Deck 3: Understanding the Organizations Environment

Question 1

Managers can disregard the general environment because it is vague, imprecise, and long term.

Answer 1

False

Question 2

Culture is the foundation of the organization's internal environment.

Answer 2

True

Question 3

Pharmaceutical companies that advise viewers of their commercials to "ask your doctor about..." are engaging in direct influence.

Answer 3

True

Question 4

The Labor Day holiday leads to more Americans driving, which leads to higher gas prices at the pump. This is an example of the sociocultural element of the general environment.

Question 5

When used in the task environment, the term competitor is limited to a firm that competes with another for customers.

Question 6

Temporary employees or temps are organized into labor unions.

Question 7

While managers strive to align their firms with the external environment, they must also remember that their own work is carried out within the internal environment of their firms.

Question 8

The board of directors is responsible for acting in the best interest of executives.

Question 9

The physical work environment is becoming increasingly closed, requiring people to work from home.

Question 10

Not all parts of the external and internal environment are equally important for all organizations.

Question 11

Immigration into the United States is at its highest rate since 1910.

Question 12

Michael E. Porter's five competitive forces are competitors, customers, suppliers, strategic partners, and regulators.

Question 13

Effective management recognizes the key elements of its environment and its ideal alignment and works to achieve and maintain that alignment.

Question 14

Barnes and Noble and Starbucks are suppliers.

Question 15

Organizations influence their regulators through lobbying and bargaining.

Question 16

Task environments are the same from organization to organization because each company functions in the same global environment.

Question 17

Zoning regulations in some communities require significant landscaping around and in parking lots. This is an example of the sociocultural element of the general environment.

Question 18

Companies operating in only one country have no international dimension.

Question 19

The technology an organization uses is part of its internal environment.

Question 20

Organizations use boundary spanners, an information management technique, to respond to their environments.

Question 21

When HTC offered the first cell phone with a button dedicated to Facebook, it was responding to changes in the ____ environmental dimension.

A) economic
B) technological
C) international
D) political-legal
E) domestic

Question 22

Diversity is an absolute phenomenon that specifies that a group or organization is or is not diverse.

Question 23

Organizations today are becoming less diverse and multicultural.

Question 24

W hen Catherine, Duchess of Cambridge  sta rt ed wearing pantyhose, sales in the UK increased 85%. That is an example of which environment?

A) Task
B) Political-legal
C) Sociocultural
D) Technological
E) Economic

Question 25

When entrepreneur Gene Reilly's dog couldn't drink water, he developed a canine sports drink, which he marketed and called Rebound. Which of the following is part of the general environment for Reilly's company?

A) Dog owners
B) The American Kennel Association
C) The company that supplies the plastic bottles in which the drink is sold
D) The lending institution that gave Reilly his start-up capital
E) The sociocultural belief that says it is all right for people to give dogs human characteristics

Question 26

An organization's general environment

A) includes a set of broad dimensions.
B) includes forces in its surroundings.
C) refers to the overall context of the environment.
D) is not necessarily associated with specific organizations.
E) All of these choices

Question 27

The general environment of organizations has all EXCEPT which dimension?

A) Economic
B) Technological
C) Sociocultural
D) Political-legal
E) Domestic

Question 28

An erratic economy increases uncertainty.

Question 29

Which of the following statements does NOT describe a characteristic of an organization's external environment?

A) It includes specific, identifiable organizations and factors of interest to the organization.
B) It is composed of general and task components.
C) The boundary between the organization and its environment is quite specific and clearly defined.
D) It contains some nonspecific dimensions and forces that can affect organization activities.
E) It includes everything outside of the organization that might potentially affect it.

Question 30

____ is a key part of the manager's job.

A) Understanding the organizational hierarchy
B) Authoritarianism
C) Being manipulative
D) Maintaining an effective alignment between the organization and the environment
E) Being cognizant of the environment in which his or her supervisors operate

Question 31

Which of the following events would NOT have a significant impact on an organization's general environment?

A) A German firm develops an improved two-cycle automobile engine.
B) The unemployment rate drops below 4 percent.
C) An industry's labor union refuses to agree to a new contract.
D) The mean age of the population shows a gradual increase.
E) The Supreme Court supports rigid interpretation of antitrust laws.

Question 32

The downgrade of U.S. federal debt created wild swings in the stock market. The uncertainty led to consumer caution and less spending. This is an example of the ____ dimension.

A) legal
B) sociocultural
C) technological
D) political
E) economic

Question 33

The ____ dimension refers to the methods available for converting resources into products and services.

A) task
B) sociocultural
C) technological
D) political
E) economic

Question 34

The interest rates are an important aspect of which environment?

A) Political-legal
B) Economic
C) Sociocultural
D) Task
E) None of these choices

Question 35

In 2011, unemployment was the highest it had been in more than a decade. This is part of the ____ dimension of organizations.

A) legal
B) sociocultural
C) technological
D) political
E) economic

Question 36

When a locally owned construction firm fears new competition from a national chain such as Toll Brothers moving in, it is experiencing a change in its

A) internal environment.
B) external environment.
C) physical work environment.
D) government regulations.
E) organizational culture.

Question 37

McAfee announced the detection of electronic spying by a foreign nation on the International Olympic Committee before the Olympics. This is part of the ____ environment of the IOC.

A) legal
B) sociocultural
C) technological
D) political
E) economic

Question 38

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

A) increase in the number of single-parent families
B) increase in unemployment
C) large increase in immigration
D) increase in the mean age of the population
E) significant decrease in the birthrate

Question 39

General Motors sold an auto parts company because profitability was low. The primary environmental dimension considered was

A) economic.
B) technological.
C) sociocultural.
D) political-legal.
E) domestic.

Question 40

Twenty years ago most business failures were attributed to poor inventory management. Today point-of-sales terminals are used at the checkout counters of most retail stores. These terminals allow retailers to know what is selling, to see what needs to be reordered, and to better satisfy customers while not over investing in inventory. Point-of-sales terminals have greatly influenced how retailers interact with the ____ dimension of the general environment.

A) task
B) sociocultural
C) technological
D) political
E) economic

Question 41

____ is(are) part of an organization's general environment.

A) Competitors
B) Owners
C) Partners
D) Unions
E) Technology

Question 42

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

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 43

Julie is responsible for her company's military veteran mentor program. She will have to operate in the ____ environment.

A) internal
B) political-legal
C) task
D) general
E) economic

Question 44

When a deep water oil rig exploded in the Gulf of Mexico, the Obama administration initially imposed a moratorium on deep water drilling. This is an example of the ____ dimension.

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 45

The ____ is the portion of an organization's environment that deals with morals, values, and demographic characteristics.

A) sociocultural element of the task environment
B) political-legal element of the general environment
C) political-legal element of the task environment
D) organization's internal environment
E) sociocultural element of the general environment

Question 46

The extent to which an organization is affected by or involved in businesses in other countries refers to its

A) political-legal dimension.
B) economic environment.
C) international dimension.
D) sociocultural dimension.
E) general environment.

Question 47

Executives carry smart phones that keep them connected to people and information all day. This is an example of the ____ dimension of the external environment.

A) task
B) economic
C) general
D) technological
E) sociocultural

Question 48

For more than a century, Americans moved from rural to metropolitan areas. Then in the 1950s, Americans made a mass exit from the city to the suburbs. Now many of these suburb dwellers are moving back to the rural areas. They are developing micropolitan areas , which offer many of the advantages of the metropolitan areas, but without the population crush, the traffic jams, and the high crime rates. This trend affects the location of many businesses and is part of the ____ dimension in which they operate.

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 49

Which of the following is a reason that virtually every organization is affected by the international dimension?

A) A flexible currency exchange rate
B) A large number of people emigrating from their homelands to other parts of the world
C) Political unrest in various countries
D) The expansion of workforces
E) Advances in transportation and communication technology

Question 50

At the University of Miami a wealthy booster (now serving time in federal prison) said he spent millions on cash donations, hookers, and entertainment for football players, all with the coaches' knowledge.

A) legal
B) sociocultural
C) legal and sociocultural
D) political
E) political and economic

Question 51

The task environment is more specific than the general environment. It includes all EXCEPT

A) customers.
B) suppliers.
C) boards of directors.
D) strategic partners.
E) regulators.

Question 52

The death of Farrah Fawcett to anal cancer opened discussions that previously were taboo in the U.S. This is an example of change in the

A) political-legal element of the general environment.
B) sociocultural element of the general environment.
C) competitor element of the task environment.
D) partner element of the task environment.
E) customer element of the task environment.

Question 53

Flowers can be purchased from florists, supermarkets, discount stores, and street vendors. In the 1920s, the most popular flower was the narcissus. In the 1960s, daisies were extremely popular. In the latter part of the twentieth century, roses were popular. This changing taste in flowers reflects changes in the ____ dimension of the general environment.

A) legal
B) sociocultural
C) technological
D) political
E) economic

Question 54

The Dodd-Frank Wall Street Reform and Consumer Protection Act is legislation that creates more regulation of the finance markets. This is an example of the ____ dimension.

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 55

The Patient Protection and Affordable Care Act (PPACA, or Obamacare) requires individuals to obtain health insurance. This is an example of the ____ dimension.

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 56

A jihadist called for a violent attack on David Letterman after the comedian made fun of Al Qaeda leaders. Letterman rarely does a single show without making fun of American leaders. This is an example of differences in the ____ dimension.

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 57

Some consumers are willing to pay thousands of dollars for plastic surgery in an attempt to gain an advantage over others. This is an example of the ____ dimension.

A) internal
B) political-legal
C) task
D) sociocultural
E) economic

Question 58

Many corporations have sophisticated security systems for information and employees. Which dimension of the organization's environment do these systems represent?

A) Technological element of the general environment
B) Internal environment
C) Economic element of the task environment
D) Technological element of the task environment
E) Economic element of the general environment

Question 59

Facebook has enabled people to stay in contact with friends. It also hurts relationships when too much information is shared. This reflects the ____ element of the general environment.

A) sociocultural
B) task
C) political-legal
D) economic
E) technological

Question 60

Sociocultural forces

A) are the customs and values of the society within which the firm is operating.
B) are part of the general environment.
C) do not always follow national boundaries.
D) influence consumers' tastes and preferences.
E) All of these choices

Question 61

One of the basic forms of regulator is a(n)

A) strategic partner.
B) interest group.
C) task force.
D) board of directors.
E) owner.

Question 62

Outside members of the board of directors are usually chosen

A) because they represent part of the organization's general environment.
B) to reduce the requirement for inside directors who come from the same industry.
C) to provide a particular expertise.
D) to reduce scrutiny by government agencies.
E) to preclude the conflicts of interest that could arise if top managers from the organization were selected.

Question 63

Competitors are BEST described as

A) organizations that compete with other organizations for resources.
B) the people or organizations that purchase the firm's products.
C) the people or organizations that supply resources to the firm.
D) environmental units that attempt to control an organization's response to actions.
E) None of these choices

Question 64

A(n) ____ is two or more companies that work together in joint ventures.

A) interest group
B) cooperative
C) board of directors
D) strategic alliance
E) task force

Question 65

Social media impact the amount of mail sent through the U.S. Postal Service. Social media is an example of ____.

A) competitors
B) suppliers
C) boards of directors
D) strategic partners
E) regulators

Question 66

All of the following are included in the task environment EXCEPT

A) competitors.
B) technology.
C) labor unions.
D) customers.
E) strategic allies.

Question 67

Which of the following would NOT be an example of a competitor?

A) A firm trying to sell similar products to the same group of customers to whom you are trying to sell
B) A firm trying to rent the same building you are trying to rent
C) A firm trying to hire one of your top engineers
D) A firm that has developed a product that substitutes for your product
E) A firm trying to sell its products to your employees

Question 68

The components of the internal environment do NOT include which of the following?

A) Employees
B) Owners
C) Physical work environment
D) Culture
E) Suppliers

Question 69

Wells Fargo provides mortgages. Homebuyers are potential ____.

A) suppliers
B) strategic allies
C) competitors
D) customers
E) regulators

Question 70

When KFC wanted to enter the Japanese market, it contacted Mitsubishi, one of Japan's largest poultry producers. Mitsubishi provided an understanding of Japanese culture and some of the financing, while KFC provided the rest of the financing and its franchising expertise. The activities of KFC and Mitsubishi took place in the ____ component of the task environment.

A) sociocultural
B) strategic partners
C) suppliers
D) competitors
E) economic

Question 71

Workers who purchase company stock have a dual role in the internal environment as

A) employees, board of directors.
B) shareholders, board of directors.
C) shareholders, strategic partners.
D) employees, owners.
E) monitors, owners.

Question 72

What do a market research firm, Kelly Temporary Services, BusinessWeek magazine, and Citicorp Bank all have in common?

A) They all part of the sociocultural dimension of the task environment.
B) They are all part of the general environment.
C) They are all kinds of regulators.
D) They are all examples of interest groups.
E) They are all suppliers.

Question 73

____ is an element in the organization's internal environment.

A) Socioculture
B) A strategic ally
C) Organization culture
D) Technology
E) A labor union

Question 74

The Federal Communications Commission monitors radio broadcasts for inappropriate content. This is an example of the ____ component.

A) owner
B) partners
C) regulator
D) competitors
E) economic

Question 75

Which of the following is part of the internal environment for Taco Bell?

A) OSHA inspectors
B) Consumer trend toward a preference for healthier foods
C) The advertising agency that creates ads
D) The employees
E) The consumers who buy the food

Question 76

In one year hospitals around the country ran out of 180 different drugs. The pharmaceutical companies are ____ to hospitals.

A) customers
B) suppliers
C) strategic partners
D) competitors
E) regulators

Question 77

Which of the following is NOT one of the elements in the task environment for St. Jude Children's Hospital?

A) The board of directors
B) Pharmaceuticals sales representatives
C) Patients
D) Local pediatric clinics
E) Safety inspectors

Question 78

Which of the following statements is NOT characteristic of strategic alliances as an element of the task environment?

A) Strategic alliances work together in joint ventures and other similar arrangements.
B) Strategic alliances increase the risk of losing sensitive information.
C) Strategic alliances increase organizational exposure to economic risk.
D) Companies join strategic alliances to gain expertise that they may lack.
E) Many companies in strategic alliances have multinational partners.

Question 79

The regulator element of the task environment consists of

A) interest groups and labor unions.
B) customers and suppliers.
C) interest groups and regulatory agencies.
D) suppliers and regulatory agencies.
E) regulatory agencies and labor unions.

Question 80

The internal environment of a corporation consists of

A) a board of directors.
B) the physical work environment.
C) employees.
D) the investors in the business.
E) All of these choices