Question 1

Competitive rivalry would be exemplified by

Accepted Answer

Competitive rivalry refers to the ongoing competition between companies in the same industry. Price wars, where competitors engage in lowering prices to gain market share, is a classic example of this. Strategic alliances and mergers, on the other hand, are ways in which companies can collaborate or combine resources to strengthen their competitive position. Union strikes may disrupt operations but are not necessarily a direct form of competition between companies.

Question 2

Many organizations now have units that monitor a host of magazines and newspapers looking for stories that may have an impact on the organization.These units are

Accepted Answer

These units are engaged in environmental scanning, which is a process of systematically monitoring and analyzing the external environment for potential opportunities and threats to an organization. This helps organizations stay up-to-date on the latest developments and make informed decisions about how to respond to changes in the environment.

Question 3

Which of the following is the BEST example of environmental turbulence?

Accepted Answer

Environmental turbulence refers to unexpected, dramatic changes in the environment that can significantly impact organizations. The Japanese economy experiencing the tsunami and nuclear reactor problem is the best example of environmental turbulence among the options given because it represents a sudden, unpredictable, and profound change affecting businesses, infrastructure, and the overall economy in ways that are difficult to prepare for or immediately mitigate.

Question 4

Which of the following is an example of one of the basic mechanisms that organizations use to adapt to their environment?

Accepted Answer

All of these choices are basic mechanisms that organizations use to adapt to their environment. Information management involves gathering, analyzing, and using information about the environment to guide decision-making. Direct influence involves attempting to change the external environment through lobbying, advocacy, or other means. Strategic response involves adjusting the organization's strategy to better align with the changing environment. Organization design and flexibility involves creating structures and processes that allow the organization to adapt quickly and effectively to new challenges and opportunities.

Question 5

When Dayton Hudson was the target of a hostile takeover it was able to use its position of influence in the state of Minnesota to pressure the state legislature to change the laws preventing breakup of any company immediately after purchase.Dayton Hudson responded to the crisis using

Accepted Answer

Dayton Hudson used its position of influence in the state of Minnesota to pressure the state legislature to change the laws preventing breakup of any company immediately after purchase. This shows that the company used direct influence to respond to the crisis.

Question 6

A purchasing agent is an example of a(n)

Accepted Answer

Purchasing agents are boundary spanners as they interact with both internal departments and external suppliers to ensure that the organization obtains the goods and services it needs to operate effectively.  Intelligence agents are involved in gathering information about competitors and industry trends, strategic allies are external partners that work with the organization to achieve common goals, regulators are government bodies responsible for enforcing laws and regulations, and suppliers are entities that provide goods and services to the organization.

Question 7

An organization design that is mechanistic

Accepted Answer

Mechanistic organizations are characterized by formal and rigid relationships, with a high degree of specialization and strict adherence to rules and procedures. This type of design is best suited for stable and certain environments where efficiency and consistency are important. Therefore, the correct choice is D.

Question 8

The process of actively monitoring the environment through activities such as reading and observation is called

Accepted Answer

Environmental scanning is the process of actively monitoring the environment through activities such as reading and observation to identify potential opportunities and threats to a company's strategies and operations. The other options do not accurately describe this process.

Question 9

Which of the following illustrates the MOST common form of environmental turbulence?

Accepted Answer

The answer of Which of the following illustrates the MOST...

Question 10

Which of the following is an example of an organization's strategic response to its external environment?

Accepted Answer

Doing nothing in response to a competitor's new product can be a strategic choice, indicating a deliberate decision to not react to external market changes, which reflects an organization's strategic response to its external environment.

Question 11

When two or more firms combine to form a new firm,it is called a(n)

Accepted Answer

A merger occurs when two or more firms join to form a new firm, while an acquisition is when one firm acquires another firm. A takeover usually involves a hostile acquisition where one company takes control of another without the consent of the target company's management. Organic and mechanistic designs are concepts related to organizational structure and not directly related to company mergers or acquisitions.

Question 12

Hunter sells security surveillance equipment to international airports.His job is to go to the prospective customer,examine the airport's current security,locate problem areas,and explain how his company's security surveillance system would eliminate these problems.Hunter is an example of a(n)

Accepted Answer

Hunter's role as a representative of his company, tasked with connecting and negotiating with potential customers (in this case, airports), fits the definition of a boundary spanner.

Question 13

One of the reasons so many Internet companies fail is due to a lack of standardized operating procedures.The companies' managements are afraid of stifling their creative employees by using a rigid structure with lots of rules and regulations.Instead employees are given few rules and allowed to use their own judgment when making decisions.What type of organization design would you find in most of these companies?

Accepted Answer

The description provided suggests an organic organization design, which is characterized by a decentralized structure, flexible roles, and relatively fewer rules and regulations. This type of design is often found in companies that prioritize innovation and creativity.

Question 14

Dollar Thrifty told Hertz and Avis Budget to submit their best and final proposals.In the end Dollar Thrifty combined with one of the companies in a(n)

Accepted Answer

The combination of Dollar Thrifty with one of the companies suggests a merger rather than an acquisition, joint venture, or strategic alliance.

Question 15

National Industries,supplier to all Hometown Hardware Stores,manufactures many of the products it sells to member stores.What kind of response to the organizational environment does this represent?

Accepted Answer

National Industries manufacturing many of the products it sells to member stores represents a direct influence on its organizational environment. By producing the products, the company is actively shaping its supply chain and exerting control over the quality and availability of the goods it provides to Hometown Hardware Stores. This direct involvement in the production process allows the company to influence its operational environment more significantly than if it were merely distributing products made by others.

Question 16

Fast food chains make headlines when someone claims to find body parts or foreign objects in their food.The claims are usually false,but they increase the industry

Accepted Answer

The false claims of finding body parts or foreign objects in fast food increase the environmental turbulence, as it creates uncertainty and unpredictability in the industry's external environment. This can affect the market demand and consumer confidence, making it difficult for fast food chains to anticipate and respond to changes in their environment.

Question 17

Which of the following is an example of a merger?

Accepted Answer

In a merger, two companies combine to form a new entity, and the original companies cease to exist. This is exactly what happens in choice A, where Brown Electronics and Kelvin Data Systems form a new company, and both original companies cease to exist.

Question 18

The Northeast region of the U.S.experienced flooding from hurricane Irene.This is an example of

Accepted Answer

Environmental turbulence refers to unexpected and uncontrollable events that can impact an organization's environment, such as natural disasters like flooding from a hurricane. This is the most appropriate answer for the scenario described.

Question 19

Organizations directly influence their environment by

Accepted Answer

All of these choices are ways in which organizations can directly influence their environment. By lobbying, they can influence government policies and regulations. By signing long-term contracts with suppliers, they can influence the market and ensure a stable supply of materials. By lowering prices, they can influence consumer behavior and gain a competitive advantage. And by bargaining with labor unions, they can influence labor costs and working conditions. Therefore, all of these choices are valid options for organizations to influence their environment.

Question 20

Wal-Mart is the largest retailer in the world.It successfully pressures suppliers to lower prices.Wal-Mart uses

Accepted Answer

Wal-Mart uses direct influence to pressure suppliers to lower prices. This can be seen in their negotiation tactics and bulk purchasing power. While they may also incorporate some aspects of a mechanistic organization design to streamline processes, their main method of achieving lower prices is through direct influence.

Quiz 3: The Environment and Culture of Organizations