Question 1

Melissa,a retail manager,encourages her employees to solve customers' problems without her approval of the particular situation.In this example Melissa has empowered her employees.

Accepted Answer

Empowerment means giving employees the authority and resources to make decisions and take actions on their own. In this scenario, Melissa is giving her employees the freedom to solve customers' problems without her approval, which is an example of empowerment.

Question 2

Organizations that are affected by and that affect their environment are called

Accepted Answer

Open systems are organizations that are affected by and affect their environment, meaning they exchange resources and information with their surroundings. Inputs and outputs are just components of these systems, while closed systems don't exchange anything with their surroundings. Social systems are a more general term that could include open and closed systems, and don't necessarily imply an exchange with the environment.

Question 3

Robert was recently hired as the workplace safety compliance officer at Diligent Drilling Company.Robert will have the responsibility to monitor regulations from which of these government agencies?

Accepted Answer

OSHA (Occupational Safety and Health Administration) is the government agency responsible for enforcing safety and health regulations in the workplace. As the workplace safety compliance officer, Robert's main responsibility will be to ensure that Diligent Drilling Company is complying with OSHA regulations to provide a safe working environment for employees. The other options such as FCC (Federal Communications Commission), EPA (Environmental Protection Agency), SEC (Securities and Exchange Commission), and NLRB (National Labor Relations Board) do not oversee workplace safety regulations.

Question 4

Southwest Airlines demonstrates competitive pacification as an independent strategy by cutting fares when it enters a new market.

Accepted Answer

Competitive pacification involves reducing competition through cooperation or agreements, not by cutting fares, which is a competitive strategy to gain market share.

Question 5

In a dynamic environment,bureaucratic organizations are more efficient than organic organizations.

Accepted Answer

In a dynamic environment, where there is constant change and uncertainty, organic organizations are generally more efficient than bureaucratic organizations. This is because organic organizations are more flexible, adaptable, and responsive to change, whereas bureaucratic organizations are more rigid and hierarchical, which can hinder their ability to respond quickly and effectively to new challenges and opportunities.

Question 6

Powerful suppliers can increase an organization's profits,especially if the organization cannot pass on price increases to its customers.

Accepted Answer

Powerful suppliers can actually decrease an organization's profits as they can negotiate higher prices for their goods or services, reducing the organization's margins. If the organization cannot pass on these price increases to its customers, it may have to absorb the cost, further reducing profits.

Question 7

Insurance for a car is a complementary product/service for the car.

Accepted Answer

Insurance is a product/service that complements a car because it provides financial protection in case of accidents, theft, or other unexpected events. It is not mandatory to purchase car insurance, but it is recommended as a precautionary measure to avoid costly expenses.

Question 8

Environmental scanning means sorting through information available to the public to interpret what is important and what is not.

Accepted Answer

Environmental scanning means both searching out information that is unavailable to most people and sorting through that information to interpret what is important and what is not.

Question 9

Benchmarking represents alternative combinations of different factors into a total picture of the environment and the firm.

Accepted Answer

Benchmarking is a process of comparing a company's performance metrics to industry bests or best practices from other companies, not about combining different factors into a total picture.

Question 10

A substitute for a company's offering is a potential opportunity.

Accepted Answer

A substitute for a company's offering is typically seen as a threat, as it provides customers with an alternative option, potentially reducing demand for the company's product or service.

Question 11

Competitive intelligence is the information necessary to decide how best to manage in the competitive environment.

Accepted Answer

Competitive intelligence aims to gather and analyze information about the competition, market trends, and other factors affecting business performance to make informed decisions about how to compete effectively in the market.

Question 12

Stories told by employees almost never have any connection to the true culture of the organization.

Accepted Answer

While not all stories told by employees reflect the culture of the organization accurately, they can provide valuable insight and understanding into the underlying beliefs, values, and practices of the company. Hearing from employees about their experiences can help to uncover both positive and negative aspects of the organizational culture. Thus, stories told by employees can be a useful tool for assessing and understanding an organization's culture.

Question 13

A strong organization culture is one in which everyone understands and believes in the firm's goals,priorities and practices.

Accepted Answer

A strong organization culture is characterized by a shared understanding and belief in the company's values, goals, and practices, which helps to foster a cohesive and productive work environment.

Question 14

Amy Jane,a new manager at Delectable Baked goods,has been asked to focus on the competitive environment of the organization.Which of these factors is among those that Amy Jane should focus on?

Accepted Answer

Amy Jane should focus on suppliers as this is a key factor in the competitive environment of the organization. The cost, quality, and reliability of suppliers can have a significant impact on the success of Delectable Baked goods. While the other factors listed (government policies, demographics, technology, and social factors) can also be important in the competitive environment, they are not as directly related to the suppliers and the organization's supply chain.

Question 15

A switching cost is a fixed cost a buyer faces when changing suppliers.

Accepted Answer

A switching cost is a cost that a buyer incurs when switching from one supplier to another. It can be a fixed cost, such as the cost of retraining employees, or an ongoing cost, such as the cost of changing inventory systems.

Question 16

Defenders are more likely to engage in strategic maneuvering than prospectors.

Accepted Answer

The answer of Defenders are more likely to engage in...

Question 17

A value chain is the managing of the network of facilities and people that obtain materials from outside the organization,transform them into products,and distribute them to customers.

Accepted Answer

A value chain refers to the series of steps a company takes to transform raw materials into a final product, adding value at each stage, but it does not specifically refer to the management of the network of facilities and people. That description aligns more closely with supply chain management.

Question 18

The SEC recently proposed regulations requiring companies to disclose more details about executive compensation.This illustrates an important interaction between organizations and their relevant

Accepted Answer

The SEC (Securities and Exchange Commission) is a regulatory body responsible for overseeing and regulating public companies in the United States. Therefore, the proposed regulations regarding executive compensation reflect the interaction between organizations and their relevant regulators.

Question 19

Customer service means giving customers what they want,the way they want it,the first time.

Accepted Answer

Customer service is about meeting the needs and expectations of customers in a timely and effective manner, which includes providing them with what they want, in the way they want it, the first time.

Question 20

Using international bribery as a business tactic is illegal for U.S.firms.This statement reflects which type of environmental force at work?

Accepted Answer

The statement refers to laws and regulations related to bribery, which falls under the legal/political environmental force. The U.S. FCPA (Foreign Corrupt Practices Act) prohibits U.S. firms from bribing foreign officials to gain business advantages. Bribery is illegal in many countries and can result in heavy fines and reputational damage for companies found guilty of such practices.

Quiz 2: The External Environment and Organizational Culture