Question 1

Consider a hamburger fast-food chain that began operations prior to World War II. In which of the following would have been part of its specific environment after the start of World War II?

Accepted Answer

Competitors, customers, and suppliers are part of a company's specific environment at any time. Rationing, an example of industry-specific regulation, is not a typically part of a company's specific environment but occurs only under certain circumstances, in this case the need to divert resources to the war effort.

Question 2

The___________ consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations.

Accepted Answer

This is the definition of general environment.

Question 3

Legislation concerning the disposal of biological wastes, the development of more sophisticated imaging machines, and longer patient life spans would all be part of the_____________ for a public hospital.

Accepted Answer

These are changes that indirectly affect all organizations.

Question 4

The manager of a company that produces a soy-based sausage wants to conduct a competitive analysis. During this competitive analysis, he should look at____________ .

Accepted Answer

Competitive analysis is a process for monitoring the competition that involves identifying competitors, anticipating their moves, and determining their strengths and weaknesses. To understand competitive behavior, it is important that this company identify all of its likely competitors.

Question 5

Environmental_________ is affected by environmental complexity, change, and resources.

Accepted Answer

Environmental uncertainty is defined as the extent to which managers can understand or predict which environmental changes will affect their businesses. Complexity and change make it more difficult for managers to achieve such understanding or make sound forecasts.

Question 6

Managers often prefer to use business confidence indices____________ .

Accepted Answer

Economic statistics tend to be poor predictors of future business activity. Confidence indexes measure manager sentiment, which may yield a stronger prediction of near-term economic activity.

Question 7

Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?

Accepted Answer

The political/legal component includes legislation, regulation, and court decisions that govern and regulate business behavior.

Question 8

Which of the following is a component of Coca-Cola's specific environment and will directly influence how it does business?

Accepted Answer

Pepsi is a direct competitor and thus a component of Coke's specific environment.

Question 9

Which of the following is a component of a book publisher's general environment and will indirectly influence how it does business?

Accepted Answer

Leisure time trends will affect other companies such as boat manufacturers. The other
elements are part of the publisher's specific environment.

Question 10

Which of the following is the LEAST aggressive approach likely to be used by an advocacy group?

Accepted Answer

Public communications are the least aggressive approach likely to be used by an advocacy group as they involve spreading information and raising awareness through methods such as flyers, brochures, and social media, without directly attacking or targeting a specific organization or individual. Media advocacy, product boycotts, class action lawsuits, and picketing are all more aggressive approaches that involve direct action against a target entity.

Question 11

_____________is the degree to which an organization's external environment has an abundance or scarcity of critical organizational resources.

Accepted Answer

The given definition best describes the concept of "Resource scarcity". It refers to the degree of availability of critical resources in an organization's external environment. An organization may face challenges if there is a scarcity of resources like capital, raw materials, or specialized talent required for its operations. Therefore, understanding resource scarcity is crucial for strategic decision-making and planning in an organization.

Question 12

In a very strong economy, where the demand for qualified job applicants exceeds the supply, the environmental characteristic of________ is likely to be particularly salient for many companies.

Accepted Answer

Resource scarcity is a lack of critical organizational resources (in this case, human resources).

Question 13

Which of the following is a component of the specific environment that would directly influence a restaurant's day- to-day operation?

Accepted Answer

Customers are a major component of a firm's specific environment. All of the other items would exert an indirect influence as part of the firm's general environment.

Question 14

Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two- acre yards. The other is offering a similarly sized house with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the larger lots could use __________to determine why his homes are not selling.

Accepted Answer

Reactive customer monitoring is defined as identifying and addressing customer trends and problems after they occur.

Question 15

Technology is the___________ used to transform inputs (raw materials, information, etc.)into outputs (products or services).

Accepted Answer

Technology encompasses the knowledge, tools, and techniques used to convert inputs into outputs, making option A the most comprehensive and accurate choice.

Question 16

Changes in any sector of the general environment__________ .

Accepted Answer

It is a fundamental attribute of general environment factors that they affect all organizations over time.

Question 17

More premature babies than ever before are surviving due to improvements in medical knowledge and care. This improved survival rate can be attributed to the_________ component of hospitals.

Accepted Answer

The improved survival rate of premature babies is likely due to advancements in medical technology and care within hospitals. This includes the use of specialized equipment and procedures, as well as an increased understanding of the unique needs and risks associated with premature infants. Socio-cultural, economic, political/legal, and demographic factors may also play a role in healthcare outcomes, but are less directly related to the medical advancements that have specifically impacted premature infant survival rates.

Question 18

Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. This reflects a change in the _______component of the general environment.

Accepted Answer

The fear of a lawsuit represents a change in the political/legal component of the general environment, as legal requirements and regulations impact how employers can give recommendations and what they can say.

Question 19

Tourism was not the only travel-associated industry that was visibly hurt by what happened on 9/11. People decided to vacation at home and sales of luggage and similar travel gear decreased significantly. Sales of home swimming pools increased. This decision to stay at home reflects a change in attitudes toward the perceived safety of long- distance traveling. This is an example of a change in the________ component of the general environment.

Accepted Answer

The change in attitudes toward the safety of long-distance traveling is a reflection of a shift in societal values and beliefs, which falls under the socio-cultural component of the general environment.

Question 20

A fast-food restaurant chain is famous for its small, square hamburgers. Which of the following would be a component of its socio-cultural environment?

Accepted Answer

Consumer preferences are an example of a trend in general behavior, an aspect of the socio-cultural environment.

Quiz 3: Section 1: Organizational Environments and Cultures