Question 1

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

Environmental uncertainty refers to the amount of change and complexity within the external environment of an organization. Option A represents the highest level of uncertainty as there are numerous competitors and constant changes in the ethnic mix of the city, making it difficult for Mario's restaurant to predict and adapt to changes in the market. Option B represents a low level of uncertainty as there are no competitors and the restaurant has been using the same equipment for a long time. Option C represents a moderate level of uncertainty as customers expect new menu items but Wi-Fi installation is a manageable change. Option D represents a moderate level of uncertainty as there are multiple regulatory bodies to deal with, but there are no new competitors.

Question 2

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

This would primarily affect the economic component of the external environment, as it would have an impact on the financial resources available to both consumers and businesses within the country.

Question 3

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 are the largest living generation in the United States, and as they have aged, they have had a significant impact on the economy. They have driven trends in consumer spending, housing, and healthcare, and have also shaped public policy through their voting power.

Question 4

________ 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

Post-Millennials are also known as Generation Z or iGeneration, as they are the first generation to grow up with technology that is personalized and customized to their individual preferences.

Question 5

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 from the Great Recession, there will likely be a decrease in the number of qualified candidates available for hire. This is because as the economy improves, people may choose to stay in their current jobs and there may be less unemployment. This constraint may cause managers to struggle to find the right candidates for open positions, leading to increased competition for top talent.

Question 6

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 make the business environment more uncertain for D&B Designs as it could impact where and how they can design and implement landscaping projects. The other options may affect the demand for their services or competition but do not necessarily make the environment more uncertain.

Question 7

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 answer of Home prices in the area in which...

Question 8

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 influx of more hamburger chains would create increased competition in the burger industry, making Moreno's business environment more uncertain. Option A would actually decrease uncertainty for Moreno's as they would have no competition. Option B may bring in more customers and increase business, but it does not necessarily make the environment more uncertain. Option C is a business decision by Moreno's and does not affect the external environment.

Question 9

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 10

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

A shift in the birth rate would indicate a change in the demographic component of Gerber's external environment. The birth rate is a measure of the number of births per 1,000 individuals in a population and is an important demographic factor for any company that sells baby products.

Question 11

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 characterized by frequent and unpredictable changes, such as competitors entering and leaving the industry. Choices A and D describe more stable environments with predictable patterns. Choice B suggests occasional changes, but not necessarily frequent or unpredictable ones.

Question 12

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 and unpredictable changes in the components of the organization's external environment, such as shifting market conditions, emerging technologies, and changing consumer preferences. This can create challenges for organizations that must adapt quickly and continuously to stay competitive. A stable environment, by contrast, is relatively predictable and consistent over time, while a simple environment is relatively straightforward and easy to understand. A complex environment involves many different variables and relationships that can be difficult to manage.

Question 13

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 societal and cultural norms, values, beliefs, and trends that can affect an organization's operations. Option C reflects a change in societal norms and values towards alternative lifestyles which can subsequently impact the organization's external environment. Option A pertains to demographic or educational factors, option B pertains to political factors, and option D pertains to technological or economic factors.

Question 14

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 characterized by minimal change in the components of an organization's environment. This implies that the organization does not face significant disruptions or surprises in its external environment, and can therefore plan and execute its strategies with a greater degree of certainty and confidence. Volatility and dynamism, on the other hand, imply a greater degree of unpredictability and uncertainty, whereas simplicity is a measure of the number and heterogeneity of the components in the environment.

Question 15

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 have increasingly adopted a flexible work arrangement that includes freelancers and temporary workers as a way to adjust quickly to changing economic conditions and avoid the cost and commitment associated with hiring full-time, permanent employees. This provides them with a flexible workforce that can be expanded or contracted as needed, minimizing fixed costs and risks.

Question 16

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, referring to the extent to which the environment is changing or likely to change, and degree of complexity, referring to the extent to which the environment is difficult to understand or predict. Choice A is the only option that lists both of these dimensions. Choice B refers to volume, which is not a dimension of environmental uncertainty. Choice C lists complexity as one of the dimensions but pairs it with impact, which is not a dimension of environmental uncertainty. Choice D pairs impact with timing, which is not one of the dimensions.

Question 17

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

The group born between 1978-1994 is commonly referred to as Gen Y or "Millennials."

Question 18

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

The answer of Which of the following, if true, represents...

Question 19

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 change in subscribers' preference from printed newspaper to news feeds on smartphones represents a shift in sociocultural component of the external environment, which includes changes in cultural, social, and lifestyle factors that influence consumer behavior.

Question 20

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's belief reflects societal attitudes that create constraints on the decisions managers make. This is evident in their expectation that no top executive should earn more than 40 times the average wage of the employees, which is a reflection of the prevailing beliefs and values in their society about fair wages and income distribution. It does not necessarily reflect changes in demographics, government regulation, or disposable income trends.

Quiz 3: Managing the External Environment and the Organizations Culture

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

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?

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

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

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

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?

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.

Which of the following describes a dynamic environment?

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

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

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

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 ________.

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

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

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

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 ________.