Question 1

Organizations are ________ systems,which means that they are affected by and in turn affect their external environments.
A)input
B)output
C)open
D)closed
E)social

Accepted Answer

Open systems are characterized by being influenced by and also influencing their external environments. This concept is central to organizational theory, as it recognizes that organizations cannot be studied in isolation but must be understood in relation to their context. Input and output refer to the flow of resources and products within an organization, while social refers to the people within an organization. Closed systems, on the other hand, are self-contained and do not interact with their external environment.

Question 2

________ means searching for and sorting through information about the environment.
A)Environmental uncertainty
B)Competitive intelligence
C)Domain selection
D)Environmental scanning
E)Strategic maneuvering

Accepted Answer

Environmental scanning refers to the process of searching, gathering, and sorting information about the environment. It helps organizations to identify opportunities and threats that exist in their environment and to develop effective strategies to deal with them.

Question 3

The immediate environment surrounding a firm is known as its
A)macroenvironment.
B)demographic environment.
C)competitive environment.
D)internal environment.
E)economic environment.

Accepted Answer

The immediate environment surrounding a firm, which includes its competitors, suppliers, customers, and potential new entrants, is known as its competitive environment. This environment plays a crucial role in shaping a firm's strategies and actions. The other options are not as closely related to the immediate environment of a firm.

Question 4

Which of the following was introduced as the result of an evolving societal trend?
A)shares of stock
B)hourly wages
C)levels of management
D)offshoring
E)family leave

Accepted Answer

Family leave was introduced as the result of an evolving societal trend towards recognizing the need for work-life balance and support for families. Shares of stock, hourly wages, levels of management, and offshoring were all introduced as part of economic and business trends rather than societal ones.

Question 5

Which of the following is a barrier to entry?
A)consumer demand for a product
B)brand identification
C)the existence of a popular complement
D)a low-cost distribution method
E)an inexpensive production process

Accepted Answer

Brand identification can make it difficult for new competitors to enter the market because consumers are already familiar with and may prefer the established brand. The other options listed either enhance or do not directly affect the ease of entry into the market.

Question 6

Diversified Industries decides to use the expertise it has from its canned-pet-food division and its health-food division to enter the fast-growing market for fresh,natural pet foods.This is an example of
A)diversification.
B)benchmarking.
C)a merger.
D)domain selection.
E)an acquisition.

Accepted Answer

Domain selection involves entering a new market or industry with existing expertise. Diversified Industries is using its expertise from related divisions to enter a new market, which is a classic example of domain selection.

Question 7

Tomiko is the manager of Davis Freight,a mid-sized trucking company.The owners have assigned Tomiko the task of applying strategic decision making to analyze the competitive environment.Tomiko does an analysis of the competitors currently in the market and how much market share each has.In addition,Tomiko looks at trends in the trucking industry and how Davis has addressed those trends.Tomiko assesses the possibility of new entrants to the market,factoring in barriers to entry in the trucking business.In addition,Tomiko studies substitutes and complements,as well as suppliers and customers.Is Tomiko covering all of her bases in assessing the competitive environment?
A)Tomiko has covered the bases necessary for her analysis and is ready to present it.
B)Tomiko failed to consider the impact of capital requirements and brand identification.
C)Tomiko needs to include an assessment of the tactics other companies use to compete.
D)Tomiko should look at the impact of both cost disadvantages and distribution channels.
E)Tomiko should not consider the impact trends in the industry as part of her assessment.

Accepted Answer

The answer of Tomiko is the manager of Davis Freight,a...

Question 8

Haru,a new manager at an electronics company,has been asked to focus on the competitive environment of the organization.Which of the following is a factor Haru should focus on?
A)government regulation
B)economic performance
C)demographics
D)rivals
E)technology

Accepted Answer

Haru should focus on the factor of rivals, as they directly impact the competition and market share of the organization. Government regulation, economic performance, demographics, and technology can also be important factors to consider, but they may not have as direct an impact on the organization's competitiveness as the actions of rivals.

Question 9

Supply chain management refers to the
A)search for information that is unavailable to most people and the process of interpreting what is important and what is not.
B)identification of the best-in-class performance by a company in a given area and the comparison of your processes to the company's processes.
C)procedure of sharing power with employees,thereby enhancing their confidence and their belief that they are influential contributors to the organization.
D)creation of new products,advanced production techniques,and better ways of managing and communicating.
E)managing of the network of facilities and people that obtain raw materials,transform them into products,and distribute them to customers.

Accepted Answer

The definition of supply chain management is the managing of the network of facilities and people that obtain raw materials, transform them into products, and distribute them to customers. This involves coordination and decision-making at every stage of the process, from procurement of raw materials to delivery of finished goods to customers. A, B, C, and D do not accurately describe supply chain management.

Question 10

In comparison to organizational culture,organizational climate
A)is more deeply held.
B)is based on values rather than attitudes.
C)does not have a discernible pattern.
D)can be measured more readily.
E)is less easy to manage.

Accepted Answer

Organizational climate can be measured more readily than organizational culture, as it is based on observable and measurable factors such as communication and leadership styles. Culture, on the other hand, is more deeply ingrained in the organization and tends to be more difficult to measure and change.

Question 11

The goal of ________ is having the right product in the right quantity at the right place at the right cost.
A)barriers to entry
B)benchmarking
C)supply chain management
D)empowerment
E)open systems

Accepted Answer

This is the definition of supply chain management, which involves the coordination of all activities involved in the production and delivery of a product or service, from the procurement of raw materials to the delivery of the final product to the customer. Barriers to entry refers to obstacles that make it difficult for new competitors to enter a market, benchmarking refers to the process of comparing one's own performance against industry best practices, empowerment refers to giving employees the authority and resources to make decisions, and open systems refer to systems that interact with their environment and can adapt to changes.

Question 12

Which of the following would be a sign of a weak organizational culture?
A)Everyone knows the organization's goals.
B)Everyone understands how things are done.
C)Everyone believes in the company's mission.
D)Everyone uses a rulebook to decide what to do.
E)Everyone helps new employees fit in.

Accepted Answer

If everyone relies strictly on a rulebook to make decisions, this suggests that there is not a strong organizational culture in place that guides behavior and decision-making. A strong organizational culture is characterized by shared values, beliefs, and norms that guide behavior and decision-making, rather than strict adherence to rules and procedures.

Question 13

Which of the following is said to occur when two or more firms combine?
A)an acquisition
B)a takeover
C)a merger
D)diversification
E)downsizing

Accepted Answer

A merger occurs when two or more firms combine to create a new, larger entity.

Question 14

Corporate mission statements,business practices,symbols and ceremonies,and the stories people tell can all give clues to
A)organizational climate.
B)organizational culture.
C)competitive environment.
D)external environment.
E)macroenvironment.

Accepted Answer

Mission statements, business practices, symbols, and ceremonies are all part of an organization's culture. These elements shape the shared values, beliefs, attitudes, and behaviors within the organization, and create a distinct identity that sets it apart from others. Organizational culture can have a significant impact on how employees work together, make decisions, and approach their jobs, and can influence organizational performance and success.

Question 15

Organizational climate consists of the patterns of ________ that shape people's experience of an organization.
A)attitudes and behavior
B)demographic characteristics
C)deeply held beliefs and values
D)inputs and outputs
E)buffering and smoothing

Accepted Answer

Organizational climate refers to the prevailing atmosphere, mood, attitudes, and behavior of employees in a work environment. Therefore, the correct choice is A, as it best describes the patterns of attitudes and behavior that shape people's experience of an organization. Options B, C, D, and E are not entirely accurate in describing organizational climate.

Question 16

Karl's office has always used Bentley computers.His technical people have suggested that he switch all his employees over to Best computers.Karl is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone.Karl is worried about
A)barriers to entry.
B)benchmarking.
C)environmental uncertainty.
D)switching costs.
E)strategic maneuvering.

Accepted Answer

Karl's reluctance is due to switching costs, as he would need to replace all computers, buy new software, and train everyone.

Question 17

What is the purpose of benchmarking?
A)to save money
B)to reduce the workforce
C)to adopt best practices
D)to expand internationally
E)to diversify products

Accepted Answer

The purpose of benchmarking is to adopt best practices through studying and analyzing the processes, strategies, and performance of other companies or organizations in the same industry with the aim of improving one's own company's processes and performance. Benchmarking can be done on various aspects, such as customer service, product quality, efficiency, and cost-effectiveness. Therefore, the most appropriate option is C, which emphasizes the adoption of best practices. The other options - saving money, reducing the workforce, expanding internationally, and diversifying products - may or may not be the objectives of benchmarking, but they are not the primary purpose.

Question 18

Which of the following was designed to help managers analyze the competitive environment and adapt to or even influence the nature of competition?
A)Dell's IdeaStorm
B)Michael Porter's model
C)B2B selling
D)Peter Drucker's theory
E)organizational smoothing

Accepted Answer

Michael Porter's model, also known as Porter's Five Forces, is specifically designed to help managers analyze the competitive environment and adapt to or even influence the nature of competition. It identifies five key forces that shape the industry competition: rivalry among competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. This model helps managers understand the dynamics of industry competition and make strategic decisions accordingly. The other options are not specifically designed for this purpose.

Question 19

Which of the following is the best description of organizational culture?
A)conditions that prevent new companies from entering an industry
B)the network that obtains raw materials,transforms them into products,and distributes them to customers
C)the process of searching out information that is unavailable to most people and sorting through it to interpret what is important and what is not
D)the process of comparing an organization's practices and technologies with those of other companies
E)a system of shared values about what is important and beliefs about how the world works

Accepted Answer

Organizational culture refers to the system of shared values about what is important and beliefs about how the world works within an organization. Options A, B, C, and D refer to different aspects of business operations and processes, but do not specifically address the concept of organizational culture.

Question 20

A human resources manager is considering changing her company's vacation policy.Before she makes a proposal to the senior executive team,she researches the vacation policies of other leading companies in her industry.This is an example of
A)benchmarking.
B)demographics.
C)inputs.
D)buffering.
E)smoothing.

Accepted Answer

Benchmarking involves comparing and examining the practices of other leading companies in the industry with the aim of improving one's own operations. In this scenario, the human resources manager is researching other companies' vacation policies to develop a proposal for her company, indicating that she is engaging in benchmarking.

Quiz 2: The External and Internal Environments

Organizations are ________ systems,which means that they are affected by and in turn affect their external environments.

________ means searching for and sorting through information about the environment.

The immediate environment surrounding a firm is known as its

Which of the following was introduced as the result of an evolving societal trend?

Which of the following is a barrier to entry?

Diversified Industries decides to use the expertise it has from its canned-pet-food division and its health-food division to enter the fast-growing market for fresh,natural pet foods.This is an example of

Haru,a new manager at an electronics company,has been asked to focus on the competitive environment of the organization.Which of the following is a factor Haru should focus on?

Supply chain management refers to the

In comparison to organizational culture,organizational climate

The goal of ________ is having the right product in the right quantity at the right place at the right cost.

Which of the following would be a sign of a weak organizational culture?

Which of the following is said to occur when two or more firms combine?

Corporate mission statements,business practices,symbols and ceremonies,and the stories people tell can all give clues to

Organizational climate consists of the patterns of ________ that shape people's experience of an organization.

What is the purpose of benchmarking?

Which of the following was designed to help managers analyze the competitive environment and adapt to or even influence the nature of competition?

Which of the following is the best description of organizational culture?

A human resources manager is considering changing her company's vacation policy.Before she makes a proposal to the senior executive team,she researches the vacation policies of other leading companies in her industry.This is an example of