Deck 3: Environmental Forces

Question 1

McDonald's has closed many of its locations in Latin America.

Answer 1

True

Question 2

McDonald's had to close a number of its restaurants in Latin America because of an emerging health-consciousness of its local customers.

Answer 2

False

Question 3

Contingent workers are typically hired to fill the lowest skill level jobs.

Answer 3

False

Question 4

The degree to which influence and control are unequally distributed among individuals and institutions within a particular culture is the measure of its power distance.

Question 5

The degree to which members of a society strive to maintain ambiguity, risk, and the indefiniteness of the future is the measure if its uncertainty avoidance.

Question 6

The number of employees needed for starting a pharmaceutical company is an example of the capital requirements for an industry.

Question 7

A joint venture is different from an alliance.

Question 8

Motorola and IBM have formed an alliance to manufacture memory chips in China. This alliance is also referred to as a joint venture.

Question 9

Technology is making it possible for Jeep to keep track of much higher parts inventories at the factory so that customers can have more optional equipment choices.

Question 10

According to the "Preview" about the fast-food industry, both opportunities and competition are increasing. Which of the following is not one of the current interests of customers?

A) healthy cuisine
B) ethnic foods
C) better service
D) better value

Question 11

Fast-food customers are seeking all of the following new menu items except:

A) value-priced meals
B) rotisserie chicken
C) Chinese food
D) "heart-healthy" foods

Question 12

A contingent worker is __________.

A) an unreliable worker
B) someone who is about to be fired
C) a person coming back from disability leave
D) an independent contractor

Question 13

The shared characteristics and values that distinguish the members of one group of people from those of another is __________.

A) a caste system
B) power distance
C) collectivism
D) culture

Question 14

One of the most crucial principles used and evaluated by managers is the notion of economies of scale. This refers to __________.

A) increases in per unit costs as the volume of goods and services produced by a firm increases
B) decreases in per unit costs as the volume of goods and services produced by a firm decreases
C) decreases in per unit costs as the volume of goods and services produced by a firm increases
D) decreases in total costs as the volume of goods and services produced by a firm increases

Question 15

Food suppliers to large companies, such as Burger King, often give discounts that are not extended to smaller customers. This either directly or indirectly affects the factor of __________ that serves as a barrier to entry.

A) capital requirement
B) economy of scale
C) planning and administration
D) product differentiation

Question 16

According to Jean Birch, vice president of operations for Taco Bell, the cost of opening a new restaurant is close to __________ dollars.

A) $75,000
B) $500,000
C) $1 million
D) $2 million

Question 17

Patents on a popular drug should ______________.

A) increase supplier strength of basic ingredients
B) decrease supplier strength of basic ingredients
C) increase customer strength
D) pose a threat of backward integration

Question 18

KFC faces numerous problems in its attempt to operate in China. These problems include __________.

A) making menu items affordable to local Chinese
B) finding workers who will follow procedures in an operating manual
C) meeting their quality standards with local chickens
D) transportation of supplies

Question 19

All of the following are associated with KFC's strategy for differentiating itself in China except __________.

A) attracting kids with combo meal selections
B) administrative management principles
C) American/international lifestyle attraction
D) consistency in food quality

Question 20

What is the number of state and local associations and organizations occasionally lobbying Washington decision makers?

A) 100,000
B) 30,000
C) 50,000
D) 75,000

Question 21

In the late 1990s, technology had a profound impact on the distribution strategies of companies. Which of the following is not an example of how technology has changed the distribution of goods and services?

A) Amazon.com offered online ordering, threatening established retail booksellers.
B) Ameritrade allowed customers to access their accounts directly to buy and sell stocks.
C) Combining traditional catalog sales with the advantages of Internet access allowed L.L. Bean to meet its customers needs in a new way.
D) The U.S. Internal Revenue Service has developed a new "Taxpayers Bill of Rights."

Question 22

Manufacturing technology furnishes Jeep parts suppliers all of the following except __________.

A) 10-day production forecasts
B) ability to standardize the parts mix
C) requirement for numerous model configurations
D) expectations of no factory parts inventories

Question 23

Manufacturing technology is a central feature of Jeep assembly. Parts suppliers must accept which of the following requirements?

A) Allowing Jeep to access their confidential records.
B) Requirement to buy expensive computers.
C) Heavy penalty for stopping the line.
D) Having to build a warehouse near the factory.

Question 24

What are demographics and why are they important for management?