Deck 2: The Global Environment, Culture, Ethics, Social Responsibility, and Sustainability

Question 1

Values and beliefs are often the most stable and enduring part of culture.

Answer 1

False

Question 2

Organizational stories about company founders seldom impact the corporate culture.

Answer 2

False

Question 3

Fostering the right organizational culture is one of the most important responsibilities of a first-line manager.

Answer 3

False

Question 4

"Focusing on delivering customer value" and "continually improving the system and its processes" are the two primary principles of total quality management (TQM).

Question 5

Heroes,stories,slogans,symbols,and ceremonies are all part of behavior-level culture.

Question 6

Total quality management (TQM)is the process that involves managers in an organization focusing on the customer to continually improve product value.

Question 7

Quality is determined by comparing a product's actual functioning to their requirements to determine value.

Question 8

Organizations with strong cultures have employees who consciously know the shared values and beliefs and behave as expected.

Question 9

The systems process is the method used to transform inputs into outputs.

Question 10

An organization's mission is its purpose or reason for being.

Question 11

The internal environment includes the factors that affect an organization's performance from within its home country.

Question 12

As a business grows,the complexity of its internal and external environments increases.

Question 13

Stakeholders are people who have an ownership position in a company.

Question 14

Customers,competition,suppliers,labor force,shareholders,society,technology,the systems process,and governments are the factors which comprise the external environment.

Question 15

FedEx's package tracking system is an example of feedback.

Question 16

McDonald's slogan,"Q,S,C,V" is an example of how employees learn about organizational culture.

Question 17

The organization's external environment includes the factors outside its boundaries that affect its performance.

Question 18

Customer value is the perceived benefit of a product,used by customers to determine whether or not to buy the product.

Question 19

A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and continually improve.

Question 20

The five internal environmental factors are management and culture,mission,resources,the systems process,and structure.

Question 21

Global sourcing is the use of worldwide resources.

Question 22

Ethics are the standards of right and wrong that influence behavior.

Question 23

Importing and exporting is the lowest-risk way to take a business global,whereas direct investment is the highest-risk way to take a business global.

Question 24

A joint venture is created when one company hires another to help provide a new product/service.

Question 25

Leaders at the conventional level of moral development tend to be visionary.

Question 26

Leaders at the preconventional level of moral development often are autocratic toward others.

Question 27

At the preconventional level of moral development,behavior is motivated by the desire to live up to others' expectations.

Question 28

A domestic business conducts business in only one country.

Question 29

The World Trade Organization (WTO)establishes and enforces world trade laws.

Question 30

At the postconventional level of moral development,self-interest motivates behavior.

Question 31

Moral development refers to distinguishing right from wrong and choosing to do the right thing.

Question 32

At the conventional level of moral development,behavior is motivated by universal principles of right and wrong,regardless of the expectations of leaders or one's group.

Question 33

As a global manager,you should expect new employees to adapt to your home culture and ways of doing things.

Question 34

The North American Free Trade Agreement (NAFTA)called for immediately eliminating duties on the majority of tariffs on products traded among the United States,Canada,and Europe.

Question 35

Ethnocentrism means seeing things solely from one's own perspective.

Question 36

When the dollar is weak,foreign goods are less expensive in the United States.

Question 37

A multinational corporation (MNC)has significant operations in more than one country.

Question 38

Many small business owners turn to the Ex-Im Bank when they are ready to go global.

Question 39

Direct investment occurs when a company buys back shares of its own stock on the open market.

Question 40

An international business has significant operations in more than one country.

Question 41

Whistle-blowing should begin externally,and information should go up the chain of command.

Question 42

The five internal environmental factors are:

A) management and culture, mission, resources, the systems process, and structure.
B) management and culture, mission, people, the systems process, and structure.
C) management and culture, mission, people, resources, and structure.
D) management and culture, mission, resources, the control systems, and structure.

Question 43

A social audit is a measure of a firm's social behavior.

Question 44

A green company acts in a way that minimizes damage to the environment.

Question 45

Sustainability is meeting the needs of future generations without compromising the ability of the present world to meet their own needs.

Question 46

All of the following are true regarding the organization's mission EXCEPT:

A) it is the organization's reason for being.
B) developing it is the responsibility of first-line management.
C) it should be relevant to all stakeholders.
D) it is an expression of the ends the organization strives to attain.

Question 47

Which of the following is NOT a component of the systems process?

A) feedback
B) transformation
C) quality
D) inputs

Question 48

An organization's mission is its:

A) purpose or reason for being.
B) human and informational inputs.
C) method used to transform inputs into outputs.
D) grouping of resources.

Question 49

Total quality management (TQM)is:

A) comparing a product's actual functioning to their requirements to determine value.
B) the process that involves everyone in the organization focusing on the customer to continually improve product value.
C) the method used to transform inputs into outputs.
D) the perceived benefit of a product, used by customers to determine whether or not to buy the product.

Question 50

The stakeholders' approach to ethics involves creating a win-win situation for all relevant stakeholders so that everyone benefits from the decision.

Question 51

Social responsibility is the conscious effort to operate in a manner that creates a win-win situation for all stakeholders.

Question 52

Stakeholders are:

A) people with an ownership position in the business.
B) government regulators who must regulate the business.
C) people whose interests are affected by organizational behavior.
D) people not affected by organizational behavior.

Question 53

__________ is the method used to transform inputs into outputs.

A) Quality
B) The systems process
C) Customer value
D) Structure

Question 54

Leaders at the postconventional level of moral development tend to use a leadership style similar to those of higher-level managers.

Question 55

Codes of ethics state the importance of conducting business in an ethical manner and provide guidelines for ethical behavior.

Question 56

Whistle-blowing occurs when employees expose what they believe to be unethical behavior by their fellow employees.

Question 57

The two primary principles of total quality management (TQM)are:

A) focusing on delivering customer value and focusing on managing processes rather than people.
B) focusing on managing processes rather than people and working in teams to execute processes efficiently and effectively.
C) focusing on delivering customer value and continually improving the system and its processes.
D) focusing on managing processes rather than people and continually improving the system and its processes.

Question 58

All of the following are internal environmental factors EXCEPT:

A) management and culture.
B) mission.
C) resources.
D) competition.

Question 59

The stakeholders' approach to ethics is deciding which stakeholders have the most influence and then catering to them.

Question 60

Customer value is:

A) comparing a product's actual functioning to their requirements to determine value.
B) the process that involves everyone in the organization focusing on the customer to continually improve product value.
C) the method used to transform inputs into outputs.
D) the perceived benefit of a product, used by customers to determine whether or not to buy the product.

Question 61

Which of the following is NOT an element of a learning organization?

A) open information
B) a strong adaptive culture
C) a participative strategy
D) autocratic leadership

Question 62

Which of the following is NOT a level of culture?

A) assumptions
B) values and beliefs
C) ethics
D) behavior

Question 63

The __________ is the single European currency that makes conducting business and traveling much easier in the European Union.

A) franc
B) mark
C) euro
D) none of these

Question 64

A __________ organization has a culture that values sharing knowledge so as to adapt to the changing environment and continuously improve.

A) strong
B) weak
C) learning
D) knowledge

Question 65

A business based primarily in one country that transacts business in other countries is a(n):

A) international business.
B) multinational corporation.
C) global business.
D) worldwide business.

Question 66

__________ refers to companies conducting business worldwide without boundaries.

A) Ethnocentrism
B) International business
C) The global village
D) A joint venture

Question 67

In an organization's external environment,general factors include all of the following EXCEPT:

A) governments.
B) technology.
C) labor force.
D) society.

Question 68

The __________ is the difference between the value of the products (including services)that a country exports and the trade of the products it imports.

A) trade surplus
B) trade deficit
C) balance of trade
D) exchange rate

Question 69

A business with significant operations in more than one country is a(n):

A) international business.
B) multinational corporation.
C) global business.
D) worldwide business.

Question 70

All of the following are external environmental factors EXCEPT:

A) customers.
B) competition.
C) the systems process.
D) suppliers.

Question 71

Regarding one's own ethnic group or culture as superior to others is known as:

A) parochialism.
B) ethnocentrism.
C) the global village.
D) none of these

Question 72

You're selling a product in Finland for 200 euros with an exchange rate of .80 euros to 1 dollar.If the exchange rate changes to .90 euros to 1 dollar,:

A) you get more money for your product.
B) you get less money for your product.
C) your product's price automatically changes.
D) none of these

Question 73

All of the following are ways to take a business global EXCEPT:

A) global sourcing.
B) importing and exporting.
C) licensing.
D) global advertising.

Question 74

Global sourcing is:

A) selling products in other countries.
B) obtaining resources from other countries.
C) the use of worldwide resources.
D) hiring people from other countries.

Question 75

Structure refers to:

A) an organization's purpose or reason for being.
B) the values, beliefs, and assumptions about appropriate behavior that members of an organization share.
C) the ends the organization strives to attain.
D) the way in which an organization groups its resources to accomplish its mission.

Question 76

With __________,a company has a foreign firm manufacture the goods that it sells as its own.

A) a joint venture
B) direct investment
C) contract manufacturing
D) licensing

Question 77

In many industries,the environment is changing at such an incredibly fast pace that it is commonly referred to as being "in chaos." The type of manager who can thrive in such an environment is called a(n)__________ manager.

A) reactive
B) responsive
C) interactive
D) chaotic

Question 78

In an organization's external environment,task factors include all of the following EXCEPT:

A) customers.
B) competition.
C) suppliers.
D) the economy.

Question 79

With __________,one company allows another to use its assets (intellectual property),such as a brand name,a trademark,a particular technology,a patent,or a copyright.

A) a joint venture
B) direct investment
C) contract manufacturing
D) licensing

Question 80

All of the following are primary protection methods in a global environment EXCEPT:

A) tariffs.
B) dumping.
C) quotas.
D) embargoes.