Deck 6: Managing in the Global Environment

Question 1

Managers must continuously analyze forces in the general environment because these forces affect ongoing decision-making and planning.

Answer 1

True
Explanation: Managers must continuously analyze forces in the general environment because these forces affect ongoing decision-making and planning.

Question 2

Low rivalry results in a task environment where competitive pressures are more moderate and managers have greater opportunities to acquire the resources they need to make their organizations effective.

Answer 2

True
Explanation: Conversely,low rivalry results in a task environment where competitive pressures are more moderate and managers have greater opportunities to acquire the resources they need to make their organizations effective.

Question 3

For the typical manager,the opportunities and threats that result from changes in the task environment are more difficult to identify than events in the general environment.

Answer 3

False
Explanation: For the individual manager,opportunities and threats resulting from changes in the general environment are often more difficult to identify and respond to than are events in the task environment.

Question 4

The greater the economies of scale of existing organizations,the greater are the
barriers to entry for new competitors.

Question 5

Cost advantages associated with large size operations are called economies of scale.

Question 6

Intel is considered a customer of Dell Computer because Intel provides component parts to Dell.

Question 7

National culture is the traditional system of relationships established between people and groups in a society.

Question 8

Changes in the global environment change over time and present managers with both opportunities and threats.

Question 9

Poor economic conditions make environments more complex,and managers' jobs
become more difficult and demanding.

Question 10

eBay enjoys significant brand loyalty.New online auction companies will find it
difficult and costly to obtain a share of the market.

Question 11

In general,the impact of technological forces on organizations has declined in the last decade.

Question 12

Forces in the task environment result from the actions of suppliers,distributors,customers,and competitors have a significant impact on the short-term decision making.

Question 13

The suppliers,customers,and competitors that affect the organization's ability to obtain its inputs and to sell its outputs are known as the task environment.

Question 14

The task environment contains the forces that have the most long term and indirect effect on managers.

Question 15

Changes in the global environment are constantly changing over time and only present managers with threats.

Question 16

Global outsourcing has been reduced significantly due to national differences in the cost and quality of resources such as labor or raw materials that can significantly increase manufacturing costs or decrease product quality or reliability.

Question 17

An organization's competitors are those organizations that try to sell their goods to the same customers to whom the organization is trying to sell its goods.

Question 18

Potential competitors are organizations that are not presently in a task environment but have the resources to enter if they so choose.

Question 19

A high level of rivalry typically results in price competition that increases customer revenues and profits.

Question 20

Intense rivalry among competitors creates a task environment where competitive
pressures are more moderate and managers have greater opportunities to acquire the resources they need to make their organizations effective.

Question 21

Managers who view countries as if they were isolated economically from one another see the world as open.

Question 22

The tariff barriers among the governments of developed countries declined from over 40% in 1948 to about 20% today.

Question 23

One of the major reasons why Japanese and American management practices differ is that Japanese culture values collectivism and U.S.culture values individualism.

Question 24

The result of globalization is that nations and peoples become increasingly independent because the same forces affect them in similar ways.

Question 25

Managers who view other countries as ones from which they can buy goods and to which they can sell their goods,see the global environment as open.

Question 26

A society's values are merely abstract concepts.

Question 27

Societies in which inequalities are allowed to persist over time have low power distance.

Question 28

Folkways are unwritten,informal codes of conduct that prescribe appropriate
behavior in particular situations and are considered important by most members of a group or organization.

Question 29

Nations forming political unions that allow free exchange of resources and capital is an example of the political and legal forces in the environment.

Question 30

Demographic forces in the environment include changes in gender and race.

Question 31

One of the four principal forms of capital that flow between countries is financial capital.

Question 32

When a government imposes a tariff on imports,it is attempting to protect its industries and workers from competition.

Question 33

The things that a society considers to be good and right are known as the values of that society.

Question 34

In a society,when a person violates a folkway,it is a serious moral matter.

Question 35

The setup of "free-trade areas" increases the prices of manufactured products.

Question 36

While the typical organization in the United States emphasizes the primacy of the individual,the typical organization in Japan emphasizes the primacy of the group.

Question 37

The aging of the population of the United States is an example of a demographic force that affects organizations in the United States.

Question 38

All large companies must establish an international network of operations and subsidiaries to build global competitive advantage.

Question 39

The norms of a society are written rules of codes of conduct that tell people how they are supposed to act in given situations.

Question 40

Falling trade barriers pose a serious threat because they increase competition in the task environment.

Question 41

Societies that have an achievement orientation place high value on the quality of life of people and their interpersonal relationships.

Question 42

When new competitors enter an industry,competition ______,and prices ______ and profits ______.

A)Increases;decrease;decrease
B)Increases;increase;increase
C)Decreases;decrease;decrease
D)Decreases;increase;increase
E)Decreases;increase;decrease

Question 43

A new McDonald's fast food restaurant opens just down the street from Bubba's Burger Bar.This is an example of an impact on Bubba's Burger Bar's:

A)General environment
B)Task environment
C)Economic environment
D)Legal environment
E)Political environment

Question 44

What is an organization that operates and competes in more than one country?

A)Global organization
B)Global village
C)Foreign investment company
D)Foreign corporation
E)Domestic corporation

Question 45

A supplier's bargaining position is especially strong when:

A)Many sources of the supply exist
B)Other materials can be substituted for their specific supply
C)The supply is vital to the organization
D)The supply is free
E)The supply is not protected by patent

Question 46

Societies,such as Denmark,that have a nurturing orientation place high value on personal relationships.

Question 47

Societies such as Japan,that are high on uncertainty avoidance,are skeptical about people whose behaviors differ from the established norm.

Question 48

A competitor of Apex Towing Company has negotiated a long-term contract with Apex's major supplier of diesel fuel.Now Apex must find another supplier of the raw materials.This is an example of an impact on the organization's:

A)Legal environment
B)Political environment
C)Task environment
D)General environment
E)Sociocultural environment

Question 49

Organizations that produce goods that are similar to another organization's goods are known as:

A)Suppliers
B)Distributors
C)Competitors
D)Customers
E)Potential competitors

Question 50

Organizations that are not currently selling goods in a particular task environment but which could choose to enter this environment if they wanted to are known as:

A)Customers
B)Potential competitors
C)Distributors
D)Competitors
E)Suppliers

Question 51

What is potentially the most threatening force managers must deal with?

A)Angry customers
B)Hostile suppliers
C)Rivalry among distributors
D)Rivalry between competitors
E)Technological environment

Question 52

In societies that have low power distance,the gap between the rich and the poor gradually grows smaller.

Question 53

To companies like AmerinUE,trade unions that provide potential employees are:

A)Competitors
B)Distributors
C)Customers
D)Suppliers
E)Sociocultural forces

Question 54

Organizations that help other organizations to sell their goods to customers are known as:

A)Competitors
B)Potential competitors
C)Distributors
D)Customers
E)Suppliers

Question 55

Societies such as the United States,that are high on uncertainty avoidance,value diversity and tolerate differences between people in their actions.

Question 56

All of the following are examples of the general environment of the organization EXCEPT:

A)Demographic forces
B)Legal forces
C)Distributors
D)Global forces
E)Technological forces

Question 57

Steve has found that there are a large number of suppliers for a particular component he needs for his production.Steve:

A)has a strong bargaining position
B)has a weak bargaining position
C)will pay a higher price for the part
D)will get low quality parts
E)will get high-cost and high quality parts

Question 58

All of the following are examples of the task environment of the organization EXCEPT:

A)Distributors
B)Customers
C)Competitors
D)Suppliers
E)Sociocultural forces

Question 59

Because the world is now a global village,management practices that are effective in one country will generally work in another country.

Question 60

Companies that supply another organization with input resources are known as:

A)Suppliers
B)Competitors
C)Distributors
D)Customers
E)Potential competitors

Question 61

The combination of equipment and skills which managers use in the production and distribution of goods is(are)known as:

A)Economies of scale
B)Inflation
C)Competitive advantage
D)Technology
E)Economic forces

Question 62

Which of the following is NOT an example of a demographic force in the environment?

A)Race
B)Gender
C)Sexual orientation
D)Ethnic origin
E)Diversity

Question 63

The preference of a customer for the products of a particular organization is known as:

A)Economies of scale
B)A barrier to entry
C)Brand loyalty
D)Brand saturation
E)Brand awareness

Question 64

The cost advantages that are associated with large organizations are known as:

A)Brand loyalty
B)Barriers to entry
C)Boundary spanning
D)Gate keeping functions
E)Economies of scale

Question 65

The collection of values that a society considers important and the norms of behavior that are approved by the society is(are)known as:

A)Sociocultural forces
B)Economies of scale
C)The national culture
D)The task environment
E)The general environment

Question 66

The population of the United States is "aging" in the sense that the average age of Americans is increasing each year.This is an example of which type of force in the environment?

A)Political
B)Economic
C)Legal
D)Demographic
E)Sociocultural

Question 67

Unemployment is an example of a(n)_______________ force in an organization's
Environment.

A)Socio-economic
B)Economic
C)Demographic
D)Political
E)Legal

Question 68

If organizations that are competing in an industry are __________ and have economies of scale,then their costs are __________ than the costs of potential entrants to this industry.

A)Small;higher
B)Small;lower
C)Large;higher
D)Large;lower
E)Economies of scale have no relationship with costs.

Question 69

Factors that make it costly for an organization to enter an industry as a new competitor are known as:

A)Economies of scale
B)Barriers to entry
C)Brand loyalty
D)Economic forces
E)Technological forces

Question 70

What are pressures emanating from the social structure of a country or society or from the national culture,such the concern for diversity?

A)Demographic factors
B)Sociocultural forces
C)Economic forces
D)Political forces
E)Legal forces

Question 71

Deregulation,privatization,and the removal of legal barriers to trade are just a few examples of which type of force in the environment?

A)Political
B)Legal
C)Sociocultural
D)Economic
E)Political and legal

Question 72

If organizations already in the task environment are ______ and enjoy significant ______,their costs are ______ than the costs that potential entrants will face.

A)Large;economies of scale;higher
B)Large;economies of scale;lower
C)Small;economies of scale;lower
D)Small;economies of scale;higher
E)Small;brand loyalty;higher

Question 73

In general,the ______ the barriers to entry,the fewer the competitors in an organization's task environment and thus keep prices ______.

A)Higher;high
B)Higher;low
C)Lower;high
D)Lower;increasing
E)Barriers to entry have no relationship to pricE.

Question 74

Societies that have many distinctions among individuals and groups have a high degree of:

A)Sociocultural forces
B)Social structure
C)National culture
D)Social stratification
E)Power distance

Question 75

If established organizations enjoy significant ______,a new entrant will find it
Difficult and costly to obtain a share of the market.

A)Suppliers
B)Diversity levels
C)Brand loyalty
D)Brand awareness
E)Distributor loyalty

Question 76

Which of the following is NOT an economic force in the environment?

A)Unemployment
B)Inflation
C)Interest rates
D)Economic growth
E)Social class

Question 77

Which of the following changes is NOT an example of a global force in the general environment?

A)Technology
B)Demographics
C)Economic systems
D)Competition
E)Political systems

Question 78

What is the traditional system of relationships established between people and groups in a society?

A)Sociocultural forces
B)Social structure
C)The national culture
D)The task environment
E)The general environment

Question 79

The outcomes of the changes in the laws of a society are known as:

A)Technological forces
B)Political and legal forces
C)Economic forces
D)Demographic forces
E)Socioculture forces

Question 80

In general,the __________ the barriers to entry into an industry,the __________ the number of competitors in that industry and the __________ the threat of competition within that industry.

A)Higher;greater;lower
B)Lower;smaller;lower
C)Higher;smaller;lower
D)Lower;greater;lower
E)Higher;greater;greater