Question 1

Organizations that are not currently selling goods in a particular task environment but may choose to enter this environment in the future are called potential ________.
A) suppliers
B) competitors
C) distributors
D) consumers

Accepted Answer

Potential competitors are organizations that are not presently in a task environment but could enter if they so choose.

Question 2

Vlanco Electronics and Highway Computers both make laptop computers in the same price range for the European market. Thus each would see the other as a ________.
A) supplier
B) competitor
C) distributor
D) customer

Accepted Answer

Competitors are organizations that produce goods and services that are similar and comparable to a particular organization's goods and services. In other words, competitors are organizations trying to attract the same customers. Suppliers are the individuals and organizations that provide an organization with the input resources it needs to produce goods and services.

Question 3

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.
A) demographic
B) task
C) legal
D) sociocultural

Accepted Answer

The task environment is the set of forces and conditions that originate with global suppliers, distributors, customers, and competitors; these forces and conditions affect an organization's ability to obtain inputs and dispose of its outputs.

Question 4

The routine data entry tasks for a California-based software company are done by a company based in the Philippines. This is an example of ________.
A) global outsourcing
B) power distance
C) inverted sourcing
D) shared services

Accepted Answer

Global outsourcing occurs when a company contracts with suppliers in other countries to make the various inputs or components that go into its products or to assemble the final products to reduce costs.

Question 5

A supplier's bargaining position is strong when ________.
A) the input is vital to the organization
B) there are a large number of suppliers for an input
C) the supply is free
D) the supply is not protected by a patent

Accepted Answer

A supplier's bargaining position is especially strong when (1) the supplier is the sole source of an input and (2) the input is vital to the organization.

Question 6

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.
A) inverted sourcing
B) power distance
C) global outsourcing
D) shared services

Accepted Answer

Global outsourcing occurs when a company contracts with suppliers in other countries to make the various inputs or components that go into its products or to assemble the final products to reduce costs.

Question 7

With Dell Computer, the actions of suppliers, distributors, customers, and competitors affect their managers' ability to obtain resources and dispose of outputs, and thus, have a significant impact on Dell's ________.
A) political environment
B) short-term decision making
C) demographics
D) sociocultural environment

Accepted Answer

Forces in the task environment result from the actions of suppliers, distributors, customers, and competitors both at home and abroad. These four groups affect a manager's ability to obtain resources and dispose of outputs daily, weekly, and monthly and thus have a significant impact on short-term decision making.

Question 8

The cost advantages that are associated with large operations are known as ________.
A) brand loyalty
B) economies of scale
C) boundary spanning
D) power distance

Accepted Answer

Economies of scale are the cost advantages associated with large operations. Economies of scale result from factors such as manufacturing products in very large quantities, buying inputs in bulk, or making more effective use of organizational resources than do competitors by fully utilizing employees' skills and knowledge.

Question 9

Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Global Blenders is a ________.
A) supplier, not a competitor
B) competitor, not a distributor
C) distributor, not a supplier
D) supplier, not a distributor

Accepted Answer

Suppliers are the individuals and organizations that provide an organization with the input resources it needs to produce goods and services. Distributors are organizations that help other organizations sell their goods or services to customers.

Question 10

For a company planning to enter a task environment or industry, the greater the economies of scale within that task environment, ________.
A) the higher will be the barriers to entry
B) the smaller will be the investment
C) the easier it will be to create brand loyalty
D) the higher will be tariff rates

Accepted Answer

Within a task environment or industry, the more difficult and costly it is to enter the task environment, the higher are the barriers to entry. The higher the barriers to entry, the fewer the competitors in an organization's task environment and thus the lower the threat of competition. With fewer competitors, it is easier to obtain customers and keep prices high.

Question 11

Factors that make it difficult and costly for a company to enter a particular task environment or industry are ________.
A) political forces
B) barriers to entry
C) barriers to exit
D) free trade agreements

Accepted Answer

Barriers to entry are factors that make it difficult and costly for a company to enter a particular task environment or industry.

Question 12

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?
A) Suppliers
B) Competitors
C) Distributors
D) Customers

Accepted Answer

Suppliers are the individuals and companies that provide an organization with the input resources (such as raw materials, component parts, or employees) that it needs to produce goods and services.

Question 13

Within an industry, the existing economies of scale, brand loyalties, and government regulations that impede access to the task environment create ______________.
A) global outsourcing
B) power distance
C) barriers to entry
D) barriers to exit

Accepted Answer

Barriers to entry are factors that make it difficult and costly for a company to enter a particular task environment or industry. It results from three main sources: economies of scale, brand loyalty, and government regulations that impede entry.

Question 14

Organizations that help other organizations to sell their goods to customers are known as ________.
A) competitors
B) distributors
C) customers
D) suppliers

Accepted Answer

Distributors are organizations that help other organizations sell their goods or services to customers.

Question 15

It is easier to obtain customers and keep prices high in a task environment where there are few ________.
A) competitors
B) customers
C) suppliers
D) distributors

Accepted Answer

Within a task environment or industry, the more difficult and costly it is to enter the task environment, the higher are the barriers to entry. The higher the barriers to entry, the fewer the competitors in an organization's task environment and thus the lower the threat of competition. With fewer competitors, it is easier to obtain customers and keep prices high.

Question 16

Caltronix helps Gen Marco sell Marco washing machines. Caltronix does not use the machines. Which of the following describes either company correctly?
A) Caltronix is a distributor.
B) Caltronix is a customer.
C) Gen Marco is a supplier.
D) Gen Marco is a customer.

Accepted Answer

Customers are the individuals and groups that buy the goods and services an organization produces. Distributors are organizations that help other organizations sell their goods or services to customers. Suppliers are the individuals and organizations that provide an organization with the input resources it needs to produce goods and services.

Question 17

In a task environment where there are few competitors, it is ________.
A) harder to reach economies of scale
B) harder to create brand loyalty
C) easier to obtain customers
D) harder to keep prices high

Accepted Answer

Within a task environment or industry, the more difficult and costly it is to enter the task environment, the higher are the barriers to entry. The higher the barriers to entry, the fewer the competitors in an organization's task environment and thus the lower the threat of competition. With fewer competitors, it is easier to obtain customers and keep prices high.

Question 18

Economies of scale result from actions such as ________.
A) manufacturing products in small quantities
B) keeping the demand high by cutting supply
C) creating products that are exclusive
D) buying inputs for the products in bulk

Accepted Answer

Economies of scale are the cost advantages associated with large operations. Economies of scale result from factors such as manufacturing products in very large quantities, buying inputs in bulk, or making more effective use of organizational resources than do competitors by fully utilizing employees' skills and knowledge.

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 ________.
A) demographic forces in the general environment
B) competitors in the task environment
C) suppliers in the task environment
D) politics in the general environment

Accepted Answer

One of the most important forces that an organization confronts in its task environment is competitors. Competitors are organizations that produce goods and services similar to a particular organization's goods and services. This includes new competitors who create substitute products.

Question 20

For Dell Computer, the educational institutions that train future Dell employees are its ________.
A) distributors
B) customers
C) suppliers
D) representatives

Accepted Answer

Suppliers are the individuals and companies that provide an organization with the input resources (such as raw materials, component parts, or employees) that it needs to produce goods and services.

Quiz 4: Managing in the Global Environment

Organizations that are not currently selling goods in a particular task environment but may choose to enter this environment in the future are called potential ________.

Vlanco Electronics and Highway Computers both make laptop computers in the same price range for the European market. Thus each would see the other as a ________.

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.

The routine data entry tasks for a California-based software company are done by a company based in the Philippines. This is an example of ________.

A supplier's bargaining position is strong when ________.

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.

With Dell Computer, the actions of suppliers, distributors, customers, and competitors affect their managers' ability to obtain resources and dispose of outputs, and thus, have a significant impact on Dell's ________.

The cost advantages that are associated with large operations are known as ________.

Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Global Blenders is a ________.

For a company planning to enter a task environment or industry, the greater the economies of scale within that task environment, ________.

Factors that make it difficult and costly for a company to enter a particular task environment or industry are ________.

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?

Within an industry, the existing economies of scale, brand loyalties, and government regulations that impede access to the task environment create ______________.

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

It is easier to obtain customers and keep prices high in a task environment where there are few ________.

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

In a task environment where there are few competitors, it is ________.

Economies of scale result from actions such as ________.

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 ________.

For Dell Computer, the educational institutions that train future Dell employees are its ________.