Question 1

Giving consumers what they want or need, the way they want it, the first time is known as
A)planned merchandise.
B)planned obsolescence.
C)customer service.
D)cause marketing.
E)operations management.

Accepted Answer

Giving consumers what they want or need in the way they want it is the definition of customer service. Planned merchandise refers to the strategic selection and planning of merchandise offerings, while planned obsolescence refers to deliberately designing products to become outdated and requiring replacement. Cause marketing is a marketing strategy that promotes a social or environmental cause, and operations management involves overseeing the production and delivery of goods and services.

Question 2

________ create alternative combinations of different factors into a total picture of the environment and a firm.
A)Scenarios
B)Forecasts
C)Benchmarks
D)Competitive intelligences
E)Strategic maneuvers

Accepted Answer

Scenarios involve creating different possible future environments and firm strategies, by combining various factors such as economic trends, political climate, and technological advancements. This allows firms to prepare for a range of potential outcomes and develop flexible strategies. Forecasts, benchmarks, competitive intelligences, and strategic maneuvers all focus on existing or predicted factors of the current environment and do not involve alternative combinations.

Question 3

________ refers to management of the network of facilities and people that obtain materials from the outside, transform them into products, and distribute the products to customers.
A)Inventory management
B)Strategic maneuvering
C)Human resource management
D)Customer service
E)Supply chain management

Accepted Answer

Supply chain management refers to the management of the network of facilities and people that obtain materials from the outside, transform them into products, and distribute the products to customers. It involves the coordination and collaboration among suppliers, manufacturers, distributors, and retailers to ensure timely delivery of quality products at the lowest possible cost.

Question 4

The managers at Green Thumb Gardening Tools engage in an annual organizational assessment, trying to predict industry changes as well as possible opportunities and threats. They look at issues, such as who their competitors are, current entry barriers, and what substitutes exist for their products. This assessment is called
A)scenario development.
B)forecasting.
C)benchmarking.
D)environmental scanning.
E)strategic maneuvering.

Accepted Answer

The activity described is known as environmental scanning, which involves analyzing the external environment to identify potential opportunities and threats that may impact the organization. It is an important component of strategic planning and helps organizations stay ahead of changes in the industry or market.

Question 5

Charlotte owns and operates a convenience store in a large city. Competitors are many, and competition is fierce. Due to her small business's size, she cannot realistically influence her business environment. However, Charlotte can and does take steps to adapt to the environment, including
A)slashing her food prices to force her competitors to do likewise city-wide (competitive aggression).
B)sponsoring local events to establish and maintain a positive brand image (public relations).
C)recruiting the mayor to participate on her business advisory board (cooptation).
D)hiring a lobbyist to promote state legislation that is favorable to operation of convenience stores (political action).
E)hiring part-time help and maintaining extra inventory for peak periods (buffering).

Accepted Answer

The answer of Charlotte owns and operates a convenience store...

Question 6

A customer who purchases raw materials or wholesale products before selling them to other parties is known as a(n)
A)final purchaser.
B)intermediate consumer.
C)final customer.
D)first-tier supplier.
E)preliminary customer.

Accepted Answer

An intermediate consumer is a customer who purchases raw materials or wholesale products before selling them to other parties, such as retailers or manufacturers. Final purchasers are the end consumers who buy a product for their own use, while first-tier suppliers are the vendors who provide the raw materials directly to the manufacturers. Preliminary customer is not a commonly used term in business.

Question 7

Organizations must acquire a variety of resources in order to produce a product or service of value. These resources may include materials, equipment, financing, or even employees. The sources that provide these various resources are referred to as
A)shareholders.
B)regulators.
C)retailers.
D)suppliers.
E)prospectors.

Accepted Answer

The sources that provide resources such as materials, equipment, and employees are known as suppliers. Shareholders are individuals who own a portion of a company's stock, regulators are entities that monitor and enforce laws and regulations, retailers are businesses that sell goods directly to consumers, and prospectors are individuals or companies engaged in the search for new opportunities or resources. None of these options accurately describe the sources of resources for organizations.

Question 8

Nargis writes a narrative that describes what she thinks will happen to her child care business if the trend of flexible hours for corporate employees continues to grow. This narrative is an example of
A)benchmarking.
B)a scenario.
C)strategic maneuvering.
D)a divestiture.
E)strategic vision.

Accepted Answer

Nargis is creating a hypothetical scenario in which she envisions the future of her business based on a potential trend. This is an example of a scenario.

Question 9

Which of the following combinations can result in a best-case scenario?
A)many competitors, high threat with and few entry barriers, and few customers
B)many competitors, high threat with and few entry barriers, and many customers
C)few entry barriers, many substitutes, and many customers
D)high industry growth, low threat with and many entry barriers, and customers with low bargaining power
E)low industry growth, high threat with and few entry barriers, and suppliers with low bargaining power

Accepted Answer

A high industry growth means high demand for the product or service, low threat and many entry barriers means less competition, and low bargaining power of customers means the company can charge higher prices which contributes to a best-case scenario.

Question 10

Tammi Sloane, owner of a licensed supplier of advanced self-driving vehicle technology, independently influences her company's business environment. Determine which action below is not among the ways that Tammi independently influences her business environment.
A)by encouraging elected officials to pass regulations that favor her business (political action)
B)by suing firms who are not licensed to sell her equipment when they attempt to do so (legal action)
C)by sponsoring national sporting events (public relations)
D)by joining a task force with others in her industry to seek lower-cost raw materials (coalition)
E)by stressing benefits of her technology against those of her competitors through comparative advertising (competitive aggression)

Accepted Answer

Joining a task force with others in her industry to seek lower-cost raw materials (coalition) is not an independent action since it involves collaboration with others.

Question 11

Environmental ________ refers to the degree of discontinuous change that occurs within the industry.
A)complexity
B)dysfunction
C)contracting
D)cooptation
E)dynamism

Accepted Answer

Environmental dynamism is the degree of discontinuous change that occurs within the industry. Complexity refers to the number of components and their interrelationships. Dysfunction refers to the breakdown or failure of a system or organization. Contracting means decreasing in size or scope. Cooptation refers to the process of bringing outsiders into a group or organization to neutralize opposition. None of these accurately describe the degree of change in the industry.

Question 12

Which of the following is true about using forecasts?
A)Multiple forecasts are best, and their predictions can be averaged.
B)Forecasts become more accurate when predicting further into the future.
C)Forecasts are useless when the future will look radically different from the past.
D)The more complex the forecast, the more accurate are the predictions.
E)The accuracy of forecasts does not vary from one application to another.

Accepted Answer

Multiple forecasts are best because they can account for different possibilities and their predictions can be averaged to minimize error. It is not necessarily true that forecasts become more accurate when predicting further into the future, or that the more complex the forecast, the more accurate it is. Forecasts can still be useful even when the future looks radically different from the past, as they can provide insight into potential trends and patterns. The accuracy of forecasts can vary greatly depending on the application and the quality of the data and methods used.

Question 13

Loyalty Management Consulting uses the services of QuickBite, which runs the employee cafeteria in the building and also caters business meetings at a discounted rate because of the volume of business it does with Loyalty. The other available cafeteria services do not provide catering. In this case, if Loyalty decides to terminate QuickBite's contract and shift to some other service, it is likely to create
A)high employment costs.
B)redemption costs.
C)favorable quality status.
D)complementary products.
E)high switching costs.

Accepted Answer

Loyalty Management Consulting is likely to face high switching costs if it decides to terminate QuickBite's contract and shift to some other service. This is because QuickBite is catering discounted rates for business meetings due to the volume of business Loyalty gives them. Other available cafeteria services do not provide catering, which means that Loyalty would have to incur additional costs to find other catering services. This would not only create high switching costs but also interrupt the usual operations creating additional disruption.

Question 14

The main difference between a final consumer and an intermediate consumer is that
A)the intermediate consumer purchases finished products, whereas the final consumer buys only raw materials.
B)intermediate consumers buy raw materials and sell finished products to final consumers, who use them.
C)final consumers make more purchases than the intermediate consumers.
D)unlike final consumers, intermediate consumers provide monetary benefits to organizations by purchasing their products.
E)final consumers tend to have more bargaining power than intermediate consumers.

Accepted Answer

Intermediate consumers purchase raw materials, transform them into finished products, and then sell them to final consumers. Final consumers, on the other hand, purchase and use finished products for their own consumption. Therefore, the main difference between the two is the stage in the production process at which they make their purchases.

Question 15

________ costs are fixed costs buyers face if they change suppliers.
A)Changing
B)Switching
C)Renewable
D)Exchange
E)Sunk

Accepted Answer

Switching costs refer to the expenses that a customer incurs when changing suppliers or brands. These costs may be in the form of time, money or effort required to find, evaluate and test a new supplier. Switching costs are considered fixed as they do not vary with the quantity of goods purchased or service used.

Question 16

The method for predicting how variables will change in the future is known as
A)budgeting.
B)buffering.
C)forecasting.
D)benchmarking.
E)scanning.

Accepted Answer

The method for predicting how variables will change in the future is known as forecasting.

Question 17

Randall, senior product development manager at WasteTech Corporation, is considering the acquisition of a new waste treatment technology from a small development firm. The asking price is $10 million. However, the environmental uncertainty of the waste treatment marketplace is both complex and dynamic. Randall wants to acquire the new technology but seeks to manage the risk associated with his decision, or "hedge his bets." Key elements of his risk management strategy might be to
A)gain competitive intelligence through environmental scanning, develop business scenarios, forecast sales, and benchmark the technology.
B)diversify, merge, divest, prospect, or defend the technology.
C)establish visible artifacts; develop symbols, rites, and ceremonies; and develop stories about the technology.
D)decide upon a clan (collaborate), adhocracy (create), hierarchy (control), or market (compete)culture from which to market the technology.
E)buffer, smooth, and empower in order to manage the technology supply chain.

Accepted Answer

To manage the risk associated with the acquisition of a new waste treatment technology, Randall should gain competitive intelligence through environmental scanning, develop business scenarios, forecast sales, and benchmark the technology. This will help him to make an informed decision by understanding the market demand and potential competition.

Question 18

Emerson Smith, sales director for a beverage wholesaler, analyzed whether his company should attempt to become beverage supplier next year for TopChoice, a national fast food chain. Emerson learned that Deluxe Beverages, Inc., currently has a supply contract with TopChoice that has three more years in its term; TopChoice would have to pay Deluxe Beverages $3 million to terminate the supply contract early. Also, Deluxe Beverages has installed automated beverage ordering software in TopChoice's home office; TopChoice would have to spend $1 million to replace the software and retrain its staff. Emerson concluded that TopChoice's ________ costs would be too high to seriously consider a change in supplier during the multi-year term of the supply contract, so he decided not to attempt to become TopChoice's beverage supplier next year.
A)capital
B)operating
C)switching
D)labor
E)cooptation

Accepted Answer

The costs that TopChoice would incur to terminate the supply contract with Deluxe Beverages and to replace the automated beverage ordering software are switching costs. These costs would be too high for TopChoice to seriously consider switching to a new supplier during the term of the contract. Therefore, Emerson decided not to attempt to become TopChoice's beverage supplier next year. The other options (capital, operating, labor, and cooptation) do not accurately describe the costs discussed in the scenario.

Question 19

Suave and Debonair, Inc., a chain of men's clothing stores, is facing increased competition. CEO Pablo Espinosa has tried several tactics-all unsuccessful-to influence his business environment: slashing prices, offering seasonal promotions to smooth out sales, contracting with wholesalers in advance of seasonal rushes to prevent inventory depletion, and appointing the president of the chamber of commerce in his state to his board of directors. Now, Pablo is considering a more significant change to his business-perhaps acquiring a formal wear/tuxedo rental and retail business or a boutique Western wear store to add to his business portfolio. Pablo is now considering ________ as a tactic to manage the business environment.
A)independent action
B)domain selection
C)cooptation
D)buffering
E)smoothing

Accepted Answer

Domain selection involves changing the boundaries of the organization's domain by acquiring businesses that complement its existing line of products or services. In this case, acquiring a formal wear/tuxedo rental or a boutique Western wear store would expand Suave and Debonair's offerings and potentially reduce the impact of competition. This tactic is more strategic than the other options listed and is likely to have a more long-term impact.

Question 20

An outcome of environmental scanning is ________, which is the information necessary to decide how best to manage in a given competitive environment.
A)corporate governance
B)strategic vision
C)competitive intelligence
D)corporate espionage
E)competitive dissertation

Accepted Answer

Environmental scanning helps in gathering data about the competition, market trends, and other external factors. This information is known as competitive intelligence, and it is used to make strategic decisions and develop a competitive advantage. Therefore, the correct answer is C - competitive intelligence. A, B, D, and E are not outcomes of environmental scanning.

Quiz 2: The External and Internal Environments

Giving consumers what they want or need, the way they want it, the first time is known as

________ create alternative combinations of different factors into a total picture of the environment and a firm.

________ refers to management of the network of facilities and people that obtain materials from the outside, transform them into products, and distribute the products to customers.

Charlotte owns and operates a convenience store in a large city. Competitors are many, and competition is fierce. Due to her small business's size, she cannot realistically influence her business environment. However, Charlotte can and does take steps to adapt to the environment, including

A customer who purchases raw materials or wholesale products before selling them to other parties is known as a(n)

Organizations must acquire a variety of resources in order to produce a product or service of value. These resources may include materials, equipment, financing, or even employees. The sources that provide these various resources are referred to as

Nargis writes a narrative that describes what she thinks will happen to her child care business if the trend of flexible hours for corporate employees continues to grow. This narrative is an example of

Which of the following combinations can result in a best-case scenario?

Tammi Sloane, owner of a licensed supplier of advanced self-driving vehicle technology, independently influences her company's business environment. Determine which action below is not among the ways that Tammi independently influences her business environment.

Environmental ________ refers to the degree of discontinuous change that occurs within the industry.

Which of the following is true about using forecasts?

The main difference between a final consumer and an intermediate consumer is that

________ costs are fixed costs buyers face if they change suppliers.

The method for predicting how variables will change in the future is known as

An outcome of environmental scanning is ________, which is the information necessary to decide how best to manage in a given competitive environment.