the subordination of the individual to the group and discourages individual expressions of thought. Inequality in the power and well-being of people is believed to be due to differences in their physical and intellectual capabilities, and heritage. According to Hofstede's model of national culture, Lobo's society is

high on power distance and low on individualism.

A supplier's bargaining position is especially strong when the input supplied

is a fundamental component of the organization's product.

Greg belongs to a society which makes very few distinctions between people and groups. This is reflected in his company, Sonata DCM, the managers of which represent several different classes and cultures. The society to which he belongs is

low on social stratification.

_____ are norms that are considered to be of central importance to the functioning of society and to social life, the violation of which brings serious retribution.

mores

Which of the following can be defined as the set of values and the norms of behavior which are approved or sanctioned by a particular society?

national culture

_____ are unwritten, informal codes of conduct that shape the behavior of people toward one another and are held important by most members of society.

norms

Deregulation, privatization, and the removal of legal barriers to trade are examples of changing _____ forces.

political

The aim of tariffs is to

protect domestic industries and jobs.

Which of the following is potentially the most threatening force that managers must deal with in the task environment?

rivalry between competitors

Which of the following is an example of a more?

societal taboos which censure murder, theft, and incest

Which of the following is an example of collectivism values?

subordination of the individual to the goals of the group

Companies that provide other organizations with input resources are known as

suppliers

Which of the following contributed to the lowering of barriers of distance and culture that affected global organizations?

the advancements of communication and transportation technology

The more difficult it is to enter the task environment

the easier it is to keep prices high.

The Republic of Karibo has been losing capital steadily over the last five years. As a result of this

the standard of living has fallen.

The basic building blocks of national culture are

values and norms

All of the following are principal forms of capital that flow between countries except

virtual capital

All of the following are principal forms of capital that flow between countries except

virtual capital.