Question 1

Thyimach, a machinery manufacturing company, has been purchasing iron shafts from Metaljun, a supplier of iron and steel materials, for over a decade. When Thyimach designs new models of machinery, Metaljun manufactures shafts with new specifications without asking for advance payments. Thyimach, in turn, uses only Metaljun's materials to manufacture its machinery. In the context of the supplier component of a specific environment, this scenario best illustrates _____ between Thyimach and Metaljun.

Accepted Answer

The scenario describes a long-term, mutually beneficial relationship between Thyimach and Metaljun, where Metaljun provides customized materials without demanding advance payments and Thyimach uses Metaljun's materials exclusively. This type of behavior is indicative of a relationship-based component of the supplier environment. Therefore, option C is the correct choice. Options A, B, and D do not apply to this scenario.

Question 2

Managers feel confident that they can understand, predict, and react to the external forces affecting their businesses when:

Accepted Answer

The answer of Managers feel confident that they can understand,...

Question 3

Citrine Inc. is a manufacturer of electrical home appliances. The company is facing a serious shortage of copper scrap that is used in its manufacturing process. Hence, the manufacturing process at Citrine has come to a halt. Which of the following characteristics of the external environment is illustrated in this scenario?

Accepted Answer

Resource scarcity is illustrated in this scenario as Citrine Inc. lacks sufficient copper scrap, which is a crucial resource in its manufacturing process. This scarcity has caused the manufacturing process to stop, affecting the company's operations.

Question 4

According to forecasts, different parts of the country Frecciatona are likely to be affected by water shortage. Following this news, the chief operations officer of Frantef Appliances, a company that manufactures and supplies household devices in Frecciatona, plans to introduce a new model of dishwasher that makes efficient use of small amounts of water. In the context of changing environments, this scenario best illustrates _____.

Accepted Answer

The scenario of a water shortage forecast causing a company to introduce a new, water-efficient product demonstrates the concept of environmental uncertainty, which refers to the unpredictability of external factors that can affect a business. This situation highlights how changes in the environment, such as water scarcity, can prompt companies to adjust their strategies and operations.

Question 5

Potanta is a company that manufactures herbal soaps. Over the years, the availability of aloe vera pulp, which is the key ingredient of the company's best-selling aloe vera soaps, has reduced. As a result, the company has to slow down its production of aloe vera soaps, and this affects the company's income. In the context of changing environments, which of the following does this scenario best illustrate?

Accepted Answer

This scenario best illustrates the concept of resource scarcity. The decreasing availability of a key ingredient impacts the company's ability to maintain its production level and generate income. This change is not sudden or discontinuous, but rather a gradual decline in resources that the company relied on.

Question 6

Bryencia, a start-up media agency, has flexible work hours. The flexible work hours and leave policy at Bryencia boost employee morale, leading to high performance. In this scenario, the positive attitude of the employees of Bryencia is most likely a result of its _____.

Accepted Answer

The positive attitude of the employees at Bryencia is most likely a result of its organizational culture, which includes flexible work hours and a leave policy that boosts employee morale. Organizational culture refers to the shared values, beliefs, attitudes, and practices of an organization that shape its members' behavior and attitudes.

Question 7

In case of book publishing, identify an example of a sociocultural component in the general organizational environments that can indirectly influence all the organizations.

Accepted Answer

A trend toward reduced leisure time can indirectly influence all organizations in the book publishing industry as it may decrease the overall demand for books due to people having less free time available to read. This sociocultural component affects the industry as a whole, rather than any specific organization.

Question 8

Mintribes, a silver jewelry shop that specializes in tribal jewelry, wants to move its store to a location near tourist attractions. To decide on the location, Mintribes's store manager went to some tourist spots to analyze buyer behavior, learn about the products of the existing jewelry shops in those areas, and study the spending pattern of tourists and locals in those areas. Which of the following concepts does this scenario best illustrate?

Accepted Answer

The scenario illustrates environmental scanning, which is the process of analyzing external factors that can impact a business, such as market trends, competition, and consumer behavior. The store manager is specifically scouting tourist areas to learn about the spending patterns and preferences of potential customers in order to make an informed decision about relocating the business.

Question 9

Herald Inc. has recently adopted the access card system to monitor employee movement within the company. This requires the employees to hold their identity cards against a RFID (radio-frequency identification) reader at each of the entry and exit doors for access. This process notes the time and date of entry and exit of a particular individual. The managers of the company have started enforcing the use of access cards among the employees. Which of the following concepts is illustrated in the scenario?

Accepted Answer

The adoption of access cards to monitor employee movement within the company is an example of behavioral substitution. This refers to the use of technology to replace or supplement manual monitoring or surveillance of employees' behavior. It aims to increase efficiency and accuracy of data collection, but also raises privacy concerns for employees.

Question 10

Stonecioust, an apparel store, plans to open a store in the city of Afbanca in the current fiscal year. Before setting up the store, the brand manager of Stonecioust conducts a survey to study the business tactics, strengths, and weaknesses of the apparel stores that operate in Afbanca. In this scenario, which of the following is Stonecioust most likely using?

Accepted Answer

Stonecioust is most likely conducting a competitive analysis to study the business tactics, strengths, and weaknesses of the apparel stores that operate in Afbanca. This will help them understand the competition and better position their store in the local market. Demographic segmentation involves dividing a market into different groups based on characteristics such as age, gender, income, etc. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. Change intervention involves implementing interventions to bring about change in an organization or system.

Question 11

Under the Family and Medical Leave Act, employees who have been on the job one year are guaranteed twelve weeks of unpaid leave per year.

Accepted Answer

The Family and Medical Leave Act guarantees eligible employees up to 12 weeks of unpaid leave per year. To be eligible, employees must have worked for their employer for at least 12 months and have worked a certain number of hours during that time.

Question 12

A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general environment.

Accepted Answer

The court ruling against wrongful dismissal is a legal development, therefore it falls under the political/legal component of the general environment.

Question 13

Thutmach is a manufacturer of potato chips. It has been purchasing potatoes from Vegofaz, a vegetable wholesaler, for about a decade. Vegofaz offers discounts and benefits to Thutmach, and Thutmach, in turn, purchases potatoes only from Vegofaz even when other wholesalers approach Thutmach with better offers. In the context of the supplier component of a specific environment, this scenario best illustrates _____ between Thutmach and Vegofaz.

Accepted Answer

This scenario best illustrates relationship behavior between Thutmach and Vegofaz, as they have developed a long-term, mutually beneficial relationship where Vegofaz offers discounts and benefits to Thutmach, and Thutmach shows loyalty to Vegofaz by purchasing solely from them.

Question 14

When Zaprogs, a start-up, used the e-wallet system to develop an application for easy cashless transactions, a majority of people completely switched to online banking. As a result, a number of organizations that relied on hard cash transactions began to lose their business. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

Accepted Answer

The development of the e-wallet system by Zaprogs represents a technological advancement that has had a significant impact on the way people conduct financial transactions. The widespread adoption of this technology has led to a shift away from hard cash transactions, causing organizations that rely on such transactions to suffer. Therefore, the technological component has had a major impact on organizations in this scenario.

Question 15

__________involves identifying and addressing customer needs, trends, and issues before they occur.

Accepted Answer

Proactive monitoring involves staying ahead of customer needs and trends by anticipating issues before they occur. This can help a company to provide better service and products, and to potentially avoid negative customer experiences or reviews. Distributive bargaining is a negotiation strategy focused on dividing a fixed amount of resources, behavioral substitution involves substituting one behavior for another, and cognitive mapping is a research tool for understanding mental processes. None of these directly relate to identifying and addressing customer needs proactively.

Question 16

While setting up his new office, an attorney ordered thick, frieze carpets for the floor. However, the building inspector had him remove the expensive carpeting. The building inspector stated that according to federal law, the office must be wheelchair accessible as it is a public area. He further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. This scenario illustrates how an organization is influenced by the _____ component of its specific environment.

Accepted Answer

The scenario illustrates how the organization is influenced by industry regulations, specifically the federal law that mandates wheelchair accessibility in public areas.

Question 17

Ecru Inc. is a company that provides dairy products and meat to a fast food chain. The fast food chain regularly buys these food items from Ecru. In this scenario, Ecru is a__________of the fast food chain.

Accepted Answer

Ecru Inc. provides dairy and meat products to the fast food chain, thus it is a supplier of the fast food chain.

Question 18

Which of the following exemplifies a political/legal trend in the general organizational environments?

Accepted Answer

Regulations concerning the disposal of biological wastes exemplify a political/legal trend in the general organizational environments as it is a government-mandated requirement that organizations operating in the healthcare sector comply with regulations regarding the disposal of hazardous medical waste. This political trend affects how healthcare organizations operate and manage their waste disposal systems. A, B, and D do not exemplify political/legal trends but rather relate to other environmental factors such as economic and social trends.

Question 19

Paperflamen, the largest manufacturer of notebooks in the country Delonofia, uses softwood trees to produce high-quality paper. However, because of the high demand for paper and shortage of softwood trees in the country, Paperflamen has been facing difficulties. In the context of changing environments, which of the following does this scenario best illustrate?

Accepted Answer

The scenario best illustrates resource scarcity, as Paperflamen is experiencing difficulties due to the shortage of softwood trees in the country to produce paper. This is a common challenge faced by companies operating in industries that rely heavily on natural resources, such as forestry, mining, and agriculture. Resource scarcity can affect a company's operations, profitability, and sustainability, and requires innovative solutions and adaptations to overcome.

Question 20

Maureen, the owner of a boutique, studies the spending pattern and consumer behavior of the people in the area in which her store is located. She estimates the likely variations in demand and pricing and also keeps track of her competitor's sales. Which of the following concepts does this scenario best illustrate?

Accepted Answer

This scenario describes environmental scanning, which involves monitoring and analyzing the internal and external factors that can affect the organization's performance. By studying consumer behavior, demand, and competitor sales, Maureen is using environmental scanning to make informed business decisions. Punctuated equilibrium refers to sudden and radical changes in an organization's structure, whereas media advocacy involves using media outlets to promote a cause or idea. Transfer pricing refers to the pricing of goods and services within a multinational company.

Quiz 3: Organizational Environments and Cultures