Question 1

Much of the impact that the environment has on organizations is
A)direct.
B)indirect.
C)uncertain.
D)unknown.
E)ambiguous.

Accepted Answer

The environment often affects organizations indirectly through factors like market trends, regulations, and economic conditions, rather than through direct interactions.

Question 2

What are the main components of an organization's external environment? Which of these components may contain or influence interest groups which are relevant to your college or university? Cite examples.

Accepted Answer

The answer of What are the main components of an...

Question 3

Strategy formulation follows directly from
A)the objective environment.
B)strategy implementation.
C)the perceived environment.
D)managerial experience and personality.
E)organizational effectiveness.

Accepted Answer

Strategy formulation is based on the perceived environment, which includes understanding the external and internal environments that an organization operates within. This perception helps in identifying opportunities and threats, assessing strengths and weaknesses, and making informed strategic decisions.

Question 4

The objective environment comprises the basis for strategy formulation.

Accepted Answer

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Question 5

Describe the open systems concept of organizations and give an example.What is the value of the open systems concept?

Accepted Answer

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Question 6

What is meant by the "external environment"? Provide some examples of how it can influence organizations.

Accepted Answer

The answer of What is meant by the "external environment"?...

Question 7

The impact that the environment has on organizations is direct.

Accepted Answer

The impact of the environment on organizations is often indirect, as it influences through changes in market conditions, regulations, and societal expectations, which then require organizations to adapt strategies, operations, and processes.

Question 8

What are the effects of increasing uncertainty on organizations and their decision makers?

Accepted Answer

The answer of What are the effects of increasing uncertainty...

Question 9

Personality characteristics and experience may colour managers' perceptions of the environment.

Accepted Answer

Managers' perceptions of the environment can be influenced by their personality characteristics and experiences, as these factors affect how they interpret and respond to external events and information.

Question 10

At what point in the relationship between the environment and strategy does managerial experience and personality play a role?
A)Between the objective environment and the perceived environment
B)Between perceived environment and strategy formulation
C)Between strategy formulation and strategy implementation
D)Between strategy implementation and organizational effectiveness
E)Between perceived environment and strategy implementation

Accepted Answer

The objective environment is the actual environment that exists, while the perceived environment is the environment as it is perceived by managers. Managerial experience and personality can influence how managers perceive the environment, which can then affect the strategies they formulate.

Question 11

Uncertainty depends on the environment's ________ and rate of change.

Accepted Answer

The answer of Uncertainty depends on the environment's ________ and...

Question 12

What comprises the basis for strategy formulation?
A)Objective environment
B)Perceived environment
C)Managerial experience
D)Managerial personality
E)Managerial objectives

Accepted Answer

The answer of What comprises the basis for strategy formulation?
A)Objective...

Question 13

An example of how organizations have to interface with the external environment is the ________ Motor Company.

Accepted Answer

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Question 14

Strategy formulation is defined in the text as the process of adopting a particular organizational structure.

Accepted Answer

Strategy formulation is the process of deciding the strategic direction of the organization by setting company goals and deciding on the actions and resources needed to achieve these goals, not merely adopting an organizational structure.

Question 15

Much of the impact that the environment has on organizations is indirect rather than direct.

Accepted Answer

The environment often influences organizations indirectly by affecting the conditions under which they operate, such as economic trends, technological developments, and societal changes, rather than impacting them directly.

Question 16

Under normal circumstances, strategy formulation precedes strategy implementation.

Accepted Answer

Strategy formulation involves developing the organization's mission, vision, and overall strategy based on an analysis of opportunities and threats in the external environment and strengths and weaknesses in the internal environment. Strategy implementation follows, where the formulated strategy is put into action through the development of programs, budgets, and procedures.

Question 17

What is one of the most common strategic responses employed by organizations?
A)Change in organizational structure
B)Mergers and acquisitions
C)Vertical integration
D)Joint ventures
E)Strategic alliances

Accepted Answer

The answer of What is one of the most common...

Question 18

As ________ increases, cause-and-effect relationships become less clear.

Accepted Answer

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Question 19

What are the two main factors which determine environmental uncertainty? Discuss how various combinations of these factors can result in four levels of uncertainty.Give examples of industries which depict each level of uncertainty.

Accepted Answer

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Question 20

The process by which top executives seek to cope with the constraints and opportunities posed by an organization's environment is called
A)resource dependence.
B)environmental uncertainty.
C)strategy.
D)management coping.
E)organization coping.

Accepted Answer

Strategy is the process by which top executives seek to cope with the constraints and opportunities posed by an organization's environment. It involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

Quiz 14: Organizational Structure

Much of the impact that the environment has on organizations is