Practice quiz

accommodative

A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems.

opportunistic behavior

A high degree of buyer or seller dependence can lead to ____ in which one party benefits at the expense of the other.

policy

A(n) ____ is a standing plan that indicates the general course of action that should be taken in response to a particular event or situation.

technological substitution

Discontinuous change in an innovation stream is characterized by ____.

resource similarity

From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors.

(recovery) The recovery strategy is defined as the strategic actions taken after retrenchment to return to a growth strategy.

In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. If ICI is successful in making the needed changes, it will more than likely implement a ____ strategy.

(social responsibility) Social responsibility is a business' obligation to pursue policies, make decisions, and take actions that benefit society.

Kowalski's Markets, a local supermarket chain in Minneapolis, expanded by purchasing four existing stores. One of the stores was located in Minneapolis' Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had a(n) ____ to provide a neighborhood grocery store to that community.

(legal) These companies did not obey the law.

Ramin wood, which is used to make pool cues and picture frames, was declared an endangered species and its export is regulated by the government of Indonesia. In spite of attempts to control the sale of the wood, it is still being carried across Indonesia's national borders and sold in Malaysia where government officials pretend the wood was legally acquired. Companies that buy the illegally-acquired wood in Malaysia are ignoring their ____ responsibility to society.

shareholder

The ____ model holds that the only social responsibility that businesses have is to maximize profit.

unfreezing, change intervention, and refreezing

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____.

(single-use plan) Single-use plans are defined as plans that cover unique, one-time events (in this case the 100-year anniversary).

What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer?

(code of ethics) A code of ethics states the company's core values and provides specific guidance for ethical behavior. Here Club Aluminum's four questions reflect core values.

When the Chicago-based Club Aluminum Company was facing bankruptcy, one of the changes its new CEO made was to create a(n) ____ for all employees to follow in their business and professional lives. It read, "Of the things we think, say, and do: (1) Is it the truth? (2) Is it fair to all concerned? (3) Will it build goodwill and better friendships? (4) Will it be beneficial to all concerned?"

(a video game manufacturer) A dynamic environment is one in which the rate of change is fast. A video game maker faces short product life cycles and rapid changes in technology.

Which of the following companies is most likely operating in a dynamic environment?

(existing complementary products) Porter's Five Industry Forces model includes: (1) character of the rivalry, (2) threat of new entrants, (3) threat of substitute products or services, (4) bargaining power of suppliers, and (5) bargaining power of customers.

Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

(coercion) Coercion is the use of formal power and authority to force others to change.

Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?

(None of these statements about the Strategic Reference Point Theory is true.)

Which of the following statements about the strategic reference point theory is true?

its competitors

Which of the following would be a part of an organization's specific environment?