MGMT CH 3

alliance

or partnership, the company launches a new project with another company.

problem with older employees

likely to need more extensive insurance coverage and medical benefits.

two major categories of regulators

regulatory agencies & interest groups

A manifestation of Southwest Airlines' __________ is the way in which it allows passengers to choose their own seat. a. technological dimension b. culture c. globalization d. physical work enviornment

b

what business forms the majority of strategic parters?

international businesses

Extent to which buyers in an industry can influence the suppliers

power of buyers

For each example in the following table, choose whether it belongs in the general, task, or internal environment. Increased regulation of banks and mortgage lenders regarding the loans they issue

general environment

For each example in the following table, choose whether it belongs in the general, task, or internal environment. Shifts in economic and political power between countries

general environment

economic dimension: which environment? definition?

general environment he overall health and vitality of the economic system in which the organization operates

political-legal dimension: which environment? definition?

general, refers to government regulation of business and the relationship between business and government

technological dimension: which environment? definition?

general, refers to the methods available for converting resources into products or services

sociocultural dimension: which environment? definition?

general, the customs, mores, values, and demographic characteristics of the society in which the organization functions

international dimension: which environment? definition?

general, the extent to which an organization is involved in or affected by businesses in other countries

For each example in the following table, choose whether it belongs in the general, task, or internal environment. A manager's policy of letting employees have Friday afternoons off during the summer

internal environment

For each example in the following table, choose whether it belongs in the general, task, or internal environment. One employee telling another, "It's just the way we do things around here—it's our organizational culture."

internal environment

culture: which environment? definition?

internal, The organization's "feel", an influence the firm's overall performance and long-term success.

owners: which environment? definition?

internal, Those who hold legal property rights to a business. can include a single person who starts and manages a small business, partners who share ownership, private investors who purchase stock in a company, or other organizations

employees: which environment? definition?

internal, make up a significant portion of an organization's internal environment.

strategic response

keeping things as they are, slightly changing one's approach, or going to a completely different approach.

Michael Porter suggested that managers view the environments in which they operate in terms of five competitive forces. These are the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers. Using your knowledge of the environmental forces, indicate which environmental force is represented by each example. (new entrants, competitors, suppliers, buyers, or substitutes) Aardvark is the only commercial supplier of paper straws.

suppliers

information systems

method of managing information. computer based system to compile and arrange data

4 ways managers should manage culture?

1. comprehend current culture before determing if it should be changed 2. tread carefull on changing 3. mergers or the emergence of rival groups lead to problems 4. introducing outsiders is essential to change culture

5 ways organizations adapt to their environment

1. information management 2. strategic response 3. mergers, acquisitions, and alliances 4. organization design & flexibility 5. direct influence

A company's service technicians spend most of their time in company vans. These vehicles are part of the organization's a. Physical work environment b. Culture

A

Check all of the following that included in general environment. A. Economic dimension B. Technological dimension C. Sociocultural dimension D. Political-legal dimension E. Domestic dimension F. International dimension

A, B, C, D, F

Mark all of the following that are true about the management of an organization culture. A. The manager must comprehend the current culture before determining whether it should be kept or modified. B. Managers must tread carefully when deciding whether to change a dysfunctional culture or to keep one that nonetheless functions well. C. Sometimes mergers or the emergence of rival groups inside an organization lead to culture problems. D. Introducing outsiders into key managerial roles is one essential strategy to change culture.

A,B,C,D

A manager who is considering entry to a new market must carefully consider all aspects of the environment as it relates to that market, including any obstacles posed by ___________ who already have established relationships with suppliers and customers. A. Regulators B. Competitors C. Strategic Partners D. Owners

B

A new method for assembling and providing products to customers more quickly would be part of the ______________ of the general environment. A. political legal dimension B. technological dimension C. economic dimension D. internal dimension

B

examples of things in the economic dimension

Economic growth in general, inflation, interest rates, and unemployment

external enviornment

Everything that could have an impact on a company outside its walls. general & task

diversity

Exists in a group or organization when its members differ from one another along one or more important dimensions, such as age, gender, or ethnicity

gender

More and more women are working in traditionally male fields.

suppliers: which environment? definition?

Organizations that provide resources to other organizations are known as suppliers. Buying from a single source or several suppliers could be one option.

Porter's 5 Forces

Potential new entrants, buyer power, supplier power, threat of substitutes, rivalry and competition.

Multiculturalism

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

internal environment

The conditions and forces present within an organization

the rate of change

The extent to which the environment is relatively stable or relatively dynamic

ethnicity

The proportion of White Americans is predicted to decline. The proportion of people of Hispanic heritage is anticipated to rise at the same time. Although at slower rates, the percentages of Asians, African Americans, and other groups are also anticipated to rise.

mergers

When two or more companies come together to form a new company

The organization's environments are helpful and important to managers because... a. They are actually not helpful or important b. They are like water to a swimmer c. They control everything in an organization d. They are the only thing that managers should pay attention to

b

Check all of the following that included in task environment. a. Competitors b. Customers c. Regulators d. Strategic partners e. Consultants f. Suppliers

a,b,c,d,f

Dimensions of Diversity and Multiculturalism

age distributions, gender, ethnicity

Top Dog Academy is a dog day care provider. Which issues are part of its general environment? Check all that apply. A. Top Dog Academy employees a trainer and two caregivers. B. PetCube is a technological innovation that provides dogs with a safe environment for play at home even when owners are away. C. People increasingly acknowledge the role of pets as part of the family. D. Five other dog day care centers operate within 30 miles of Top Dog Academy.

b,c

information management

boundary spanner environmental scanning information systems

Organizations can adapt to the forces in their environments. They have several methods available to them. The question presents several examples of the actions organizations took in response to forces in the environment. For each action, indicate the environmental threat that action was intended to mitigate. (new entrant, competitor, suppliers, buyers, or substitutes) Media companies CBS and Viacom merged.

competitors

The April 2010 explosion of British Petroleum's (BP) Deepwater Horizon oil-drilling rig, and the accompanying oil spill, dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the United States Senate, concern on Wall Street, and attention from companies throughout the world. Match each event in the following table with a specific dimension of the task environment. Other oil companies increasing their market share while BP focused its resources on addressing the oil spill

competitors

Who/what is in the task environment?

competitors, customers, suppliers, strategic parters, & regulators

Symbols, legends, heroes, slogans, and ceremonies all help to alter, develop, and improve an organization's....

culture

who/what is in the internal environment?

owners, board of directors, employees, physical environment, culture

physical work environment: which environment? definition?

sets the "tone" for a company. Many companies are redesigning to open spaces with small rooms for private companies.

direct influence

signing long-contract, becoming its own supplier, changing prices, creating new product, reaching new customers.

regulatory agencies

stablished by the government to defend the general populace against certain commercial practices or to defend organizations against one another

Power of Buyers

the extent to which buyers of the products or services in an industry can influence the suppliers

where does culture frequently begin in an organization?

the orginator

why is the social cultural dimension so important?

they define the goods, services, and moral standards that the society is likely to appreciate

acquisition

happens when one company purchases another, often against the latter's will (commonly referred to as a "hostile takeover").

What can be included in an organization's internal environment? Check all that apply. A. Owners B. Board of directors C. Physical work environment D. Employees E. Vendors F. Culture

A,B,C,D,F

FMR LLC, or Fidelity Investments, is the holding company for Fidelity.com, a large online investment company. Run by CEO Abby Johnson, Fidelity provides its clients with investment advice, retirement planning, portfolio guidance, and other financial products and services. Fidelity clients include individuals, institutions, and financial intermediaries. As of September 2020, the company counted as clients 32 million individual investors and had $8.3 trillion in assets under management. Fidelity employees do everything they can to help Fidelity funds grow. In addition, they are committed to education, actively supporting local schools through volunteer work. Although Fidelity is a privately owned firm, held closely by the Johnson family, various Fidelity funds use boards of trustees to help supervise management activities. These boards are generally comprised of senior-level executives from Fidelity and other organizations who have the wisdom to help Fidelity managers run their companies effectively. In 2020, Fidelity had over 40,000 workers in nine countries. When the scenario refers to "over 40,000 workers," it is referring to which aspect of the internal environment? a. Employees b. Cu

a

why is strategic parters so helpful?

aid in risk distribution and create new market opportunities

age distributions

american workforce age is steadily rising

interest groups

are created by their members to try to influence organizations.

How can we explain the increase in the diversity of the labor force? a. Gender bias b. Legislative requirements for diversity c. Age discrimination

b

Diversity in organizations is best described as... a. Which exists in a community of people when its members are similar to each other b. Which exists in a community of people when its members are from the same background c. Which exists in a community of people when its members differ from one another along one or more important dimensions d. Which exists in a community of people when its members are around the same age

c

T OR F: Internal environment is composed of the organization's owners, boards of directors, employees, physical work environments, and cultures.

t

Both the internal and external environments are present in organizations. The general environment and the ________ environment are the two layers that make up the external environment.

task

For each example in the following table, choose whether it belongs in the general, task, or internal environment. For a public university, the pool of new PhD graduates seeking jobs as professors

task environment

customers: which environment? definition?

task, Customers are anyone who spends money to buy products or services from an organization.

competitors: which environment? definition?

task, Other organizations that compete with an organization for resources are considered competitors.

Michael Porter suggested that managers view the environments in which they operate in terms of five competitive forces. These are the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers. Using your knowledge of the environmental forces, indicate which environmental force is represented by each example. (new entrants, competitors, suppliers, buyers, or substitutes) Teledoc Health now offers 24/7 online medical appointments that are covered by insurance.

competitors

Why are most organizations becoming more and more divers and multicultural? Check all the reasons that apply. A. Changing demographics in the labor force B. Legislation and legal action C. Increased awareness that diversity improves the quality of the workforce D. The globalization movement

A,B,C,D

compared to younger workers, older workers often...

have more experience, are more stable, and contribute more to productivity

Degree of homogeneity

the extent to which the environment is relatively simple or relatively complex

Competitive Rivalry

the nature of the competitive relationship between dominant firms in the industry

Michael Porter suggested that managers view the environments in which they operate in terms of five competitive forces. These are the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers. Using your knowledge of the environmental forces, indicate which environmental force is represented by each example. (new entrants, competitors, suppliers, buyers, or substitutes) Another bank just released an app that lets customers easily analyze their finances on their phones.

competitors

examples of regulators

FDA, SEC

Michael Porter suggested that managers view the environments in which they operate in terms of five competitive forces. These are the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers. Using your knowledge of the environmental forces, indicate which environmental force is represented by each example. (new entrants, competitors, suppliers, buyers, or substitutes) Becoming a content creator on social media platforms like TikTok requires nothing but a phone and an idea.

new entrants

is a company's culture always the same throughout?

no

A group of managers are addressing _____________ when they decide to grapple with the challenges and opportunities that arise from the various differences among people in the organization's internal and external environments. a. ethnicity b. multiculturalism c. demographics d. organizational culture

b

boundry spanning

one method of managing information. an employee who frequently interacts with people outside of the company.

environmental scanning

one method of managing information. keeping an eye on environments through reading and observing

The April 2010 explosion of British Petroleum's (BP) Deepwater Horizon oil-drilling rig, and the accompanying oil spill, dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the United States Senate, concern on Wall Street, and attention from companies throughout the world. Match each event in the following table with a specific dimension of the task environment. A requirement by U.S. Occupational Safety and Health Administration (OSHA) that workers engaged in environmental cleanup be protected from heat, fatigue, and other hazards

regulators

The April 2010 explosion of British Petroleum's (BP) Deepwater Horizon oil-drilling rig, and the accompanying oil spill, dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the United States Senate, concern on Wall Street, and attention from companies throughout the world. Match each event in the following table with a specific dimension of the task environment. BP providing funding and data to companies developing new technologies for deepwater drilling

strategic parters

strategic parters: which environment? definition?

task, Two or more businesses that collaborate through joint ventures or other partnerships are referred to as strategic partners

regulators: which environment? definition?

task, have the authority to control, legislate, or otherwise affect the policies and practices of an organization

The nature of competitive relationships between dominant firms in the industry

competitive rivalry

Organizations can adapt to the forces in their environments. They have several methods available to them. The question presents several examples of the actions organizations took in response to forces in the environment. For each action, indicate the environmental threat that action was intended to mitigate. (new entrant, competitor, suppliers, buyers, or substitutes) PepsiCo monitors shopper data on sales of non-carbonated beverages.

substitutes

The April 2010 explosion of British Petroleum's (BP) Deepwater Horizon oil-drilling rig, and the accompanying oil spill, dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the United States Senate, concern on Wall Street, and attention from companies throughout the world. Match each event in the following table with a specific dimension of the task environment. A BP contractor changing its practices to satisfy the environmental and ethical requirements set by BP

suppliers

who/what is in the general environment?

technoligical dimesion, economic dimension, sociocultural dimension, political-legal dimension, international dimension

How do organizations influence environment directly? Check all that apply. a. by signing long-term contracts with suppliers b. by changing prices c. by creating new products d. by reaching new customers e. by becoming its own supplier

a,b,c,d,e

FMR LLC, or Fidelity Investments, is the holding company for Fidelity.com, a large online investment company. Run by CEO Abby Johnson, Fidelity provides its clients with investment advice, retirement planning, portfolio guidance, and other financial products and services. Fidelity clients include individuals, institutions, and financial intermediaries. As of September 2020, the company counted as clients 32 million individual investors and had $8.3 trillion in assets under management. Fidelity employees do everything they can to help Fidelity funds grow. In addition, they are committed to education, actively supporting local schools through volunteer work. Although Fidelity is a privately owned firm, held closely by the Johnson family, various Fidelity funds use boards of trustees to help supervise management activities. These boards are generally comprised of senior-level executives from Fidelity and other organizations who have the wisdom to help Fidelity managers run their companies effectively. In 2020, Fidelity had over 40,000 workers in nine countries. When the scenario mentions "supporting local schools," which aspect of the organization's internal environment is it referring to?

b

Multiculturalism in organizations is best reflected when... a. The people comprising an organization are from the same country b. The people comprising an organization represent different cultures and have different values, beliefs, behaviors, customs, and attitudes c. The people comprising an organization share similar values and beliefs d. The people comprising an organization share similar values and beliefs

b

FMR LLC, or Fidelity Investments, is the holding company for Fidelity.com, a large online investment company. Run by CEO Abby Johnson, Fidelity provides its clients with investment advice, retirement planning, portfolio guidance, and other financial products and services. Fidelity clients include individuals, institutions, and financial intermediaries. As of September 2020, the company counted as clients 32 million individual investors and had $8.3 trillion in assets under management. Fidelity employees do everything they can to help Fidelity funds grow. In addition, they are committed to education, actively supporting local schools through volunteer work. Although Fidelity is a privately owned firm, held closely by the Johnson family, various Fidelity funds use boards of trustees to help supervise management activities. These boards are generally comprised of senior-level executives from Fidelity and other organizations who have the wisdom to help Fidelity managers run their companies effectively. In 2020, Fidelity had over 40,000 workers in nine countries. The "boards of trustees" constitute which aspect of the internal environment? a. Employees b. Owners c. Board of directors d. Cult

c

Organizations can adapt to the forces in their environments. They have several methods available to them. The question presents several examples of the actions organizations took in response to forces in the environment. For each action, indicate the environmental threat that action was intended to mitigate. (new entrant, competitor, suppliers, buyers, or substitutes) German airline Lufthansa acquired Air Berlin.

competitors

board of directors: which environment? definition?

internal; a governing body that is chosen by the stockholders and charged with overseeing the company's general management to ensure that it is operated in the way that best serves the interests of the investors

Extent to which suppliers can influence potential buyers

power of suppliers

the threat of new entrants

the extent to which new competitors can easily enter a market or market segment

Power of Suppliers

the extent to which suppliers can influence potential buyers

Extent to which new competitors can easily enter a market

threat of new entrants

Extent to which alternative products/services affect the need for existing ones

threat of substitute products

The April 2010 explosion of British Petroleum's (BP) Deepwater Horizon oil-drilling rig, and the accompanying oil spill, dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the United States Senate, concern on Wall Street, and attention from companies throughout the world. Match each event in the following table with a specific dimension of the general environment. A. President Obama's placement of a 6-month moratorium on offshore drilling B. Harm to industries throughout the Gulf Coast region, including commercial fishing, seafood processing, and tourism C. The ability to use deep-sea submersibles to take pictures of the oil leak a mile below the surface of the water

A. Political/Legal B. Economic C. Technological

If an organization wants to inspire workers to be more enthusiastic about their work, which aspect of its environment is it most likely to change? A. Economic dimension B. Organizational culture C. Technological dimension D. Physical work environment

B

Google's chief diversity officer, Melonie Parker, reports that the company has made progress in hiring and retaining employees from historically underrepresented groups. For example, by using a bias removal tool on job postings, Google rewrote postings in a way that encouraged 11 percent more women to apply for jobs. In 2019, 40 percent of technical internships were held by women and 24 percent of US interns were Black or Latinx, an increase from 2014 when diversity efforts started in earnest. Perhaps most intriguingly, Google has shifted from looking for "culture fit" in new hires to looking for "culture add" — asking what applicants would add to the organizational culture if they were hired. Nonetheless, the data show that improvement is slight, with percentages of employees who are women and people of color remaining well below those in the population at large: between 2018 and 2019, the percentage of the US workforce that is Black or Latinx increased from 9.0 to 9.6 percent, and the percentage of women globally increased from 31.6 to 32 percent. One barrier cited in Google's Diversity Annual Report is a lack of relevant course offerings in schools serving underrepresented communities

a

The April 2010 explosion of British Petroleum's (BP) Deepwater Horizon oil-drilling rig, and the accompanying oil spill, dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the United States Senate, concern on Wall Street, and attention from companies throughout the world. Match each event in the following table with a specific dimension of the task environment. To appeal to drivers who are concerned about climate change, using wind and solar power in the operation of gas stations

customers

FMR LLC, or Fidelity Investments, is the holding company for Fidelity.com, a large online investment company. Run by CEO Abby Johnson, Fidelity provides its clients with investment advice, retirement planning, portfolio guidance, and other financial products and services. Fidelity clients include individuals, institutions, and financial intermediaries. As of September 2020, the company counted as clients 32 million individual investors and had $8.3 trillion in assets under management. Fidelity employees do everything they can to help Fidelity funds grow. In addition, they are committed to education, actively supporting local schools through volunteer work. Although Fidelity is a privately owned firm, held closely by the Johnson family, various Fidelity funds use boards of trustees to help supervise management activities. These boards are generally comprised of senior-level executives from Fidelity and other organizations who have the wisdom to help Fidelity managers run their companies effectively. In 2020, Fidelity had over 40,000 workers in nine countries. What role does the Johnson family play in Fidelity's internal environment? A. Owners B. Employees C. Board of trustees D. Board of

A

Which of the following statements about culture are true? Check all that apply. A. Simple changes like staging new ceremonies and adopting new slogans cannot alter culture. B. Cultural problems can arise when two companies with different cultures merge. C. A major way to shape culture is by bringing outsiders into important leadership positions. D. Culture can be maintained by rewarding and promoting people whose behaviors are desired.

b,c,d

Threat of Substitutes

he extent to which alternative products or services may supplant or diminish the need for existing products or services.