Deck 2: The Managerial Environment

Question 1

Unions regulate fair pay in most Australian industries.

Answer 1

False

Question 2

Which of the following is NOT a part of the sociocultural dimension of the general environment?

A)Disability/abilities.
B)Race and ethnicity.
C)Government regulation.
D)Fertility rate.

Answer 2

C

Question 3

An organisation's competitors include government agencies because they can set the rules in favour or not in favour of the organisation.

Answer 3

False

Question 4

Which of the following is NOT part of the sociocultural dimension of the organisation's general environment?

A)A decreasing fertility rate.
B)New solar cell technology.
C)The average level of education.
D)An urbanisation of a country.

Question 5

An organisation's suppliers influence the organisation's product and service quality,competitiveness,and profitability.

Question 6

Technology has changed the way managers interact with employees.

Question 7

When resources are abundant,they increase environmental uncertainty.

Question 8

In a dynamic environment,managers need to delay responses until stability is reached.

Question 9

Dynamism is one of the five components of an organisational system.

Question 10

The Australian Conservation Foundation is an example of a supplier of the environmental sustainability industry.

Question 11

Which the following tasks can unions NOT carry out?

A)taking employers to court
B)enforcing laws
C)negotiating a pay increase
D)calling strikes

Question 12

The environment only provides feedback about outputs.

Question 13

An industry is expected to experience increased environmental complexity if ________.

A)a critical resource becomes unavailable due to a natural disaster
B)rigid rules and standards control the industry
C)the government approves high customs taxes on imported goods
D)a major producer buys out some of its competitors

Question 14

A slow change rate in the environment indicates that it is unstable.

Question 15

Environmental uncertainty is affected by environmental complexity.

Question 16

Which of the following statements about ethnicity and race is CORRECT?

A)Ethnicity is related to race.
B)Ethnicity if a subset of race.
C)Ethnicity refers to how people see themselves,whereas race is about how other people see them.
D)Race is a subset of ethnicity.

Question 17

Resource availability affects an organisation's ________.

A)financial results
B)outputs
C)inputs
D)transformational processes

Question 18

Organisations function as open systems.

Question 19

Which of the following does NOT belong to the general organisational environment?

A)The suppliers.
B)The government.
C)The cultural values.
D)The economic system.

Question 20

Information technology has affected organisations' efficiency,but not their effectiveness.

Question 21

What is the effect of government spending on pensions?

A)Pensioners invest more,and this reduces the interest rate.
B)Pensioners reduce the availability of workers.
C)Retailers benefit from pensioners' spending.
D)There is a decrease in pensioners' service requests.

Question 22

When does the labour market have a strong influence on the organisation's production capacity?

A)When technological advancements are infrequent.
B)With long-term employees only.
C)When demand outstrips supply for employees with a specific skill.
D)When unions are involved.

Question 23

Which of the following statements is CORRECT about environmental complexity?

A)Environmental complexity increases as resource availability decreases.
B)Environmental complexity is not dependent on dynamism,but it does depend on environmental uncertainty.
C)Environmental complexity mainly depends on resource availability.
D)Environmental complexity is directly related to environmental uncertainty.

Question 24

According to the textbook,what is the CORRECT definition of global dimension of the general environment?

A)Factors that affect four or more countries.
B)Factors that originate from different continents.
C)A foreign subsidiary.
D)Factors that operate across national boundaries.

Question 25

Not-for-profit organisations ________.

A)do not have competition because they do not seek profits
B)have no competition because they offer unique services
C)compete over donations,volunteers and clients
D)compete only over donations

Question 26

What are the risks of a strategic partnership?

A)Strategic partners can influence government agencies in ways that are adverse to the organisation.
B)Strategic partnerships increase the costs of labour,because collaboration is very expensive.
C)Strategic partners can use the knowledge gained by the partnership and become competitive rivals.
D)There are no risks in strategic partnerships.

Question 27

Which of the following traits is NOT likely prevalent in societies with a high assertiveness rating?

A)Tough.
B)Excessively polite.
C)Confrontational.
D)Competitive.

Question 28

Which of the following is NOT a part of the organisation's specific environment?

A)Customers.
B)Unions.
C)Government agencies.
D)Legislation.

Question 29

The jewellery industry uses mostly precious metals and gemstones,and has many designers.However,the classic designs are the highest selling.The jewellery industry would be ________.

A)dynamic and complex
B)stable and complex
C)dynamic and simple
D)stable and simple

Question 30

________ is a cultural dimension measured by Hofstede in which people are encouraged to identify with a group within a society.

A)Individualism/Collectivism
B)In-group collectivism
C)Gender differentiation
D)Performance orientation

Question 31

According to the textbook,which of the following statements is CORRECT?

A)New Zealand is an example of a capitalist economic system because market forces operate freely.
B)Most countries have either a socialist or a capitalist economic system.
C)No socialist economic systems exist anymore.
D)Most countries combine elements from socialist and capitalist economic systems.

Question 32

In a society with high ________,you would expect members of a corporation to have a strong identification with the corporation.

A)humane orientation
B)gender differentiation
C)collectivism
D)power distance

Question 33

Can global factors influence organisations directly?

A)Yes,because other influences belong to other categories.
B)No,because they originate in other countries,and therefore have no direct access to the organisations.
C)Yes,because they are so strong.
D)No,they can influence indirectly through other dimensions of the general environment.

Question 34

Which of the following cultural dimension relates to altruism?

A)Quantity versus quality of life.
B)Assertiveness.
C)Uncertainty avoidance.
D)Individualism/collectivism.

Question 35

Which of the following is vulnerable to competitors' influence?

A)Product innovation.
B)Unions' demands.
C)Strategic partnerships with suppliers.
D)Advertising campaigns.

Question 36

Which of the following is NOT an aspect of the economic environment?

A)The country's economic conditions.
B)Economic cycles.
C)The country's economic system.
D)Economic stimulus packages.

Question 37

The semiconductors industry uses silicon,which comes from sand,as a raw material.This industry would be ________.

A)stable and complex
B)dynamic and simple
C)dynamic and complex
D)stable and simple

Question 38

Why is it beneficial to have a strategic partnership with suppliers?

A)The company can be sure of the source of their input material.
B)The organisation can collaborate and share information with the supplier and achieve better effectiveness.
C)The suppliers develop a specific ordering system for the organisation.
D)The supplier can have more power over the organisation to determine prices.

Question 39

Which of the following is NOT part of a country's economic conditions?

A)Interest rates.
B)Governmental control over the market.
C)Unemployment rate.
D)Inflation level.

Question 40

What is the effect of higher pension rates on the economy?

A)Higher pension rates increase pensioners' disposable income and lead to greater retail spending.
B)Higher pension rates reduce pensioners' disposable income and reduce retail spending.
C)Higher pension rates reduce pensioners' consumer awareness and stimulate spending.
D)Higher pension rates increase pensioners' consumer awareness and reduce trade.

Question 41

Which of the following is NOT an example of a regulator?

A)The Australian Cancer Council.
B)Australian Human Rights Commission.
C)The Australian Taxation Office.
D)Australian Federal Police.

Question 42

Which of the following entities is likely to influence organisations by lobbying governments?

A)Committees.
B)Regulators.
C)Suppliers.
D)Interest groups.

Question 43

If the company sets up operations in India,which of the following would be a cultural characteristic that it will have to take into account?

A)Income composition.
B)Education level.
C)Geographic dispersal.
D)Attitudes.

Question 44

Technological advancements are part of the organisation's specific environment.

Question 45

Which of the following global factors should TJ Soft consider if they want to set up operations in Israel?

A)Global warming.
B)Global financial crisis.
C)Iceland's volcanic eruption.
D)Earthquakes in Southeast Asia.

Question 46

Most economic systems cycle between capitalism and socialism.

Question 47

If TJ Soft considers operating in China as well,why is it important for them to establish contacts with the government?

A)Because China has stable governments.
B)Because the Chinese government does not approve software games.
C)Because the government in China is responsible for software development.
D)Because China is mainly a socialist economy,where the government plans all economic activities.

Question 48

A change in the technological dimension of the general environment means all company production processes have to be changed.

Question 49

When customers reduce their consumption of a product because of a growing awareness of its impact on the natural environment,it is an example of change in the producing organisation's specific environment.

Question 50

The economic dimension of the general environment is not relevant for not-for-profit organisations because they are not concerned with making profits and operate the same way under all economic conditions.

Question 51

An increase in a population's education level is an example of a change in the general environment.

Question 52

Forces and conditions outside the organisation's boundaries have the power to affect it.

Question 53

In Greece,Jana visited a pharmaceutical operation.She found that managers there were charming but not at all shy.If they thought they were right they tended to be aggressive and confrontational.How would you characterise this trait?

A)Future-oriented.
B)Assertive.
C)Low uncertainty avoidance.
D)High uncertainty avoidance.

Question 54

In Russia,Jana found that people tended to show great deference toward their superiors.When meeting with one higher-up,she noticed that the local managers seemed to exhibit extremely obsequious behaviour.How would you characterise this trait?

A)High power distance.
B)Low power distance.
C)High uncertainty avoidance.
D)Future-oriented.

Question 55

Demographic conditions are part of the organisation's general environment.

Question 56

In China and Morocco,Jana noticed that it seemed easy to convince people to work together for the good of the group.How would you characterise this trait?

A)In-group collectivist.
B)Assertive.
C)Collectivist.
D)Humane.

Question 57

The knowledge involved in transforming raw materials into products or services is part of the organisation's technological dimension of the general environment.

Question 58

Changes to a dimension of the general environment have no effect on organisations and their specific environment.

Question 59

Urbanisation in developing countries led to reduced rural population.This is an example of a change in the specific environment.

Question 60

In Denmark,Jana met people who were astonished at the ability of Americans to be so 'bold' and flexible when it came to making decisions about the future,while the Danish tended to rely on rules when facing uncertainty.How would you characterise this trait that Americans appear to have?

A)Low uncertainty avoidance.
B)High power distance.
C)High uncertainty avoidance.
D)Individualistic.

Question 61

Which of the following is NOT a common way in which corporate cultures are transmitted to employees?

A)Informal rituals.
B)Formal culture meetings.
C)Stories.
D)Symbols.

Question 62

The following are examples of an organisation with a strong culture EXCEPT ________.

A)key values are deeply held by a few key members
B)strong leaders with a firm sense of direction and purpose
C)effective communication with all employees regarding policies and organisational issues
D)lower than average staff turnover rates

Question 63

An organisation's competitors are other organisations only.

Question 64

Describe the technological dimension of the organisation's external environment.

Question 65

Interest rates are part of the political dimension of the general environment because they are determined by the government.

Question 66

Competition is only against organisations in the same industry,offering the same products and services.

Question 67

Which of the following best describes where an organisation's culture comes from?

A)Regulators such as the Australian Federal Police.
B)The founder's biases and assumptions.
C)Unions and the labour market.
D)Special interest groups.

Question 68

Which of the following is NOT a way employees can learn an organisation's culture?

A)Participating in the organisation's weekly bowling games.
B)Minimising interaction with colleagues.
C)Listening to stories about past events in the organisation.
D)Observing the office layout,furnishings and dress code.

Question 69

The GFC is an example of a change in the economic dimension of the general environment.

Question 70

Research suggests there are seven dimensions that describe an organisation's culture.Which of the following is NOT one of these dimensions?

A)Attention to detail.
B)Innovation and risk taking.
C)Labour market orientation.
D)Stability.

Question 71

A company that lives and breathes new product development,and employees' work behaviours support that goal,most likely adopts which one of the following organisational cultures?

A)Attention to detail.
B)Innovation and risk taking.
C)Stability.
D)Aggressiveness.

Question 72

In a short essay,explain the differences between high environmental uncertainty and low environmental uncertainty.

Question 73

In a short essay,describe the sociocultural dimension of the general environment,and how it relates to managers.

Question 74

Describe the organisation's stakeholders.

Question 75

An organisation's office layout,furnishings and dress code represents the organisation's culture through ________.

A)shared language and understanding
B)organisational stories and narratives
C)material symbols or artefacts
D)corporate rituals

Question 76

Which of the following is NOT considered to be a characteristic of organisational culture?

A)Attention to detail.
B)Aggressiveness and competitiveness.
C)Attitudes about taking risks.
D)Purchasing policies.

Question 77

The GLOBE research program is concerned with differences in the economic conditions around the globe.

Question 78

Which of the following phrases best characterises the culture of an organisation?

A)Our official code of conduct.
B)How things are done around here.
C)The most efficient way to do things.
D)Guidelines for where this organisation is going.

Question 79

Describe and give an example of GLOBE's cultural dimension: uncertainty avoidance.

Question 80

Describe and give an example of GLOBE's cultural dimension: power distance.