Question 1

The international element is a co-element to the legal-political element, in the mega environment of an organisation.

Accepted Answer

The international element is indeed considered a co-element to the legal-political element within the mega environment of an organization, as both elements significantly influence an organization's operations on a global scale, affecting strategies, regulations, and international relations.

Question 2

An organisation's task environment includes demographic trends.

Accepted Answer

An organization's task environment consists of immediate actors involved in producing, distributing, and promoting the offering, such as suppliers, distributors, customers, and competitors, not demographic trends. Demographic trends are considered part of the general environment or macro-environment that indirectly affects all organizations.

Question 3

The Baldwin Locomotive organisation had to close down because the decision making executive believed steam locomotives would never be replaced by new technology. This is an example of where directors believe in the resource dependence model.

Accepted Answer

The Baldwin Locomotive Works did face decline and eventual closure, but attributing it solely to the belief that steam locomotives would never be replaced oversimplifies the situation. The company struggled to transition from steam to diesel locomotives effectively, among other challenges. The resource dependence model primarily explains how organizations manage dependencies and secure necessary resources from their environment, which is a broader concept than the scenario described.

Question 4

An organisation's external environment is not 'everything external to the organisation'; rather, it is those forces external to the organisation that:

Accepted Answer

The external environment of an organization includes those external forces that have the potential to significantly impact its success. This encompasses various factors such as economic, technological, legal, and social elements that can influence the organization's operations, strategies, and outcomes.

Question 5

The internal environment of an organisation is often summarily described as the:

Accepted Answer

The internal environment of an organisation is often summarily described as the organisational culture. This encompasses the values, beliefs, behaviours, and norms that define the internal character and ways of doing things within the organisation.

Question 6

The mega-environment consists of several major elements. Which of the following is not one of them?

Accepted Answer

Customers and clients are considered part of the task environment, not the mega-environment. The mega-environment includes broader aspects such as sociocultural, economic, and technological factors that affect all organizations indirectly.

Question 7

A comparison of economic elements of the mega-environment of firms, in a capitalist economy and in a socialist economy, would reveal major differences between the two systems. One major difference is:

Accepted Answer

In a capitalist economy, the means of production are primarily owned by private individuals or corporations, whereas in a socialist economy, the means of production are owned by the state or the public. This fundamental difference in ownership defines many other aspects of how these economies operate.

Question 8

Which of the following is not part of the legal-political element of the mega-environment?

Accepted Answer

Business guidelines are typically internal policies set by companies themselves rather than elements imposed by the external legal-political environment, which includes court decisions, government regulations, and trends in legislation.

Question 9

Changes in diets, increased concerns about physical fitness and balance in lifestyle, as well as lower consumption of alcoholic beverages, would be information concerning which element of an organisation's mega-environment?

Accepted Answer

These changes relate to societal values, attitudes, and lifestyles, which are aspects of the sociocultural element of an organization's mega-environment.

Question 10

Which of the following is a true statement concerning the differences between the mega-environment and the task environment?

Accepted Answer

The mega-environment refers to the broader external environment that affects all organizations, such as economic, technological, and sociocultural factors, and does not consist of specific organizations.

Question 11

A recent change in beliefs about the supplier segment of the task environment has involved:

Accepted Answer

The recent trend in beliefs about managing the supplier segment of the task environment has involved using fewer suppliers. This approach is based on the idea that developing closer, more collaborative relationships with a smaller number of suppliers can lead to lower costs and higher quality. By focusing on fewer suppliers, companies can invest more in each relationship, encouraging better communication, more efficient production, and innovation, all of which can contribute to lower costs and improved quality.

Question 12

Which of the following is a true statement?

Accepted Answer

In 2005, baby boomers, those born between 1946 and 1964, were a significant portion of the labor force but did not comprise more than half. Their share has been decreasing as they age and retire, making option A correct.

Question 13

One of the trends that is likely to happen with globalisation is:

Accepted Answer

Globalization often leads to the movement of skilled workers to countries where their skills are in demand, as these countries offer better opportunities and compensation.

Question 14

Various aspects of governmental activities are found in both the mega-environment and the task environment. The basic difference is that in the mega-environment the concern is with trends and general activities, while at the task environment level the concern is with:

Accepted Answer

The task environment focuses on specific entities and their direct impact on an organization, such as regulations or policies from a particular government department like the Department of Labour, which directly affects the organization's operations.

Question 15

In relation to a firm's environment, the state worker's compensation commission, the Department of Labour and the local health department would all best be identified as the:

Accepted Answer

These entities are government agencies that directly interact with and influence the firm's operations, making them part of the task environment.

Question 16

One of the two views about how organisations interact with their respective environments has two names; the population ecology model and the:

Accepted Answer

The population ecology model is also known as the natural selection model. This perspective emphasizes that organizations, much like species in nature, undergo a process of natural selection where only those best adapted to their environments survive and thrive.

Question 17

The resource dependence model of how organisations interact with their environments argues that organisations essentially try to:

Accepted Answer

The resource dependence model suggests that organizations attempt to alter their environment to decrease their dependence on other entities for essential resources. This can involve strategies such as forming alliances, mergers, or acquiring resource providers to ensure access to necessary resources and maintain autonomy.

Question 18

In trying to combine the two models about how organisations interact with their respective environments, one comes to the general conclusion that there are several environmental factors which can have a serious impact on the organisations and:

Accepted Answer

Managers often have strategies and tools at their disposal to influence and react to their environment, rather than being completely at its mercy or unable to predict changes. This includes proactive measures, strategic planning, and adaptive strategies to influence or respond to environmental factors.

Question 19

It is suggested that two key concepts be considered in analysing the overall environmental situation, that is, the environmental bounty and the environmental:

Accepted Answer

The two key concepts to consider in analyzing the overall environmental situation are environmental bounty and environmental uncertainty. Environmental bounty refers to the natural resources and benefits the environment provides, while environmental uncertainty involves the unpredictability and potential for change in environmental conditions, which can impact decision-making and planning in various contexts.

Question 20

If conditions in the environment of an organisation cannot be accurately assessed and predicted, the organisation is said to face environmental:

Accepted Answer

When an organization cannot accurately assess and predict conditions in its environment, it faces environmental uncertainty. This is because the inability to predict changes or conditions makes planning and decision-making more complex and uncertain.

Quiz 3: Internal External Environments