Understanding Organizational Influences and Environmental Complexity, Exams of Marketing Business-to-business (B2B)

Download Understanding Organizational Influences and Environmental Complexity and more Exams Marketing Business-to-business (B2B) in PDF only on Docsity! HRE test 2 Questions and Answers. The two ways in which the environment influences organizations are the need for information about changes in the environment and the need for : - Correct answer resources from the environment. _____ link and coordinate an organization with key elements in the external environment. - Correct answer Boundary-spanning roles Which of the following is a characteristic of the general environment? - Correct answer It includes those sectors that will indirectly impact a firm. The sociocultural sector of an organization is concerned with issues such as: - Correct answer the working conditions of workers hired by contractors Environmental complexity refers to heterogeneity, or the number and dissimilarity of external elements that affect an organization's operations. - Correct answer True When several sectors change simultaneously, the environment becomes _____. - Correct answer Turbulent Economic conditions are included in the general environment. - Correct answer True In organizations characterized by very simple, stable environments, almost no managers are assigned to integration roles. - Correct answer True Universities function in the _____ environment. - Correct answer Complex and stable Environmental _____ refers to heterogeneity, or the number and dissimilarity of external elements. - Correct answer Complexity Imagine the day when artificial intelligence will enable all of us to drive fully autonomous vehicles that can navigate directions on their own and respond to the movement of surrounding vehicles. Our cars and trucks will take us wherever we want to go while we talk, read, watch streaming media, or even take naps on the way. Of the following industries, which will be most affected by this dramatic change in the technology sector? - Correct answer Car insurance providers Leo Burton is the CEO of a cigarette manufacturing company. He and his employees suffered a major loss when tobacco products were banned in his country. Leo's organization was affected by changes in the _____. - Correct answer government sector Which of the following is a characteristic of the complex, stable environment? - Correct answer External elements do not change rapidly in this environment. A(n) _____ involves the purchase of one organization by another so that the buyer assumes control. - Correct answer acquisition As the CEO of a furniture manufacturer in Michigan, you are painfully aware that sales have been dropping off in recent years, forcing you to lay off some employees and decrease production. You aren't sure why, but you thought it was due to competition from foreign manufacturers entering the U.S. market. The HR manager just told you something that has made you pause. She says that a number of employees have recently quit their jobs in your factory to go work for two other manufacturers in the same area, both of which are increasing production. What step should you take to cope with the uncertainty? - Correct answer Form a competitive intelligence team to study your organization's competitors Percy developed a new accounting system which processed data that was previously computed by ten accountants. As a result, the new technology replaced ten employees. Due to Percy's innovation, the technological sector impacted the _____ environment of the organization. - Correct answer General A complex environment is one in which an: - Correct answer organization interacts with and is influenced by numerous diverse external elements An organization's _____ is the chosen environmental field of action. - Correct answer Domain A relatively small grocery store chain operates 35 stores in three New England states. Recently, the organization has been facing intensified competition from resource-rich dominant players like Kroger and Walmart, new players with innovative services like Amazon, and new low-cost leaders like Aldi. This small chain is seeing declining sales because it cannot offer consumers the same or better products, services, or prices as any of these competitors. Which type of interorganizational relationship does this describe? - Correct answer Resource dependence Business intelligence refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant. - Correct answer True ou are one of the co-founders of Omnitech Games, an app developer that creates games that can be played on smartphones. Your organization has had three major successes, but it has also developed a couple of duds that didn't sell at all. You and your partner recognize you're operating in a challenging, ever-changing environment. You want to make sure you're creating new games that will take advantage of technological changes, appeal to evolving consumer preferences, and beat the growing number of competitors. What step should you take to help cope with the uncertainty? - Correct answer Create two boundary-spanning roles to monitor technological advances and consumer preferences Imagine the day when artificial intelligence will enable all of us to drive fully autonomous vehicles that can navigate directions on their own and respond to the movement of surrounding vehicles. Our cars and trucks will take us wherever we want to go while we talk, read, watch streaming media, or even take naps on the way. Of the following industries, which will be most affected by this dramatic change in the technology sector? - Correct answer Car insurance providers Leo Burton is the CEO of a cigarette manufacturing company. He and his employees suffered a major loss when tobacco products were banned in his country. Leo's organization was affected by changes in the _____. - Correct answer government sector Melissa works in the fashion industry. Her job is to research, by analyzing social media, the growing trends among youth. Her company designs and manufactures clothing based on her analysis. Melissa is a part of the _____ sector of the task environment. - Correct answer Market Which of the following statements is true of environmental complexity? - Correct answer It refers to the number and dissimilarity of external elements. Over the last five years Omnitech Games, an app developer that creates games that can be played on smartphones, has released one new game app each year. Three of them have become huge hits, earning the company more revenues than the co-owners ever imagined. This year, however, it looks like a recently released app from one of the dozens of new competitors that enter the market every year is going to be the big hit of the season. Into which quadrant of the environmental uncertainty framework does Omnitech Games fall? - Correct answer Simple and unstable with high-moderate uncertainty Environmental complexity refers to heterogeneity, or the number and dissimilarity of external elements that affect an organization's operations. - Correct answer True Which of the following is a characteristic of the simple, stable environment? - Correct answer It has few external elements that change slowly. Economic conditions are included in the general environment. - Correct answer True An organization's _____ is the chosen environmental field of action. - Correct answer domain Boundary spanners prevent an organization from stagnating by keeping top managers informed about environmental changes. - Correct answer True Uber, one of the biggest peer-to-peer ridesharing and delivery organizations, has recognized that self-driving vehicles would eliminate the organization's need for human drivers, which are its biggest operating expense. Thus, the organization set up a new division dedicated to developing self-driving vehicles and sought out investments of $1 billion. Toyota then committed to contributing somewhere between $500 and $800 million to Uber's product development. Why is Toyota such a good ally for Uber? - Correct answer Toyota is able to offer valuable financial and technological resources. Environmental _____ refers to heterogeneity, or the number and dissimilarity of external elements. - Correct answer . complexity Cooptation occurs when leaders from important sectors in the environment are made part of an organization. - Correct answer True You've just started your new job as the Operations Manager of an organization that manufactures wooden toys and other household items made from wood, and now you're hearing about all kinds of issues. Demand for the organization's products has grown so rapidly that the production plant can barely keep up. Plus, the plant's foreman says he doesn't receive the right raw materials at the right times, and you've discovered that there isn't a good system in place for ordering these supplies. To top it all off, the sales team is worried that the organization won't be able to fill all the orders, now that they've worked so hard to find great customers. What is the first step you should take to cope with the uncertainty? - Correct answer . Establish a materials purchasing department, which will act as a buffer department Located in central California's agricultural region, South Coast Fruits processes locally grown fruits of all kinds. Growers transport their crops to South Coast's facilities, and the organization then cleans, prepares, and packages the fruit for sale to grocery stores and other commercial buyers. Into which quadrant of the environmental uncertainty framework does South Coast Fruits fall? - Correct answer Simple and stable with low uncertainty Which of the following environments has the lowest level of uncertainty? - Correct answer The simple, stable environment In today's economy, organizations think of themselves as teams that _____ rather than autonomous companies that compete with all others. - Correct answer create value jointly modifications like this, it cost the mill more than a million dollars. In this instance, which type of forces could cause institutional adaptation? - Correct answer Coercive Garin Corp., an automobile manufacturing company, tried to increase its sales by releasing car models with new colors. In the light of its huge success, other automobile manufacturers began doing the same. Which of the following mechanisms for institutional adaptation is best illustrated in this scenario? - Correct answer Mimetic forces A company may use any or all of the mechanisms of mimetic, coercive, or normative forces to change itself for greater _____ in the institutional environment. - Correct answer legitimacy In the _____, companies join together to become more competitive and to share scarce resources. - Correct answer collaborative-network perspective Companies that use a global _____ structure have typically been those with mature product lines and stable technologies. - Correct answer geographic In intercultural teams, members remain in separate locations around the world and conduct their work electronically. - Correct answer False In the _____ stage of international development, a company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries. - Correct answer multinational In business for more than 30 years, you've seen the market for the engine parts you manufacture fluctuate, and you've learned the hard way that you've got to run a cost-effective business to weather the lean years. Recently, you've been wondering if you should invest in a new manufacturing plant in Asia or South America, where local raw materials and labor are less expensive. But then you'll have to balance that with the cost of the new plant, as well as the expense of shipping the finished goods back to your customers in the U.S. Which of the following provides the strongest motivation for you to expand globally? - Correct answer Low- cost production factors In the _____ stage of international development, market potential is limited and is primarily in the home country. - Correct answer domestic Hill Fog is a brand of bottled water in India. Asif, the marketing manager at Hill Fog, is aware of the global environment and is considering initial foreign involvement in the United States to expand production volume and realize economies of scale. Hill Fog is in the _____ stage of international development - Correct answer domestic Which of the following structures is great for standardizing production and sales around the globe? - Correct answer Global product structure You are the CEO of a global financial services organization with more than 100,000 employees operating in nearly 95 countries. You recognize the need for flexibility and autonomy among the different operating units, yet you want to unify and coordinate the organization's efforts so you've chosen to adopt a transnational model. How will you succeed in coordinating worldwide units? - Correct answer By creating and communicating a common strategic vision and values In a global _____ structure, for multinational corporations, the geographic distances for communication are greater and coordination is more complex than in other structures. - Correct answer Matrix Hanging up the phone after talking to the VP of Asia, you feel dismayed. You're the new CEO of a global organization that has four fairly autonomous divisions in Asia, North America, the Middle East, and Europe. You had asked the Asia VP if he would take over manufacturing capacitors for sale in Europe—the same capacitors he produces for the Asian market —so that you can shut down an expensive plant located in France. He refused because he said high shipping costs to Europe would make the production of the items less profitable and would therefore reflect badly on his division's bottom line. And sadly, this is just one example of resistance you've been getting from managers across all four independent divisions. Looking ahead, what should you do to address the need for better coordination in your global organization? - Correct answer Restructure the organization along global product lines, rather than geographic divisions Companies that have a presence in multiple countries gain marketing power and synergy compared to the same-size firm that has a presence in fewer countries. - Correct answer True Which of the following is true of country managers? - Correct answer They identify and link an organization's expertise and resources worldwide. Which of the following is true of a global product structure? - Correct answer It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world. Which of the following is a difference between the international division and the domestic division of a company? - Correct answer The international division is organized according to geographic interests, while the domestic division is typically organized along functional or product lines. Penrose Inc. is an American corporation that provides business consulting, information technology, and outsourcing services. The company has extensive experience in a number of international markets and has established facilities in several foreign countries. Penrose Inc. is in the _____ stage of international development. - Correct answer multinational As the product manager for the pudding product line of a growing snack foods manufacturer in the U.S., you were excited to learn that senior leadership is thinking about going global. However, initial research into new markets has revealed that consumers in Great Britain think your puddings are too sweet, while consumers in Bangladesh think your products aren't sweet enough. Plus, the target audience changed depending on the market, which means a unique marketing strategy for each. You're starting to doubt that entering foreign markets will work for your product and others made by your organization. Which strategy makes the most sense for your organization to use to expand globally? - Correct answer Multidomestic or localization strateg A global matrix structure works best when coordination to share resources is less important. - Correct answer False Over the years, Phoenix Electronics has grown through international acquisitions. The organization's many businesses are grouped into three geographic units: North America, South America, and Asia. Unfortunately, Which of the following refers to the set of moral principles and values that governs the behavior of a person or group with respect to what is right or wrong? - Correct answer Personal ethics Which of the following is one of the United Nations' Sustainable Development Goals related to the health of the world's economy? - Correct answer Ensure sustainable consumption and production patterns Operating with only 12 employees, Bay City Tax Associates is a privately owned, family-operated organization that provides tax and accounting services. Which of the following represents Bay City's three most important stakeholder groups? - Correct answer Owners, employees, customers Some years ago, Wells Fargo was caught up in a far-reaching and devastating scandal. Top-level executives wanted to increase the number of accounts and credit cards opened through the bank, so they set high quotas for bank tellers and bankers. In order to meet those quotas, employees began engaging in unethical behavior by convincing bank customers to open accounts and credit cards that they really didn't need or want. Some employees reported the problem to their managers, but the unethical practice continued, even though the organization's code stated that bank employees should operate in the best interest of the customers. Of the following, which is the most likely explanation of this widespread problem? - Correct answer The organization's culture favored financial performance over ethical behavior. You were brought in from another organization to assume the CEO position at Renew, a hybrid employment agency focused on putting the unemployed and underemployed back to work. Now that you're on the job, however, you can see that this organization is suffering from an extreme case of mission drift. Which of the following is the first technique you should employ to start restoring balance right away? - Correct answer Set clear goals, establish performance measurements, and communicate them out to the entire organization Which of the following is the best example of a sustainability effort? - Correct answer A paper mill redesigning the mill to use less water and lower the amount of emissions it releases into the environment The CEO has asked you to devise a way to generate ideas that will facilitate sustainability. Which of the following is the first step you would take to start designing a sustainability program in your organization? - Correct answer Set up multiple sustainability task forces made up of employees from all levels and all departments Hillary is the operations manager at HealthTrans, an organization that uses a fleet of about 30 vehicles to transport sick and elderly people to doctor and hospital appointments. The company uses a sophisticated computer system to combine trips and use its resources as efficiently as possible. Employees are reasonably well-paid with decent benefits, and they all value their contribution to the community. Recently, Hillary used an ESG scorecard to evaluate HealthTrans. She was somewhat surprised to find that the organization scored lower than she expected. Of the following, which step should Hillary take to raise the score? - Correct answer Start replacing company vehicles with hybrids or electric cars Now authorized in more than 20 states and the District of Columbia, a _____ corporation is a for-profit entity that specifies positive social and environmental impact as well as profit in its legally chartered goals. - Correct answer benefit Corporate social responsibility refers to an organization's contributions to the welfare and interests of: - Correct answer shareholders, employees, customers, members of the community, and the environment. Which of the following is one of the United Nations' Sustainable Development Goals related to the health of the biosphere? - Correct answer Conserve and sustain marine resources A hybrid organization is best served by a structure in which employees are divided into two departments: one focused on social welfare and the other focused on profit goals. - Correct answer False As the operations manager of a home appliance manufacturer, you've been asked to set key performance indicators to measure your organization's sustainability efforts. You've asked each department head to submit at least one sustainability KPI, and now you're in the process of reviewing their submissions. Some managers have done a great job, while others have missed the mark. Which of the following is an appropriate KPI? - Correct answer To reduce the amount of electric energy used in the manufacturing plants by 3% each year over the next 10 years When an organization is concerned about its social performance, its environmental performance, and its financial performance, it measures its actions using the: - Correct answer triple bottom line. Given that sustainability efforts add an extra burden of responsibility for most employees, it is better for an organization to create a separate department that designs, implements, and monitors sustainability programs. - Correct answer False Organizations operating on a global basis often face particularly tough ethical challenges due to the complexity of the environment. Which of the following statements about global ethical challenges is true? - Correct answer Broad, diffuse supply chains and cultural differences among employees of different nationalities are the two primary sources of ethical challenges for organizations doing business globally.