Principles of management Ch. 3
1. Regulators are specific ______ organizations that have the power to
investigate company practices to ensure compliance with the law.
GOVERNMENT
2. An important economic influence is ______. THE STOCK MARKET
3. As ______ evolves, new industries, markets, and competitive niches
develop. TECHNOLOGY
4. Age, gender, occupation, and income are all considered ______
characteristics. DEMOGRAPHIC
5. Which of the following are part of the macroenvironment of an
organization? LAWS AND REGULATIONS, TECHNOLOGY,
DEMOGRAPHICS, THE ECONOMY, SOCIAL VALUES
6. macroenvironment
the general environment: includes governments, economic conditions,
and other fundamental factors that generally affect all organizations.
7. When companies introduce family-supportive policies, including family
leave, flexible working hours, and child care assistance, they are
responding to ______. SOCIAL VALUES
8. The specific government organizations in a firm's more immediate task
environment are known as ______. REGULATORS
9. Competitive Environment – consisting of rivalry among existing
competitors and the threat of new entrants, the threat of substitute
and complementary products, and the bargaining power of suppliers
and buyers. Substitute and complementary products, suppliers, threat
of new entrants, rivalry among current competitors and customers
(buyers). NOT Demographic groups
10. How does the stock market affect the behavior of individual
managers?
It causes them to focus more on short-term results rather than long-
term strategies.
It puts pressure on them to improve their budgets or sales.
It affects their compensation.
11. Competitors types of companies: small domestic firms, especially
upon their entry into tiny, premium markets. Strong Regional
competitors, Big new domestic companies exploring new markets,
Global firms especially those that ttry to solidify their position in small
niches (a traditional Japanese tactic) or can draw on an inexpensive
labor force on a large scale (as in india and china), New ventures
launched by all types of entrepreneurs.
12. Which of the following is an advantage of technology? It provides
more efficient ways to manage and communicate.
What tactics do competitors use to gain advantage over a rival? New-
product introductions
Advertising campaigns
Price reductions
13. Statistical characteristics of a group or population are called
______. Demographics
14. Conditions that prevent new companies from entering an
industry are known asE _______ to entry. BARRIERS
15. Which of the following are social issues that shape people's
attitudes about an organization? Natural resource use, flexible working
hours, family leave policies
16. A consumer who buys a good or service from a retailer is a(n)
______ consumer. FINAL
17. A consumer who buys raw materials or wholesale products is
called a(n) ______ consumer. INTERMEDIATE
18. Organizations that produce goods and services that are similar to
another organization’s goods and services are known as ______.
COMPETITORS
19. In a competitive market, a substitute for coffee would be ______.
TEA
20. If Nike launched a new advertising campaign with celebrity
endorsements after determining that its rival, Reebok, had success
with such an ad campaign, Nike's move would be an example of ______.
ANALYZING HOW A COMPETITOR COMPETES
21. In a competitive market, a ______ is a potential opportunity
because customers buy more of a given product if they also demand
more of the product that goes with it. COMPLEMENT
22. Factors that make it difficult and costly for an organization to
enter a particular task environment or industry are called ______.
BARRIERS TO ENTRY
23. Niche services or products developed to go with an existing
product would be called ______. COMPLEMENTS
24. Which of the following people is an example of a final customer?
SOMEONE WHO BUYS A LAMP AT TARGET
25. Retailers and industrial buyers are examples of ______
concumers. INTERMEDIATE
26. Resources generally provided by suppliers include information,
raw materials, financial capital, and ______. PEOPLE
27. In terms of business competition, a substitute is a(n) ______.
ALTERNATIVE
28. Luis trained all his employees in WritePro software four years
ago. Now, the best software for the department is WordME. The
economic and psychological costs of changing from WritePro to
WordME are called ______. SWITCHING COSTS
29. A complement to a DVD player would be ______. A DVD
30. Better supplyE CHAIN management helps businesses avoid
holding large inventories while waiting for orders to come in.
31. The ink cartridges that are used with printers are an example of
a(n) ______. COMPLEMENT
32. When managers do not have enough information about the environment to understand or
predict the future, it is called environmentalUNCERTAINTY.
33. A consumer who buys a good or service from a retailer is a(n) ______
consumer. FINAL
34. What is the role of suppliers in an organization? THEY PROVIDE
RESOURCES NEEDED FOR PRODUCTION
35. The information necessary to decide how best to manage in the
competitive environment is called ______. COMPETITIVE INTELLIGENCE
36. The fixed costs that buyers face when they change suppliers are called
______ costs. SWITCHING
37. A company might decide to develop scenarios for which of the
following purposes? (Choose every correct answer.)
To identify possible new investments in an economic upturn.
To list initiatives it can eliminate if necessary in an economic downturn.
To have contingency plans in the case of a serious accident.
38. ______ management is the managing of the entire network of facilities
and people that obtains raw materials from outside the organization,
transforms them into products, and distributes them to customers.
SUPPLY CHAIN
39. Guessing future changes in some variable(s) is calledEFORECASTING.
40. Collecting information about your company's operations and those of
your competitors in order to determine gaps is called ______.
BENCHMARKING
41. The process of sharing power with employees, thereby enhancing their
confidence in their ability to perform their jobs and their belief that
they are influential contributors to the organization, is called ______.
EMPOWERMENT
42. When managers secure answers to questions posed during
environmental scanning, they develop ______. COMPETITIVE
INTELLIGENCE
43. Creating a supply of excess resources to help an organization prepare
for unpredictable needs is called ______. BUFFERING
44. A scenario is a narrative that describes a particular set of ______
conditions. FUTURE
45. Predicting exactly how some variable or variables will change in the
future is called ______. FORECASTING
46. When a retailer discounts its merchandise at the end of a season to
make room for new merchandise, the retailer is _____ fluctuations in its
environment. SMOOTHING
47. Identifying the best-in-class performance by a company and then
comparing your processes to theirs is called BENCHMARKING
48. Independent action and cooperative action are two general types of
______ responses for the purpose of changing the environment.
PROACTIVE
49. In order to cope with environmental uncertainty, organizations may
adapt by ______ decision making and empowering their lower-level
employees. DECENTRALIZING
50. When a company acts on its own to change some aspect of its current
environment, it is using INDEPENDENT STRATEGIES
51. When a company uses an employment agency to hire part-time
workers during periods of unpredictable needs, the company is ______.
BUFFERING
52. What are the types of independent actions that organizations can take
in order to influence the environment?EPublic relations, Legal action,
Voluntary action, Competitive aggression, Political action, Competitive
pacification
53. A company might decide to develop scenarios for which of the
following purposes? To identify possible new investments in an
economic upturn.
To have contingency plans in the case of a serious accident.
To list initiatives it can eliminate if necessary in an economic downturn.
54. The leveling of normal fluctuations at the boundaries of the
environment is called ______. SMOOTHING
55. The establishment and maintenance of favorable images of an
organization in the minds of those making up the environment is called
______. PUBLIC RELATIONS
56. Two types of general proactive responses aimed at changing the
environment are _____ ACTION and _____ ACTION. INDEPENDENT AND
COOPERATIVE ACTION
57. Which of the following types of independent actions represents a
commitment to various interest groups, causes, and social problems?
VOLUNTARY ACTION
58. Which of the following is an independent strategy a company can use
to influence its environment? COMPETITIVE PACIFICATION
59. LEGAL action occurs when an organization issues a lawsuit against an
individual or another organization.
60. PUBLIC RELATIONS involves establishing and maintaining a favorable
image in the minds of others in a company's environment.
61. Efforts to influence elected representatives to create a more favorable
business environment or limit competition are called ______ action.
POLITICAL
62. Independent action and cooperative action are two general types of
______ responses for the purpose of changing the environment.
PROACTIVE
63. Two or more organizations that work together to influence the
environment are using strategies.ECOOPERATIVE
64. Pledging to donate money to a charitable cause is an example of a
business taking VOLUNTARY ACTION
65. A(n________EEis a formal agreement between two or more organizations
to exchange goods, services, information, patents, and the like.
CONTRACT
66. COOPTATION
occurs when an organization absorbs new elements into its leadership
structure to avert threats to its stability or existence.
67. Engaging a company in a private litigation is called ______ action.
LEGAL
68. A group of local businesses that band together to curb environmental
degradation is known as a(n) COALITION
69. ________ action occurs when an organization lobbies elected officials to
achieve a more business friendly environment. POLITICAL
70. Changing an organization's environment is a form of STRATEGIC
MANEUVERING.
71. Strategies that are used by two or more organizations working
together to manage the external environment are called ______
strategies. COOPERATIVE
72. A negotiated agreement between an organization and another group to
exchange things such as goods, services, information, and patents is
called ______. CONTRACT
73. When a company in one market enters another suitable market, the
company is said to be engaging in ______. DOMAIN SELECTION
74. The absorption of new elements into an organization's leadership
structure to avert threats to its stability or existence is called ______.
COOPTATION
75. Google's decision to develop different types of products, such as smart
home devices and self-driving cars, is an example of ______.
DIVERSIFICATION
76. Two or more groups that come together and act jointly with respect to
some set of issues for some period of time are using the cooperative
strategy of ______. COALITION
77. When one firm buys another, it is called a(n) ______. MERGER OR
ACQUISITION
78. Making a conscious effort to change the boundaries of a business's
competitive environment is called ______. STRAREGIC MANEUVERING
79. Ford Motor Company's selling Land Rover and Jaguar to a foreign
company is an example of _______. DIVESTITURE
80. Two or more organizations that work together to influence the
environment are using __________. COOPERATIVE STRATEGIES
81. Nintendo's decision to use its expertise in video games to enter
another suitable market is an example of ______ selection. DOMAIN
82. All the relevant forces inside a firm's boundaries, such as its managers,
employees, and organizational culture, are part of its ______
environment. INTERNAL
83. A firm's investment in different products, businesses, or geographic
areas is known as ______. DIVERSIFICATION
84. The set of important assumptions about the organization and its goals
and practices that members of the company share is called ______.
ORGANIZATIONAL CULTURE
85. The combination of one or more companies is called ______. A MERGER
OR ACQUISITION
86. The first level of organizational culture that can be seen consists of
visible ________. ARTIFACT
87. When a firm sells one or more businesses, it is called ______. A
DIVESTITURE
88. Which general considerations help guide management's response to
the environment?
Organizations should attempt to change appropriate elements of the
environment.
Companies should choose responses that offer the most benefit at the
lowest cost.
Organizations should choose responses that focus on pertinent elements
of the environment. NOT ENVIRONMENTAL RESPONSES ARE USELESS WHEN
ELEMENTS OF THE ENVIRONMENT CAUSE THE COMPANY PROBLEMS
89. Which of the following are common forces inside a firm's boundaries?
MANAGERS, CORPORATE, CULTURE, EMPLOYEES, ORGANIZATIONAL
CULTURE
90. The underlying qualities and desirable behaviors that are important to
the organization are called ______. VALUES
91. Differences in the way company employees interact with each other
and with customers and the behavior that is expected by their
managers are examples of ______. ORGANIZATIONAL CULTURE
92. Strongly held and taken-for-granted beliefs that guide behavior in the
organization are called ______. UNCONSCIOUS ASSUMPTIONS
93. The components of an organization that can be seen and heard (such
as office layout, dress, stories, and written material) are called ______.
VISIVLE ARTIFACTS
94. When everyone understands and believes in the firm's goals, priorities,
and practices, the organization has a ______ culture. STRONG
95. Ford Motor Company's selling Land Rover and Jaguar to a foreign
company is an example of ______. DIVESTITURE
96. Which of the following is NOT one of the three general considerations
that helps guide management's response to the environment?
ENVIRONMENTAL RESPONSES ARE USELESS WHEN ELEMENTS OF THE
ENVIRONMENT CAUSE THE COMPANY PROBLEMS
97. The part of organizational culture that cannot be directly observed but
is inferred from the behavior of managers is called the organization's
VALUES
98. An organization's deepest level of culture, which consists of strongly
held beliefs that guide behavior in the company, are called
unconscious ASSUMPTIONS
99. With a strong organizational ______, shared beliefs, values, and norms
can be very beneficial to an organization. CULTURE
100. A weak culture is one in which everyone understands and
believes in the firm's goals, priorities, and practices. FALSE
101. Weak cultures are typified by all the following, EXCEPT ______.
CONSISTENT VALUES: Weak cultures are defined as, different people
hold different values, there is confusion about corporate goals, and it is
not clear from one day to the next what principles should guide
decisions.
102. When a firm sells one or more businesses, it is called ______.
DIVESTITURE
103. Which of the following are clues to understanding a company's
culture? CORPORATE MISSION STATEMENTS AND OFFICIAL GOALS,
BUSINESS PRACTICES, SYMBOLS, RITES, AND CEREMONIES, FINALLY
THE STORIES PEOPLE TELL.
104. Which general considerations help guide management's
response to the environment?
105. Which of the following are well-known types of organizational
culture?ECLAN CULTURE, HIERARCHICAL CULTURE, MARKET CULTURE,
ADHORCACY
106. The underlying qualities and desirable behaviors that are
important to the organization are called _______. VALUES
107. Managers can take several approaches to managing culture.
Which of the following is one of these approaches? CRAFT AND
INSPIRATION VISION OF “WHAT CAN BE” FOR THE ORGANIZATIONAL
CULTURE, “WALK THE TALK” – ACTUALLY DO THINGS YOU WANT
OTHERS TO DO – AND SHOW THAT YOU ARE SERIOUS ABOUT AND
COMMITTED TO LONG-TERM CHANGE AND CELEBRATE AND REWARD
MEMBERS WHO BEHAVE IN WAYS THAT EXEMPLIFY THE DESIRED
CULTRE.
108. Strong cultures are always healthy and productive cultures.
FALSE
109. When managers create a culture that is inconsistent and does
not support goals and useful behaviors that will make the company
more effective, they have a(n) ______ culture. WEAK
110. A company's symbols, rites, and ceremonies are most relevant to
determining its ______. CULTURE
111. Solan Inc. is externally oriented and focused on control. Its
primary objectives are productivity, planning, and efficiency.
Organizational members are motivated by the belief that performance
that leads to the desired organizational objectives will be rewarded.
These characteristics show that Solan Inc. has a(n) ______
organizational culture. MARKET
112. Which of the following are steps that should be taken to manage
organizational culture?ECRAFT AND INSPIRATION VISION OF “WHAT CAN
BE” FOR THE ORGANIZATIONAL CULTURE, “WALK THE TALK” –
ACTUALLY DO THINGS YOU WANT OTHERS TO DO – AND SHOW THAT
YOU ARE SERIOUS ABOUT AND COMMITTED TO LONG-TERM CHANGE
AND CELEBRATE AND REWARD MEMBERS WHO BEHAVE IN WAYS THAT
EXEMPLIFY THE DESIRED CULTRE
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