Chapter 3: Organizational Environments and Culture
TRUE/FALSE
1. External environments are the forces and events outside a company that have the potential to influence
or affect it.
2. 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.
MULTIPLE CHOICE
1. In terms of environmental complexity, __________ environments have few environmental factors,
whereas __________ environments have many environmental factors.
a.
non-competitive; competitive
b.
simple; complex
c.
stable; dynamic
d.
scarce; abundant
e.
market-oriented; product-oriented
2. 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
3. __________ is used to refer to a company’s practice of identifying and addressing customer trends and
problems after they occur.
a.
Consumer confidence forecasts
b.
Competitive analysis
c.
Reactive customer monitoring
d.
Proactive customer monitoring
e.
Continuous data mining
4. __________ involves deciding who your competitors are, anticipating competitors’ moves, and
determining competitors’ strengths and weaknesses.
a.
Competitive mapping
b.
A market audit
c.
A SWOT analysis
d.
A proactive strategy
e.
A competitive analysis
5. 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
6. The first step managers use to make sense of their changing environments is:
a.
environmental scanning
b.
perceptual re-engagement
c.
modifying budgets
d.
downsizing
e.
benchmarking
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. __________ is/are a primary source of organizational culture.
a.
The company’s founder
b.
The organization’s competitive strategy
c.
The industry in which the organization operates
d.
Employees
e.
Customers
9. Which of the following is a characteristic of successful organizational cultures?
a.
adaptability
b.
consistency
c.
involvement
d.
a clear vision
e.
all of these
10. 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