Chapter 3 - Test

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

Competitors

are defined as environments where the rate of environmental change is fast.

Dynamic environments

refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.

Environmental uncertainty

Which of the following is a trend in the general environment of a fast food chain?

Increasing popularity of weight management program

is the set of key values, beliefs, and attitudes shared by members of an organization.

Organizational culture

Which of the following is a part of the general environment of an organization?

Political trends

A court ruling regarding the unfair firing of employees is a development in the _____ component of the general environment.

Political/Legal

After the company founders are gone, stories and heroes can help to sustain the founder's values, attitudes, and beliefs in the organizational culture.

True

Because external environments can be dynamic, confusing, and complex, managers use a three-step process to make sense of the changes in their external environments. Those steps are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on threats and opportunities.

True

The general environment consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations.

True