Question 1

GDP trends, interest rates, unemployment levels, and the money supply are examples of issues that pertain to an organization's __________ environment.

Accepted Answer

GDP trends, interest rates, unemployment levels, and the money supply are all economic indicators that directly impact an organization's economic environment. These factors influence economic conditions that organizations must navigate, such as market demand, investment opportunities, and cost of capital.

Question 2

As baby boomers mature, companies in several industries, such as travel (i.e., cruises), golf, and assisted living communities have experienced tremendous growth. The companies capitalizing on this aging demographic closely monitored the changes in the __________ environment in order to plan for this growth.

Accepted Answer

The correct answer is D) socio-cultural because the companies are responding to changes in societal trends and cultural shifts, specifically the aging of the baby boomer generation, which impacts preferences and demands in the market.

Question 3

The large percentage of two-income families in the workforce has provided opportunities for a number of businesses, including childcare, housekeeping services, dry cleaning, and fast-food restaurants. The increase in two-income families in the workforce is an example of a __________ factor affecting many American businesses.

Accepted Answer

The increase in two-income families in the workforce reflects changes in societal norms and family structures, which are socio-cultural factors. These changes affect consumer behavior and create opportunities for businesses that cater to the needs of these families.

Question 4

Changes in the __________ environment have almost forced small business owners to install point of sale terminals to track sales and inventory, in order to remain competitive.

Accepted Answer

The correct answer is B) technological, as advancements in technology have made point of sale terminals an essential tool for small business owners to efficiently track sales and inventory, thereby remaining competitive in the market.

Question 5

Many U.S.-based businesses wish to begin exporting and establishing business contacts in Cuba but are restricted by the embargo placed on the island nation back in the 1960s. Embargoes and other such trade measures are evidence of which of the following environments?

Accepted Answer

Embargoes and trade measures are a reflection of the political-legal environment, as they are imposed by governments and are related to legal and political decisions regarding international relations and trade policies.

Question 6

Technological forces, socio-cultural forces, economic forces, and political-legal forces are examples of the forces in a firm's __________ environment.

Accepted Answer

Technological forces, socio-cultural forces, economic forces, and political-legal forces are all components of a firm's general environment. This environment encompasses the broad, external conditions and trends that can affect an organization's strategy and performance.

Question 7

Small companies, just like large corporations, should spend a considerable amount of time examining the __________ environment which includes the economic, political-legal, technological, and socio-cultural forces which may represent either a threat or opportunity.

Accepted Answer

The correct answer is D) general. The general environment encompasses the broad economic, political-legal, technological, and socio-cultural forces that affect an organization's ability to achieve its objectives. These external factors are beyond the direct control of the company but are crucial for strategic planning and decision-making.

Question 8

Unlike the __________ environment, the __________ environment includes forces that are within the organization's operating environment and may be influenced to some degree.

Accepted Answer

The correct answer is A) general, task. The general environment refers to the broad, external conditions that affect organizations indirectly, such as economic trends, social changes, and technological advancements. The task environment, on the other hand, includes forces that are directly connected to an organization's operations, such as customers, competitors, suppliers, and regulators, and can be influenced to some degree by the organization.

Question 9

In order to remain competitive, Suzanne spends a considerable amount of time studying her company's competition, possible changes in her targeted customer base, and the availability of supplies needed by her company. The forces Suzanne is examining are included in her firm's __________ environment.

Accepted Answer

Suzanne is focusing on the task environment, which includes factors directly connected to a company's operations like competition, customers, and suppliers.

Question 10

The competition between General Motors, Ford, Toyota, and DaimlerChrysler for their targeted customer bases and for scarce natural resources would exemplify which of the following environments?

Accepted Answer

The competition among companies for customers and resources is part of the task environment, which includes entities that directly affect a company's operations, such as competitors, suppliers, and customers.

Question 11

Don Jacobs has decided that his computer repair company, which is growing faster than he though, should have a statement that describes the overall purpose of his company and the attributes that distinguish it from other firms. This statement is called a/an

Accepted Answer

An organizational mission statement describes the overall purpose of a company and the attributes that distinguish it from other firms, fitting the description given in the scenario.

Question 12

The following statement was published by National Commerce Bank to describe why the company exists: "To lead in the delivery of financial services that meet the evolving needs, exceed the expectations and enhance the lives of our customers, employees and shareholders. This is an example of an organization __________ which defines the reasons for which the firm exists, and is typically developed in the __________ stage of the strategic management process.

Accepted Answer

The statement provided by National Commerce Bank is an example of a mission statement, which outlines the purpose of the organization and the reasons for its existence. This is typically developed during the strategic formulation stage of the strategic management process, where the organization defines its strategy or direction and makes decisions on allocating its resources to pursue this strategy.

Question 13

For quite some time, Katherine Stuart had been thinking about starting a consulting business to capitalize on her skills and experience in hotel management. In the early stages of developing her business, Katherine decided to write a statement that would define the reason for which her company existed and provide strategic direction to the employees she hired. Katherine was writing an organizational __________ statement.

Accepted Answer

A mission statement defines the purpose of a company, providing direction and a sense of purpose, which is what Katherine was aiming to establish for her consulting business.

Question 14

__________ should include these three primary aspects: 1) its target markets; 2) its primary products and services; and, 3) an outline of the overall strategy for delivering these products and services to satisfy customers in its target market.

Accepted Answer

A mission statement should include the organization's target markets, primary products and services, and an outline of the overall strategy for delivering these products and services to satisfy customers in its target market. This helps to communicate the organization's purpose and direction to stakeholders.

Question 15

A __________ should reflect the fundamental reasons for the organization's existence.

Accepted Answer

A mission statement reflects the fundamental reasons for an organization's existence, outlining its purpose and primary objectives.

Question 16

An organization might use a __________ to provide strategic direction and a focus on the organizational goals for its members.

Accepted Answer

A vision statement provides strategic direction and a focus on the organizational goals for its members.

Question 17

Guidance for current operations as well as guidance for the future is referred to as

Accepted Answer

Strategic direction provides guidance for both current operations and future planning, aligning actions with long-term goals.

Question 18

The Sarbanes-Oxley Act of 2002 is an example of a change in the __________ environment which forced thousands of publicly traded companies to adjust the way they conduct business.

Accepted Answer

The Sarbanes-Oxley Act of 2002 is a legislative act that was passed in response to a number of major corporate and accounting scandals. It introduced major changes to the regulation of financial practice and corporate governance. This act is an example of a change in the political-legal environment, as it involves changes in laws and regulations that affect how companies operate.

Question 19

Interaction of the factors of rivalry among competitors, bargaining power of customers, the threat of substitute products or services, bargaining power of suppliers, and threat of new entrants to the industry can be assessed through a tool known as the __________.

Accepted Answer

The Five Forces Model, developed by Michael Porter, is a framework for analyzing an industry's competitive environment. It includes the interaction of the factors of rivalry among competitors, bargaining power of customers, the threat of substitute products or services, bargaining power of suppliers, and the threat of new entrants.

Question 20

Using the Five Forces Model, the movie theatre industry would consider Blockbuster as a

Accepted Answer

Blockbuster, primarily known for its video rental business, would be considered a substitutes competitor to the movie theatre industry according to the Five Forces Model. This is because it offers an alternative way for consumers to watch movies, other than attending a movie theatre.

Quiz 4: Strategic Management and Planning in a Global Environment