Deck 3: Organizational Environments and Cultures

Question 1

Companies with strong cultures tend to perform well when they need to adapt to dramatic changes in their external environments.

Answer 1

False

Question 2

Technology is a part of the specific environment of an organization.

Answer 2

False

Question 3

Proactive monitoring of customers involves identifying and addressing customer trends and problems after they occur.

Answer 3

False

Question 4

Organizational heroes are organizational people admired for their qualities and achievements within an organization.

Question 5

The industry regulation component of the specific environment of a company affects all businesses.

Question 6

Opportunistic behavior focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers.

Question 7

Sociocultural changes in behavior affect the demand for a business's products and services.

Question 8

Reactive customer monitoring involves identifying and addressing customer needs, trends, and issues before they occur.

Question 9

The dairy industry is an excellent example of a complex external environment.

Question 10

Instead of taking a smoke break every two hours, employees at a local company were asked to take an extra 30 minutes for lunch. This is an example of behavioral substitution.

Question 11

Environmental scanning does not contribute to organizational performance.

Question 12

Environmental uncertainty refers to the abundance or shortage of critical organizational resources in an organization's external environment.

Question 13

Companies whose chief executive officers do more environmental scanning have higher profits.

Question 14

Managers often do a poor job of identifying potential competitors because they tend to focus on only two or three well-known competitors with similar goals and resources.

Question 15

Supplier dependence is the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products.

Question 16

The sociocultural component of the general environment refers to the knowledge, tools, and techniques used to transform inputs into outputs.

Question 17

Environmental complexity refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.

Question 18

Competitors are companies in the same industry that sell similar products or services to customers.

Question 19

Under the 1991 Civil Rights Act, if an employee is sexually harassed by anyone at work, the harasser-not the company-is liable for damages, attorneys' fees, and back pay.

Question 20

In general, in a growing economy, more people are working and wages are growing, and therefore consumers have relatively more money to spend.

Question 21

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.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) dissonant behavior

Question 22

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

A) resource scarcity is low.
B) environmental change is extensive.
C) the industry is not at an equilibrium state.
D) environmental complexity is high.

Question 23

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?

A) Punctuated equilibrium
B) Environmental inertia
C) Resource scarcity
D) Buyer dependence

Question 24

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 _____.

A) generational change
B) technological lockout
C) environmental uncertainty
D) buyer dependence

Question 25

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?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 26

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 _____.

A) opportunistic behavior
B) industry regulation
C) punctuated equilibrium
D) organizational culture

Question 27

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

A) An increase in the number of competitors
B) The number of book distributors in a particular location
C) A trend toward reduced leisure time
D) An advocacy group supporting free books for children

Question 28

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?

A) Punctuated equilibrium
B) Media advocacy
C) Environmental scanning
D) Transfer pricing

Question 29

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?

A) Behavioral opportunism
B) Behavioral deskilling
C) Behavioral advocacy
D) Behavioral substitution

Question 30

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?

A) Demographic segmentation
B) Corporate governance
C) Change intervention
D) Competitive analysis

Question 31

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.

Question 32

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

A) technological
B) sociocultural
C) economic/demographic
D) political/legal

Question 33

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.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) dissonant behavior

Question 34

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.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 35

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

A) Distributive bargaining
B) Behavioral substitution
C) Proactive monitoring
D) Cognitive mapping

Question 36

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.

A) sociocultural
B) economic/demographic
C) technological
D) industry regulation

Question 37

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.

A) supplier
B) competitor
C) buyer
D) regulator

Question 38

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

A) Scarcity of medical equipment suppliers
B) Recruitment of highly skilled nurses
C) Regulations concerning the disposal of biological wastes
D) High attrition rate of the medical staff

Question 39

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?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 40

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?

A) Punctuated equilibrium
B) Media advocacy
C) Environmental scanning
D) Transfer pricing

Question 41

The country Grupindor recently experienced a drastic increase in inflation. This led to the depreciation in the value of its currency and affected trade and business drastically. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological changes in the country
B) political condition of the country
C) economy of the country
D) sociocultural aspect of the country

Question 42

Which of the following is the least aggressive tactic used by advocacy groups?

A) Public communications
B) Media advocacy
C) Distributive bargaining
D) Class action lawsuits

Question 43

Optalama, a leading chain of optical stores, follows the practice of conducting surveys to study the strategies used by other optical stores in the city in which it operates. To maintain its position as the market leader, it monitors the other stores' strengths, weaknesses, and advertising and marketing campaigns. In this scenario, which of the following is Optalama most likely using?

A) Demographic segmentation
B) Corporate governance
C) Change intervention
D) Competitive analysis

Question 44

Environmental uncertainty in an organization is high when:

A) resource scarcity is low.
B) environmental change is extensive.
C) environmental complexity is low.
D) industry regulations are strict.

Question 45

__________is the abundance or shortage of critical organizational resources in an organization's external environment.

A) Resource equilibrium
B) Resource leveling
C) Resource augmentation
D) Resource scarcity

Question 46

An automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. In the context of organizational environment, this new invention is a development in the _____ of the general environment.

A) technological component
B) sociocultural component
C) legal component
D) economic component

Question 47

Pencilpop, a stationery store, has been purchasing all its paper products from Tigreto, a wholesaler of paper products, for over a decade. Tigreto gives Pencilpop seasonal discounts and sells its products on a credit basis. Pencilpop does not source its paper products from any other wholesaler because of the low price and the consistent quality that Tigreto offers. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 48

Maroonmania, a web design company, allows its employees to take their pets to work. The company has flexible work hours, and the employees are only required to clock 20 hours a week in office as long as they have completed their assigned tasks. They are also allowed to dress casually to work. This scenario best illustrates Maroonmania's _____.

A) opportunistic behavior
B) industry regulation
C) punctuated equilibrium
D) organizational culture

Question 49

Chocorrect, a gourmet chocolate manufacturer, imports the best quality cocoa for its chocolates from the country Jescavia. However, Jescavia has recently stopped exporting cocoa because of the increase in the demand for cocoa in the country. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 50

Bagfur is a manufacturer of original leather handbags. Its business has dropped as the use of leather has been banned in a lot of countries. In the context of changing environments, which of the following does this scenario best illustrate?

A) Punctuated equilibrium
B) Discontinuous change
C) Resource scarcity
D) Buyer dependence

Question 51

The__________component of the specific environment of an organization consists of ordinances and rules that govern the business practices and procedures of specific businesses and professions.

A) sociocultural
B) political/legal
C) industry regulation
D) business confidence

Question 52

Zimway Inc. is a small-scale manufacturer of linen. Couture Corp., a big apparel brand, purchases linen from Zimway in large quantities. Zimway, otherwise, has very few clients, and most of them purchase linen occasionally and in minimal quantities. Therefore, business ties with Couture is crucial for Zimway's survival and success. In the context of the specific environment, which of the following concepts is illustrated in the scenario?

A) Buyer dependence
B) Supplier dependence
C) Regulator dependence
D) Internal dependence

Question 53

Which of the following is true of business confidence indices?

A) They show how sure actual managers are about future business growth.
B) They indicate how businesses have been performing over the previous years.
C) They show how confident customers are about the companies they do business with.
D) They indicate general economic statistics over the previous years.

Question 54

Muffton, a patisserie in Jewarmet, is best known for its blueberry muffins. As blueberries are not easily available in Jewarmet, Frutmarc, the only convenience store in Jewarmet that sells blueberries, is the only store from where Muffton can purchase blueberries. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 55

_____ is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

A) Behavioral substitution
B) Behavioral deskilling
C) Behavioral opportunism
D) Behavioral addition

Question 56

A primary source of organizational culture is _____.

A) the company founder
B) the board of directors
C) a new employee
D) a new customer

Question 57

Which of the following exemplifies a sociocultural component in the general organizational environments?

A) New FDA regulations on food handling and storage in fast food chains
B) Increase in the number of fast food chains offering similar menus
C) Increasing popularity of weight management programs
D) Shortage of spice suppliers

Question 58

__________are companies in the same industry that sell similar products or services to customers.

A) Competitors
B) Lobbyists
C) Intermediaries
D) Sponsors

Question 59

Identify a component of the general environment that indirectly affects all organizations.

A) Suppliers
B) Competitors
C) Technology
D) Industry regulations

Question 60

When agricultural machines were introduced, a number of industries benefited from them. At the same time, a number of farmers and small organizations that relied on manual labor and traditional methods of agriculture lost their business. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 61

The country Bornizia recently experienced a drop in inflation. This change facilitated sales for many organizations and also increased employment. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological changes in the country
B) political condition of the country
C) economy of the country
D) sociocultural aspect of the country

Question 62

An _____ refers to the values, beliefs, and attitudes shared by organizational members.

A) organizational hierarchy
B) organizational innovation
C) organizational culture
D) organizational design

Question 63

Earlinwex, an apparel wholesaler, wants to set up a warehouse in a neighboring country that levies taxes at a low rate. Before setting up the store, the operations manager of the company travels to the country to study the political scenario that affects wholesale businesses, the regulations governing the textile industry, and the business strategies of the existing players in the market. Which of the following concepts does this scenario best illustrate?

A) Punctuated equilibrium
B) Opportunistic behavior
C) Environmental scanning
D) Transfer pricing

Question 64

Helene, a senior manager of an accounting firm, replaces a few of the company's existing processes and policies. Instead of the flexible nine-hour work plan, she makes it mandatory for all employees to work from 9a.m. to 6 p.m. In this scenario, Helene is most likely using _____.

A) behavioral opportunism
B) behavioral deskilling
C) behavioral conditioning
D) behavioral substitution

Question 65

Organizational members use _____ to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

A) cultural maps
B) organizational hierarchies
C) organizational stories
D) business confidence indices

Question 66

Tradcuisie Souvenirs is a company that manufactures souvenirs that represent the traditional arts of the country Yeingir. For the past few years, the business of Tradcuisie Souvenirs has been declining because of a shortage of artisans who have learned traditional crafts. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) political component
D) economic component

Question 67

Homespar is an e-commerce site that sells home décor and kitchenware. It sources all its wooden articles, such as coasters, serving trays, and photo frames, from a rural carpentry firm because the firm charges much lower prices than other carpentry firms. The firm is also reliable in terms of quality and delivery time. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 68

Jipmor, an interior décor store in the city of Jeswayde, manufactures designer white oak furniture. Jipmor is highly dependent on Casode, which is the only store in Jeswayde that sells white oak wood, for the timely delivery of good-quality wood. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Supplier dependence
C) Buyer dependence
D) Internal dependence

Question 69

Redd Publications Inc. has been buying ink cartridges and printing papers from Haven Corp. for several years. Both companies make an effort to keep their transactions fair and transparent. This has helped them maintain mutually beneficial business ties. It can be said that Redd Publications and Haven exhibit _____ toward each other.

A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) compromising behavior

Question 70

Many people in Rhenasia spend less as there are only a few well-paid jobs in the country. Many businesses in the country are adversely affected as the purchasing power of consumers has drastically reduced. The organizational environmental characteristic that is affecting businesses in Rhenasia is associated with the _____.

A) technological changes in the country
B) political condition of the country
C) economy of the country
D) media in the country

Question 71

Luis designs clothes for Vongowd, an apparel store. Vongowd sells clothes designed by a number of designers. However, Vongowd is Luis's only option to sell his clothes. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

A) Path dependence
B) Buyer dependence
C) Supplier dependence
D) Internal dependence

Question 72

The economy is a part of the__________that influences all organizations.

A) specific environment
B) general environment
C) niche environment
D) internal environment

Question 73

Trisha is appointed as the new CEO of an automobile manufacturing company. She decides to introduce a new set of organizational policies to improve company-wide performance. According to the new policies, all employees and managers are required to be present at their desks for a minimum of eight hours each day and submit a report of all the tasks they perform through the day. In this scenario, Trisha is most likely using _____.

A) behavioral opportunism
B) behavioral deskilling
C) behavioral conditioning
D) behavioral addition

Question 74

The health awareness board in the country of Gelhanwa made it mandatory for all brands that sell tobacco and tobacco products to display a disclaimer highlighting the dangers of tobacco on their product covers. In the context of the specific environment, this scenario best illustrates the effect of the _____ on organizations.

A) competitor component
B) supplier component
C) technological component
D) industry regulation component

Question 75

Because of a financial crisis, Isaavne, an automobile manufacturer, terminated 200 factory employees without prior notice. As a result, the labor union filed a suit against the company on the grounds of wrongful termination, and it had to pay a large amount as fine. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component

Question 76

Identify a true statement about environmental uncertainty.

A) It is most likely to be high when there is technological stability in the industry.
B) It is most likely to be high when the industry is at an equilibrium state.
C) It is most likely to be low when environmental complexity is at a low level.
D) It is most likely to be low when environmental change is extensive.

Question 77

The__________stops companies from engaging in unfair labor practices.

A) Department of Labor
B) National Labor Relations Board
C) Equal Employment Opportunity Commission
D) Occupational Safety and Health Administration

Question 78

Glittenra is the largest local silver store in the town of Casempton. Famegems, a large silver jewelry chain of stores, wants to set up an outlet in Casempton. Before finalizing the decision to set up the store, the marketing team of Famegems conducts a detailed study on the business, marketing strategies, and customer base of Glittenra. In this scenario, which of the following is the marketing team of Famegems most likely using?

A) Demographic segmentation
B) Corporate governance
C) Change intervention
D) Competitive analysis

Question 79

Which of the following forms a component of the specific environment of an organization?

A) The suppliers
B) The political component
C) The technological component
D) The customers

Question 80

Mathew, a team manager at Weltono Inc., requested the company's senior management for additional resources for a project. However, he was denied the additional resources, and as a result, the project failed. During a company gathering, a senior manager publicly attributed the failure of the project to Mathew's incompetence. He filed a suit against the company on the grounds of public defamation and won the case. The company incurred losses because it had to pay a hefty sum to Mathew as compensation. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

A) technological component
B) sociocultural component
C) legal component
D) geographical component