Question 1

Which of the following factors is a sociocultural component of an organization's external environment?
A) Most of the firm's customers have at least one year of college.
B) The government of the country holds elections whenever confidence in the current regime falters.
C) Over time, society has become more accepting of alternative lifestyles.
D) The average number of hours worked per year is increasing.

Accepted Answer

Sociocultural factors refer to the values, beliefs, attitudes, and demographics of the society in which an organization operates. Option C describes a change in social norms and values towards alternative lifestyles, which is a sociocultural component of the external environment. Option A refers to the education level of the customers and is a demographic factor, while option B refers to the political environment and option D refers to a trend in the labor market, both of which are not sociocultural factors.

Question 2

The Metropolis News has experienced a decline in the number of subscriptions to its printed newspaper over the last five years. It seems people prefer news feeds sent to their smartphones rather than a printed paper delivered to their homes. Which component in the external environment does this change represent?
A) economic
B) political
C) demographic
D) sociocultural

Accepted Answer

The shift in consumer preferences from printed newspapers to news feeds on smartphones represents a change in sociocultural component of the external environment. This reflects changes in how people consume media and their values and lifestyles related to technology and convenience.

Question 3

Which of the following are the two dimensions of environmental uncertainty?
A) degree of change and degree of complexity
B) degree of change and degree of volume
C) degree of complexity and degree of impact
D) degree of impact and degree of timing

Accepted Answer

The two dimensions of environmental uncertainty are degree of change and degree of complexity. Degree of change refers to the extent to which the environment is stable or changing, while degree of complexity refers to the extent to which the environment is simple or complex. Therefore, option A is the correct answer. Option B, C, and D do not reflect the two dimensions of environmental uncertainty.

Question 4

Which one of the following represents the highest level of environmental uncertainty?
A) Mario's restaurant competes against 325 others in the city; the city's ethnic mix is constantly changing.
B) Maria's is still the only restaurant in a small town. She took it over from her mother and still uses the same equipment.
C) Millie's customers expect to see new menu items regularly and want Millie to install Wi-Fi.
D) Marty has to deal with the local council, the health department, the franchisor, the zoning commission-the list keeps growing. He is grateful there are no new competitors moving in.

Accepted Answer

Mario's restaurant competes against 325 other restaurants in the city, which creates intense competition and uncertainty. Additionally, the city's ethnic mix is constantly changing, which adds to the uncertainty by making it difficult for Mario to predict changes in customer preferences and behavior. The other options do not demonstrate such a high degree of environmental uncertainty.

Question 5

D&B Designs has been in the landscape design business in Pleasantville for the past twenty years. As the "first mover" in the market, the company has built a strong market share over the years and is the best-known firm in the area. The company strength increased steadily, and now stands at fifty employees. Which of the following, if true, would make the company's business environment more uncertain?
A) Homeowners in the area take pride in their gardens and are avid do-it-yourself gardeners.
B) Demand for landscaping services dips every autumn and winter.
C) A long-time competitor quit the landscape design business last year.
D) Zoning laws in the area change as each new city council comes into power.

Accepted Answer

Zoning laws changing with each new city council would create uncertainty for D&B Designs as it may impact their ability to obtain permits and design landscapes in certain areas. The other options do not necessarily create uncertainty for the company's business environment.

Question 6

Moreno's Pub Burgers has enjoyed its status as the Numero Uno hamburger restaurant in Pleasantville for the past ten years. Its only competitor is a national fast food chain preferred by children rather than adults. Which of the following, if true, would make Moreno's business environment more uncertain?
A) The fast food chain closes.
B) A new employer moves into the area, bringing hundreds of jobs and more families.
C) Moreno's buys the lot next door to expand its parking.
D) Because of the growth of Pleasantville's population, more hamburger chains build facilities in Pleasantville.

Accepted Answer

The growth of Pleasantville's population and the increase in the number of hamburger chains would bring more competition to Moreno's, making its business environment more uncertain. The closure of the fast food chain (A) would actually benefit Moreno's as it would eliminate competition. The new employer and families moving into the area (B) could potentially bring more customers to Moreno's. Moreno's expansion of its parking (C) would only improve its customer experience and would not necessarily impact its business environment.

Question 7

Which of the following describes a dynamic environment?
A) Sales vary with the seasons.
B) Production methods change about once every 5 years.
C) Competitors move into and out of the industry frequently.
D) Product demand increases every year on a steady upward trend.

Accepted Answer

A dynamic environment is one that is constantly changing, and competitors moving in and out frequently indicates a rapidly changing market. Option A describes a fluctuating environment, option B describes a somewhat stable environment, and option D describes a predictable and stable environment.

Question 8

Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of hiring full-time, permanent employees in favor of ________.
A) hiring only high school graduates willing to work for lower wages
B) a reduced work week of no more than 30 hours per week per employee
C) off-shoring as many jobs as possible to reduce costs associated with government-mandated programs
D) a flexible work arrangement that includes freelancers and temporary workers

Accepted Answer

Employers are opting for a flexible work arrangement that includes freelancers and temporary workers to minimize risks and costs associated with uncertain economic conditions. This helps companies adjust their workforce rapidly in response to changing market conditions, without incurring additional fixed costs such as benefits, insurance, and salaries for full-time employees.

Question 9

Suppose the government of Abolonia imposed a national sales tax on its citizens that reduced their disposable income. Which component of the external environment would this affect?
A) global
B) cultural
C) demographic
D) economic

Accepted Answer

The imposition of a national sales tax that reduces disposable income would affect the economic component of the external environment, as it pertains to factors related to the financial condition of a country, including government taxation policies, interest rates, inflation, and economic growth.

Question 10

Which of the following, if true, represents a demographic change that will affect decisions future managers make?
A) The unemployment rate is likely to continue to fall.
B) The percentage of Hispanics in the candidate pool will increase.
C) More job candidates are likely to have tattoos and body piercings.
D) More jobs will be performed by robots.

Accepted Answer

An increase in the percentage of Hispanics in the candidate pool represents a demographic change, which will influence future managers' decisions regarding recruitment, diversity, and inclusion strategies.

Question 11

The generational cohort that has had the most influence on the American economy is ________.
A) the Millennials born between 1994 and 2010
B) the Baby Boomers born between 1946 and 1964
C) Generation X born between 1964 and 1978
D) Generation Y born between 1978 and 1994

Accepted Answer

The Baby Boomers have had the most influence on the American economy due to their large numbers and spending power. As they entered adulthood and started working, they drove economic growth and created new markets for products and services. They have continued to have a significant impact on the economy as they have aged and entered retirement, shaping public policy and consumption trends.

Question 12

If the components in an organization's environment exhibit minimal change, such an environment is said to be ________.
A) volatile
B) dynamic
C) stable
D) simple

Accepted Answer

A stable environment is one in which the components (such as competitors, customers, technology, regulations, etc.) exhibit minimal change over time. This allows organizations to have a more predictable and consistent operation, as they don't have to constantly adapt to new conditions. In contrast, volatile and dynamic environments are characterized by frequent and unpredictable changes, while a simple environment lacks complexity in its components.

Question 13

If the components of an organization's environment change frequently, the organization is operating in a ________ environment.
A) stable
B) simple
C) dynamic
D) complex

Accepted Answer

A dynamic environment is characterized by frequent changes in its components, such as market trends, technology, and consumer needs. This type of environment requires organizations to be adaptable and flexible in order to adjust to these changes quickly and effectively. In contrast, a stable environment would have little or no change, a simple environment would have few components, and a complex environment would have many interrelated components but not necessarily frequent changes.

Question 14

________ are called the iGeneration, because they've grown up with technology that customizes everything to the individual.
A) Post-Millennials
B) Pre-Millennials
C) Baby Boomers
D) Gen Y-ers

Accepted Answer

The term iGeneration is often used to refer to Post-Millennials, who were born between the mid-1990s to mid-2000s. They are called the iGeneration because they have grown up with technology that customizes everything to the individual, including smartphones, social media, and streaming services. Pre-Millennials and Baby Boomers are different generational cohorts, while Gen Y-ers typically refer to Millennials, who were born between the early 1980s to mid-1990s.

Question 15

The citizens of Abolonia believe no top executive should ever earn more than 40 times the average wage of the company's employees. This is an example of ________.
A) how changes in the demographics limit the discretion managers have
B) how societal attitudes in the economic context create constraints on the decisions managers make
C) how government regulation affects the salaries executives can earn
D) a trend in the sociocultural environment that limits disposable income in the economic environment

Accepted Answer

The citizens of Abolonia have a societal attitude that places constraints on the decisions of executives and emphasizes the need for fairness in the distribution of wages within a company. This is an example of how societal attitudes impact the economic context and limit the discretion of managers.

Question 16

Thanks to iTunes and similar websites, sales of compact discs have declined severely, forcing entertainers to seek alternative revenue streams. This represents a change in the ________ component of the external environment.
A) psychological
B) behavioral
C) sociocultural
D) economic

Accepted Answer

The decline in compact disc sales due to the rise of digital platforms like iTunes reflects a change in the sociocultural component of the external environment, as it indicates a shift in consumer behavior and cultural trends towards digital consumption.

Question 17

Gerber makes and sells baby products. A shift in the birth rate would represent a change in the ________ component of this firm's external environment.
A) psychographic
B) demographic
C) political
D) cultural

Accepted Answer

The birth rate is a demographic factor, which refers to characteristics of the population such as age, gender, income, and education level. A shift in the birth rate would mean a change in the number of babies being born, which would directly affect Gerber's business as a baby product manufacturer. The other options (psychographic, political, cultural) do not directly relate to changes in the birth rate.

Question 18

Assume the global economy rebounds rapidly from the Great Recession. What constraint is this likely to have on decisions managers make?
A) The number of qualified candidates available for hire will become smaller.
B) Managers will be asked to eliminate positions to cut labor costs.
C) The hourly compensation average will have to fall; managers will be asked to offer less to job candidates.
D) Positions will be easier to fill as college graduates settle for lower paying jobs.

Accepted Answer

If the global economy rebounds rapidly, it is likely that the job market will become increasingly competitive, with fewer qualified candidates available for hire. This means that managers may need to offer more attractive compensation or perks to attract top talent.

Question 19

Which of the following groups includes individuals who were born between the years 1978-1994?
A) the Gen X-ers
B) the Gen Y-ers
C) the Baby Boomers
D) Pre-Millennials

Accepted Answer

Individuals born between 1978-1994 are generally known as millennials or Gen Y-ers.

Question 20

Home prices in the area in which your real estate office operates have increased only gradually for the past several years. However, you have noticed that demand for housing in the area usually spikes in summer. Which of the following best describes your business environment?
A) stable and simple
B) dynamic and simple
C) stable and complex
D) dynamic and complex

Accepted Answer

The business environment is stable because home prices have increased only gradually for the past several years. The environment is simple because demand for housing in the area usually spikes in summer, which is a predictable pattern.

Quiz 7: Constraints Onmanagers

Which of the following factors is a sociocultural component of an organization's external environment?

Which of the following are the two dimensions of environmental uncertainty?

Which one of the following represents the highest level of environmental uncertainty?

Which of the following describes a dynamic environment?

Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of hiring full-time, permanent employees in favor of ________.

Suppose the government of Abolonia imposed a national sales tax on its citizens that reduced their disposable income. Which component of the external environment would this affect?

Which of the following, if true, represents a demographic change that will affect decisions future managers make?

The generational cohort that has had the most influence on the American economy is ________.

If the components in an organization's environment exhibit minimal change, such an environment is said to be ________.

If the components of an organization's environment change frequently, the organization is operating in a ________ environment.

________ are called the iGeneration, because they've grown up with technology that customizes everything to the individual.

The citizens of Abolonia believe no top executive should ever earn more than 40 times the average wage of the company's employees. This is an example of ________.

Thanks to iTunes and similar websites, sales of compact discs have declined severely, forcing entertainers to seek alternative revenue streams. This represents a change in the ________ component of the external environment.

Gerber makes and sells baby products. A shift in the birth rate would represent a change in the ________ component of this firm's external environment.

Assume the global economy rebounds rapidly from the Great Recession. What constraint is this likely to have on decisions managers make?

Which of the following groups includes individuals who were born between the years 1978-1994?

Home prices in the area in which your real estate office operates have increased only gradually for the past several years. However, you have noticed that demand for housing in the area usually spikes in summer. Which of the following best describes your business environment?