Chapter 3: The Organizational Environment and Culture
Making a conscious effort to change the boundaries of a business's competitive environment is called ______. Multiple choice question. strategic maneuvering divesting interest merging diversifying
strategic maneuvering
Competitors may include many types of companies. Which of the following would NOT be considered a competitor of yours? Multiple choice question. A small domestic firm that has just entered your market/industry. A new venture that sells to your customer group. A regional company that sells to a different customer group or industry. A global firm that is trying to join your market/industry.
A regional company that sells to a different customer group or industry.
Managers can take several approaches to managing culture. Which of the following is one of these approaches? Multiple choice question. Award most-favored-supplier status to the best raw material suppliers each year. Celebrate the suppliers who have provided support to the organization and its goals. Identify and celebrate loyal customers who support the business by purchasing its product. Celebrate and reward members who behave in ways that exemplify the desired culture.
Celebrate and reward members who behave in ways that exemplify the desired culture.
Which of the following are well-known types of organizational culture? (Choose every correct answer.) Multiple select question. Clan Adhocracy Individual Hierarchy Democratic
Clan Adhocracy Hierarchy
Which of the following are common forces inside a firm's boundaries? (Choose every correct answer.) Multiple select question. Employees Suppliers Corporate culture Managers
Employees Corporate culture Managers
Which of the following are social issues that shape people's attitudes about an organization? (Choose every correct answer.) Multiple select question. Flexible working hours Family leave policies Economic policies Natural resource use
Flexible working hours Family leave policies Natural resource use
Which of the following people is an example of a final customer? Multiple choice question. Someone who delivers takeout food from a restaurant Someone who buys flour for a bakery Someone who sells a table on Craigslist Someone who buys a lamp at Target
Someone who buys a lamp at Target
What is the role of suppliers in an organization? Multiple choice question. They convert resources into services. They convert resources into products. They sell the products. They provide resources needed for production.
They provide resources needed for production.
What is the role of suppliers in an organization? Multiple choice question. They provide resources needed for production. They convert resources into products. They sell the products. They convert resources into services.
They provide resources needed for production.
The combination of one or more companies is called ______. Multiple choice question. diversification a merger domain selection divestiture
a merger
When one firm buys another, it is called a(n) ______. Multiple choice question. acquisition divestiture liquidation alliance
acquisition
In terms of business competition, a substitute is a(n) ______. Multiple choice question. alternative to a product product that complements a product temporary replacement for a product identical product
alternative to a product
The first level of organizational culture that can be seen consists of visible .
artifacts
Conditions that prevent new companies from entering an industry are known as _________ to entry.
barriers
The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization, is called ______. Multiple choice question. empowerment forecasting scenario planning benchmarking
empowerment
A consumer who buys a good or service from a retailer is a(n) ______ consumer. Multiple choice question. secondary industrial intermediate final
final
Guessing future changes in some variable(s) is called .
forecasting
Engaging a company in a private litigation is called ______ action. Multiple choice question. adaptive independent cooperative legal
legal
Resources generally provided by suppliers include information, raw materials, financial capital, and ______. Multiple choice question. people advertising competition customers
people
In a competitive market, a substitute for coffee would be ______. Multiple choice question. tea sugar a scone cream
tea
As ______ evolves, new industries, markets, and competitive niches develop. Multiple choice question. the external environment technology the internal environment supply chain management
technology
An important economic influence is ______. Multiple choice question. human resource strategies supply chain management the stock market workforce diversity
the stock market
When managers do not have enough information about the environment to understand or predict the future, it is called environmental .
uncertainty
The part of organizational culture that cannot be directly observed but is inferred from the behavior of managers is called the organization's .
values
Regulators are specific ______ organizations that have the power to investigate company practices to ensure compliance with the law. Multiple choice question. local private government international
government
Which of the following describes the situation in which a manager does not have enough information about the environment to understand or predict the future? Multiple choice question. Unknown environment Environmental dynamism Environmental uncertainty Environmental probability
Environmental uncertainty
In order to cope with environmental uncertainty, organizations may adapt by ______ decision making and empowering their lower-level employees. Multiple choice question. duplicating eliminating decentralizing centralizing
decentralizing
When a company acts on its own to change some aspect of its current environment, it is using strategies.
independent
Strategies used by an organization acting on its own to change some aspect of its current environment are called ______. Multiple choice question. publication relations current strategies independent strategies cooperative strategies
independent strategies
Solan Inc. is externally oriented and focused on control. Its primary objectives are productivity, planning, and efficiency. Organizational members are motivated by the belief that performance that leads to the desired organizational objectives will be rewarded. These characteristics show that Solan Inc. has a(n) ______ organizational culture. Multiple choice question. clan adhocracy market hierarchical
market
The components of an organization that can be seen and heard (such as office layout, dress, stories, and written material) are called ______. Multiple choice question. observable adaptations values unconscious assumptions visible artifacts
visible artifacts
Pledging to donate money to a charitable cause is an example of a business taking action. Listen to the complete question
voluntary
How does the stock market affect the behavior of individual managers? (Choose every correct answer.) Multiple select question. -It causes them to focus more on short-term results rather than long-term strategies. -It affects their compensation. -It puts pressure on them to improve their budgets or sales. -It forces them to respond proactively to environmental uncertainty.
-It causes them to focus more on short-term results rather than long-term strategies. -It affects their compensation. -It puts pressure on them to improve their budgets or sales.
Which of the following is an independent strategy a company can use to influence its environment? Multiple choice question. Contracts Coalition action Cooptation Competitive pacification
Competitive pacification
Collecting information about your company's operations and those of your competitors in order to determine gaps is called ______. Multiple choice question. the worst-case scenario benchmarking forecasting scanning
benchmarking
Identifying the best-in-class performance by a company and then comparing your processes to theirs is called .
benchmarking
The information necessary to decide how best to manage in the competitive environment is called ______. Multiple choice question. environmental uncertainty competitive intelligence environmental dynamism environmental scanning
competitive intelligence
When managers secure answers to questions posed during environmental scanning, they develop ______. Multiple choice question. environmental uncertainty environmental complexity environmental dynamism competitive intelligence
competitive intelligence
Organizations that produce goods and services that are similar to another organization's goods and services are known as ______. Multiple choice question. customers competitors suppliers distributors
competitors
The components of the competitive environment include rivalry among current competitors and the affect of new entrants, substitute and complementary products, suppliers, and ______. Multiple choice question. marketing management divisions customers
customers
Statistical characteristics of a group or population are called ______. Multiple choice question. demographics cultures values norms
demographics
A firm's investment in different products, businesses, or geographic areas is known as ______. Multiple choice question. merging diversification divestiture domain selection
diversification
Predicting exactly how some variable or variables will change in the future is called ______. Multiple choice question. forecasting benchmarking divesting smoothing
forecasting
action occurs when an organization lobbies elected officials to achieve a more business friendly environment.
political
Independent action and cooperative action are two general types of ______ responses for the purpose of changing the environment. Multiple choice question. uncoordinated reactive proactive ineffective
proactive
Public involves establishing and maintaining a favorable image in the minds of others in a company's environment.
relations
Two types of general proactive responses aimed at changing the environment are action and action.
Blank 1: independent Blank 2: cooperative
Which one of the following is NOT a component of the competitive environment? Multiple choice question. Demographic groups Customers (buyers) Suppliers Substitute and complementary products Rivalry among current competitors Threat of new entrants
Demographic groups
Age, gender, occupation, and income are all considered ______ characteristics. Multiple choice question. demographic national ethnic cultural
demographic
A scenario is a narrative that describes a particular set of ______ conditions. Multiple choice question. current past future present
future
The ______ is characterized by the most general elements in the external environment, such as governments and economic conditions, that can influence strategic decisions. Multiple choice question. macroenvironment organizational culture competitive environment regulatory climate
macroenvironment
The establishment and maintenance of favorable images of an organization in the minds of those making up the environment is called ______. Multiple choice question. voluntary action public relations political action legal action
public relations
When companies introduce family-supportive policies, including family leave, flexible working hours, and child care assistance, they are responding to ______. Multiple choice question. competitors gender issues an aging population social values
social values
The underlying qualities and desirable behaviors that are important to the organization are called ______. Multiple choice question. visible artifacts environmental forces values unconscious assumptions
values
Multiple Select Question Select all that apply What are the types of independent actions that organizations can take in order to influence the environment? (Choose every correct answer.) Multiple select question. Competitive aggression Voluntary action Legal action Public relations Political action Cooperative action
Competitive aggression Voluntary action Legal action Public relations Political action
Which of the following are part of the macroenvironment of an organization? (Choose every correct answer.) Multiple select question. Demographics Suppliers Technology The economy Competitors
Demographics Technology The Economy
Which of the following types of independent actions represents a commitment to various interest groups, causes, and social problems? Multiple choice question. Political action Competitive pacification Public relations Voluntary action
Voluntary action
Factors that make it difficult and costly for an organization to enter a particular task environment or industry are called ______. Multiple choice question. technological breakthroughs barriers to entry local and global outsourcing barriers to competition
barriers to entry
Which of the following is an advantage of technology? Multiple choice question. -It provides more efficient ways to manage and communicate. -It describes how environmental forces influence organizations. -It helps companies avoid depending too heavily on powerful customers. -It helps define the elements of an organization's culture.
-It provides more efficient ways to manage and communicate.
Which of the following are steps that should be taken to manage organizational culture? (Choose every correct answer.) Multiple select question. Celebrate and reward members who behave in ways that exemplify the desired culture. "Walk the talk" and show members of the culture that you are serious about long-term change. Craft an inspirational vision of "what can be" for the organizational culture. Identify loyal customers and celebrate their dedication to the organization.
Celebrate and reward members who behave in ways that exemplify the desired culture. "Walk the talk" and show members of the culture that you are serious about long-term change. Craft an inspirational vision of "what can be" for the organizational culture.
What are the types of independent actions that organizations can take in order to influence the environment? (Choose every correct answer.) Multiple select question. Cooperative action Reason: This choice should not be selected. It is not a type of independent action. Competitive aggression Political action Public relations Voluntary action Legal action
Competitive aggression Political action Public relations Voluntary action Legal action
Which general considerations help guide management's response to the environment? (Choose every correct answer.) Multiple select question. Organizations should choose responses that focus on pertinent elements of the environment. Organizations should attempt to change appropriate elements of the environment. Companies should choose responses that offer the most benefit at the lowest cost. Organizations should investigate and reverse any negative factors of the environment.
Organizations should choose responses that focus on pertinent elements of the environment. Organizations should attempt to change appropriate elements of the environment. Companies should choose responses that offer the most benefit at the lowest cost.
A company might decide to develop scenarios for which of the following purposes? (Choose every correct answer.) Multiple select question. To have contingency plans in the case of a serious accident. To create a narrative that describes how the company was founded. To list initiatives it can eliminate if necessary in an economic downturn. To identify possible new investments in an economic upturn.
To have contingency plans in the case of a serious accident. To list initiatives it can eliminate if necessary in an economic downturn. To identify possible new investments in an economic upturn.
