MANA3335 MindTap Learn It: Chapter 02: The Environments of Organizations and Managers

Two nonprofits that rely on the same donors

*competitors {Two nonprofits that rely on the same donors are competing for funding, so this is an example of competitors in the task environment}

Car manufacturers, relative to makers of car parts

*customers {Individuals, groups, or organizations that pay for a product or service are customers. The car manufacturers pay for parts from the parts makers, so the car manufacturers are an example of customers in the task environment}

Behavior that adheres to generally accepted social norms is called _________ behavior.

*ethical {Behavior that adheres to generally accepted social norms is called ethical behavior}

Owners and employees are part of an organization's ________ .

*internal environment {Owners and employees work within the organization, so they are part of the internal environment}

The Sarbanes-Oxley Act effectively writes ethical leadership into law because it requires CEOs and CFOs to ______________ .

*personally vouch for the truthfulness and fairness of their companies' financial disclosures {Congress has written ethical leadership into law with the Sarbanes-Oxley Act, which requires CEOs and CFOs to personally vouch for the truthfulness and fairness of their companies' financial disclosures}

Donating money to a charity is an example of ___________________ .

*philanthropic giving {Philanthropic giving is the donation of money or other resources to worthy causes, such as charities}

computer software

*technological dimension {The technological dimension concerns the tools and methods by which the organization can turn resources into products or services. Computer software is part of the technological dimension}

Use of existing facilities

*Direct Investment {Through direct investment, a company purchases a manufacturing facility or other business in the target country. Because the company owns the assets, it has complete control over them, and it immediately gains a fully operational business}

If a manager decides to purchase a factory in another country to make a product for sale there, which approach is the manager using?

*Direct investment {Purchasing a business in another country is the direct investment approach to entering that market}

Profits over a longer period

*Licensing {Licensing sets up another firm to make and/or sell the product in the other country. The original company earns royalties for as long as the licensing agreement is in effect without needing to make the product, meaning that it can earn high profits over a long period}

Lack of flexibility over time

*Licensing {Licensing sets up another firm to make and/or sell the product in the other country. The original company may still be locked into the agreement after environmental conditions have changed and the agreement is no longer beneficial. Also, the licensee may learn how to make the product/service and then become a competitor}

suppliers

*Task Environment {The task environment consists of the external groups that act on the organization. There are five groups that are part of the task environment. One of these is suppliers}

Which of the following are examples of ethical issues in corporate governance? Check all that apply.

*A board of directors lends corporate funds to several of its own members *A corporate board bribes officials in foreign countries to ignore violations of the law {An emerging issue in business ethics concerns the unethical actions of corporate boards of directors. In recent years, corporate governing boards have engaged in several types of unethical behavior, including lending corporate funds to board members who cannot demonstrate the ability to repay the money and bribing foreign officials}

Unemployment rate

*economic dimension {The economic dimension concerns the health of the economy. The unemployment rate is one measure that managers use to track economic trends}

Center for Science in the Public Interest, a consumer advocacy organization

*regulators {Organizations that pass, interpret, or enforce laws are termed regulators, as are interest groups that influence business through lobbying and gaining media attention. The Center for Science in the Public Interest is an example of a regulator in the task environment}

A supplier and customer with a revenue-sharing contract

*strategic partners {Organizations that work together toward a common goal are strategic partners (also called strategic allies). This supplier and customer are formally cooperating, so they are an example of strategic partners in the task environment}

A lumber yard, to a construction company

*suppliers {Individuals, groups, or organizations that provide a product or service are suppliers. The lumber yard sells wood to the construction company, so the lumber yard is an example of a supplier in the task environment}

Which of the following are arguments in favor of businesses practicing social responsibility? Check all that apply.

*Businesses often have the money and other resources to solve major problems *Businesses create problems and should therefore solve them {One argument in favor of practicing social responsibility is that businesses create problems and should therefore solve them. Other arguments in favor are that many businesses have the money and other resources needed to solve problems, or that businesses are citizens of (or partners in) their society. The power of businesses or their relative level of corruption are not invoked as reasons they should exercise social responsibility}

Which of the following statements about ethics are true? Check all that apply.

*Ethics vary depending on the society or culture *An individual's ethics are that person's beliefs about what is right and wrong {Ethics is a belief system that defines what thoughts and behaviors are right and wrong. While ethics are held by individuals, they are strongly influenced by social norms and thus vary from culture to culture. Ethics vary somewhat from person to person even within a society, depending on their culture and life experiences. At the same time, while individuals do choose their ethics to some extent, they are heavily influenced by the social norms of their communities}

The international trade agreement that first incorporated the principle of most favored nation (MFN) status was the ______________ .

*General Agreement on Tariffs and Trade (GATT) {The international trade agreement that first incorporated the principle of most favored nation (MFN) was the GATT, developed after World War II. MFN means that if a country that is a signatory to a treaty extends favorable treatment to another country in the compact, it must extend that treatment to all countries covered by the treaty. This principle promotes fair treatment of all trading partners}

political-legal dimension

*General Environment {The general environment is the set of broad dimensions and forces that create the overall context in which the organization operates. One dimension of the general environment is the political-legal dimension, which concerns the relationship between business and government}

Managers use which of the following to influence organizational culture? Check all that apply.

*Heroes *Symbols *Slogans {Managers create and shape an organization's culture in many ways, including the following: •The founder's actions (or stories about them) •Symbols •Stories •Heroes •Slogans •Ceremonies •History of successes •Shared experiences}

Low risk

*Importing/Exporting {Importing and exporting are low-cost, low-risk ways to buy or sell in international markets. This is often the approach used by small companies because it lacks the potential complications and complexity of other approaches}

Higher transportation costs

*Importing/Exporting {Importing and exporting goods can incur costs in the form of government-imposed tariffs (taxes) when the product crosses a national border. Also, because the goods travel to another country, transportation costs are higher than if the product was made in the place where it will be sold}

Smaller share of profits

*Strategic Alliances {Because a strategic alliance involves an agreement between two companies to enter the market together, each company has only limited control over the business and only a partial share of the profits; the companies need to share control and profits with each other}

Ready access to resources

*Strategic Alliances {In a strategic alliance, two or more companies agree to use each other's strengths for mutual advantage. For example, one company might provide capital while the company in the target country provides a distribution network. By bringing their different strengths to bear, the companies can enter the market more quickly and access more resources than either could alone}

competitors

*Task Environment {The task environment consists of the external groups that act on the organization. There are five groups that are part of the task environment. One of these is competitors;}

What is organizational culture?

*The set of values, beliefs, behaviors, customs, and attitudes that define what the organization stands for, how it does things, and what it considers important {Organizational culture is the set of values, beliefs, behaviors, customs, and attitudes that define what the organization stands for, how it does things, and what it considers important. Organizational culture does not refer to the sponsorship of cultural groups or events in the community. It is possible for different groups of employees to share different cultures, but this means the organization lacks a strong unifying culture}

A country may enter into ______________ to voluntarily limit its exports to another country.

*an export restraint agreement {A country enters into an export restraint agreement in the hope that by voluntarily limiting the amount of goods it exports to another country, the target country will not impose harsh tariffs or quotas. An economic community is a group of countries that trade mostly with each other. A mature market economy is characterized by private ownership, free trade, and large businesses. Most favored nation status is the understanding that if a country gives favorable terms to one trading partner, it gives those same terms to other trading partners within an association}

The group of people elected to represent the interests of a company's shareholders are the _______________ .

*board of directors {The board of directors is elected by a company's shareholders (owners of a publicly traded company) to represent their interests. Owners have legal property rights to the organization, and employees work for the organization}

A written statement of the values and standards that guide the organization's actions is a ___________ .

*code of ethics {Many organizations have written codes of ethics that directly express expectations for ethical behavior by employees and the organization as a whole. Social norms are unwritten rules that guide behavior}

An office building where employees work is part of the organization's ____________ .

*physical work environment {The physical work environment is where people do the work of the organization, so this office building is an example of the physical work environment. The physical work environment is within the boundaries of the organization and so is part of the internal environment. The task and general environments are aspects of the external environment}

stability of a country's government

*political-legal dimension {The political-legal dimension concerns the relationship between business and government. It includes laws and regulations as well as the stability and integrity of the government. The stability of a country's government is part of the political-legal dimension}

Managers should seek to maintain the organizational culture when _________ with the organizational environment.

*the culture aligns well {A culture that is well aligned with the organization's environment will be a source of strength for that organization and should be maintained}