Question 1

A CEO does not want to enter a lucrative market in an unstable country because he or she does not know how political forces and economic forces will affect his or her company's future business. This is an example of:
A)opportunism.
B)a competitive interdependency.
C)a symbiotic interdependency.
D)bounded rationality.

Accepted Answer

Bounded rationality refers to the limitations on decision-making caused by the lack of information or the inability to process all available information. In this scenario, the CEO's decision is influenced by the uncertainty and complexity of political and economic forces in the unstable country, which limits their ability to make a fully informed decision.

Question 2

Competitors are a force in the general environment.

Accepted Answer

The answer of Competitors are a force in the general...

Question 3

The ________is/are the set of forces from outside stakeholder groups that directly affect an organization's ability to secure resources.
A)government
B)rites of passage
C)economy
D)specific environment

Accepted Answer

The specific environment consists of external forces that directly impact an organization's ability to obtain resources, such as customers, suppliers, competitors, and regulators.

Question 4

The pharmaceutical industry generally is considered to be operating in a certain environment because patents reduce the level of competition.

Accepted Answer

Patents give pharmaceutical companies a temporary monopoly on their products, reducing the level of competition in the market. This can create a unique environment for the industry.

Question 5

The range of goods and services that an organization produces and the customers that it serves are referred to as the organizational domain.

Accepted Answer

The statement is true. The organizational domain refers to the range of products, services, markets, and customers that an organization serves or operates in.

Question 6

Changes in customer tastes and preferences is a force in the specific environment that impacts an organization.

Accepted Answer

The answer of Changes in customer tastes and preferences is...

Question 7

An upscale department store agrees to sell a fashion designer's clothes. This is an example of________ .
A)a competitive interdependency
B)a joint venture
C)co- optation
D)a symbiotic interdependency

Accepted Answer

A symbiotic interdependency occurs when two parties rely on each other for mutual benefit, such as a department store selling a designer's clothes, benefiting both the store and the designer.

Question 8

Both collusions and cartels are illegal in the United States.

Accepted Answer

Both collusions and cartels are antitrust violations and are illegal in the United States under the Sherman Act and the Clayton Act.

Question 9

One problem that General Electric faced when they purchased a lighting company in Hungary was that the Americans wanted a strong marketing program, and these activities were deemed not necessary by the Hungarian workers.

Accepted Answer

Cultural differences can lead to differing opinions on business practices, such as the importance of marketing, which can create challenges in multinational operations.

Question 10

The airline industry is generally considered to be operating in a stable environment because of a relatively stable customer base.

Accepted Answer

While the airline industry does have a somewhat stable customer base, it is also heavily influenced by external factors such as economic conditions, fuel prices, and global events. These factors can cause significant fluctuations in demand and profitability for airlines, making it a relatively volatile industry.

Question 11

The ________is the set of forces surrounding an organization that has the potential to affect the way it operates and its access to scarce resources.
A)hierarchy
B)global environment
C)organizational environment
D)economy

Accepted Answer

The organizational environment refers to the set of forces and conditions outside the organization that can affect its operation and access to resources.

Question 12

A small U.S. auto parts manufacturer says it faces environmental forces that are out of its control, such as low- cost labor costs abroad. Is this organization at the mercy of its environment?

Accepted Answer

The answer of A small U.S. auto parts manufacturer says...

Question 13

An organization in a dynamic, unstable environment seeks ways to make the environment more predictable.

Accepted Answer

In a dynamic, unstable environment, organizations often strive for ways to make the environment more predictable, as it allows them to better plan and respond to changes.

Question 14

________is the most formal interorganizational linkage.
A)Minority ownership
B)A joint venture
C)A network organization
D)A merger

Accepted Answer

A merger is the most formal interorganizational linkage as it involves the complete integration of two organizations into one entity.

Question 15

A keiretsu significantly increases an organization's bureaucratic costs.

Accepted Answer

The answer of A keiretsu significantly increases an organization's bureaucratic...

Question 16

In general, organizations like competition because it increases product quality.

Accepted Answer

The answer of In general, organizations like competition because it...

Question 17

Economic forces, such as the interest rate or unemployment rate, are categorized as forces in the specific environment, since they affect the ability of all organizations in a particular environment to secure resources.

Accepted Answer

The answer of Economic forces, such as the interest rate...

Question 18

You are a consultant to a large telecommunications company that markets many products to many customers. Briefly describe the level of uncertainty and recommend strategies for managing the organizational environment.

Accepted Answer

The answer of You are a consultant to a large...

Question 19

An organization's environment will be more uncertain when:
A)many forces in the environment are not connected.
B)many forces in the environment are interconnected.
C)forces in the environment do not change much.
D)competition is low.

Accepted Answer

When many forces in the environment are interconnected, changes in one force can lead to changes in others, increasing the complexity and uncertainty of the environment.

Question 20

A medium- sized computer manufacturer has implemented formal linkage mechanisms such as mergers and joint ventures. Although formal linkage mechanisms are supposed to reduce transaction costs, the company's costs are higher than they were before these strategies were implemented. What can explain this result?

Accepted Answer

The answer of A medium- sized computer manufacturer has implemented...

Quiz 3: Managing in a Changing Global Environment

A CEO does not want to enter a lucrative market in an unstable country because he or she does not know how political forces and economic forces will affect his or her company's future business. This is an example of: