MGMT CH. 3 -- MINE

An organization's general environment (A) includes a set of broad dimensions. (B) includes forces in its surroundings. (C) refers to the overall context of the environment. (D) is not necessarily associated with specific organizations. (E) All of these choices

all of these choices

Many corporations have sophisticated security systems for information and employees. Which dimension of the organization's environment do these systems represent? (A) Technological element of the general environment (B) Internal environment (C) Economic element of the task environment (D) Technological element of the task environment (E) Economic element of the general environment

Technological element of the general environment

Which of the following is the BEST example of environmental turbulence? (A) A new company opens a store to compete in your market. (B) The Japanese economy experienced the tsunami and nuclear reactor problem. (C) A competitor announces a new lifetime warranty program. (D) A competitor announces development of a substitute for the product that has been your big seller. (E) The sole supplier of one of your raw materials is shut down by a prolonged labor strike.

The Japanese economy experienced the tsunami and nuclear reactor problem

Organizations directly influence their environment by (A) lobbying. (B) signing long-term contracts with suppliers. (C) lowering prices. (D) bargaining with labor unions. (E) All of these choices

all of these choices

The internal environment of a corporation consists of (A) a board of directors. (B) the physical work environment. (C) employees. (D) the investors in the business. (E) All of these choices

all of these

The general environment of organizations has all EXCEPT which dimension? (A) Economic (B) Technological (C) Sociocultural (D) Political-legal (E) Domestic

Political-legal

Which of the following events would NOT have a significant impact on an organization's general environment? (A) A German firm develops an improved two-cycle automobile engine. (B) The unemployment rate drops below 4 percent. (C) An industry's labor union refuses to agree to a new contract. (D) The mean age of the population shows a gradual increase. (E) The Supreme Court supports rigid interpretation of antitrust laws.

A german firm develops an improved two-cycle automobile engine

Which of the following is a reason that virtually every organization is affected by the international dimension? (A) A flexible currency exchange rate (B) A large number of people emigrating from their homelands to other parts of the world (C) Political unrest in various countries (D) The expansion of workforces (E) Advances in transportation and communication technology

Advances in transportation and communication technology

Which of the following is an example of a merger? (A) Brown Electronics and Kelvin Data Systems form a new company, and Brown and Kelvin cease to exist. (B) Brown Electronics buys Kelvin Data Systems and continues to operate as Brown Electronics. (C) Brown Electronics buys Kelvin Data Systems, and Kelvin operates as a subsidiary of Brown. (D) Brown completes a hostile takeover of Kelvin. (E) None of these choices

Brown electronics and Kelvin data systems form a new company, and brown and kelvin cease to exist

Which of the following is an example of an organization's strategic response to its external environment? (A) Negotiating a new contract with the union (B) Hiring a new CEO (C) Implementing new plant safety standards (D) Doing nothing in response to a competitor's new product (E) Modifying the organization's culture

Doing nothing in response to a competitor's new product

When a locally owned construction firm fears new competition from a national chain such as Toll Brothers moving in, it is experiencing a change in its (A) internal environment. (B) external environment. (C) physical work environment. (D) government regulations. (E) organizational culture.

External environment

Which of the following buyers would have the greatest ability to influence suppliers? (A) A student ordering a pizza (B) A student selecting a college or university. (C) A department store influencing fashion designers (D) Government negotiating the purchase of a helicopter for its army (E) Homemaker buying groceries at the supermarket

Government negotiating the purchase of a helicopter for its army

____ is a key part of the manager's job. (A) Understanding the organizational hierarchy (B) Authoritarianism (C) Being manipulative (D) Maintaining an effective alignment between the organization and the environment (E) Being cognizant of the environment in which his or her supervisors operate

Maintaining an effective alignment between the organization and the environment

Which of the following organizations would be MOST likely to face a dynamic/complex environment? (A) Oracle (B) Tyson Foods (C) Whirlpool (D) Merck (E) JCPenney

Merck

One of the reasons so many Internet companies fail is due to a lack of standardized operating procedures. The companies' managements are afraid of stifling their creative employees by using a rigid structure with lots of rules and regulations. Instead employees are given few rules and allowed to use their own judgment when making decisions. What type of organization design would you find in most of these companies? (A) Mechanistic (B) Autocratic (C) Bureaucratic (D) Organic (E) Formalized

Organic

Which of the following statements does NOT describe a characteristic of an organization's external environment? (A) It includes specific, identifiable organizations and factors of interest to the organization. (B) It is composed of general and task components. (C) The boundary between the organization and its environment is quite specific and clearly defined. (D) It contains some nonspecific dimensions and forces that can affect organization activities. (E) It includes everything outside of the organization that might potentially affect it.

The boundary between the organization and its environment is quire specific and clearly defined.

When entrepreneur Gene Reilly's dog couldn't drink water, he developed a canine sports drink, which he marketed and called Rebound. Which of the following is part of the general environment for Reilly's company? (A) Dog owners (B) The American Kennel Association (C) The company that supplies the plastic bottles in which the drink is sold (D) The lending institution that gave Reilly his start-up capital (E) The sociocultural belief that says it is all right for people to give dogs human characteristics

The sociocultural belief that says it is all right for people to give dogs human characteristics

People comprising an organization come from different backgrounds and locations and reflect different (A) values. (B) beliefs. (C) customs. (D) attitudes. (E) all of these

all of these

Which of the following would NOT be an example of a competitor? (A) A firm trying to sell similar products to the same group of customers to whom you are trying to sell (B) A firm trying to rent the same building you are trying to rent (C) A firm trying to hire one of your top engineers (D) A firm that has developed a product that substitutes for your product (E) A firm trying to sell its products to your employees

a firm trying to sell its products to your employees

During the recession many people chose to eat at home more often to save money. For restaurants this is ____. (A) the power of suppliers. (B) a threat of increased regulation. (C) a competitive rivalry. (D) a competitive advantage. (E) a threat of substitute products.

a threat of substitute products

Which of the following would have the LEAST to worry about in terms of the threat of new entrants? (A) Book publisher (B) Coffee shop (C) Airline jet manufacturer (D) Television show producer (E) Budget motels

airline jet manufacturer

Sociocultural forces (A) are the customs and values of the society within which the firm is operating. (B) are part of the general environment. (C) do not always follow national boundaries. (D) influence consumers' tastes and preferences. (E) All of these choices

all of these choices

The culture of an organization is often established by the (A) founder. (B) CEO. (C) president. (D) current management. (E) All of these choices

all of these choices

Which of the following is an example of one of the basic mechanisms that organizations use to adapt to their environment? (A) Information management (B) Direct influence (C) Strategic response (D) Organization design and flexibility (E) All of these choices

all of these choices

Which of the following statements would NOT describe a direct influence response to the organization's environment? (A) A power company sets up and advertises a safety watch program to help reduce crime in an inner-city neighborhood. (B) An industry council hires a lobbyist to represent it in Washington, D.C. (C) A firm develops new uses for its existing products. (D) An organization restructures itself from a mechanistic to an organic design. (E) A firm signs a long-term agreement with one of its suppliers.

an organization resturctures itself from a mechanistic to an organic design

In a scandal at Tyco, shareholders sued the ____ for negligence in failing to monitor properly. (A) employees (B) owners (C) board of directors (D) culture (E) suppliers

board of directors

The task environment is more specific than the general environment. It includes all EXCEPT (A) customers. (B) suppliers. (C) boards of directors. (D) strategic partners. (E) regulators.

boards of directors

A purchasing agent is an example of a(n) (A) intelligence agent. (B) boundary spanner. (C) strategic ally. (D) regulator. (E) supplier.

boundary spanner

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) (A) intelligence agent. (B) boundary spanner. (C) strategic ally. (D) regulator. (E) buyer.

boundary spanner

The extent to which the environment is relatively stable or dynamic is referred to as the degree of (A) change. (B) uncertainty. (C) environmental turbulence. (D) homogeneity. (E) tangibility.

change

A dynamic environment is one that (A) contains several competitors. (B) contains several regulators. (C) has low levels of uncertainty. (D) changes very little and/or very slowly. (E) changes rapidly and/or frequently.

changes rapidly and/or frequently

____ refers to the nature of the competitive relationship between dominant firms in an industry. (A) Power of suppliers (B) Threat of increased regulation (C) Competitive rivalry (D) Power of buyers (E) Threat of new entrants

competitive rivalry

Social media impact the amount of mail sent through the U.S. Postal Service. Social media is an example of ____. (A) competitors (B) suppliers (C) boards of directors (D) strategic partners (E) regulators

competitors

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. (A) atmosphere (B) task environmental (C) external environmental (D) physical work environmental (E) culture

culture

Wells Fargo provides mortgages. Homebuyers are potential ____. (A) suppliers (B) strategic allies (C) competitors (D) customers (E) regulators

customers

National Industries, supplier to all Hometown Hardware Stores, manufactures many of the products it sells to member stores. What kind of response to the organizational environment does this represent? (A) Social responsibility (B) Internal (C) Direct influence (D) An organic organization design (E) An organization culture modification

direct influence

Wal-Mart is the largest retailer in the world. It successfully pressures suppliers to lower prices. Wal-Mart uses (A) socially responsibility. (B) direct influence. (C) a mechanistic organization design. (D) an organic organization design. (E) an organization culture modification.

direct influence

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 (A) merger. (B) direct influence. (C) hostile takeover. (D) alliances. (E) acquisitions.

direct influence

The interest rates are an important aspect of which environment? (A) Political-legal (B) Economic (C) Sociocultural (D) Task (E) None of these choices

ecocomic

General Motors sold an auto parts company because profitability was low. The primary environmental dimension considered was (A) economic. (B) technological. (C) sociocultural. (D) political-legal. (E) domestic.

economic

In 2011, unemployment was the highest it had been in more than a decade. This is part of the ____ dimension of organizations. (A) legal (B) sociocultural (C) technological (D) political (E) economic

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

economic

Workers who purchase company stock have a dual role in the internal environment as (A) employees, board of directors. (B) shareholders, board of directors. (C) shareholders, strategic partners. (D) employees, owners. (E) monitors, owners.

employees, owners

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 (A) a form of management information system. (B) engaged in boundary spanning. (C) a type of organization control. (D) engaged in environmental scanning. (E) engaged in strategic planning.

engaged in environmental scanning

One of the basic frameworks used to describe how environments affect organizations is (A) influence group pressure. (B) environmental change and complexity. (C) regulatory pressure. (D) situational diversity. (E) regulatory contingency.

environmental change and complexity

The process of actively monitoring the environment through activities such as reading and observation is called (A) being socially responsible. (B) environmental scanning. (C) alliance creation. (D) informational management. (E) a strategic response.

environmental scanning

Fast food chains make headlines when someone claims to find body parts or foreign objects in their food. The claims are usually false, but they increase the industry's (A) environmental turbulence. (B) environmental homogeneity. (C) competitive rivalry. (D) threat of new entrants. (E) boundary spanning.

environmental turbulence

The Northeast region of the U.S. experienced flooding from Hurricane Irene. This is an example of (A) environmental turbulence. (B) environmental homogeneity. (C) competitive rivalry. (D) the threat of new entrants. (E) boundary spanning.

environmental turbulence

The degree of ____ is the extent to which the organizational environment is relatively simple or complex. (A) change (B) uncertainty (C) environmental turbulence (D) homogeneity (E) tangibility

homogeneity

A(n) ____ would come under the heading of the economic element of the general environment. (A) increase in the number of single-parent families (B) increase in unemployment (C) large increase in immigration (D) increase in the mean age of the population (E) significant decrease in the birthrate

increase in unemployment

Blogs are used by companies to post customer feedback. This is a method of environmental scanning and (A) information management. (B) strategic response. (C) direct influence. (D) organic organization design. (E) organization culture modification.

information management

One of the basic forms of regulator is a(n) (A) strategic partner. (B) interest group. (C) task force. (D) board of directors. (E) owner.

interest group

The regulator element of the task environment consists of (A) interest groups and labor unions. (B) customers and suppliers. (C) interest groups and regulatory agencies. (D) suppliers and regulatory agencies. (E) regulatory agencies and labor unions.

interest groups and regulatory agencies

Julie is responsible for her company's military veteran mentor program. She will have to operate in the ____ environment. (A) internal (B) political-legal (C) task (D) general (E) economic

internal

The extent to which an organization is affected by or involved in businesses in other countries refers to its (A) political-legal dimension. (B) economic environment. (C) international dimension. (D) sociocultural dimension. (E) general environment.

international dimension

An organization design that is mechanistic (A) operates in an uncertain environment. (B) uses few standard operating procedures. (C) gives its managers considerable discretionary decision-making power. (D) is characterized by formal and rigid relationships. (E) None of these choices

is characterized by formal and rigid relationships

At the University of Miami a wealthy booster (now serving time in federal prison) said he spent millions on cash donations, hookers, and entertainment for football players, all with the coaches' knowledge. (A) legal (B) sociocultural (C) legal and sociocultural (D) political (E) political and economic

legal and sociocultural

Dollar Thrifty told Hertz and Avis Budget to submit their best and final proposals. In the end Dollar Thrifty combined with one of the companies in a(n) (A) acquisition by Hertz. (B) merger. (C) joint venture. (D) acquisition by Avis Budget. (E) strategic alliance.

merger

When two or more firms combine to form a new firm, it is called a(n) (A) takeover. (B) acquisition. (C) merger. (D) organic design. (E) mechanistic design.

merger

____ is an element in the organization's internal environment. (A) Socioculture (B) A strategic ally (C) Organization culture (D) Technology (E) A labor union

organization culture

Which of the following illustrates the MOST common form of environmental turbulence? (A) Organizational crisis (B) Jockeying among competitors for market position (C) Power of buyers (D) Environmental scanning (E) Extremely dynamic environment

organizational crisis

Competitors are BEST described as (A) organizations that compete with other organizations for resources. (B) the people or organizations that purchase the firm's products. (C) the people or organizations that supply resources to the firm. (D) environmental units that attempt to control an organization's response to actions. (E) None of these choices

organizations that compete with other organizations for resources

After September 11, 2001, many companies moved uptown or to the suburbs. This is an example of change in the (A) culture. (B) physical work environment. (C) task environment. (D) external environment. (E) general environment.

physical work environment

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. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

political-legal

The Patient Protection and Affordable Care Act (PPACA, or Obamacare) requires individuals to obtain health insurance. This is an example of the ____ dimension. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

political-legal

The relationship between business and government is part of the ____ dimension. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

political-legal

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. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

political-legal

Competitive rivalry would be exemplified by (A) strategic alliances. (B) price wars. (C) mergers. (D) union strikes. (E) All of these choices

price wars

The Federal Communications Commission monitors radio broadcasts for inappropriate content. This is an example of the ____ component. (A) owner (B) partners (C) regulator (D) competitors (E) economic

regulator

A manufacturer of recyclable plastic containers is operating in an environment that is relatively free of uncertainty. This means that the manufacturer is operating in a ____ environment. (A) simple and complex (B) stable and complex (C) dynamic and simple (D) simple and stable (E) dynamic and complex

simple and stable

USA Gymnastics has a relatively narrow focus, constant supply of young athletes, and consistent international competition. Its level of uncertainty is (A) complex/simple. (B) complex/stable. (C) dynamic/complex. (D) dynamic/stable. (E) simple/stable.

simple/stable

A jihadist called for a violent attack on David Letterman after the comedian made fun of Al Qaeda leaders. Letterman rarely does a single show without making fun of American leaders. This is an example of differences in the ____ dimension. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

sociocultural

Facebook has enabled people to stay in contact with friends. It also hurts relationships when too much information is shared. This reflects the ____ element of the general environment. (A) sociocultural (B) task (C) political-legal (D) economic (E) technological

sociocultural

Flowers can be purchased from florists, supermarkets, discount stores, and street vendors. In the 1920s, the most popular flower was the narcissus. In the 1960s, daisies were extremely popular. In the latter part of the twentieth century, roses were popular. This changing taste in flowers reflects changes in the ____ dimension of the general environment. (A) legal (B) sociocultural (C) technological (D) political (E) economic

sociocultural

For more than a century, Americans moved from rural to metropolitan areas. Then in the 1950s, Americans made a mass exit from the city to the suburbs. Now many of these suburb dwellers are moving back to the rural areas. They are developing micropolitan areas, which offer many of the advantages of the metropolitan areas, but without the population crush, the traffic jams, and the high crime rates. This trend affects the location of many businesses and is part of the ____ dimension in which they operate. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

sociocultural

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. (A) internal (B) political-legal (C) task (D) sociocultural (E) economic

sociocultural

When Catherine, Duchess of Cambridge started wearing pantyhose, sales in the UK increased 85%. That is an example of which environment? (A) Task (B) Political-legal (C) Sociocultural (D) Technological (E) Economic

sociocultural

The ____ is the portion of an organization's environment that deals with morals, values, and demographic characteristics. (A) sociocultural element of the task environment (B) political-legal element of the general environment (C) political-legal element of the task environment (D) organization's internal environment (E) sociocultural element of the general environment

sociocultural element of the general environment

The death of Farrah Fawcett to anal cancer opened discussions that previously were taboo in the U.S. This is an example of change in the (A) political-legal element of the general environment. (B) sociocultural element of the general environment. (C) competitor element of the task environment. (D) partner element of the task environment. (E) customer element of the task environment.

sociocultural element of the general environment

The least environmental uncertainty is faced by organizations with a ____ environment. (A) complex and stable (B) stable and simple (C) simple and homogeneous (D) stable and dynamic (E) homogeneous and dynamic

stable and simple

A(n) ____ is two or more companies that work together in joint ventures. (A) interest group (B) cooperative (C) board of directors (D) strategic alliance (E) task force

strategic alliance

Which of the following statements is NOT characteristic of strategic alliances as an element of the task environment? (A) Strategic alliances work together in joint ventures and other similar arrangements. (B) Strategic alliances increase the risk of losing sensitive information. (C) Strategic alliances increase organizational exposure to economic risk. (D) Companies join strategic alliances to gain expertise that they may lack. (E) Many companies in strategic alliances have multinational partners.

strategic alliances increase the risk of losing sensitive info

When KFC wanted to enter the Japanese market, it contacted Mitsubishi, one of Japan's largest poultry producers. Mitsubishi 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 Mitsubishi took place in the ____ component of the task environment. (A) sociocultural (B) strategic partners (C) suppliers (D) competitors (E) economic

strategic partners

In one year hospitals around the country ran out of 180 different drugs. The pharmaceutical companies are ____ to hospitals. (A) customers (B) suppliers (C) strategic partners (D) competitors (E) regulators

suppliers

The components of the internal environment do NOT include which of the following? (A) Employees (B) Owners (C) Physical work environment (D) Culture (E) Suppliers

suppliers

Executives carry smart phones that keep them connected to people and information all day. This is an example of the ____ dimension of the external environment. (A) task (B) economic (C) general (D) technological (E) sociocultural

technological

McAfee announced the detection of electronic spying by a foreign nation on the International Olympic Committee before the Olympics. This is part of the ____ environment of the IOC. (A) legal (B) sociocultural (C) technological (D) political (E) economic

technological

The ____ dimension refers to the methods available for converting resources into products and services. (A) task (B) sociocultural (C) technological (D) political (E) economic

technological

Twenty years ago most business failures were attributed to poor inventory management. Today point-of-sales terminals are used at the checkout counters of most retail stores. These terminals 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. (A) task (B) sociocultural (C) technological (D) political (E) economic

technological

When HTC offered the first cell phone with a button dedicated to Facebook, it was responding to changes in the ____ environmental dimension. (A) economic (B) technological (C) international (D) political-legal (E) domestic

technological

All of the following are included in the task environment EXCEPT (A) competitors. (B) technology. (C) labor unions. (D) customers. (E) strategic allies.

technology

____ is(are) part of an organization's general environment. (A) Competitors (B) Owners (C) Partners (D) Unions (E) Technology

technology

Which of the following is NOT one of the elements in the task environment for St. Jude Children's Hospital? (A) The board of directors (B) Pharmaceuticals sales representatives (C) Patients (D) Local pediatric clinics (E) Safety inspectors

the board of directors

Which of the following is part of the internal environment for Taco Bell? (A) OSHA inspectors (B) Consumer trend toward a preference for healthier foods (C) The advertising agency that creates ads (D) The employees (E) The consumers who buy the food

the employees

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 (A) the power of buyers. (B) the power of suppliers. (C) the threat of new entrants. (D) competitive rivalry. (E) the competitive advantage.

the power of suppliers

What do a market research firm, Kelly Temporary Services, BusinessWeek magazine, and Citicorp Bank all have in common? (A) They all part of the sociocultural dimension of the task environment. (B) They are all part of the general environment. (C) They are all kinds of regulators. (D) They are all examples of interest groups. (E) They are all suppliers.

they are all suppliers

____ is NOT one of the five competitive forces identified by Michael Porter as having an impact on the interaction between an organization and its environment. (A) Power of suppliers (B) Threat of increased regulation (C) Competitive rivalry (D) Power of buyers

threat of increased regulation

The ____ is the extent to which new competitors can easily enter a market or market segment. (A) threat of substitute products (B) threat of new entrants (C) threat of hostile takeover (D) power of competitors (E) competitor overload

threat of new entrants

Outside members of the board of directors are usually chosen (A) because they represent part of the organization's general environment. (B) to reduce the requirement for inside directors who come from the same industry. (C) to provide a particular expertise. (D) to reduce scrutiny by government agencies. (E) to preclude the conflicts of interest that could arise if top managers from the organization were selected.

to provide a particular expertise.

The level of ____ faced by organizations is determined by the degree of homogeneity and the degree of change in their environments. (A) uncertainty (B) environmental turbulence (C) complexity (D) competitive forces (E) tangibility

uncertainty