Chapter 3 Test Review

The extent to which the environment is relatively stable or dynamic is referred to as the degree of ____.

change

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 relationship between business and government is part of the ____ dimension.

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.

political-legal

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

During the recession many people chose to eat at home more often to save money. For restaurants this is ____.

a threat of substitute products

Which of the following dimensions refers to the methods available for converting resources into products or services?

the technological dimension

The ____ is the extent to which new competitors can easily enter a market or market segment.

threat of ne entrants

The level of ____ faced by organizations is determined by the degree of homogeneity and the degree of change in their environments.

uncertainty

Which of the following illustrates the MOST common form of environmental turbulence?

organizational crisis

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

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 in the effective management of an organization?

determining the alignment between the organization and the environment

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 n environmental scanning

When two or more firms combine to form a new firm, it is called a(n) ____.

merger

The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures is called ____.

multiculturalism

What can one major way an organization do to share the culture of the organization?

Bring outsiders into important managerial positions

A manager should understand which of the following about the organizational environment? a. The internal environment is usually more important than the external environment to the success of the organization. b. The external environment is usually more important than the internal environment to the success of the organization. c. Different aspects of the internal and external environments are more or less important for different organizations.

Different aspects of the internal and external environments are more or less important for different organizations.

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 accurate regarding organizational culture?

It is intangible in nature

How important should managers consider the organization's environment? a. The environment is not important to managers because there is little the organization can do about it. b. The environment becomes important only when dramatic events impact the organization. c. The environment is very important because the organization must align with the environment to be successful.

The environment is very important because the organization must align with the environment to be successful.

Which of the following can result in cultural problems in an organization?

The growth of rival factions within the organization

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.

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

Is competitors part of the general environment or the task environment?

task environment

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

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

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) ____.

boundary spanner

In the past 60 years, the percentage of the female workforce has more than doubled. This is an example of ____.

changing demographics

When a homebuyer applies to a bank for a mortgage, what is the role of the homebuyer in the task environment?

customer

What is considered to be a driving force that influences many organizational decisions?

degree of uncertainty

One of the basic frameworks used to describe how environments affect organizations is ____.

environmental change and complexity

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

Customers, suppliers, and competitors are part of an organization's _______________________________. a. dimensions b. external environment c. physical environment d. internal environment

external environment

Forces outside the organization are part of its _______________________ . a. internal environment b. organizational boundary c. external environment d. culture

external environment

When a locally owned construction firm fears new competition from a national chain, it is experiencing a change in its ____.

external environment

Is international dimension part of the general environment or the task environment?

general environment

Rabeya's organization allows managers to use their discretion and have flexibility when making decisions in order to adapt to their environment. They have relatively few standard operating procedures. What type of environment are they operating in?

highly uncertain

The degree of ____ is the extent to which the organizational environment is relatively simple or complex.

homogeneity

A(n) ____ would come under the heading of the economic element of the general environment.

increase in unemployment

Conditions inside the organization are part of its ___________________. a. external environment b. culture c. internal environment d. organizational boundary

internal environment

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?

less legislation and legal action

Ozlem's firm is highly specialized and the cost of entry in to 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

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

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

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 a reason for the increase in the average age of the U.S. workforce?

improved health and medical care for the aging workforce