Question 1

Heartz Ltd. provides Glayton Technologies with input resources that it needs to produce its products. In this context, which of the following categories does Heartz Ltd. belong to?

Accepted Answer

Heartz Ltd. is providing input resources to Glayton Technologies, which makes it a supplier. Suppliers provide the necessary materials or resources needed for production.

Question 2

Phoenix Systems manufactures computer chips and is based in Canada. This year the company has begun working with suppliers in other countries, but the suppliers' quality levels have been erratic. Based on what you have read, which of these is the most cost-effective way to combat this problem?

Accepted Answer

Hiring a broker or intermediary in a supplier's country can help ensure that suppliers meet quality standards without the high costs associated with firing suppliers, hiring only local suppliers, or bringing production entirely in-house.

Question 3

Charlotte, a vice president at a tool-and-die manufacturer, wants to outsource the company's manufacturing. Which of these actions should Charlotte take to accomplish that goal?

Accepted Answer

Charlotte should consider multiple factors such as price, quality, reliability, and speed to ensure the outsourcing decision aligns with the company's goals and customer expectations.

Question 4

Which of these is an example of a barrier to entry?

Accepted Answer

Barriers to entry are obstacles that make it difficult for new competitors to enter a market. The lack of well-trained employees with specialized experience can be a significant barrier, as it limits the ability of new firms to compete effectively.

Question 5

An organization's major customer puts pressure on the organization to reduce prices on its products. This is an example of influence exerted by the organization's ________ environment.

Accepted Answer

The task environment includes entities that directly affect an organization’s operations and performance, such as customers, suppliers, and competitors. In this case, the major customer is exerting influence, which is part of the task environment.

Question 6

When a company outsources tasks globally, which of these factors can wipe out the price differential from lower labor costs?

Accepted Answer

High shipping costs can wipe out the price differential from lower labor costs when a company outsources tasks globally.

Question 7

Miriam is a senior manager for an international chain of fitness centers. Two suppliers provide exercise machines for her company. Which of the following is the wisest advice on how Miriam should manage her suppliers?

Accepted Answer

Seeking out potential new suppliers can help ensure that the company maintains high quality standards and remains competitive, while also potentially reducing costs and improving service.

Question 8

A supplier's bargaining position is strong when

Accepted Answer

The supplier's bargaining position is strong when the input is vital to the organization. This is because the organization is dependent on the supplier for the input, and the supplier can therefore charge a higher price for it.

Question 9

Which of these is an example of a distributor?

Accepted Answer

DHL is an international shipping company that acts as a distributor by transporting goods from manufacturers to retailers or directly to consumers.

Question 10

Pentathlon Ltd. and New Image Fitness both specialize in designing bikes for triathletes in the North American market. Thus, each company would see the other as a

Accepted Answer

Pentathlon Ltd. and New Image Fitness are both specializing in designing bikes for triathletes in the North American market. Thus, each company would see the other as a competitor.

Question 11

Which of these approaches could help a company be more responsive to its customers?

Accepted Answer

Segmenting the customer base allows a company to tailor its approach to different groups, making it more responsive to the specific needs and preferences of each segment.

Question 12

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

Accepted Answer

Distributors are organizations that help other organizations to sell their goods to customers by distributing the products to various retail outlets or directly to consumers.

Question 13

Cool Breeze Inc. manufactures ceiling fans in a small town. Which of these companies is a potential competitor to Cool Breeze?

Accepted Answer

A maker of floor-level and pocket-sized mechanical fans is a potential competitor because they offer alternative products that serve a similar purpose of providing air circulation and cooling, which could attract the same customer base.

Question 14

Actions of suppliers, distributors, customers, and competitors can affect managers' ability to obtain resources and dispose of outputs, and thus, have a significant impact on the company's

Accepted Answer

Suppliers, distributors, customers, and competitors directly influence a company's operational environment, affecting short-term decision-making related to resource acquisition and output disposal.

Question 15

A company based in India performs the routine data entry tasks for a Texas-based insurer. This arrangement is an example of

Accepted Answer

This arrangement is an example of global outsourcing, where a company contracts out business processes to a third-party provider in another country to leverage cost advantages or specialized expertise.

Question 16

Caltronix helps Gen Marco sell Marco washing machines. Caltronix does not use the machines. Which of the following describes either company correctly?

Accepted Answer

Caltronix is a distributor because they help sell Marco washing machines without using them.

Question 17

When a company contracts with suppliers in other countries to make the various inputs that go into its products or to assemble the final products to reduce costs, ________ occurs.

Accepted Answer

Global outsourcing occurs when a company contracts with suppliers in other countries to produce inputs or assemble final products to reduce costs.

Question 18

Factors that make it difficult and costly for a company to compete in a particular task environment or industry are

Accepted Answer

Barriers to entry are obstacles that make it difficult and costly for new companies to enter a particular industry, thus affecting competition.

Question 19

A firm that has not traditionally been a competitor of EcoPro suddenly creates a new type of product that makes EcoPro products obsolete. This is an example of

Accepted Answer

This situation describes a new competitor entering the task environment by introducing a product that renders EcoPro's products obsolete.

Question 20

Bonne Chance Cosmetics manufactures and sells a skincare line. It does not currently make or sell lipstick, but it could do so in future. A cosmetics company that makes and sells lipstick could view Bonne Chance as a potential

Accepted Answer

Bonne Chance Cosmetics could be seen as a potential competitor because they have the capability to enter the lipstick market in the future, which could compete with existing companies that already manufacture and sell lipstick.

Quiz 4: Managing in the Global Environment