Deck 5: The External Environment

Question 1

The simple-complex dimension concerns environmental complexity.

Answer 1

True

Question 2

Ben has served on the board of directors for the BBD Corporation for six years. For the past two years, he has also served on the board of directors for the KGD Corporation. Ben's service on both boards provides a communication link between the two companies. Ben's dual service is most likely considered to be a(n) .

A) indirect interlock
B) interlocking directorate
C) buffering role
D) co-optation
E) domain interlock

Answer 2

B

Question 3

Which of these dimensions refers to whether the environment in which the organization operates is dynamic?

A) Domestic-international dimension
B) None of these.
C) Simple-complex dimension
D) Internal-external dimension
E) Stable-unstable dimension

Answer 3

E

Question 4

Integration is the quality of collaboration among departments.

Question 5

When eBay bought PayPal, the transaction is referred to as a(n) .

A) leveraged buy-out
B) hostile takeover
C) acquisition
D) merger
E) joint venture

Question 6

Organizational environment is the elements that exist inside the boundary of an organization.

Question 7

Boundary spanning is primarily concerned with the exchange of information to (1) detect and bring into the organization information about changes in the environment; and (2) stop information from entering into the environment that presents the organization in a favourable light.

Question 8

refers to the quality of collaboration that occurs among the various departments of an organization.

A) Co-optation
B) Differentiation
C) Resource dependence
D) Business intelligence
E) Integration

Question 9

The market research department of "The N Shop" is constantly monitoring trends in the tastes and preference of its customers. This department is most likely engaging in which of the following?

A) Boundary-spanning
B) Uncertainty prevention
C) Buffering
D) Cooptation
E) Integration

Question 10

The primary purpose of is to absorb uncertainty from the environment.

A) business intelligence
B) an interlocking directorate
C) buffering roles
D) boundary-spanning roles
E) cooperation

Question 11

Under which of the following environments would a company be operating if it faced only a small number of external elements, but those elements could change quickly and unexpectedly?

A) Complex-stable
B) Simple-unstable
C) Unstable-complex
D) Stable
E) Unstable

Question 12

John works for an organization that has few formal rules and regulations to provide guidance to its employees. At times, he feels as if he is simply guessing his way through his job because clear guidelines are not available. John is even more frustrated because no one knows who to report problems to because there does not seem to be any formal hierarchy of authority in place. John is most likely working for an organization with what type of management structure?

A) Organic
B) Interlocking directorate
C) Indirect interlock
D) Mechanistic
E) Differentiation

Question 13

An organization's domain is the chosen environmental field of action.

Question 14

Organization D depends on the environment but strives to acquire control over what is needed to bring its products to market. It works diligently to prevent competitors from gaining control over any of the vital materials it needs to manufacture its products. It is most likely Organization D is highly aware of its level of .

A) business intelligence
B) resource dependence
C) domain dominance
D) general environment impact
E) resource integration

Question 15

Toy manufacturers operate in which of these environments?

A) Simple, unstable
B) Simple, complex
C) Complex, stable
D) Simple, stable
E) Complex, unstable

Question 16

The I-M Corporation states its primary business concerns are currently focused on the fact that 42% of its workforce is nearing retirement age and there are very few university graduates readily available to fill those anticipated employment vacancies. In which task environment sector is the I-M Corporation experiencing difficulties?

A) Market sector
B) Raw materials sector
C) Human resource sector
D) Industry sector
E) International sector

Question 17

When the staff of Johnstone, Incorporated uses a variety of techniques including Internet research, searching public records, and combing through refuse bins in order to gather information about its competitors, it is actually conducting which of the following?

A) Uncertainty resolution
B) Integration
C) Domain protection
D) Sniping
E) Competitive intelligence

Question 18

Rachel is the CEO of Prime One Industries. She renders many decisions for the company based on limited information. Her information does not provide her with insight on the number of competitors entering the industry nor does it offer projections as to the future prices of materials the business must use to produce its products. It can be stated that Rachel is operating under a high degree of .

A) resource dependence
B) co-optation
C) integration
D) uncertainty
E) stable-unstable dimensions

Question 19

An organization operating under conditions that are not rapidly changing, such as there is little or gradual change occurring in the demand for its product, is said to be .

A) operating in a simple-complex environment
B) operating in a mechanistic dimension
C) operating under uncertainty
D) operating within a stable dimension
E) operating in a dynamic environment

Question 20

The general environment typically includes all of these except:

A) Economic conditions
B) Financial resources sectors
C) Market sectors
D) Sociocultural sector
E) Government sector

Question 21

Which of these best describe an organic design element?

A) Many rules, formalized
B) Strict hierarchy of authority
C) Specialized tasks
D) Vertical communication
E) Decentralized structure

Question 22

Typical contingency factors of a mechanistic design include .

A) innovation strategy
B) manufacturing technology
C) adaptive culture
D) changing environment
E) small size