Test 2 Study Guide | Course Paper

Chapter 3—The Environment and Corporate Culture

MULTIPLE CHOICE

1. The environments in which businesses operate are increasingly _____, requiring managers to be ready

to react and respond to even subtle environmental shifts.

ANS: D Dynamic

2. _____ includes all elements existing outside the boundary of the organization that have the potential to

affect the organization.

ANS: A Organizational environment

3. All of these are a part of an organization’s task environment except _____.

ANS: D employers

4. Which of these is NOT a part of an organization’s general environment?

ANS: C competitors

5. The _____ of the external environment represents events originating in foreign countries as well as

opportunities for American companies in other countries.

ANS: C international dimension

6. Stan is the owner of a small marketing firm. He designs ad campaigns that specifically target

demographic groups within U.S. markets. Which demographic category currently has the largest

market size?

ANS: A Baby boomers

7. SweetTooth Candies is a U.S.-based company that manufactures and distributes candy bars and snack

foods globally. The company sources most of its cocoa and sugar from South American companies.

This business relationship highlights which dimension of the task environment?

ANS: E Suppliers

8. _____ is(are) included in an organization’s task environment.

ANS: A Suppliers

9. The _____ represents people in the environment who can be hired to work for the organization.

ANS: B Labor market

10. Ally’s Applesauce is in the process of hiring sixty new workers. The personnel department has a large

pool of unskilled labor to draw from due to the high unemployment rate in the local area. Which

dimension of the external environment is involved here?

ANS: D Labor Market

11. The internal environment within which managers work includes all of the following except _____.

ANS: E Labor market

12. Scientific and technological advancements in a specific industry as well as in society at large are

included in which general environment dimension?

ANS: D Technological dimension

13. The _____ environment represents the outer layer of the environment and affects organizations _____.

ANS: E General; indirectly

14. Anyone considering doing business in China, according to Manager’s Shoptalk in Chapter 3, should

keep in mind all of the following rules except _____.

ANS: D be efficient with use of time

15. Which of the following rules, according to Manager’s Shoptalk in Chapter 3, is about forging an

emotional bond?

ANS: A Dont skip small talk

16. Lying at the heart of Chinese culture, _____ is a supportive, mutually beneficial connection between

two people.

ANS: E Guanxi

17. Which dimension of the general environment represents the demographic characteristics, norms,

customs, and values of the population within which the organization operates?

ANS: E Sociocultural dimension

18. When Miami Herald launches a Spanish-language newspaper, El Nuevo Herald, with articles

emphasizing Hispanic, Cuban, and Latin American news and sports, it is responding to changes in

_____ environment.

ANS: A Sociocultural

19. The general environment dimension that includes consumer purchasing power, the unemployment rate,

and interest rates is called the:

ANS: D economic dimension

20. A government inspection has required your company to upgrade the safety equipment in the

manufacturing process of ice creamery. What dimension of the external environment has influenced

these upgrades?

ANS: B legal-political

21. The _____ dimension of the general environment includes federal, state, and local government

regulations.

ANS: B legal-political

22. Which of the following is NOT a part of adapting the organization to changes in the environment for

coping with high environmental uncertainty?

ANS: B Harvesting/divesting

23. Which of the following roles are assumed by people and/or departments that link and coordinate the

organization with key elements in the external environment?

ANS: C Boundary-spanning

24. In response to pressure from environmental advocates, organizations have become increasingly

sensitive to diminishing:

ANS: A Natural resources

25. Which of the following dimensions of the general environment includes all elements that occur

naturally on earth?

ANS: D Natural dimension

26. Integrated Computers, Inc. wants to compile a profile of the customer it will target in its next

promotional mailing. What environment would this be found in?

ANS: B Task environment

27. The people and organizations in the environment who acquire goods or services from the organization

are:

ANS: C customers

28. _____ means that managers do not have sufficient information about environmental factors to

understand and predict environmental needs and changes.

ANS: C Uncertainty

29. _____ environment consists of demographic factors, such as population density.

ANS: B Sociocultural

30. Roberta is a top-level executive at a banking institution. She spends a significant part of her day

meeting with local government officials, every day consumers, and federal banking officials to address

key issues in the banking industry. Roberta’s role can best be described as _____.

ANS: A Boundary spanning

31. _____ is an approach to boundary spanning which results from using sophisticated software to search

through large amounts of internal and external data to spot patterns, trends, and relationships that

might be significant.

ANS: B Business intelligence

32. Kristen’s Jewelry Shop has just hired a comparative shopper to visit other local jewelry stores to gain

product pricing information. What strategy is this describing?

ANS: A Boundary spanning roles

33. Three large electronics companies have recently collaborated to develop an innovative new cell phone.

This is an example of which managerial trend?

ANS: B Interorganizational partnership

34. Jefferson and Squire is an advertising firm that is viewed as having a fast-paced and posh corporate

culture. The company uses bold coloring with expensive accents in all office décor. This exemplifies

which level of corporate culture?

ANS: A Visible artifacts

35. In the current external business environment, which of the following is true?

ANS: E Joint ventures are on the rise

36. Based on the notion that organizations are dealing with a very turbulent and uncertain external

environment, more organizations are requiring _____ to perform boundary-spanning activities.

ANS: D all employes

37. Companies can reduce boundaries and increase collaboration with other organizations by creating:

ANS: B interorganizational partnerships

38. When two or more organizations combine to become one, it is referred to as a:

ANS: D merger

39. Molly Madison received “The Employee of the Month” Award at Internal Workings Remodeling

Service in April. Molly would be considered a part of which of these for Internal Workings?

ANS: D Internal environment

40. An organization’s _____ is a part of its internal environment.

ANS: B salespeople

41. Culture can be defined as:

ANS:A set of key values, beliefs, understandings, norms shared by members of an organization.