Deck 2: Managing the Organizational Environment

Question 1

Which of the following is a tax that a government imposes on goods imported into one country from another?

A)Inflation
B)Tariff
C)Interest rates
D)GATT
E)All of the choices are correct

Answer 1

B

Question 2

When an organization's customers put pressure on the organization to reduce prices on its goods, this is a force in the organization's:

A)industry-specific environment
B)general environment
C)political environment
D)socio-cultural environment
E)legal environment

Answer 2

A

Question 3

Managers face a number of challenges in the global environment, including:

A)the types of organizations
B)creating shared value
C)organizational size
D)the political and legal climates
E)managing a diverse work force

Answer 3

B

Question 4

Organizations which supply another organization with the raw materials which it needs to produce goods are known as:

A)competitors
B)customers
C)potential competitors
D)suppliers
E)distributors

Question 5

Historically, barriers of distance and culture closed the global environment because:

A)Different countries have different sets of national beliefs, values, and norms
B)International telephone and telegraph services were unreliable
C)Communication over great distances was difficult
D)Business was difficult to control over great distances
E)All of the choices are correct

Question 6

Pressures from customers are handled by:

A)Marketing departments
B)Sales and Services departments
C)Legal and Public Relations departments
D)Finance and Accounting departments
E)Research and Development departments

Question 7

The set of forces which lead to interdependence and similarities among nations is known as:

A)stakeholders
B)the organizational environment
C)social structures
D)national cultures
E)globalization

Question 8

The degree to which forces in the environment change over time is known as

A)sociocultural change
B)technological change
C)political change
D)economic change
E)environmental change

Question 9

Which of the following is included in the organization's general environment?

A)legal and political forces
B)technological forces
C)socio-cultural forces
D)global forces
E)all these choices are correct

Question 10

Changes in technological forces are handled by:

A)Sales and Services departments
B)Finance and Accounting departments
C)Marketing departments
D)Research and Development departments
E)Legal and Public Relations departments

Question 11

Pressures from competitors are handled by:

A)Finance and Accounting departments
B)Research and Development departments
C)Sales and Services departments
D)Legal and Public Relations departments
E)Marketing and Strategy departments

Question 12

If a major firm suddenly creates a new product which makes the products of its competitors obsolete, this is an example of a force in which type of environment?

A)general environment
B)economic environment
C)task environment
D)legal environment
E)political environment

Question 13

are outcomes of changes in international relationships, changes in nations' economic, political, and legal systems, and changes in technology.

A)Legal systems
B)Economic systems
C)Global forces
D)Technologies
E)Political systems

Question 14

Globalization is driven by the free movement of which of the following?

A)Financial capital
B)Political capital
C)Human capital
D)Resource capital
E)All of these choices are correct

Question 15

The outcomes of the changes in the laws of a society are known as:

A)economic forces
B)political and legal forces
C)technological forces
D)demographic forces
E)none of the choices are correct

Question 16

If the population of Canada is shifting from the East to the West, this is an example of which type of force in the environment?

A)Political
B)Demographic
C)Legal
D)Technological
E)Economic

Question 17

Changes in the work patterns of women such as a larger percentage of mothers with children under the age of five are working would be an example of which type of force on the organization?

A)political environment
B)economic environment
C)general environment
D)legal environment
E)task environment

Question 18

Modern communications and transportation technologies have done all but this:

A)Made reliable, secure, and instantaneous communication possible
B)Facilitated global communication networks
C)Increased barriers to trade and investment
D)Speeded travel
E)Reduced the cultural differences among countries

Question 19

Overseas suppliers can pose a threat to managers of organizations in all but one of the following ways:

A)They are the sole source of an input.
B)If their position is strong.
C)They offer low cost, high quality parts/inputs.
D)The input is vital to the organization.
E)None of these choices are correct.

Question 20

The four building blocks of a competitive advantage are:

A)Efficiency, effectiveness, quality, customer responsiveness
B)Effectiveness, quality, customer responsiveness, innovation
C)Efficiency, quality, customer responsiveness, innovation
D)High performance, quality, efficiency, innovation
E)Effectiveness, customer responsiveness, innovation, efficiency

Question 21

Which of the following is a task of the top-management team in reducing the impact of environmental forces?

A)Collect relevant information on the task environment.
B)Get close to customers to learn what they want.
C)Create strategies that will take advantage of opportunities and counter threats.
D)Find ways to use resources more efficiently.
E)None of these choices are correct.

Question 22

Regional trade agreements like NAFTA result in all except which of the following?

A)Declining barriers to trade
B)Decreased competition
C)Increased capital flows between partner nations
D)Decline in labour intensive production in Canada and the USA
E)Opportunities for managers to expand internationally

Question 23

Which of the following could be an example of a customer of a computer manufacturer, such as Acer Canada?

A)government agencies
B)colleges
C)small businesses
D)individuals
E)all of these choices are correct

Question 24

Which of the following is an example of a force in the task or industry-specific environment of an organization?

A)competitors
B)distributors
C)customers
D)suppliers
E)all of these choices are correct

Question 25

Canadian managers face two main challenges in the global environment, including:

A)managing a diverse and aging work force
B)organizational size and types
C)building a competitive advantage while maintaining ethical standards, and utilizing new kinds of information systems and technologies
D)reliance on fossil fuel and industrial technology
E)the political and legal climates

Question 26

Which of the following is an example of a political and legal force in the environment?

A)privatization
B)emphasis on environmental protection
C)deregulation
D)emphasis on safety on the job
E)all of these choices are correct

Question 27

Which of the following is an economic force in the environment?

A)economic growth
B)inflation
C)interest rates
D)unemployment
E)all these choices are correct

Question 28

All of the following are examples of the industry-specific or task environment of the organization EXCEPT:

A)competitors
B)distributors
C)suppliers
D)technological forces
E)customers

Question 29

Which of the following represents a threat to managers by large distributors?

A)Changing demographics
B)Increasing orders
C)Socio-cultural impact
D)Controlling customer access to an organization's goods and services
E)None of these choices are correct

Question 30

Which of the following is an example of a demographic force in the environment?

A)race
B)ethnic origin
C)sexual orientation
D)gender
E)all of these choices are correct

Question 31

The organizational environment is comprised of:

A)Forces that present managers with opportunities
B)Forces that are internal to the organization
C)Forces that present managers with threats
D)Forces that are external to the organization
E)All of these choices are correct

Question 32

Social structure and national culture are examples of which type of force in the general environment?

A)technological forces
B)economic forces
C)political and legal forces
D)demographic forces
E)none of the choices are correct

Question 33

The impact of national culture on managing in a global economy means that:

A)Managers must better appreciate how cultures differ
B)Managers must understand, empathize, and work with multiple cultures
C)Countries with a great deal of diversity will produce great global managers
D)Organizations with international management teams are role models
E)All of these choices are correct

Question 34

The population of Canada is "aging" in the sense that the average age of Canadians increases each year.This is an example of which type of force in the environment?

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

Question 35

When a competitor negotiates a long-term contract with a supplier of raw materials, this is an example of an impact on your organization's:

A)political environment
B)task environment
C)socio-cultural environment
D)legal environment
E)general environment

Question 36

Organizations which help other organizations to sell their goods to customers are known as:

A)competitors
B)customers
C)potential competitors
D)distributors
E)none of these choices are correct

Question 37

The organization's external environment can be divided into these categories:

A)Task or industry-specific and general environments
B)Organizational structure
C)Organizational culture
D)Strengths and weaknesses
E)Internal threats and opportunities

Question 38

Which of the following is a task of the middle manager in reducing the impact of environmental forces?

A)Collect relevant information on the task environment.
B)Create strategies that will take advantage of opportunities and counter threats.
C)Find ways to use resources more efficiently.
D)Get close to customers to learn what they want.
E)None of these choices are correct.

Question 39

All of the following are examples of the general environment of the organization EXCEPT:

A)global forces
B)technological forces
C)demographic forces
D)distributors
E)legal and political forces

Question 40

The combination of equipment and skills which managers use in the production and distribution of goods is known as:

A)competitive advantage
B)economies of scale
C)the general environment
D)technology
E)inflation

Question 41

Explain how managers can minimize threats and uncertainty from forces in the external environment.Identify three forces from your own experience that contribute to the complexity and rate of environmental change.

Question 42

One of the most important innovations in transportation technology that has opened the global environment has been the growth of commercial jet travel.

Question 43

An organization's competitors can have an important impact on the success of the organization.Discuss how IKEA was greatly impacted by this environmental force.

Question 44

Individuals who buy goods that an organization produces are known as:

A)distributors
B)suppliers
C)competitors
D)potential competitors
E)customers

Question 45

Differences in customer preferences result in many companies standardizing products for different national markets.

Question 46

The general environmental forces pose easily identifiable opportunities and threats for managers.

Question 47

Managers need to understand how declining barriers to trade and distance between national cultures have affected the global economy.Discuss.

Question 48

Barriers of distance and culture have closed the global environment and kept managers focused on their domestic market.

Question 49

An organization's suppliers can have an important impact on the success of the organization.Discuss the various types of suppliers for Dell Canada and explain why these suppliers are important to Dell Canada's success.

Question 50

In general, the larger an organization is, the greater is the number of environmental forces that managers must respond to.

Question 51

For a computer manufacturing company, such as Hewlet-Packard, discuss its "task environment" and how this type of industry-specific environment places pressures on HP's managers on a daily basis.

Question 52

Discuss how creating shared value can lead an organization to achieve a competitive advantage.

Question 53

Organizations which produce goods that are similar to another organization's goods are known as:

A)competitors
B)suppliers
C)distributors
D)customers
E)none of the choices are correct

Question 54

Changes in economic forces are handled by:

A)Legal and Public Relations departments
B)Research and Development departments
C)Sales and Services departments
D)Finance and Accounting departments
E)Marketing departments

Question 55

The path of globalization is shaped by the ebb and flow of which types of capital?

A)Human
B)Resource
C)Financial
D)Political
E)All of the choices are correct

Question 56

To gain a competitive advantage in the global economy, firms can use five building blocks.

Question 57

Customers are the most important group in the success of any company.Discuss the various types of customers that exist for IKEA and discuss how they need to respond differently to the needs of its different customer groups if it is to be successful.

Question 58

Discuss how the "general environment" of an organization can affect the ability of an organization to respond to opportunities and threats from its environment.Give a specific business example of a company that would be affected by its environment in this way.

Question 59

Discuss the "four building blocks" of competitive advantage and give an example of a company that you feel uses each of these building blocks successfully in its production of goods and services.

Question 60

Forces within the organization which result from the organization's structure and culture are known as:

A)the external environment
B)the general environment
C)the task environment
D)the internal environment
E)none of the choices are correct SHORT ANSWER.Write the word or phrase that best completes each statement or answers the question.

Question 61

The organizational environment changes over time and therefore presents managers with opportunities and threats.

Question 62

Globalization is a set of forces that work together to integrate and connect systems across countries.

Question 63

Sales and service department managers handle pressures from customers.

Question 64

For the typical manager, opportunities and threats which result from changes in the task or industry-specific environment are more difficult to identify than events in the general environment.

Question 65

The free-trade doctrine predicts that if each country agrees to specialize in the production of the goods and services that it can produce most efficiently, this will make the best use of global capital resources and will result in lower prices.

Question 66

The task environment is also known as the industry-specific environment.

Question 67

The general environment includes economic, technological, socio-cultural, demographic, political and legal, and global forces.

Question 68

Overseas suppliers are increasingly specializing in just one part of the task of producing a product.

Question 69

The internal organizational environment includes the culture and structure of the organization.

Question 70

The manager's job is being fundamentally changed by new technology.

Question 71

Organizations which help other organizations to sell their goods and services to customers are known as distributors.

Question 72

The establishment of free-trade areas creates an opportunity for manufacturing organizations because it lets them reduce their costs.

Question 73

Changes in technological forces are dealt with by Research and Development department managers.

Question 74

Economic forces in the general environment include interest rates, inflation, and unemployment.

Question 75

The organization's internal environment is divided into the task environment and the general environment.

Question 76

The global financial meltdown in 2008 was a result of too much risk-taking and not enough oversight.

Question 77

The highest degree of uncertainty for a manager occurs when the rate of change and the degree of complexity in the environment is high.

Question 78

The prominence of global organizations is putting pressure on managers of all organizations to improve their performance.

Question 79

Globalization has resulted in restricted capital flows.

Question 80

Shared value creation focuses on identifying and expanding the connections between societal and economic progress.