MGT 3301 Chapter 04 Study Guide

Organizations that help other organizations to sell their goods to customers are known as A) competitors. B) distributors. C) customers. D) suppliers.

B) distributors.

Which of the following is part of an organization's task environment? A) culture B) economy C) politics D) competition

D) competition

The norms of a society are written rules of codes of conduct that tell people how they are supposed to act in given situations. True or False

false

When new competitors enter an industry, prices in the industry typically increase. True or False

false

Values are deeply embedded in society and A) change through a slow and painful process. B) are static and remain unchanged. C) change quickly via smooth transitions. D) are the same across all societies.

A) change through a slow and painful process.

It is easier to obtain customers and keep prices high in a task environment where there are few A) competitors. B) customers. C) suppliers. D) distributors.

A) competitors.

Which of these is an example of a barrier to entry? A) the lack of well-trained employees who have years of experience in a specialized area B) government regulations that set few or no restrictions on establishing a business in that field C) the ability to manufacture components or products in small quantities D) the ability to specialize in one specific type of product for a niche audience

A) the lack of well-trained employees who have years of experience in a specialized area

Social structure is the traditional system of relationships established between ________ in a society. A) splinter groups and rights holders B) people and groups C) belief systems and cultural traditions D) casualness and formality

B) people and groups

Which of the following is part of an organization's general environment? A) customers B) technology C) competitors D) suppliers

B) technology

Norms that are central to the functioning of a society and whose violation brings serious retribution are known as A) sanctions. B) folkways. C) mores. D) rituals.

C) mores.

The combination of equipment and skills that a manager uses in the production and distribution of goods is known as A) economies of scale. B) a competitive advantage. C) technology. D) the national culture.

C) technology.

Ingrid moves to a different country to manage IT employees. She discovers that this society has what she considers surprising ideas about what is bad, wrong, undesirable, or unattractive. These ideas are A) values. B) mores. C) rites. D) folkways.

A) values.

What is a tariff? Explain the reason for removing tariffs and the effects of governments raising tariff barriers. Then explain whether you believe tariffs are wise in most cases.

A tariff is a tax that a government imposes on goods imported into one country from another. The aim of import tariffs is to protect domestic industries and jobs from overseas competition by raising the price of these products from abroad. The reason for removing tariffs is that, very often, when one country imposes an import tariff, others follow suit and the result is a series of retaliatory moves as countries progressively raise tariff barriers against each other. During the recent economic crisis, the governments of most countries worked hard not to fall into the trap of raising tariffs to protect jobs and industries in the short run because they knew the long-term consequences of this would be the loss of even more jobs. Governments of countries that resort to raising tariff barriers ultimately reduce employment and undermine the economic growth of their countries because capital and resources will always move to their most highly valued use wherever that is in the world. Temporary tariffs may be wise if one country is "dumping" unwanted or inferior products into another country at a price that local competitors cannot hope to match. Also, the threat of tariffs can be an effective bargaining tool for a government that believes that foreign organizations are behaving unfairly. However, in most cases tariffs cause more problems than they solve. They drive up costs for consumers. They encourage local producers to keep their profits rather than plowing them back into technological or other improvements. And they mean less efficiency and therefore lower profits for investors.

Dev manages a division of a sporting goods manufacturer. He attends a conference and receives advice from four experienced managers. Based on what you have read, which of the following pieces of advice should Dev take? A) "Make the company a global organization so it can benefit from emerging markets." B) "Make the company a local organization so it can be protected from new competitors." C) "There will always be competitors, so focus on long-term demographic trends instead of worrying about the competition." D) "There will always be demographic changes, so focus on beating competitors instead of analyzing customer trends."

A) "Make the company a global organization so it can benefit from emerging markets."

Caltronix helps Gen Marco sell Marco washing machines. Caltronix does not use the machines. Which of the following describes either company correctly? A) Caltronix is a distributor. B) Caltronix is a customer. C) Gen Marco is a supplier. D) Gen Marco is a customer.

A) Caltronix is a distributor.

Phoenix Systems manufactures computer chips and is based in Canada. This year the company has begun working with suppliers in other countries, but the suppliers' quality levels have been erratic. Based on what you have read, which of these is the most cost-effective way to combat this problem? A) Hire a broker or intermediary in a supplier's country to determine if that country has a supplier capable of keeping quality standards high. B) Fire all the suppliers but one, and use the increased amount of work to bargain for a lower cost per chip. C) Hire only Canada-based suppliers so Phoenix can take advantage of lower transportation costs and can more closely supervise product creation. D) Eliminate all suppliers and create computer chips in house with a specially trained staff.

A) Hire a broker or intermediary in a supplier's country to determine if that country has a supplier capable of keeping quality standards high.

By fully using its employees' skills and knowledge, ImagineDragon Software is making more effective use of organizational resources than do its competitors. It is thus increasing A) economies of scale. B) the national culture. C) intellectual capital. D) soft skills.

A) economies of scale.

Ifaneyi's company transfers him to the United States, where he finds that he is expected to be much more casual than he is used to in terms of what he wears and how he speaks to people. In the context of social norms, the customs and practices related to correct dress and social manners are known as A) folkways. B) artifacts. C) values. D) rites.

A) folkways.

A company based in Vietnam performs the routine data entry tasks for a New York-based insurer. This arrangement is an example of A) global outsourcing. B) power distance. C) inverted sourcing. D) shared services.

A) global outsourcing.

Compared to the changes in the task environment, those in the general environment are often A) harder to identify. B) easier to respond to. C) threats, not opportunities. D) of less consequence.

A) harder to identify.

In a fast-developing country, the government uses taxation and programs to improve the welfare of the least fortunate. This country is an example of low power distance because A) large inequalities between citizens are not allowed to develop. B) individuals are treated as being superior to the group. C) people whose behaviors differ from the norm are respected. D) happiness and living for the present are valued.

A) large inequalities between citizens are not allowed to develop.

The government uses taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate in ________ countries. A) low-power-distance B) high-power-distance C) long-term-orientation D) short-term-orientation

A) low-power-distance

The society of the nation of Atlantis has commonly accepted laws against driving while intoxicated, and violations of those laws bring severe penalties. This is an example of which type of norm? A) mores B) sanctions C) folkways D) rituals

A) mores

Deregulation and privatization are a part of which of the following forces in the general environment? A) political and legal B) technological and industrial C) cognitive and sociocultural D) macroeconomic and microeconomic

A) political and legal

When workers in a society become wealthy and pass their wealth to their children, thereby increasing the gap between the rich and the poor in that society, the society is said to have high A) power distance. B) individualism. C) achievement orientation. D) short-term orientation.

A) power distance.

Define the Trans-Pacific Partnership (TPP). Explain how U.S. participation in it has changed in recent years. Then explain whether you think U.S. participation in TPP is wise and why you believe that.

Answers may vary. A sample answer follows. The Obama administration negotiated for several years for the United States to join the Trans-Pacific Partnership, a trade agreement between the United States and 11 other countries. In 2017, President Donald Trump issued an executive order pulling the country out of the TPP, taking a stand against foreign competitors as part of his "America First" strategy. I believe it was a good idea for the United States to participate in the TPP. Globalization must be monitored carefully, but in general it helps consumers, investors, and governments. By standing alone, the United States is missing out on lower prices for consumers.

Hofstede's model of national culture states five dimensions along which national cultures can be placed. Select any two of these five dimensions and discuss how each of these dimensions creates a different type of climate in which an organization can do business.

Answers may vary. A sample answer follows: One model of national culture was developed by Geert Hofstede. Hofstede developed five dimensions along which national cultures can be placed: individualism/collectivism, power distance, achievement/nurturing orientation, uncertainty avoidance, and long-term/short-term orientation. Long-term versus short-term orientation: Orientation toward life and work affects business climate in terms of the values that people place on thrift and persistence. A national culture with a long-term orientation rests on values such as thrift (saving) and persistence in achieving goals. A national culture with a short-term orientation is concerned with maintaining personal stability or happiness and living for the present. Uncertainty avoidance: Societies as well as individuals differ in their tolerance for uncertainty and risk. Societies low on uncertainty avoidance are easygoing, value diversity, and tolerate differences in personal beliefs and actions. Societies high on uncertainty avoidance are more rigid and skeptical about people whose behaviors or beliefs differ from the norm. In these societies, conformity to the values of the social and work groups to which a person belongs is the norm, and structured situations are preferred because they provide a sense of security.

In the North American Free Trade Agreement (NAFTA), what percentage of the tariffs on the goods traded between Mexico, Canada, and the United States were supposed to be abolished by the year 2004? A) 30 percent B) 99 percent C) 70 percent D) 55 percent

B) 99 percent

Which of the following statements accurately defines brand loyalty? A) It is the repurchase behavior shown by customers due to the fear of trying a new brand. B) It is the customers' preference for the products currently in the task environment. C) It is the perception of customers that some brands are equivalent. D) It implies that the brand delivers what it promises.

B) It is the customers' preference for the products currently in the task environment.

The annual Expat Explorer Survey site by HSBC Bank International allows individuals to submit tips based on their expatriate experiences. Based on what you have read about this, which of these options is good advice for someone working in a foreign country? A) You are an informal ambassador from your own country, so be sure to explain the right way to accomplish tasks. B) Pursue a hobby that interests you, even if it isn't work related, as long as it gets you out of your home and meeting others. C) Make most of your friendships within the local expat community, since they will be the ones who understand you the best. D) Focus on your own customs and culture rather than the culture and customs of that nation.

B) Pursue a hobby that interests you, even if it isn't work related, as long as it gets you out of your home and meeting others.

A rural bank in Georgia loses customers when those customers decide to invest their money in foreign banks that they access online. The rural bank's management considers this to be an example of A) a negative effect related to human capital. B) a negative effect related to financial capital. C) a positive effect related to human capital. D) a positive effect related to financial capital.

B) a negative effect related to financial capital.

21) Pentathlon Ltd. and New Image Fitness both specialize in designing bikes for triathletes in the North American market. Thus, each company would see the other as a A) supplier. B) competitor. C) distributor. D) customer.

B) competitor.

Bonne Chance Cosmetics manufactures and sells a skincare line. It does not currently make or sell lipstick, but it could do so in future. A cosmetics company that makes and sells lipstick could view Bonne Chance as a potential A) supplier. B) competitor. C) distributor. D) consumer.

B) competitor.

A society has a common practice that men should remove their hats whenever they ride in elevators that are also carrying women. This is an example of which type of norm? A) rituals B) folkways C) standards D) mantras

B) folkways

In the drug manufacturing industry, Gateway Labs is a company operating at massive economies of scale in the production of many drugs. Thus, a potential entrant into the industry will have a A) much wider customer base. B) higher level of production costs. C) competitive advantage in pricing. D) cheaper distribution system.

B) higher level of production costs.

Actions of suppliers, distributors, customers, and competitors can affect managers' ability to obtain resources and dispose of outputs, and thus, have a significant impact on the company's A) socioeconomic environment. B) short-term decision making. C) political influence. D) power distance.

B) short-term decision making.

An organization's major customer puts pressure on the organization to reduce prices on its products. This is an example of influence exerted by the organization's ________ environment. A) demographic B) task C) legal D) sociocultural

B) task

With reference to Hofstede's model of national culture, explain power distance.

By power distance, Geert Hofstede meant the degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals' physical and intellectual capabilities and heritage. This concept also encompasses the degree to which societies accept the economic and social differences in wealth, status, and well-being that result from differences in individual capabilities. Societies in which inequalities are allowed to persist or grow over time have high power distance. In high-power-distance societies, workers who are professionally successful amass wealth and pass it on to their children, and, as a result, inequalities may grow over time. In such societies, the gap between rich and poor, with all the attendant political and social consequences, grows very large. In contrast, in societies with low power distance, large inequalities between citizens are not allowed to develop. In low-power-distance countries, the government uses taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate. These societies are more attuned to preventing a large gap between rich and poor and minimizing discord between different classes of citizens.

Belle manages an international supply chain. She is concerned because the company's revenues and profits have dipped recently. Some of the managers she supervises say that the problems have to do with the general environment in which the company operates, while others insist that the problems are related to the task environment. What step could Belle take to determine whether the general environment, the task environment, or both are at the root of the problem? A) Belle could interview suppliers to determine what problems (if any) they have with distributors. B) She could direct one of her employees to research whether the problems are economic or political in nature. C) She could tell a researcher to find out whether recent economic changes relate to the economy in general or to the company's specific fields and locations. D) It's impossible to differentiate the task environment from the general environment, so Belle can't do anything in this situation.

C) She could tell a researcher to find out whether recent economic changes relate to the economy in general or to the company's specific fields and locations.

Within an industry, the existing economies of scale, brand loyalties, and government regulations that impede access to the task environment create A) global outsourcing. B) power distance. C) barriers to entry. D) barriers to exit.

C) barriers to entry.

If established organizations enjoy significant brand loyalty, a new entrant will A) find it neither difficult nor costly to obtain a share of the market. B) easily establish itself as another company enjoying brand loyalty. C) bear huge costs to build customer awareness of its products. D) deter potential competitors from entering the task environment.

C) bear huge costs to build customer awareness of its products.

A high percentage of the customers of Action Sport buy Action Sport shoes at least three-fourths of the time that they buy shoes. In the context of barriers to entry, this product has a large degree of A) distributor loyalty. B) demographic force. C) brand loyalty. D) potential competition.

C) brand loyalty.

If a society values the group more than the individual, and believes that people should be judged by the quality of their contribution to the group instead of their individual achievement, then the society is said to value A) individualism. B) power distance. C) collectivism. D) objectivism.

C) collectivism.

Rick, a brand manager, transferred from the United States to Japan. He discovered that although people in the United States highly value individualism, people in Japan expect individuals to conform to group expectations. Rick concluded that Japan places more of an emphasis on A) cultural relativism. B) self-control. C) collectivism. D) political differences.

C) collectivism.

In a task environment where there are few competitors, it is A) harder to reach economies of scale. B) harder to create brand loyalty. C) easier to obtain customers. D) harder to keep prices high.

C) easier to obtain customers.

When a company contracts with suppliers in other countries to make the various inputs that go into its products or to assemble the final products to reduce costs, ________ occurs. A) inverted sourcing B) power distance C) global outsourcing D) shared services

C) global outsourcing

If it is difficult and costly to enter a task environment, then for companies already within a task environment or industry, A) the barriers to entry are low. B) threat of competition is high. C) it is easier to obtain customers. D) it is harder to keep prices high.

C) it is easier to obtain customers.

Adam says, "In my country, we put an emphasis on getting things done properly. We say, 'Fall seven times, get up eight.'" A society that emphasizes this attitude has A) low power distance. B) high power distance. C) long-term orientation. D) short-term orientation.

C) long-term orientation.

Donna is moving to another country to manage a call center for her employer. The country she is moving to has low power distance. Which of these situations is Donna most likely to discover in this new country? A) rudeness and insubordination among the employees who report to her B) CEOs who make dozens or hundreds of times as much as the average worker makes C) many and varied social welfare programs, such as childcare assistance and subsidized doctor visits D) fear and nervousness among the employees who report to her

C) many and varied social welfare programs, such as childcare assistance and subsidized doctor visits

The set of forces and conditions that originate with global suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs is the ________ environment. A) demographic B) legal C) task D) societal

C) task

Nan's company sends her to "expat training" before her international posting. The training teaches the values, norms, knowledge, beliefs, moral principles, laws, customs, and other practices that unite the citizens of the country where she is going. These values, norms, beliefs, etc. are also known as A) a representative democracy. B) a free-trade economy. C) the national culture. D) culture shock.

C) the national culture.

The collection of values that a society considers important and the norms of behavior that are approved by the society are known as A) sociocultural forces. B) economies of scale. C) the national culture. D) demographic forces.

C) the national culture.

One of the reasons that world trade has increased so dramatically is that tariff barriers have A) vanished. B) changed little, leading to a sense of stability. C) become much stronger. D) fallen significantly.

D) fallen significantly.

The wide-ranging global, economic, technological, sociocultural, and political forces that affect the organization and its task environment make up the ________ environment. A) competitive B) near C) task D) general

D) general

A tax that a government imposes on goods imported into the country is known as a(n) A) sanction. B) quota. C) embargo. D) tariff.

D) tariff.

What is meant by the free-trade doctrine? Explain with an example.

The free-trade doctrine predicts that if each country agrees to specialize in the production of the goods and services that it can produce most efficiently, this will make the best use of global capital resources and will result in lower prices. In other words, if a U.S. company were the most efficient manufacturer of a certain product, this product would be likely to be produced in the United States over time. Similarly, if some other country were the most efficient producer of some other product, that product would most likely, over time, come to be produced in that country.

List and explain the principal forms of capital flow between countries.

There are four principal forms of capital flow between countries. Human capital is the flow of people around the world through immigration, migration, and emigration. Financial capital is the flow of money capital across world markets through overseas investment, credit, lending, and aid. Resource capital is the flow of natural resources, parts, and components between companies and countries such as metals, minerals, lumber, energy, food products, microprocessors, and auto parts. Political capital is the flow of power and influence around the world using diplomacy, persuasion, aggression, and force of arms to protect a country's or world region's or political bloc's access to the other forms of capital.

In a society, a folkway violation can lead to serious retribution. True or False

false

Most profit-oriented organizations are threatened during economic downturns, but not-for-profit organizations tend to flourish. True or False

false

Societies that are high on uncertainty avoidance, such as the United States, value diversity and tolerate differences between people in their actions. True or False

false

When a company outsources tasks globally, which of these factors can wipe out the price differential from lower labor costs? A) powerful trade unions B) high shipping costs C) low pollution controls D) negative publicity

B) high shipping costs

Discuss the results of globalization. Include an example of how globalization has affected your life. Your example can be related to your career or to something you have experienced in your personal life.

Answers may vary. A sample answer follows: Globalization is the set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographic regions. The result of globalization is that nations and peoples become increasingly interdependent because the same forces affect them in similar ways. The fates of peoples in different countries become interlinked as the world's markets and businesses become increasingly interconnected. As nations become more interdependent, they tend to become more similar to one another in their tastes and preferences. When I started my career as a call center manager, I managed 20 employees who all worked in the same building in Nebraska. Now I manage five employees in Nebraska and 44 employees in Chennai, India. As my company became part of a global network of employees, I learned how to supervise employees from a different culture and in a different time zone. The employees in Chennai have become interconnected with our Nebraska employees, and each group depends on the other to excel in customer service.

Customers are the most important group in the success of any company. Discuss the various types of customers that exist for Dell Computer and discuss how Dell needs to respond differently to the needs of its different customer groups if it is to be successful.

Dell's customers can be segmented into several groups: (1) individuals who buy computers for home use, (2) small companies, (3) large companies, and (4) government agencies and educational institutions. Changes in the number and types of customers or in customers' tastes and needs result in opportunities and threats. An organization's success depends on its response to customers. For Dell Computer, which is a part of the PC industry, customers are demanding thinner computers, better graphics and speed, and increased wireless and Internet connections—and lower prices—and PC companies must respond to the changing types and needs of customers.

Explain briefly the role of a distributor. If distributors become powerful, what will be the impact on an organization?

Distribution of products is essential for organizations to get their products to their customers in a timely fashion. Distributors are organizations that help other organizations sell their goods or services to customers. The decisions managers make about how to distribute products to customers can have important effects on organizational performance. The changing nature of distributors and distribution methods can bring opportunities and threats for managers. If distributors become so large and powerful that they can control customers' access to a particular organization's goods and services, they can threaten the organization by demanding that it reduce the prices of its goods and services.

What do economic forces include? How do they affect the general environment of the organization? What are the challenges that they present to managers?

Economic forces include interest rates, inflation, unemployment, and economic growth. Economic forces produce many opportunities and threats for managers. Low levels of unemployment and falling interest rates give more people more money to spend, and as a result organizations have an opportunity to sell more goods and services. Good economic times affect the supply of resources that become easier or more inexpensive to acquire, and organizations have an opportunity to flourish. In contrast, worsening macroeconomic conditions pose a major threat because they limit managers' ability to gain access to the resources their organizations need. Profit-seeking organizations have fewer customers for their goods and services during economic downturns. Nonprofits receive fewer donations during economic downturns. Poor economic conditions make the environment more complex and managers' jobs more difficult and demanding. Managers may need to reduce the number of individuals in their departments and increase the motivation of remaining employees, and managers and workers alike may need to identify ways to acquire and utilize resources more efficiently.

A government imposes tariffs on imports to protect its industries and workers from inflation. True or False

false

Mike is interviewing for a management job with an international manufacturer. One of the interviewers asks him whether he would rather focus on the task environment or the general environment in this management position. Which of these is the best answer for Mike to give? A) "I'd like to focus on the task environment because it has the most immediate and direct effect on managers, so I could make a real difference." B) "Focusing on the general environment interests me because I want to improve the organization's ability to obtain inputs and dispose of outputs." C) "I can focus on both because the task environment and the general environment are basically the same thing." D) "Since companies are becoming more homogeneous because of globalization, neither the label 'task environment' nor 'general environment' really applies anymore."

A) "I'd like to focus on the task environment because it has the most immediate and direct effect on managers, so I could make a real difference."

A supplier's bargaining position is strong when A) the input is vital to the organization. B) there are a large number of suppliers for an input. C) the supply is free. D) the supply is not protected by a patent.

A) the input is vital to the organization.

Explain briefly a task environment. What effect does it have on managers?

An organization's task environment is the set of forces and conditions that originate with global suppliers, distributors, customers, and competitors; these forces and conditions affect an organization's ability to obtain inputs and dispose of its outputs. The task environment contains the forces that have the most immediate and direct effect on managers because they pressure and influence managers daily. When managers turn on the radio or television, arrive at their offices in the morning, check their emails, or look at their computer screens, they are likely to learn about problems facing them because of changing conditions in their organization's task environment.

Which of these is an example of a distributor? A) the International Brotherhood of Electrical Workers union B) DHL, an international shipping company C) individuals who buy phones for their personal use D) Ruby Tuesday, a "fast casual" restaurant chain

B) DHL, an international shipping company

A firm that has not traditionally been a competitor of EcoPro suddenly creates a new type of product that makes EcoPro products obsolete. This is an example of A) demographic forces in the general environment. B) competitors in the task environment. C) suppliers in the task environment. D) politics in the general environment.

B) competitors in the task environment.

In countries that are rooted in a culture of collectivism it is easy to spot A) admiration for personal success. B) conformity to group norms. C) high regard for individual entrepreneurs. D) belief in individual rights.

B) conformity to group norms.

Ashley quits her job managing an independently owned restaurant to take a new job managing a chain of restaurants. She discovers that, because her new employer buys so much food and so many other supplies, the cost per item is much less. These cost advantages are the result of A) brand loyalty. B) economies of scale. C) boundary spanning. D) power distance.

B) economies of scale.

Rei comes from a culture that values equality, works for the improvement of the welfare of the less fortunate, and values warm personal relationships more than goal achievement. Rei's culture has A) high collectivism and short-term orientation. B) low power distance and strong nurturing orientation. C) high power distance and nurturing orientation. D) low uncertainty avoidance and high individualism.

B) low power distance and strong nurturing orientation.

The barriers to entry result from three sources. Explain in brief the three sources.

Barriers to entry result from three sources: economies of scale, brand loyalty, and government regulations. Economies of scale are the cost advantages associated with large operations. Economies of scale result from factors such as manufacturing products in very large quantities, buying inputs in bulk, or making more effective use of organizational resources than do competitors by fully utilizing employees' skills and knowledge. If organizations already in the task environment are large and enjoy significant economies of scale, then their costs are lower than the costs that potential entrants will face, and newcomers will find it very expensive to enter the industry. Brand loyalty is customers' preference for the products of organizations currently existing in the task environment. If established organizations enjoy significant brand loyalty, then a new entrant will find it extremely difficult and costly to obtain a share of the market. Newcomers must bear huge advertising costs to build customer awareness of the goods or services they intend to provide. Government regulations function as a barrier to entry at both the industry and the country levels. Many industries that were deregulated experienced a high level of new entry after deregulation. This forced existing companies in those industries to operate more efficiently or risk being put out of business.

Tony is a management consultant. He is working with a well-established software developer that has employees in nine countries. Tony has noticed that senior management at the company excels at managing suppliers and competing with rivals. However, the managers know little about new laws related to software in the countries where they do business, and they have not focused on the fact that the company's customer base is aging. What should Tony suggest in his report to the company CEO? A) Instead of monitoring the task environment, spend time and money addressing the general environment. B) Instead of monitoring the general environment, spend time and money addressing the task environment. C) Keep up the good work as far as the task environment is concerned, but put more time, resources, and expertise into addressing the general environment. D) Relocate all of the company's offices, plants, and jobs to one country so the task environment and general environment become the same.

C) Keep up the good work as far as the task environment is concerned, but put more time, resources, and expertise into addressing the general environment.

Which of these approaches could help a company be more responsive to its customers? A) Focus on the most profitable customers and give them special benefits. B) Exploit opportunities by finding large companies who are interested in becoming customers. C) Segment the customer base into distinct groups, and figure out how to appeal to each group. D) Avoid threats by focusing on customers' enduring tastes and needs.

C) Segment the customer base into distinct groups, and figure out how to appeal to each group.

Janice, a vice president at a tool-and-die manufacturer, wants to outsource the company's manufacturing. Which of these actions should Janice take to accomplish that goal? A) Limit outsourcing to countries where people speak the same language her management team does. B) Balance considerations of negative publicity, competition between suppliers, and client education. C) Focus on price because that is customers' sole concern. D) Balance considerations of price, quality, reliability, and speed.

D) Balance considerations of price, quality, reliability, and speed.

Which of the following statements best defines uncertainty avoidance? A) It is the belief that inequalities are due to differences in physical and intellectual capabilities. B) It is a worldview that subordinates the individual to the goals of the group. C) It is behavior considered important by most members of a group or an organization. D) It is the degree to which societies tolerate differences in personal beliefs and actions.

D) It is the degree to which societies tolerate differences in personal beliefs and actions.

Building customer awareness of the newcomer's product is very costly in the face of which of the following sources of barriers to entry? A) economies of scale B) technological barriers C) government regulations D) brand loyalty

D) brand loyalty

Economies of scale result from actions such as A) manufacturing products in small quantities. B) keeping the demand high by cutting supply. C) creating products that are exclusive. D) buying inputs for the products in bulk.

D) buying inputs for the products in bulk.

The population of the United States is shifting from the Northeast to the Southwest. This is an example of which type of force in the general environment? A) political B) legal C) sociocultural D) demographic

D) demographic

Today in most industrialized nations, as a consequence of falling birth and death rates, the absolute number of older people has increased substantially. This is an example of ________ change. A) sociocultural B) economic C) political D) demographic

D) demographic

The degree to which people in a society accept the idea that inequalities in the well-being of its citizens are due to differences in people's physical and intellectual capabilities is known as A) individual power. B) power philosophy. C) independence power.

D) power distance.

Harold, a sales manager, is about to emigrate to a country where people tend to emphasize "living for the moment." A more formal name for this cultural emphasis is A) high power avoidance. B) low power avoidance. C) long-term orientation. D) short-term orientation.

D) short-term orientation.

Governments of countries that resort to raising tariff barriers ultimately increase employment. True or False

false

Heartz Ltd. provides Glayton Technologies with input resources that it needs to produce its products. In this context, which of the following categories does Heartz Ltd. belong to? A) suppliers B) competitors C) distributors D) customers

A) suppliers

For a company planning to enter a task environment or industry, the greater the economies of scale within that task environment, A) the higher will be the barriers to entry. B) the smaller will be the investment. C) the easier it will be to create brand loyalty. D) the higher will be tariff rates.

A) the higher will be the barriers to entry.

In the context of task environment, write a brief note on competitors. Explain what you believe are the benefits and hazards of competition. Include an example of competitors you have seen in the business world—either from your own experience or from what you have read in the media.

Answers may vary. A sample answer follows: One of the most important forces an organization confronts in its task environment is competitors. Competitors are organizations that produce goods and services that are similar and comparable to a particular organization's goods and services. In other words, competitors are organizations trying to attract the same customers. Rivalry between competitors is potentially the most threatening force managers must deal with. A high level of rivalry typically results in price competition, and falling prices reduce customer revenues and profits. Although extensive rivalry between existing competitors is a major threat to profitability, so is the potential for new competitors to enter the task environment. Potential competitors are organizations that are not presently in a task environment but have the resources to enter if they so choose. When new competitors enter an industry, competition increases, and prices and profits decrease. I believe that having active competitors in a business environment is challenging to managers because it causes increased pressure to reduce costs, improve products, and enlarge the customer base. However, all those pressures benefit the customer because cheaper, better products become available. One example of this is the gyms in my town. When a new gym opened, the existing gym bought new workout machines, offered more classes, and discounted membership fees. Other gym goers and I benefited from this increased competition, but employees of the existing gym probably worried about how their business would be affected.

An organization's suppliers can have an important impact on the success of the organization. Explain what qualities you will look for in suppliers when you are a manager. If you already work with suppliers, you may include an example from your own experience.

Answers may vary. A sample answer follows: Suppliers must be reliable. An important aspect of a manager's job is to make sure that the flow of input resources is steady. Without that steady supply of needed people, knowledge, and equipment, it's nearly impossible to succeed in management. Suppliers must also produce high-quality supplies. Most people think of raw materials or machine parts when they think of high-quality supplies, but organizations need high-quality people as well. Before an organization decides to open a factory or office in a new area, managers need to find out whether local schools can supply workers who have the needed training and can behave appropriately. A competitive supplier environment, with at least two or three excellent suppliers, is a tremendous advantage to almost any organization. When I am a manager, I will research what my organization can do to increase competition among vendors. A supplier's bargaining position is especially strong when (1) the supplier is the sole source of an input and (2) the input is vital to the organization. In contrast, when an organization has many suppliers for a particular input, it is in a relatively strong bargaining position with those suppliers and can demand low-cost, high-quality inputs from them.

What are technological forces? Explain their implications for managers and organizations. Then provide an example of how technological forces changed management in one industry. Your example can be based on your own experience or on something you have read or seen in news media.

Answers may vary. A sample answer follows: Technological forces are outcomes of changes in the technology that managers use to design, produce, or distribute goods and services. Technological forces can have profound implications for managers and organizations. Technological change can make established products obsolete, forcing managers to find new ways to satisfy customer needs. Although technological change can threaten an organization, it also can create a host of new opportunities for designing, making, or distributing new and better kinds of goods and services. One industry that underwent significant technological changes was home entertainment. In the United States, video rental stores such as Blockbuster did not realize what strong competition DVD-by-mail companies would be. The vast majority of video stores went out of business, and the home entertainment industry became more focused on online user experience rather than in-store transactions. Netflix successfully managed its own technological transition from DVD-by-mail service to streaming media service.

Roslyn is a senior manager for an international chain of fitness centers. Two suppliers provide exercise machines for her company. Which of the following is the wisest advice on how Roslyn should manage her suppliers? A) Keep the relationships as they are and focus on other matters, since suppliers are not essential to this type of organization. B) Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers. C) Eliminate one of the suppliers based on the quality of machinery and speed of shipping. D) Eliminate one of the suppliers based on the lowest total price for each machine.

B) Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers.

Chill Winds Inc. manufactures ceiling fans in a small town. Which of these companies is a potential competitor to Chill Winds? A) a manufacturer in the same town that pays its workers slightly more than Chill Winds does B) a maker of floor-level and pocket-sized mechanical fans C) a distributor of ceiling fans to North America, Europe, and Asia D) a technical school that trains its students to repair ceiling fans

B) a maker of floor-level and pocket-sized mechanical fans

Companies from the nation of Moldavia are more efficient in the production of certain types of apparel, while companies from the United States are more efficient in the production of certain types of computers. Which economic theory predicts that capital would move to Moldavia to be invested there in the apparel industry and to the United States to be invested in its computer companies? A) rapid specialization theory B) investor collectivism theory C) free-trade doctrine D) investor individualism doctrine

B) an import tariff

The U.S. government imposes a 25 percent tax on the selling price of any four-wheel-drive SUV that is brought into the U.S. by a foreign car manufacturer to be sold in the U.S. What type of tax is the U.S. government imposing? A) an export tariff B) an import tariff C) a franchise tax D) a licensing tax

B) an import tariff

Factors that make it difficult and costly for a company to compete in a particular task environment or industry are A) political forces. B) barriers to entry. C) isolating mechanisms. D) free trade agreements.

B) barriers to entry.

Clif, a sales manager, was surprised when customers repeatedly bought more expensive True Sound headphones instead of the less expensive substitutes that his company produces. Clif told the vice president of sales that True Sound must have a high level of A) demographic force. B) brand loyalty. C) potential competition. D) distributor loyalty.

B) brand loyalty.

If a society believes that self-expression is important to the people in that society, then the society is said to value A) social background. B) individualism. C) objectivism. D) power distance.

B) individualism.

In a society, the unwritten rules of conduct that state how people should act in particular situations in that society are known as A) values. B) norms. C) rituals. D) goals.

B) norms.

Carole, an executive at Francine's Department Store, finds that the median age of the population in the chain's region is increasing by about three years every decade. This is an example of which type of force in the general environment? A) political B) economic C) demographic D) sociocultural

C) demographic

Worldwide Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Worldwide Blenders is a A) supplier, not a competitor. B) competitor, not a distributor. C) distributor, not a supplier. D) supplier, not a distributor.

C) distributor, not a supplier.

Dale wants to be an expatriate, but he violated a folkway on a recent international trip. Because of this violation, his international hosts thought of him as A) powerful and socially refined. B) immoral or wicked. C) eccentric or ill-mannered. D) unfamiliar with religion.

C) eccentric or ill-mannered.

A shift in the age distribution of the population of the United States is an example of a sociocultural force that affects organizations in the United States. True or False

false

The greater the economies of scale of existing organizations, the lower are the barriers to entry for new competitors. True or False

false

While the typical organization in the United States emphasizes the importance of the group, the typical organization in Japan emphasizes the importance of the individual. True or False

false