Question 1

The richer the environment, the more difficult it is for organizations to manage resource transactions.

Accepted Answer

A richer environment typically provides more resources and opportunities, making it easier for organizations to manage resource transactions.

Question 2

Environmental complexity is a function of the strength, number, and interconnectedness of the specific and general forces that an organization has to manage.

Accepted Answer

Environmental complexity is determined by the various forces that an organization has to deal with, including technological, economic, political, and social factors, as well as the interconnections between these forces. The strength, number, and interconnectedness of these forces all contribute to the level of complexity an organization must navigate in its environment.

Question 3

U.S. companies had not been involved in international trade until the industrial revolution began.

Accepted Answer

This is false. U.S. companies had been involved in international trade before the industrial revolution began, such as through the triangle trade route between Europe, Africa, and the Americas in the colonial period.

Question 4

Economic forces, such as the interest rate or unemployment rate, are categorized as forces in the specific environment, since they affect the ability of all organizations in a particular environment to secure resources.

Accepted Answer

Economic forces like interest rates and unemployment rates are part of the general environment, as they impact all organizations across various industries, not just those in a specific environment.

Question 5

The airline industry is generally considered to be operating in a stable environment because of a relatively stable customer base.

Accepted Answer

The airline industry is affected by various external factors such as fuel prices, economic conditions, natural disasters, terrorism threats, and political instability. These factors can cause fluctuations in demand, which can affect the stability of the industry. Therefore, the airline industry is not considered to be operating in a stable environment.

Question 6

One way to reduce uncertainty is to have the environmental forces interconnected. That is, when forces begin to interact, the environment becomes more predictable.

Accepted Answer

Interconnected environmental forces can increase complexity and unpredictability, as interactions can lead to unforeseen consequences and emergent behaviors.

Question 7

Competitors are a force in the general environment.

Accepted Answer

Competitors are considered a force in the industry environment, not the general environment. The general environment includes broader societal dimensions like economic, technological, and political factors.

Question 8

Changes in customer tastes and preferences is a force in the specific environment that impacts an organization.

Accepted Answer

The answer of Changes in customer tastes and preferences is...

Question 9

The government attempting to control prescription drug prices would have reduced the uncertainty in that industry because competition would have decreased.

Accepted Answer

The statement is incorrect. Government control over prescription drug prices would likely decrease profits for pharmaceutical companies, making them less incentivized to invest in new drugs and research. This could ultimately lead to decreased competition and innovation in the industry. Therefore, controlling prescription drug prices would not reduce uncertainty in the industry.

Question 10

Economic forces, such as the interest rate or unemployment rate, are categorized as forces in the general environment, since they affect the ability of all organizations in a particular environment to secure resources.

Accepted Answer

Economic forces are part of the general environment because they are external factors that affect all organizations in a particular environment, regardless of their specific industry or sector. These forces have a significant impact on the ability of organizations to secure resources, such as capital, labor, and raw materials, which in turn affects their profitability and competitiveness. Examples of economic forces include interest rates, inflation, economic growth, and unemployment rates.

Question 11

Economic forces, such as interest rates, are considered to be a specific environmental force.

Accepted Answer

The answer of Economic forces, such as interest rates, are...

Question 12

Global supply chain management is the process of identifying and managing external environmental forces.

Accepted Answer

Global supply chain management involves identifying and managing external environmental forces such as political, economic, social, and technological factors in order to optimize the supply chain and ensure efficient delivery of goods and services.

Question 13

The pharmaceutical industry generally is considered to be operating in a certain environment because patents reduce the level of competition.

Accepted Answer

The pharmaceutical industry is known for operating in a patent-protected environment, where companies can secure exclusive rights to manufacture and sell certain drugs for a specific period of time. This reduces the level of competition and allows companies to charge higher prices for their products, which can impact access to healthcare for some consumers.

Question 14

Customers would be considered an inside stakeholder group affecting an organization's specific environment.

Accepted Answer

Customers are considered an outside stakeholder group as they are external to the organization and influence its specific environment through their purchasing decisions and feedback.

Question 15

Expanding internationally is one way for an organization to enlarge and protect its domain.

Accepted Answer

Expanding into international markets can help an organization to tap into new customer bases, diversify its revenue streams, and reduce its dependence on any one market. Additionally, expanding internationally can help an organization to protect itself from economic or political instability in its home market. Therefore, expanding internationally is a common strategy for organizations seeking growth and stability.

Question 16

The more complex an organization's environment, the more problems associated with controlling the flow of resources there are.

Accepted Answer

In a more complex environment, there are more factors that can impact the flow of resources, making it more challenging to control and manage them effectively.

Question 17

An organization in a dynamic, unstable environment seeks ways to make the environment more predictable.

Accepted Answer

An organization operating in a dynamic and unstable environment would naturally seek ways to make the environment more predictable in order to be able to plan and make decisions based on some level of stability. This is because operating in such an environment creates uncertainty and instability, which can be detrimental to the success and survival of the organization. By seeking ways to make the environment more predictable, the organization is able to better manage the risks and challenges associated with the environment, thereby increasing its chances of success.

Question 18

The range of goods and services that an organization produces and the customers that it serves are referred to as the organizational domain.

Accepted Answer

The statement is true. The organizational domain refers to the range of goods and services produced by an organization and the customers it serves.

Question 19

By dramatically reducing their number of suppliers, Ford and General Motors were able to reduce the complexity of its environment by negotiating with the labor union.

Accepted Answer

By reducing the number of suppliers, Ford and General Motors were able to simplify their supply chain and negotiate better terms with their remaining suppliers, including agreements with the labor union.

Question 20

An organization entering the global market will have reduced environmental uncertainty due to the enlarged domain it offers.

Accepted Answer

Entering the global market increases environmental uncertainty due to diverse regulations, cultural differences, and market dynamics across different countries.

Quiz 3: Managing in a Changing Global Environment