A. specific environment

B. general environment

C. niche environment

D. internal environment

2 ?_________ involves identifying and addressing customer needs, trends, and issues before they occur.

A. Demand analysis

B. Reactive monitoring?

C. Proactive monitoring

D. Business analytics

3  Ecru Inc. is a company that provides dairy products and meat to a fast food chain. The fast food chain regularly buys these food items from Ecru. In this scenario, Ecru is a _________ of the fast food chain.

A. supplier

B. competitor

C. buyer

D. regulator

 4 _________ is the degree to which a supplier relies on a client because of the importance of that client to the supplier and the difficulty of finding other clients for its products.

A. Buyer dependence

B. Internal dependence

C. Resource dependence

D. Supplier dependence

 5 The _________ stops companies from engaging in unfair labor practices.

A. Department of Labor

B. National Labor Relations Board

C. Equal Employment Opportunity Commission

D. Occupational Safety and Health Administration

 6 In the context of business, a(n) _________ is an environment with many environmental factors.

 7 _________ is the abundance or shortage of critical organizational resources in an organization’s external environment.

 8 ?_________ are companies in the same industry that sell similar products or services to customers.

 ?9 The _________ component of the specific environment of an organization consists of regulations and guidelines that govern the business practices and procedures of specific industries, businesses, and professions.

 10_________ are graphic depictions of how managers believe environmental factors relate to possible organizational actions.

True / False

1. ?Environmental complexity refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.

2. ?In general, in a growing economy, more people are working and wages are growing, and therefore consumers have relatively more money to spend.

3. ?Sociocultural changes in behavior affect the demand for a business’s products and services.

4. ?Under the 1991 Civil Rights Act, if an employee is sexually harassed by anyone at work, the harasser—not the company—is liable for damages, attorneys’ fees, and back pay.

5. ?Under the Family and Medical Leave Act, employees who have been on the job one year are guaranteed twelve weeks of unpaid leave per year to tend to a newly adopted child.

6. ?Supplier dependence is the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products.

7. ?Opportunistic behavior focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers.

8. ?Organizational heroes are organizational people admired for their qualities and achievements within an organization.

9. ?Companies with strong cultures tend to perform well when they need to adapt to dramatic changes in their external environments.

10. ?Instead of taking a smoke break every two hours, employees at a local company were asked to take an extra 30 minutes for lunch. This is an example of behavioral substitution.

Multiple Choice

11. ?Citrine Inc. is a manufacturer of electrical home appliances. The company is facing a serious shortage of copper scrap that is used in its manufacturing process. Hence, the manufacturing process has come to a halt. Which of the following characteristics of the external environment is illustrated in this scenario?

12. ?Identify a true statement about environmental uncertainty.

13. ?Managers feel confident that they can understand, predict, and react to the external forces affecting their businesses when:

14. ?Which of the following statements is true of environmental uncertainty?

15. ?Identify a component of the general environment of an organization.

16. ?Which of the following is a component of the general environment of an organization?

17. ?Many people in Rhenasia are spending less as there are only few good-paying jobs in the country. Many businesses in the country are adversely affected as the purchasing power of consumers has drastically reduced. The environmental characteristic that is affecting businesses in Rhenasia is associated with the _____.

18. ?Which of the following statements is true of business confidence indices?

19. ?An automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. This new invention is a development in the _____ component of the general environment of the company.

20. ?Which of the following is a sociocultural component in the general environment of a fast food chain?

21. ?Which of the following is a sociocultural component in the general environment of a book publisher that can indirectly influence how it does business?

22. ?Which of the following is a political/legal trend in the general environment of a hospital?

23. ?A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general environment.

24. ?Which of the following is a component of the specific environment of an organization?

25. ?Opulent Inc., a furniture design company based in Winona, designs a wide range of office and household furniture. Umber Corp. has recently started offering custom-made furniture in the same city. The managers at Opulent are conducting a research to find out the strengths and weaknesses of Umber. The managers are also trying to figure out the strategies used by Umber. Which of the following is a component of the specific environment that is illustrated in the scenario?

26. ?_____ is the degree to which a company relies on a provider because of the importance of the provider’s product to the company and the difficulty of finding other sources of that product.

27. ?Zimway Inc. is a small-scale manufacturer of linen. Couture Corp., a big apparel brand, buys linen from Zimway in large quantities. Zimway, otherwise, has very few clients, and most of them buy linen occasionally and in minimal quantities. Therefore, business ties with Couture is crucial for Zimway’s survival and success. In the context of the specific environment, which of the following concepts is illustrated in the scenario?

28. ?_____ refers to a transaction in which one party in the relationship benefits at the expense of the other.

29. ?Redd Publications Inc. has been buying ink cartridges and printing papers from Haven Corp. for several years. Both companies make an effort to keep their transactions fair and transparent. This has helped them maintain mutually beneficial business ties. It can be said that Redd Publications and Haven exhibit _____ toward each other.

30. ?While setting up his new office, an attorney ordered thick, frieze carpets for the floor. However, the building inspector had him remove the expensive carpeting. The building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. He further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. This scenario illustrates how a company is influenced by the _____ component of its specific environment.

31. ?_____ are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.

32. ?Which of the following is the least aggressive tactic used by advocacy groups?

33. ?A _____ approach typically involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.

34. ?Which of the following is an advocacy group tactic that involves persuading consumers not to purchase a company’s merchandise or service?

35. ?The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify the factors that might have a significant influence on Alpha’s business operations. Which of the following concepts is illustrated in the scenario?

36. ?An _____ refers to the values, beliefs, and attitudes shared by organizational members.

37. ?The employees at Titanium Inc. have the freedom to plan their own schedules and are empowered to make decisions. They also believe in sharing common goals. The managers have high levels of trust in their employees and foster team work. These beliefs and attitudes constitute Titanium’s _____.

38. ?A primary source of organizational culture is _____.

39. ?Organizational members use_____ to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

40. _____ is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.?

41. ?Herald Inc. has recently adopted the access card system to monitor employee movement within the company. This requires the employees to hold their identity cards against a RFID (radio-frequency identification) reader at each of the entry and exit doors for access. This process notes the time and date of entry and exit of a particular individual. The managers of the company have started enforcing the use of access cards among the employees. Which of the following concepts is illustrated in the scenario?