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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) In the symbolic view of management, managers are seen as directly
responsible for an organization's success or failure.
1) _______
2) The dominant view in management theory suggests that managers are
omnipotent.
2) _______
3) The view of managers as omnipotent is consistent with the stereotypical
picture of the take-charge business executive who can overcome any
obstacle in carrying out the organization's objectives.
3) _______
4) The symbolic view of management helps to explain the high turnover
among college and professional sports coaches, who are often fired and
replaced when their teams perform poorly.
4) _______
5) In the omnipotent view of management, much of an organization's
success or failure is due to forces outside management's control.
5) _______
6) If an organization subscribes to the symbolic view of management, it is
unreasonable to expect managers to have a significant effect on the
organization's performance.
6) _______
7) A manager's role in the omnipotent view of management is to create
meaning out of randomness, confusion, and ambiguity.
7) _______
8) The part of the environment that is directly relevant to achievement of
an organization's goals is the specific environment.
8) _______
9) The term suppliers includes providers of financial and labour inputs.
9) _______
10) To a national television network like the CBC, your home DVD player
could be considered a competitor.
10) ______
11) Industry conditions are an example of an organization's general
environment.
11) ______
12) Economic conditions are part of the organization's specific environment.
12) ______
13) Demographic conditions are part of the organization's general
environment.
13) ______
14) The European Union (EU) and the North American Free Trade
Agreement (NAFTA) have both created regional trading alliances.
14) ______
15) The General Agreement on Tariffs and Trade (GATT) was signed in
1992 to create the EU.
15) ______
16) Through the creation of the EU, each member country now has
increased border controls, nationalist policies, and protected industries.
16) ______
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17) The primary motivation for the creation of the EU was to allow
Europeans to reassert their position against the industrial strength of the
United States and Japan.
17) ______
18) The three original partners of NAFTA are Canada, the United States,
and Mexico.
18) ______
19) NAFTA has strengthened the economic power of all three member
countries.
19) ______
20) Mercosur is a trading alliance between 10 southeast Asian nations.
20) ______
21) The World Trade Organization was formed in 1995 and evolved from
the Maastricht Treaty, an agreement in effect since the end of World
War II.
21) ______
22) The legal-political environment is an important factor of managing in a
foreign environment.
22) ______
23) Only when a country's legal-political environment is unstable or
revolutionary is it of concern to managers.
23) ______
24) Research indicates that organizational culture has a stronger impact on
employees than national culture.
24) ______
25) A command economy is one in which resources are primarily owned
and controlled by the private sector.
25) ______
26) Power distance refers to the degree to which a society encourages
people to be tough, confrontational, assertive, and competitive.
26) ______
27) Multinational corporations maintain significant operations in multiple
countries but are managed from a base in the home country.
27) ______
28) Multinational corporations became commonplace in the mid-1960s.
28) ______
29) By decentralizing management authority to the local country, the
transnational corporation reflects an ethnocentric attitude.
29) ______
30) Transnational corporations run their businesses from their home
country.
30) ______
31) The borderless organization approaches global business with a
geocentric attitude.
31) ______
32) Importing is an approach to going global that involves making products
at home and selling them overseas.
32) ______
33) Setting up a foreign subsidiary involves a higher degree of risk and
commitment than franchising.
33) ______
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34) Stockholders are defined as any constituencies in the organization's
external environment that may be affected by the organization's
decisions and actions.
34) ______
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
35) What are the two views of managerial impact on the success or failure of 35) ______
the organization?
A) dynamic and reflective
B) symbolic and interactive
C) omnipotent and reflective
D) omnipotent and symbolic
E) reflective and interactive
36) The omnipotent view of management means __________.
A) managers are directly responsible for an organization's success or
failure
B) outside forces have the most influence on organizational outcomes
C) the top manager is the only person in charge
D) managers are directly responsible for all internal factors within
their control
E) managers have little or no responsibility for an organization's
success or failure
36) ______
37) The __________ view of management is consistent with the stereotypical
picture of the take-charge business executive who can overcome any
obstacle in carrying out the organization's objectives.
A) dynamic
B) symbolic
C) omnipotent
D) interactive
E) reflective
37) ______
38) The symbolic view of management means __________.
A) successful managers become role models for employees
B) managers are only responsible for those factors that influence
organizational performance
C) managers are directly responsible for an organization's success or
failure
D) employees are directly responsible for an organization's success or
failure
E) managers have only a limited effect on organizational outcomes
38) ______
39) Internal constraints that restrict a manager's decision options arise from
__________.
A) the rules and policies implemented by top managers
B) the organization's environment
C) the organization's culture
D) the activities of industry competitors
E) the laws and regulations governing workplace practices
39) ______
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40) According to the symbolic view, managers have a(n) __________ effect
on substantive organizational outcomes.
A) substantial
B) negative
C) limited
D) moderate
E) unlimited
40) ______
41) Managers operate within the internal and external constraints imposed
by __________.
A) the employees of the organization
B) the organization's culture and environment
C) federal and provincial governments
D) industry regulation
E) the organization's board of directors
41) ______
42) Despite the existence of both internal and external constraints, managers
can still improve organizational performance by
A) introducing new rules and procedures.
B) influencing the organization's culture and environment.
C) electing new government officials at the federal and provincial
levels.
D) delegating more responsibility to employees.
E) redesigning the organization's structure.
42) ______
43) The external environment consists of the global environment,
__________.
A) primary environment, and the general environment
B) organizational culture, and the general environment
C) primary environment, and the secondary environment
D) specific environment, and the general environment
E) national culture, and the specific environment
43) ______
44) An organization's specific environment __________.
A) includes economic and global conditions that may affect the
organization
B) is unique and changes with conditions
C) is determined by the top level of management
D) is the same regardless of the organization's age
E) includes demographic and technological conditions that may affect
the organization
44) ______
45) The specific environment of organizations consists of external forces
that have a direct impact on managers' decisions and actions. The main
forces are customers, suppliers, competitors, and __________.
A) pressure groups
B) employees
C) lawyers
D) shareholders
E) legislators
45) ______
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46) Which of the following is an example of a force in the general
environment?
A) customers
B) pressure groups
C) demographics
D) competitors
E) suppliers
46) ______
47) The primary goal of managers when dealing with suppliers is to ensure
a steady flow of __________.
A) customers at the distribution outlets
B) industry entrants to help maximize the competition among
suppliers
C) cheap labour to produce products at the lowest possible cost
D) inputs at the lowest price available
E) cash from investors into the organization
47) ______
48) The Internet is having an impact on determining who an organization's
competitors are because it has __________.
A) made the products they sell more valuable to the customer
B) made it more difficult for smaller competitors to compete on a
global scale
C) virtually eliminated geographic boundaries
D) defined the common markets for all industry competitors
E) virtually eliminated the need for shopping malls
48) ______
49) For an amusement theme park like Paramount Canada's Wonderland in
Toronto, an insurance provider would be an example of which factor in
its specific environment?
A) government agency
B) pressure group
C) customer
D) competitor
E) supplier
49) ______
50) For an organization such as a hospital that needs nurses, the labour
union and the local labour market are examples of which factors in its
specific environment?
A) government agency and competitor
B) pressure group and supplier
C) customer and special-interest group
D) both are examples of suppliers
E) pressure group and competitor
50) ______
51) Which of the following is included in an organization's specific
environment?
A) demographics
B) interest rates
C) government legislation
D) inflation
E) competitors
51) ______
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52) According to the textbook, the __________ environment includes those
external forces that have a direct and immediate impact on managers'
decisions and actions and are directly relevant to the achievement of the
organization's goals.
A) specific
B) general
C) forward
D) secondary
E) primary
52) ______
53) United Parcel Service represents what factor to Canada Post in its
specific environment?
A) supplier
B) government agency
C) competitor
D) pressure group
E) customer
53) ______
54) Economic conditions include all of the following factors except
__________.
A) changes in disposable income
B) stock market fluctuations
C) interest rates
D) federal government legislation
E) inflation
54) ______
55) Political/legal conditions in Canada include all of the following factors
except __________.
A) the competition bureau
B) human rights
C) egg marketing boards
D) interest rates
E) employment equity
55) ______
56) To a cable television provider like Shaw Cablesystems, a satellite TV
company like Bell ExpressVu would be considered a __________.
A) supplier
B) regulator
C) competitor
D) pressure group
E) customer
56) ______
57) According to our textbook, __________ is having an impact on
determining an organization's competitors because it has virtually
eliminated geographic boundaries.
A) the intranet
B) the Internet
C) the local area network
D) video conferencing
E) government legislation
57) ______
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58) Neighbourhood activists who protest against the building of "big box"
stores would be considered which factor in the specific environment for
Wal-Mart or Home Depot?
A) government agency
B) competitor
C) pressure group
D) customer
E) supplier
58) ______
59) The global environment of an organization includes which of the
following?
A) pressure groups
B) issues directly relevant to achieving organizational goals
C) stakeholders
D) suppliers
E) demographic conditions
59) ______
60) Which of the following is usually part of an organization's general
environment?
A) pressure groups
B) competitors
C) suppliers
D) political conditions
E) weather conditions
60) ______
61) Interest rates, inflation rates, and stock market indexes are all examples
of what factor in an organization's general environment?
A) sociocultural
B) legal
C) political
D) economic
E) technological
61) ______
62) A downturn in contributions from the public to the United Way charity
62) ______
is an example of the impact from what factor in its general environment?
A) economic
B) global
C) political
D) sociocultural
E) technological
63) The Canadian Human Rights Act is an example of a __________.
A) sociolegal condition
B) sociocultural condition
C) political/sociological condition
D) demographic condition
E) political/legal condition
63) ______
64) Which Act makes it illegal for employers to discriminate on the basis of
race, national or ethnic origin, colour, religion, age, sex, marital status,
me or
ntal physica
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l
64)
disability,
or sexual
orientati
on?
A)
B)
C)
D)
E)
___
___
Canada's Employment Equity Act
Canada's Competition Act
Canadian Charter of Rights and Freedoms
Canadian Civil Liberties Act
Canadian Human Rights Act
65) Sociocultural conditions consist of the __________.
A) level of unemployment and real economic incomes of workers
B) changing expectations of the society in which organizations
operate
C) laws that govern human rights and the competitive activities of
organizations in a society
D) demographic profiles of an organization's suppliers
E) socialization processes that help to maintain organizational
cultures
65) ______
66) When researchers discovered a link between trans fatty acids and heart
disease, many consumers became concerned. As a result, Ontario-based
Voortman's Cookies decided to eliminate all trans fats from its products.
Voortman's was responding to changing __________ conditions.
A) economic
B) competitive
C) political/legal
D) technological
E) sociocultural
66) ______
67) As employees have begun to seek more balance in their lives,
organizations have had to adjust by offering family leave policies, more
flexible work hours, and even on-site child care facilities. This is an
example of how changing __________ conditions can affect an
organization.
A) economic
B) sociocultural
C) political/legal
D) technological
E) demographic
67) ______
68) As more consumers have become aware of the use of rendered feed and
the poor treatment of chickens in many large-scale poultry farms, some
farm managers have switched to all-natural feed and "free range"
breeding methods. This is an example of how changing __________
conditions can affect an organization.
A) demographic
B) technological
C) sociocultural
D) economic
68) ______
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E) political/legal
69) Human resources managers are increasingly using the Internet to search
for qualified candidates through on-line résumé systems and
job-posting websites. This is an example of how changing __________
conditions can affect an organization.
A) economic
B) political/legal
C) technological
D) sociocultural
E) demographic
69) ______
70) Which of the following demographic groups includes individuals who
were born between the years 1946-1964?
A) the Depression group
B) the baby boomers
C) Generation Y
D) the World War II group
E) Generation X
70) ______
71) According to the textbook, the members of which one of the following
demographic groups are thinking, learning, creating, shopping, and
playing in fundamentally different ways that are likely to greatly impact
organizations and managers?
A) Generation Y
B) the Depression group
C) Generation X
D) the World War II group
E) the baby boomers
71) ______
72) For most organizations, the most rapidly changing factor has been
__________ conditions.
A) technological
B) political/legal
C) economic
D) global
E) sociocultural
72) ______
73) The enhanced speed and quality of managerial decision making due to
improvements in office automation is an example of the impact of which
general environmental factor?
A) global
B) demographic
C) technological
D) sociocultural
E) political
73) ______
74) Through the creation of the EU, member countries now have __________. 74) ______
A) government subsidies
B) a single market
C) protected industries
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D) nationalistic policies
E) border controls
75) The primary motivation for the countries of the EU joining together was
to reassert their economic position against the strength of the United
States and __________.
A) Russia
B) Canada
C) China
D) Mexico
E) Japan
75) ______
76) Today, exports to the United States are equivalent to about __________
of Canada's GDP.
A) 80 percent
B) one-half
C) 90 percent
D) one-third
E) 70 percent
76) ______
77) Which of the following is a trading alliance of Southeast Asian nations?
A) NAFTA
B) FTAA
C) Southern Cone Common Market
D) ASEAN
E) Mercosur
77) ______
78) Which of the following is a multilateral trading system formed in 1995?
A) GATT
B) Mercosur
C) ASEAN
D) WTO
E) NAFTA
78) ______
79) The WTO is a global organization that evolved from __________.
A) EEC
B) the Maastricht Treaty
C) GATT
D) ASEAN
E) NAFTA
79) ______
80) Canada's economy is best described as __________.
A) a command economy with some private sector control
B) a command economy with no private sector control
C) a market economy with no government control
D) a command economy with some government control
E) a market economy with some government control
80) ______
81) Three economic issues that a global manager might need to understand
include __________.
A) employment laws, currency exchange rates, and political stability
81) ______
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B)
C)
D)
E)
inflation rates, tax policies, and political stability
tax policies, employment laws, and cultural differences
tax policies, political stability, and cultural differences
currency exchange rates, inflation rates, and tax policies
82) From a cultural standpoint, research indicates that __________ has a
greater effect on employees than __________.
A) national culture; employment law
B) national culture; organizational culture
C) organizational culture; national culture
D) employment law; religion
E) organizational culture; religion
82) ______
83) The cultural dimension of __________ measures the degree to which the
members of a society expect power to be unequally shared.
A) in-group collectivism
B) uncertainty avoidance
C) humane orientation
D) assertiveness
E) power distance
83) ______
84) The cultural dimension of __________ measures the degree to which a
society relies on social norms and procedures to alleviate the
unpredictability of future events.
A) power distance
B) future orientation
C) uncertainty avoidance
D) assertiveness
E) performance orientation
84) ______
85) Transnational corporations __________.
A) maintain significant operations in multiple countries but manage
them from a base in the home country
B) organize by industry to eliminate the artificial geographic barriers
between countries
C) follow the tastes, preferences, and values of the home country
D) do not attempt to manage foreign operations from the host country
E) decentralize decision making to managers hired in the host
countries
85) ______
86) Montreal-based Bombardier manufactures aircraft and rail
transportation equipment. It employs more than 60,000 workers in
production facilities on five continents. All management decisions with
company-wide impact continue to be made in its global headquarters in
Canada. Bombardier is best described as a __________ corporation.
A) transnational
B) borderless
C) virtual
D) domestic
E) multinational
86) ______
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87) When an organization drops its structure based on countries and
reorganizes according to industries, it is pursuing a global business
approach known as __________.
A) polycentric organization
B) transnational organization
C) multinational organization
D) multicultural organization
E) borderless organization
87) ______
88) Borderless organizations __________.
A) arrange structures that reduce artificial industry barriers
B) reflect a polycentric attitude
C) manage their global operations from a base in their home country
D) reflect an ethnocentric attitude
E) arrange structures that reduce artificial geographical barriers
88) ______
89) Which of the following definitions is most accurate for a multinational
corporation?
A) a company that maintains significant operations in at least two
countries but decentralizes management to each country
B) a company that maintains significant operations in at least two
countries
C) a company that maintains significant operations in at least two
countries but organizes by industry to reduce geographical
barriers
D) a company that maintains significant operations in at least two
countries but is managed from a base in the home country
E) a company that maintains significant operations in at least two
countries and has multiple home bases
89) ______
90) Which of the following definitions best describes a borderless
corporation?
A) a company that maintains significant operations in at least two
countries and has multiple home bases
B) a company that maintains significant operations in at least two
countries
C) a company that maintains significant operations in at least two
countries but organizes by industry to reduce geographical
barriers
D) a company that maintains significant operations in at least two
countries but is managed from a base in the home country
E) a company that maintains significant operations in at least two
countries but decentralizes management to each country
90) ______
91) IBM is the world's largest information technology company with over
300,000 employees in 170 countries. It once had a country-based
structure, but reorganized into industry groups to compete more
effectively in the global marketplace. IBM is best described as a
__________ organization.
A) polycentric
B) borderless
91) ______
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C) multicultural
D) multinational
E) transnational
92) Which of the following is the basic difference between multinational
corporations and transnational corporations?
A) Multinational corporations pay more in taxes than transnational
corporations do.
B) Transnational corporations are run by the parent company but
must be owned by a local, national company.
C) Multinational corporations receive more support from host
country governments than transnational corporations do.
D) Multinational corporations typically do business with more
countries than transnational corporations do.
E) Decision-making in transnational corporations takes place locally
rather than at home country headquarters.
92) ______
93) Multinational corporations (MNCs) became commonplace in the
__________.
A) 1960s
B) 1980s
C) 1950s
D) 1940s
E) 1970s
93) ______
94) Which of the following strategies for going global involves the lowest
level of risk and investment?
A) foreign contracting
B) strategic alliances
C) foreign subsidiary
D) exporting
E) licensing and franchising
94) ______
95) Which of the following strategies for going global involves the highest
level of risk and investment?
A) exporting
B) foreign contracting
C) strategic alliances
D) foreign subsidiary
E) licensing and franchising
95) ______
96) Which of the following strategies for going global involves a higher
level of risk and investment than strategic alliances?
A) foreign subsidiary
B) licensing
C) foreign contracting
D) franchising
E) exporting
96) ______
97) Which approach to going global involves making products at home and
selling them overseas?
97) ______
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A)
B)
C)
D)
E)
foreign contracting
importing
licensing
exporting
franchising
98) Many organizations, especially small businesses, start doing business
globally by __________.
A) licensing and franchising
B) exporting and importing
C) establishing foreign subsidiaries
D) forming joint ventures
E) hiring foreign brokers to represent their product line
98) ______
99) Which approach to going global did McDonald's Canada use when it
opened restaurants in Russia?
A) exporting
B) franchising
C) foreign contracting
D) licensing
E) strategic alliances
99) ______
100) A joint venture is a specific type of __________.
A) licensing agreement
B) strategic alliance
C) franchise
D) foreign contracting arrangement
E) foreign subsidiary
100) _____
101) A domestic firm and a foreign firm sharing the cost of developing new
products or building production facilities would be called a __________.
A) foreign subsidiary
B) brokering agreement
C) transnational venture
D) franchising agreement
E) strategic alliance
101) _____
102) McDonald's Canada, GM Canada, and IBM Canada are all examples of
U.S. __________ operating in Canada.
A) franchises
B) joint ventures
C) transnational ventures
D) subsidiaries
E) strategic alliances
102) _____
103) Compared to many other countries, Canada's legal-political
environment is considered __________.
A) stable
B) radical
C) unstable
D) fixed
103) _____
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E) dynamic
104) From a legal-political standpoint, some large corporations have
postponed doing business with China and other Asian countries due to
__________.
A) diverse tax policies
B) stable government policies
C) unstable inflation rates
D) fluctuating currency exchange rates
E) political interference
104) _____
105) Which of the following are the two dimensions of environmental
uncertainty?
A) degree of risk and degree of complexity
B) degree of change and degree of complexity
C) degree of impact and degree of uncertainty
D) degree of complexity and degree of impact
E) degree of change and degree of flexibility
105) _____
106) Since the emergence of digital music formats, the recorded music
industry has been operating in an environment that is best described as
__________.
A) dynamic
B) static
C) stable
D) divergent
E) flexible
106) _____
107) If the components in an organization's environment change frequently,
it is called a __________ environment.
A) difficult
B) dysfunctional
C) divergent
D) dynamic
E) transitory
107) _____
108) Managers try to minimize __________ because it is a threat to an
organization's effectiveness.
A) efficiency
B) uncertainty
C) product development
D) inflation
E) technology
108) _____
109) Given a choice, most managers would prefer to operate in environments
that are __________.
A) dynamic and flexible
B) simple and stable
C) complex and stable
D) simple and dynamic
E) complex and dynamic
109) _____
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110) __________ are any constituencies in the organization's external
environment that are affected by the organization's decisions and
actions.
A) Consumers
B) Stockholders
C) Suppliers
D) Pressure groups
E) Stakeholders
110) _____
111) The degree of __________ refers to the number of components in an
organization's environment and the extent of the knowledge that the
organization has about those components.
A) complexity
B) stability
C) change
D) risk
E) flexibility
111) _____
112) The first step of managing external stakeholder relationships is to
identify who the stakeholders are. The second step is to determine
__________.
A) how to manage the different stakeholder relationships
B) how many stakeholders there are in each stakeholder group
C) what the law courts might do when a stakeholder files a claim
against the organization
D) what particular interests or concerns the stakeholders might have
E) how critical each stakeholder is to the organization
112) _____
Refer to the Scenario below to answer the questions that follow.
First Business Trip to Asia (Scenario)
Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia. Born
and raised in Alberta, Jeff is a manager for a rapidly growing Calgary-based company. His
current mission is to scout out potential locations in Asia and develop an international expansion
strategy for his company. There are many options, including maintaining the business's head
office in Canada and sending over company representatives when necessary, or developing a
separate company in Asia and hiring locals to manage the business. Jeff's trip will take him to
Japan, Korea, Hong Kong, Taiwan and Thailand. He is looking forward to learning more about
the business practices and customs of each country, and is not too worried about the fact that he
only speaks English. Jeff has heard that English is considered the main international business
language and he anticipates that most Asians will be able to speak it.
113) If Jeff's company decided to open another company in Taiwan but
manage it from its headquarters in Canada, it would be considered a
__________.
A) multinational corporation
B) transnational corporation
C) global business alliance
D) regional trade alliance
113) _____
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E) borderless organization
114) If Jeff's company decides to open a completely new operation in
Thailand, tailoring the company to local customs and marketing
strategies and hiring local managers, it would be considered a
__________.
A) borderless organization
B) global business alliance
C) transnational corporation
D) multinational corporation
E) regional trade alliance
114) _____
115) If Jeff's company eliminated country-designated locations and
reorganized based on industry groups, it would best be described as a
__________.
A) transnational organization
B) polycentric organization
C) global business alliance
D) multinational corporation
E) borderless organization
115) _____
Refer to the Scenario below to answer the questions that follow.
Environmental Uncertainty (Scenario)
It is safe to say that managers do not have complete control over organizational outcomes; the
environment has a significant impact. It is important for managers to learn both what the
components of the environment are, and how the environment will affect their organizations.
116) An Internet-based company that is facing many new competitors and
frequent technological breakthroughs is operating in what kind of
environment?
A) divergent
B) static
C) stable
D) flexible
E) dynamic
116) _____
117) A grocery store that has few components in its environment and
minimal need for knowledge about its suppliers or customers is
operating under conditions of low __________.
A) stability
B) complexity
C) simplicity
D) divergency
E) flexibility
117) _____
118) An online brokerage company like E*TRADE that is dealing with many
environmental components and requires a high level of knowledge
about Internet operations is operating in a highly __________
environment.
118) _____
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A)
B)
C)
D)
E)
flexible
divergent
stable
complex
static
119) To help managers understand how the environment affects their
organizations, the environmental uncertainty matrix sorts industries
into four cells based on two dimensions: degree of __________ and
degree of __________.
A) change; flexibility
B) impact; uncertainty
C) change; complexity
D) complexity; risk
E) complexity; impact
119) _____
120) Given a choice, most managers would prefer to operate in cell 1 of the
120) _____
environmental uncertainty matrix, where the environment is __________.
A) complex and dynamic
B) dynamic and flexible
C) complex and stable
D) simple and dynamic
E) simple and stable
Refer to the Scenario below to answer the questions that follow.
The External Environment (Scenario)
DigiTech Corporation is a manufacturer of handheld language translation devices. There are
many forces in the external environment that influence DigiTech, and its managers are
monitoring them closely. One factor is the upcoming federal election. If elected, the leading
political candidate has promised to cut corporate taxes to help stimulate the economy. Another
factor is the emergence of new competitors with products similar to DigiTech's best-selling model:
the Speak-Easy. Advances in the processing speed of computer chips have shortened product
development cycles and made it easier for new companies to enter the market. Unfortunately, the
recent increase in competition has led to supplier shortages of key components like microphones
and micro-speakers, and left DigiTech scrambling to find new sources!
121) The external environment of DigiTech consists of the specific
environment, __________.
A) general environment, and secondary environment
B) specific environment, and organizational culture
C) primary environment, and secondary environment
D) general environment, and global environment
E) primary environment, and global environment
121) _____
122) The upcoming federal election and the potential change of government
involves which factor in DigiTech's external environment?
A) political/legal conditions
B) demographic conditions
C) sociocultural conditions
122) _____
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D) economic conditions
E) global conditions
123) The politician's promise to lower corporate taxes could affect which
factor in DigiTech's external environment?
A) sociocultural conditions
B) technological conditions
C) political/legal conditions
D) global conditions
E) economic conditions
123) _____
124) Rapid changes in __________ conditions have resulted in shorter
product development cycles for DigiTech.
A) technological
B) economic
C) sociocultural
D) global
E) political/legal
124) _____
125) In DigiTech's specific environment, the number of __________ is
increasing and there are shortages among its key __________.
A) suppliers; investors
B) competitors; suppliers
C) customers; competitors
D) pressure groups; customers
E) investors; agents
125) _____
Refer to the scenario below to answer the
questions that follow.
Managing Stakeholder Relationships (Scenario)
Daniel Guzman has been hired by Flair Fashion Corporation, a manufacturer of precious metal
jewelry. Flair Fashion has been having problems with some of its major stakeholders. These
include poor quality materials from its suppliers and complaints from its customers. Daniel has
been hired to help resolve the current issues and to develop a plan for managing other
stakeholder problems in the future.
126) Daniel begins by defining stakeholders as __________.
A) the constituencies in the external environment that own shares in
the organization
B) any constituencies in the external environment that are affected by
the organization's decisions and actions
C) the constituencies in the external environment that regulate the
industry
D) the constituencies in the external environment that are employed
by the organization
E) the constituencies in the external environment that compete with
the organization
126) _____
127) Daniel decides how critical each stakeholder is to the organization. This
is the __________ step in managing stakeholder relationships.
127) _____
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A)
B)
C)
D)
E)
fifth
first
second
fourth
third
128) Daniel identifies who the organization's stakeholders are. This is the
__________ step in managing stakeholder relationships.
A) fourth
B) second
C) fifth
D) first
E) third
128) _____
129) Daniel determines what the particular interests or concerns of each
stakeholder might be. This is the __________ step in managing
stakeholder relationships.
A) second
B) fifth
C) third
D) fourth
E) first
129) _____
130) Daniel determines how to manage the different stakeholder
relationships based on how uncertain the environment is. This is the
__________ step in managing stakeholder relationships.
A) second
B) third
C) first
D) fifth
E) fourth
130) _____
Refer to the paragraph below to answer the questions that follow.
International Entrepreneurs (Scenario)
Jennifer and James have formed an entrepreneurial venture to develop software for banks and
other financial institutions. Their company is growing, but in looking for opportunities in the
future, they decide to explore international operations.
131) By establishing their company's operations in Canada, Jennifer and
James hoped that an existing regional trade agreement would help them
to avoid tariffs in __________.
A) Europe
B) Southeast Asia
C) South America
D) Japan and Germany
E) Mexico and the United States
131) _____
132) As their international operations grew, Jennifer and James decided to
decentralize management and hire foreign nationals to run the business
in
local
their countr
Full file at http://emailtestbank.com/ Test-Bank-for-Fundamentals-of-Management-Fifth-Canadian-Edition-5th-Edition-by-Robbins
ies. Their 132)
firm has
develope
d into a
________
__.
A)
B)
C)
D)
E)
____
_
transnational corporation
multinational corporation
joint venture
global trade alliance
borderless organization
133) A new and exciting opportunity has appeared that enables Jennifer and
James to form a joint venture with a bank in Japan. This partnership will
involve less risk and commitment than __________.
A) setting up a foreign subsidiary
B) licensing
C) foreign contracting
D) franchising
E) exporting
133) _____
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Full file at http://emailtestbank.com/ Test-Bank-for-Fundamentals-of-Management-Fifth-Canadian-Edition-5th-Edition-by-Robbins
134)
_____
A) joint venture
B) export alliance
C) strategic alliance
D) franchise
E) foreign subsidiary
Refer to the Scenario below to answer the questions that follow.
A Speech on Trade Alliances (Scenario)
As manager of the international department for your company, you have been asked by the local
Chamber of Commerce to deliver a speech on global trade. The presentation should include an
overview of the world's major trade alliances and mechanisms that promote global trade. The
Chamber president has also asked you to comment on a recent quote by a local politician who
stated: "NAFTA has been a bad deal for Canada and it continues to weaken our economy." As
you review your notes, you wonder how you will fit all the information into the allotted
half-hour presentation time!
135) To help explain the main advantages of regional trade alliances, you
will point out that EU member countries now have __________.
A) nationalistic policies
B) government subsidies
C) protected industries
D) border controls
E) a single market
135) _____
136) You also plan to discuss other regional trading alliances like the one in
Southeast Asia called __________.
A) Mercosur
B) FTASAN
C) ASEAN
D) the Southern Cone Common Market
E) SEAFTA
136) _____
137) Before you conclude your speech, you intend to explain how the WTO
operates as __________.
A) a mechanism to discourage global trade and protect the
environment
B) a unilateral trading system
C) the only global organization dedicated to protecting the rights of
workers in multinational corporations
D) a global organization that deals with the rules of trade among
nations
E) the only global organization that monitors and promotes
competition between nations
137) _____
Refer to the Scenario below to answer the questions that follow.
The European Expansion (Scenario)
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As a manager at a growing Canadian company, Samantha has been asked to develop a strategy
to expand the company's operations into the European market. Although the company president
has provided some basic guidelines about acceptable levels of risk and investment, there are still
many factors in the legal-political, economic, and cultural environments that Samantha must take
into consideration in her proposal.
138) Samantha begins to explore expansion opportunities in England and
France because of language similarities with the Canadian market, and
also because her Canadian managers are used to legal and political
systems that are __________.
A) fixed
B) command-based
C) dynamic
D) stable
E) flexible
138) _____
139) Samantha is considering whether her company should open a
subsidiary in Germany or Italy. She is wondering which country's
culture would be better suited to her company, since research indicates
that __________.
A) national culture has a greater effect on employees than
organizational culture
B) national culture and organizational culture have roughly the same
effect on employees
C) organizational culture has a greater effect on employees than
employment laws
D) organizational culture has a greater effect on employees than
national culture
E) national culture has a greater effect on employees than economic
conditions
139) _____
140) Samantha will recommend forming a strategic alliance with a
Swiss-based company that promises to market her company's products
in several EU countries in exchange for access to her company's
distribution network in Canada and the United States. This strategy will
require less investment than __________.
A) franchising
B) establishing a subsidiary
C) establishing a joint venture
D) licensing
E) exporting
140) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
141) In a short essay, differentiate between the symbolic view and the omnipotent view
of management. Include specific examples of each view to support your answer.
142) Identify the factors in the specific, general and global environments that can
influence an organization.
143) In a short essay, name and briefly describe three major regional trading alliances.
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144) In a short essay, explain the difference between a multinational corporation (MNC),
a transnational corporation (TNC), and a borderless organization. Include examples
of companies for each of the types of organizations discussed.
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1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
22)
23)
24)
25)
26)
27)
28)
29)
30)
31)
32)
33)
34)
35)
36)
37)
38)
39)
40)
41)
42)
43)
44)
45)
46)
47)
48)
49)
50)
FALSE
TRUE
TRUE
FALSE
FALSE
TRUE
FALSE
TRUE
TRUE
TRUE
FALSE
FALSE
TRUE
TRUE
FALSE
FALSE
TRUE
TRUE
TRUE
FALSE
FALSE
TRUE
FALSE
FALSE
FALSE
FALSE
TRUE
TRUE
FALSE
FALSE
TRUE
FALSE
TRUE
FALSE
D
A
C
E
C
C
B
B
D
B
A
C
D
C
E
D
Full file at http://emailtestbank.com/ Test-Bank-for-Fundamentals-of-Management-Fifth-Canadian-Edition-5th-Edition-by-Robbins
51) E
52) A
53) C
54) D
55) D
56) C
57) B
58) C
59) E
60) D
61) D
62) A
63) E
64) E
65) B
66) E
67) B
68) C
69) C
70) B
71) A
72) A
73) C
74) B
75) E
76) D
77) D
78) D
79) C
80) E
81) E
82) B
83) E
84) C
85) E
86) E
87) E
88) E
89) D
90) C
91) B
92) E
93) A
94) D
95) D
96) A
97) D
98) B
99) B
100) B
101) E
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102) D
103) A
104) E
105) B
106) A
107) D
108) B
109) B
110) E
111) A
112) D
113) A
114) C
115) E
116) E
117) B
118) D
119) C
120) E
121) D
122) A
123) E
124) A
125) B
126) B
127) E
128) D
129) A
130) E
131) E
132) A
133) A
134) D
135) E
136) C
137) D
138) D
139) A
140) B
141) a.
The view of managers as omnipotent is consistent with the stereotypical picture of
the take-charge business executive who can overcome any obstacle in carrying out the
organization's objectives. This omnipotent view isn't limited to business organizations. It
can also be used to help explain the high turnover among college and professional sports
coaches, who can be considered the "managers" of their teams. Coaches who lose more
games than they win are seen as ineffective. They are fired and replaced by new coaches
who, it is hoped, will correct the inadequate performance. In the omnipotent view, when
organizations perform poorly, someone has to be held accountable regardless of the
reasons why, and in our society, that "someone" is the manager. Of course, when things go
well, someone needs to be praised. So the manager also gets the credit even if they had
little to do with achieving positive outcomes.
b.
The symbolic view says that a manager's ability to affect outcomes is influenced
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and nal factors. In this view, it is unreasonable to expect managers to significantly affect an
const organization's performance. Instead, an organization's results are influenced by factors
raine outside the control of management. These factors include the economy, market changes,
d by governmental policies, competitors' actions, conditions in the particular industry, control
exter over proprietary technology, and decisions made by the previous manager.
142) The specific environment includes customers, suppliers, competitors, and public pressure
groups. The general environment includes the broad economic, political/legal, sociocultural,
demographic and technological conditions that may affect an organization. Changes in the
specific environment usually have a greater impact on the organization than changes in the
general environment.
The global market presents many opportunities and challenges for the modern manager.
The issues addressed in the general environment (economic, demographic, technological,
sociocultural and legal-political) need to be examined with a global perspective in mind as
well. With the entire world as a market and national borders becoming increasingly
irrelevant, the potential for intelligent organizations to grow expands dramatically.
143) a.
The European Union the signing of the Maastricht Treaty created the European
Union. This treaty united 12 countries (27 by 2007) Belgium, Denmark, France, Greece,
Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, and
Germany originally as a unified economic and trade entity. The growing trading block
now encompasses a population base of well over 450 million people. As a single market,
the EU has eliminated barriers to travel, employment, investment and trade between
member nations, and introduced a common currency, the euro, which most member
countries have chosen to adopt.
b.
North American Free Trade Agreement (NAFTA) when the Mexican, Canadian,
and U.S. governments reached agreements on key issues covered by NAFTA in August,
1992, a vast economic bloc was created. Between 1994, when NAFTA went into effect, and
2003, Canada remained the United States' number-one trading partner. In 2003, Canadian
exports to the U.S. were $331 billion, accounting for 83 percent of our total exports, roughly
equivalent to one-third of our GDP. Many economists argue that eliminating the barriers to
free trade has resulted in a strengthening of the economic power of all three countries.
c.
Association of Southeast Asian Nations (ASEAN) the ASEAN is a trading
alliance of 10 Southeast Asian nations. During the years ahead, Asia, and particularly the
Southeast Asian region, promises to be one of the fastest-growing economic regions of the
world. It will be an increasingly important regional economic and political alliance whose
impact eventually could rival that of both NAFTA and the EU.
144) a.
Multinational corporation: This kind of organization which maintains significant
operations in multiple countries but is managed from a base in the home country
inaugurated the rapid growth in international trade. With its focus on control from the
home country, the MNC is characteristic of the ethnocentric attitude. Some examples of
companies that can be considered MNCs include: Bombardier, Alcan, Sony, Deutsche Bank
AG, and Merrill Lynch. Although these companies have considerable global holdings,
management decisions with company-wide implications are made from headquarters in
the home country.
b.
Transnational corporation (TNC): This company maintains significant operations
in more than one country but decentralizes management to the local country. This type of
organization doesn't attempt to manage foreign operations from its home country. Instead,
local employees typically are hired to manage the business, and marketing strategies for
each country are tailored to that country's unique characteristics. This type of global
organization reflects the polycentric attitude. For example, Switzerland-based Nestl , the
world's largest food company, can be described as a transnational. With operations in
almost every country on the globe, its managers match the company's products to its
Full file at http://emailtestbank.com/ Test-Bank-for-Fundamentals-of-Management-Fifth-Canadian-Edition-5th-Edition-by-Robbins
cons
umer
s. In
parts
of
Euro
pe,
Nestl
sells
prod
ucts
that
are
not
avail
able
in
Nort
h or
Latin
Ame
rica.
c.
Bord
erles
s
orga
nizat
ion
beca
use
of
the
incre
asing
ly
glob
al
envir
onm
ent,
man
y
large
wellkno
wn
com
panies are moving to more effectively globalize their management structure by eliminating
structural divisions that impose artificial geographical barriers. The borderless
organization approaches global business from a geocentric attitude. For example, IBM
dropped its organizational structure based on country and reorganized into 14 industry
groups. Borderless management is an attempt by organizations to increase efficiency and
effectiveness in a competitive global marketplace.