MGT 101-95 chapter 3 – Flashcards
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According to its rate of environmental change, an organization's environment can be either stable or dynamic, but not both.
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false
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Because external environments can be dynamic, confusing, and complex, managers use a three-step process to make sense of the changes in their external environments. Those steps are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on threats and opportunities.
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true
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Briefly differentiate between the external and internal environments that companies face and explain why these environments are important.
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The external and internal environments that companies face refer to two different sets of forces that affect those organizations. External environments are the forces and events outside a company that have the potential to influence or affect it. The internal environment, on the other hand, consists of the trends and events within an organization that affect the management, employees, and organizational culture. One set of forces exists outside of the organization, while the other set of forces exists within the organization. In order to be successful, companies must continually adapt to changes in both sets of forces.
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Buyer dependence is the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product.
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false
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Extensive research demonstrates clearly that organizational culture is strongly related to organizational success.
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false
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Resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical organizational resources.
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true
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Organizational culture refers to the set of key values, beliefs, and attitudes shared by organizational members.
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true
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Managers often prefer economic statistics to business confidence indices as tools for managerial decision making because of their inherently greater accuracy.
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false
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Under conditions in which the rate of both environmental change and complexity go up while environmental resources become scarce, environmental uncertainty can be expected to increase.
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true
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The general environment is unique to each firm's industry and directly affects the way it conducts day-to-day business.
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false
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Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?
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competitive products
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____ is a primary source of organizational culture.
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The company's founder
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Identify and provide examples of the two important ways in which socio-cultural changes and trends influence organizations.
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Socio-cultural changes and trends influence organizations in two important ways. First, changing demographic characteristics such as the number of people with particular skills or the growth or decline in particular population segments (single or married; old or young; men or women; Caucasians, Hispanics, Blacks, or Asians; etc.) affects how companies run their businesses. For example, because of changes in the percentage of working mothers, many more companies now offer child care as a benefit to attract and retain scarce, talented workers of both genders. Second, socio-cultural changes in behavior, attitudes, and beliefs also affect the demand for a business' products and services. One consequence of the large number of working women is that companies such as Avon and Tupperware now get more of their sales from rush-hour and lunchtime parties in workplaces than from parties in people's living rooms.
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In a very strong economy, where the demand for qualified job applicants exceeds the supply, the environmental characteristic of ____ is likely to be particularly salient for many companies.
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resource scarcity
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A business in a $200 M industry that generated sales of $40M would have what market share?
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40/200= .2= 20% market share market share is always expressed a %
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Which of the following is a component of Volkswagen's specific environment and will directly influence how it does business?
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Renault, a French car maker
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Employees tend to feel a greater sense of ownership and responsibility in companies with organizational cultures characterized by:
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employee involvement
