Chapter 3—The Environment and Corporate Culture
TRUE/FALSE
1. In China, business tends to be more personal.
2. It is expected that the Hispanic population in the United States will shrink slightly over the next 30
years.
3. Recently, there has been strong concern about climate change such as global warming caused by
greenhouse gases, most notably carbon dioxide.
4. The outer layer, the general environment, is widely dispersed and affects organizations directly.
5. The task environmental dimension includes all elements that occur naturally on earth, including plants,
animals, rocks, and natural resources such as air, water, and climate.
6. Toyota’s response to recent events like the global economic downturn and the deadly tsunami in Japan
was to create a more efficiency driven culture with their focus turned to improve their internal
environment instead of outward.
7. Customers are the people and organizations in the environment who acquire goods or services from the
organization.
8. Current employees, management, and especially corporate culture are part of an organization’s internal
environment.
9. The general environment and the task environment are the two layers of an organization’s external
environment.
10. McDonalds, Burger King, and Checkers are competitors since all three sell fast food to individuals.
11. The raw materials that organizations use to produce its outputs are provided by customers.
12. The labor market is made up by people in the environment who can be hired to work for an
organization.
13. The technological dimension of the external environment includes scientific and technological
advancements in a specific industry as well as in society at large.
14. Labor market forces affecting organizations right now include the growing need for computer-literate
knowledge workers and the necessity for continuous investment in human resources through
recruitment, education, and training.
15. The international dimension of the external environment represents events originating in foreign
countries as well as opportunities for U.S. companies in other countries.
16. If Johnson Lumber provides trees for Westvaco Paper Manufacturing, then Johnson Lumber is
considered a supplier for Westvaco.
17. Customers and competitors are two important sectors of the economic dimension of a firm’s general
environment.
18. According to Manager’s Shoptalk in chapter 3, one of the rules of doing business in China is
remembering that relationships are short-term.
19. Organizations must manage environmental uncertainty to be effective.
20. The sociocultural dimension of the general environment includes societal norms and values.
21. The economic dimension of the general environment includes consumer purchasing power.
22. An example of part of the legal-political dimension of the general environment is a government’s
report on the decline of unemployment rate.
23. A political lobbyist for General Motors fills an essential boundary-spanning role.
24. More organizations are requiring all employees to perform boundary-spanning because
environmental shifts can happen quickly.
25. Economic problems in other parts of the world have a tremendous impact on U.S. companies.
26. Competitive intelligence professionals are really just in-house snoops who obtain information about
rival companies.
27. Given the increasing environmental uncertainty, managers in partnering organizations are shifting
from a partnership orientation to an adversarial orientation.
28. A joint venture involves a strategic alliance or program by two or more organizations.
29. Due to the stable environment and lack of technological change, mergers and joint ventures rarely
occur in the U.S.
30. Culture can be defined as the ability to speak different languages.
31. Cultural values in organizations are rarely observed.
32. Physical symbols are associated with the surface level of organizational culture.
33. The set of key values, beliefs, and norms, that are shared by members of an organization are combined
to create the symbols of an organization.
34. A narrative based on events within the organization that is frequently repeated is called an
organizational story.
35. A phrase or sentence that succinctly expresses a key corporate value is called a story.
36. The mythical sales representative at Robinson Jewelers who delivered a wedding ring directly to the
church because the ring had been ordered late is an example of a hero.
37. A ceremony is a planned activity at a special event that is conducted for the benefit of an audience.
38. In determining what cultural values are important for the organization, managers should consider the
external environment as well as the company’s strategy and goals.
39. In adaptive cultures, managers are concerned with customers and processes that bring about useful
change.
40. An achievement culture is found in an environment that is dynamic and requires high-risk
decision-making.
41. A results-oriented culture that values competitiveness, aggressiveness, personal initiative, and
willingness to work long and hard to achieve results is called the achievement culture.
42. The consistency culture has an external focus and a consistency orientation for a dynamic
environment.
43. In today’s business environment, most companies operate in a stable and rigid environment.
44. Corporate culture plays a key role in creating an organizational climate that enables learning and
innovative responses to threats from the external environment, challenging new opportunities, or
organizational crises.
45. When an organization pays little attention to cultural values and instead focuses on business results,
success will be difficult to sustain in the long run.
46. In a high performance culture, organizations put high emphasis on both culture and solid business
performance as drivers of organizational success.
47. Quadrant A represents organizations that are focused primarily on bottom-line results and pay little
attention to organizational values.
48. Companies in Quadrant D put high emphasis on both culture and solid business performance as drivers
of organizational success.
49. The cultural leader articulates a vision for the organizational culture that employees can believe in and
that generates excitement.
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.
a.
static
b.
universal
c.
constant
d.
dynamic
e.
traditional
2. _____ includes all elements existing outside the boundary of the organization that have the potential to
affect the organization.
a.
Organizational environment
b.
Internal environment
c.
Task environment
d.
General environment
e.
Technological environment
3. All of these are a part of an organization’s task environment except _____.
a.
customers
b.
labor markets
c.
competitors
d.
employers
e.
suppliers
4. Which of these is NOT a part of an organization’s general environment?
a.
Technological
b.
Economic
c.
Competitors
d.
Legal-political
e.
Sociocultural
5. The _____ of the external environment represents events originating in foreign countries as well as
opportunities for American companies in other countries.
a.
customer relationships dimension
b.
legal-political dimension
c.
international dimension
d.
sociocultural dimension
e.
technological 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?
a.
Baby boomers
b.
Generation X
c.
Generation Y
d.
Tweeners
e.
In-betweeners
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?
a.
Customers
b.
Competitors
c.
Labor market
d.
Culture
e.
Suppliers
8. _____ is(are) included in an organization’s task environment.
a.
Suppliers
b.
Accounting procedures
c.
Technology
d.
Government
e.
Demographic characteristics
9. The _____ represents people in the environment who can be hired to work for the organization.
a.
competitors
b.
labor market
c.
suppliers
d.
customers
e.
government
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?
a.
Sociocultural
b.
Competitors
c.
Technological
d.
Labor market
e.
Legal-political
11. The internal environment within which managers work includes all of the following except _____.
a.
corporate culture
b.
production technology
c.
organization structure
d.
physical facilities
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?
a.
Sociocultural dimension
b.
Legal-political dimension
c.
Economic dimension
d.
Technological dimension
e.
Corporate culture dimension
13. The _____ environment represents the outer layer of the environment and affects organizations _____.
a.
task; indirectly
b.
general; directly
c.
internal; directly
d.
internal; indirectly
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 _____.
a.
business is always personal
b.
don’t skip the small talk
c.
remember that relationships are not short-term
d.
be efficient with use of time
e.
make contact frequently
15. Which of the following rules, according to Manager’s Shoptalk in Chapter 3, is about forging an
emotional bond?
a.
Don’t skip the small talk.
b.
Business is always personal.
c.
Remember that relationships are not short-term.
d.
Make contact frequently.
e.
Be efficient with use of time.
16. Lying at the heart of Chinese culture, _____ is a supportive, mutually beneficial connection between
two people.
a.
kaizen
b.
ganqing
c.
renqing
d.
kansei
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?
a.
Legal-political dimension
b.
Economic dimension
c.
Technological dimension
d.
Corporate culture dimension
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.
a.
sociocultural
b.
technological
c.
economic
d.
supply chain
e.
geographic
19. The general environment dimension that includes consumer purchasing power, the unemployment rate,
and interest rates is called the:
a.
legal-political dimension.
b.
sociocultural dimension.
c.
technological dimension.
d.
economic dimension.
e.
task 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?
a.
Technological
b.
Legal-political
c.
Task
d.
Sociocultural
e.
Economic
21. The _____ dimension of the general environment includes federal, state, and local government
regulations.
a.
technological
b.
legal-political
c.
economic
d.
sociocultural
e.
international
22. Which of the following is NOT a part of adapting the organization to changes in the environment for
coping with high environmental uncertainty?
a.
Boundary-spanning roles
b.
Harvesting/divesting
c.
Mergers/joint ventures
d.
Interorganizational partnerships
e.
All of these are a part of organizational response in adapting the organization to changes in
the environment.
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?
a.
Figurehead
b.
Liaison
c.
Boundary-spanning
d.
Disturbance handler
e.
Leader
24. In response to pressure from environmental advocates, organizations have become increasingly
sensitive to diminishing:
a.
natural resources.
b.
economic resources.
c.
financial resources.
d.
human resources.
e.
technology resources.
25. Which of the following dimensions of the general environment includes all elements that occur
naturally on earth?
a.
Sociocultural dimension
b.
Technological dimension
c.
Economic dimension
d.
Natural dimension
e.
Environmental 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?
a.
Internal environment
b.
Task environment
c.
Work environment
d.
General environment
e.
None of these
27. The people and organizations in the environment who acquire goods or services from the organization
are:
a.
competitors.
b.
suppliers.
c.
customers.
d.
employees.
e.
potential employees.
28. _____ means that managers do not have sufficient information about environmental factors to
understand and predict environmental needs and changes.
a.
Adaptation
b.
Risk
c.
Uncertainty
d.
Knowledge
e.
Education
29. _____ environment consists of demographic factors, such as population density.
a.
Technological
b.
Sociocultural
c.
Legal-political
d.
Internal
e.
Economic
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 _____.
a.
boundary-spanning
b.
adaptive
c.
interorganizational
d.
external
e.
internal
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.
a.
Merger intelligence
b.
Business intelligence
c.
Competitive intelligence
d.
Partnership intelligence
e.
Environment 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?
a.
Boundary-spanning roles
b.
Harvesting
c.
Divesting
d.
Transfer pricing
e.
Concurrency control
33. Three large electronics companies have recently collaborated to develop an innovative new cell phone.
This is an example of which managerial trend?
a.
Outsourcing
b.
Interorganizational partnership
c.
Adversarial orientation
d.
Merger
e.
Boundary spanning
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?
a.
Visible artifacts
b.
Underlying assumptions
c.
Expressed values
d.
Heroes
e.
Ceremonies
35. In the current external business environment, which of the following is true?
a.
Corporate culture defines success.
b.
The business environment is static.
c.
Companies are more adversarial than ever before.
d.
Mergers are declining.
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.
a.
top leaders
b.
middle managers
c.
line managers
d.
all employees
e.
suppliers
37. Companies can reduce boundaries and increase collaboration with other organizations by creating:
a.
flexible structures.
b.
interorganizational partnerships.
c.
new company cultures.
d.
new supplier connections.
e.
none of these.
38. When two or more organizations combine to become one, it is referred to as a:
a.
joint venture.
b.
flexible structure.
c.
mechanistic structure.
d.
merger.
e.
inorganic venture.
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?
a.
General environment
b.
Task environment
c.
Economic environment
d.
Internal environment
e.
Legal-political environment
40. An organization’s _____ is a part of its internal environment.
a.
customers
b.
salespeople
c.
consumer price index
d.
suppliers
e.
competitors
41. Culture can be defined as:
a.
the set of key values, beliefs, understandings, and norms shared by members of an
organization.
b.
the ability to speak different languages.
c.
an object, act, or event that conveys meaning to others.
d.
a narrative based on true events that is repeated frequently and shared by organizational
employees.
e.
none of these.
42. The level of corporate culture which cannot be seen but can be discerned from how people explain and
justify what they do is:
a.
invisible artifacts.
b.
expressed values and beliefs.
c.
slogans and ceremonies.
d.
dress and office layout.
e.
none of these.
43. The level of corporate culture in which values are so deeply embedded that members are no longer
consciously aware of them is:
a.
invisible artifacts.
b.
expressed values and beliefs.
c.
an explicit code of conduct.
d.
dress and office layout.
e.
slogans and ceremonies.
44. _____ are associated with surface level of organizational culture.
a.
Values
b.
Norms
c.
Manners of dress
d.
Beliefs
e.
All of these
45. An object, act, or event that conveys meaning to others is referred to as a:
a.
symbol.
b.
slogan.
c.
story.
d.
hero.