Chapter 3: Organizational Environments and Culture
TRUE/FALSE
1. The two kinds of external organizational environments are the general environment that affects all
organizations and the specific environment that is unique to each company.
2. According to its rate of environmental change, an organization’s environment can be either stable or
dynamic, but not both.
MULTIPLE CHOICE
1. Which of the following is a component of Volkswagen’s specific environment and will directly
influence how it does business?
a.
Renault, a French car maker
b.
laws concerning air bags
c.
inflation
d.
gasoline prices
e.
the fact consumers are buying fewer SUVs
2. A company facing a simple environment would:
a.
most likely be in the first stage of the environmental cycle
b.
exhibit proof of the punctuated equilibrium theory
c.
be unable to succeed due to lack of innovation
d.
be influenced only by factors in its specific environment
e.
have few external factors in the environment that affect it
3. Changes in any sector of the general environment:
a.
will typically not impact most organizations
b.
tend to slow down how quickly an organization moves through the environmental cycle
c.
inhibit the innovation process
d.
influence customers first and then suppliers
e.
will eventually affect most organizations
4. Technology is the __________ used to transform inputs (raw materials, information, etc.) into outputs
(goods or services).
a.
knowledge, tools, and techniques
b.
knowledge and machinery
c.
plans and machinery
d.
tools and techniques
e.
strategy and tactics
5. An organization engaged in __________ is searching the environment for important events or issues
that might affect an organization.
a.
a competitive assessment
b.
environmental scanning
c.
environmental advocacy
d.
an internal situational analysis
e.
a market audit
6. A key factor influencing the relationship between companies and their suppliers is:
a.
how dependent they are on each other
b.
how much they know about each other
c.
how compatible their organizational cultures are
d.
the type of product being manufactured
e.
all of these
7. The __________ is the set of key values, beliefs, and attitudes shared by organizational members.
a.
industry code of ethics
b.
internal environment
c.
organizational culture
d.
organizational strategy
e.
organizational vision
8. Managers can use behavioral addition and behavioral substitution to:
a.
create benchmarks
b.
assess the threats and opportunities in the internal environment
c.
develop new products
d.
locate new markets for existing products
e.
modify corporate culture
9. Which of the following is an example of a mechanism used to sustain organizational culture after an
organization’s founders are gone?
a.
recruiting practices
b.
employee turnover
c.
cultural myths
d.
organizational policies
e.
none of these
10. Employees tend to feel a greater sense of ownership and responsibility in companies with
organizational cultures characterized by:
a.
delegation
b.
adaptability
c.
employee involvement
d.
consistency
e.
managerial empathy