Chapter 3 business managment
How does the aging of the workforce affect organizations?
Older workers make greater contributions to productivity.
An organization's culture ____.
can become a weakness
A major software company announced the detection of electronic spying and created new software to counter this threat. This threat is part of the ____ environment for the software company.
technological
Marah's new cell phone has a built-in app dedicated to Facebook. The manufacturer of this cell phone added this feature as a change in its ____ environmental dimension.
technological
The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures is called ____.
multiculturalism
A(n) ____ is two or more companies that work together in joint ventures.
strategic alliance
The ____ is the portion of an organization's environment that deals with morals, values, and demographic characteristics.
sociocultural element of the general environment
The ____ is the extent to which new competitors can easily enter a market or market segment.
threat of new entrants
Which of the following refers to the nature of the competitive relationship between dominant firms in an industry?
competitive rivalry
A(n) ____ would come under the heading of the economic element of the general environment.
large increase in immigration
When two or more firms combine to form a new firm, it is called a(n) ____.
merger
Sabine just submitted a bid to take over the paper supply contract for a large firm in town. She knows that another firm bid as well, and only one of them will win the contract. These two firms exist in each other's ____.
task environment
Point-of-sales terminals are used at the checkout counters of most retail stores, and allow retailers to know what is selling, to see what needs to be reordered, and to better satisfy customers while not over investing in inventory. Point-of-sales terminals have greatly influenced how retailers interact with the ____ dimension of the general environment.
technological
The ____ dimension refers to the methods available for converting resources into products and services.
technological
Which of the following is a reason why the international dimension of the general environment affects nearly every organization in the world?
advances in transportation and communication technology
Which of the following will help to maintain an organization's culture?
articulating the culture through slogans and ceremonies
A dynamic environment is one that ____.
changes rapidly and/or frequently
In the past 60 years, the percentage of the female workforce has more than doubled. This is an example of ____.
changing demographics
Hunter sells security surveillance equipment to international airports. His job is to go to the prospective customer, examine the airport's current security, locate problem areas, and explain how his company's security surveillance system would eliminate these problems. Hunter is an example of a(n) ____.
boundry spanner
How has legislation such as the Civil Rights Act of 1964 served to increase diversity in the workforce?
by forcing organizations to hire from a broad labor pool
In filling an opening on his staff, Atmir has looked beyond traditional sources of new employees. He wants to find a broad set of better qualified employees from a variety of backgrounds. What can be created by using nontraditional sources and creating diversity within the organization?
competitive advantage
When a homebuyer applies to a bank for a mortgage, what is the role of the homebuyer in the task environment?
customer
What is an effective way to establish one common vision and direction when organizations with different cultural norms merge?
Promote employees whose behaviors are consistent with the desired culture.
An organization culture ____.
helps members understand what it stands for
Destani bought stock in her favorite technology company, giving her legal property rights to the business. Destani is now a(n) ____.
owner
Which of the following is a key element of multiculturalism within an organization?
diversity
Which of the following indicates how stable or dynamic the environment is?
rate of change
The Federal Communications Commission monitors radio broadcasts for inappropriate content. This is an example of the ____ component of the task environment.
regulator
Which of the following is a dimension of an organization's task environment?
regulators
Which of the following is a way of maintaining culture in an organization?
rewarding people whose behaviors are consistent with the current culture
The level of ____ faced by organizations is determined by the degree of homogeneity and the degree of change in their environments.
uncertainty
What type of regulator is formed by its members to attempt to influence organizations?
board of directors
Which of the following dimensions refers to the methods available for converting resources into products or services?
the technological dimension
There is a high degree of uncertainty. Marah's organization is in an environment with a high number of elements that seem to be constantly changing. The environment is very dynamic and complex. What can be said about the uncertainty Marah's organization is likely to face?
there is a high degree of uncertainty
What is the role of regulatory agencies in the task environment?
to protect the public
What does an organization's culture determine?
feel
When is information management especially important to an organization?
when forming an initial understanding
When do buyers have the most power as a competitive force?
when there are relatively few buyers
Which of the following is true of organizational culture?
It consists of a firm's set of values and beliefs.
Which of the following is part of an organization's general environment?
technology
What is the composition of a group or organization based on race?
ethnicity
Which of the following buyers would have the greatest ability to influence suppliers?
a department store influencing fashion designers
During the recession many people chose to eat at home more often to save money. For restaurants this is ____.
a threat of substitute products
What can one major way an organization do to share the culture of the organization?
bring outsiders into important managerial positions
The relationship between business and government is part of the ____ dimension.
political-legal
Which competitive force can supplant or dimmish the need for an existing product or service?
threat of substitute products
Ugar is on the board of directors for a firm that lost millions of dollars this past year. During the board meeting, the discussion turned to providing an increase in salary for the CEO of the organization. Ugar felt it was he would be held accountable for this unwarranted pay raise, as did several other board members. What is their responsibility to the organization?
to ensure corporate governance
Outside members of the board of directors are usually chosen ____.
to provide a particular expertise
Which of the following is part of the sociocultural dimension of an organization?
values of customers
Which of the following can result in cultural problems in an organization?
The growth of rival factions within the organization.
Which of the following illustrates the MOST common form of environmental turbulence?
organizational crises
The regulator element of the task environment consists of ____.
interest groups and regulatory agencies
Which of the following is part of an organization's general environment? regulatory agencies
interest rates
What is meant by the glass ceiling?
It is a barrier that keeps women from upper management positions.
Which of the following is true of the glass ceiling in many organizations?
It keeps women from advancing to top management positions in organizations.
Jolanta was elected by stockholders to oversee a company's management. While she provides general oversite, she does not get involved with the daily activities of the company. Which part of a company's internal environment is Jolanta?
a member of the board of directors
Chelsea Lumber Company has very low turnover, and the employees are frequently seen volunteering in the community. This suggests a(n) ____ where employees and the communities are highly valued.
culture
Which of the following is a key element in the effective management of an organization?
determining the alignment between the organization and the environment
What does diversity describe?
differences in people along important dimensions such as age or race
When Dayton Hudson was the target of a hostile takeover it was able to use its position of influence in the state of Minnesota to pressure the state legislature to change the laws preventing breakup of any company immediately after purchase. Dayton Hudson responded to the crisis using ____.
direct influence
What is considered to be a driving force that influences many organizational decisions?
diversity
An automotive manufacturer sold an auto parts company because profitability was low. The primary environmental dimension considered was ____.
economic
The downgrade of U.S. federal debt created wild swings in the stock market. The uncertainty led to consumer caution and less spending. This is an example of the ____ dimension.
economic
The interest rates are an important aspect of which environment?
economic
Unemployment rates, interest rates, and economic growth are part of the ____ dimension of organizations.
economic
The National Labor Relations Act of 1935 requires organizations to recognize and bargain with a union if that union has been legally established by an organization's ____.
employees
Many organizations now have units that monitor a host of magazines and newspapers looking for stories that may have an impact on the organization. These units are ____.
engaged in environmental scanning
One of the basic frameworks used to describe how environments affect organizations is ____.
environmental change and complexity
The process of actively monitoring the environment through activities such as reading and observation is called ____.
environmental scanning
Kamiya owns a small business that has always put customer service first, even if it meant a loss in profit. Kamiya company is being bought by another firm that has always emphasized profits, to the point that some employees are fired if they cost the company profit. What will be the greatest challenge of integrating the two companies?
establishing a single organizational culture
The ____ environment is everything outside an organization's boundaries that might affect it.
external
When a locally owned construction firm fears new competition from a national chain, it is experiencing a change in its ____.
external environment
Kaia's organization just formed a strategic alliance with an overseas firm and will be working with her overseas counterparts for the next several years. This will require Kaia to travel to the strategic partner's company and work closely with them. How will this relationship change her organization?
her company is likely to become more diverse and multicultural
The degree of ____ is the extent to which the organizational environment is relatively simple or complex.
homogeneity
The extent to which the environment is relatively stable or dynamic is referred to as the degree of ____.
homogeneity
Which type of environment creates the least amount of uncertainty for an organization?
homogeneous and dynamic
Which of the following is a reason for the increase in the average age of the U.S. workforce?
improved health and medical care for the aging workforce
Ramkumar's organization has made considerable efforts in increasing the diversity and multiculturalism at his organization. As a manager, what might Ramkumar notice as a result of this increase in his organization?
improved quality of the workface
The extent to which an organization is affected by or involved in businesses in other countries refers to its ____.
international dimension
Raul works in an environment that has little segmentation and few elements. What can be said about the degree of homogeneity in his environment?
it is relatively simple
Which of the following is accurate regarding organizational culture?
itis intangible in nature
Who or what is generally the starting point of an organization's culture?
its founder
Ozlem's firm is highly specialized and the cost of entry into the market runs in the millions, and as a result, there are only three other firms that do what her company does. However, these products sell well, and parts needed to produce them are plentiful. What competitive force is Ozlem least likely to worry about?
new entrants
Employers often prefer to rely on temporary workers because they ____.
offer greater flexibility
Which of the following is an element in the organization's internal environment?
organization culture
Math-A-Mazing requires all employees to wear something math-related to work every day. They help by providing pins, scarves, and caps printed with numbers or math signs. Employees can wear one of these items or come up with their own. According to the company, this policy makes the company a fun and exciting place to work. This management decision affects the ____.
organizational culture
What is considered to be the most fundamental trend in diversity and multiculturalism today?
organizations are becoming more diverse and multicultural
Competitors are BEST described as ____.
organizations that compete with other organizations for resources
When a deep-water oil rig exploded in the Gulf of Mexico, the Obama administration initially imposed a moratorium on deep water drilling. This is an example of the ____ dimension.
political legal
The Dodd-Frank Wall Street Reform and Consumer Protection Act is legislation that creates more regulation of the finance markets. This is an example of the ____ dimension.
political-legal
The Patient Protection and Affordable Care Act (PPACA, or Obamacare) requires some employers to offer health insurance to employees. This is an example of the ____ dimension.
political-legal
Determinants of organizational culture include ____.
shared experiences
Some consumers are willing to pay thousands of dollars for plastic surgery in an attempt to gain an advantage over others. This is an example of the ____ dimension.
sociocultural
When KFC wanted to enter the Japanese market, it contacted one of Japan's largest poultry producers. The poultry producer provided an understanding of Japanese culture and some of the financing, while KFC provided the rest of the financing and its franchising expertise. The activities of KFC and the Japanese poultry producer took place in the ____ component of the task environment.
strategic partners
Many corporations have sophisticated security systems for information and employees. Which dimension of the organization's environment do these systems represent?
technological element of the task environment
Which of the following is the BEST example of environmental turbulence?
the Japanese economy experienced the tsunami and nuclear reactor problem (Political unrest, a weather-related crisis, violence in the workplace, health care crisis or any other unforeseen event
The number of elements combined with the amount of segmentation in an environment make up ____.
the degree of homogeneity
In Florida a vacationer could choose from over 200 time-share resorts. In Vermont the choice is limited to 15. A resort in Vermont has ____.
the power of suppliers
In a single organization, members of the sales staff always wear business attire, while the product development staff dresses more casually. What does this illustrate?
the same culture is not found throughout the organization