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lOMoARcPSD| 36067889 Chapter 3
The Environment and Corporate Culture
Multiple Choice Questions 1.
Palmisano’s new strategy requires IBM to be __________. a. fast b. flexible c. innovative d. relationship focused e. all of the above Answer: e Level: 3 Page: 81 Type: F 2.
According to the opening case, IBM once a leader in the technology
industry, was almost a hasbeen by losing __________ dollars in one year. a. 7 million b. 8 million c. 7 billion d. 8 billion e. 5 billion Answer: d Level: 2 Page: 81 Type: F 3.
Which of these includes all elements existing outside the boundary of the
organization that have the potential to affect the organization? a. Organizational environment b. Internal environment c. Task environment d. General environment e. Technological environment Answer : a Level : 2 Page : 82 Type : F 4.
Which of these is a part of an organization's internal environment?
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 a. Its customers b. Its salespeople c. The consumer price index d. Its suppliers e. Its competitors Answer: b Level: 2 Page: 83 Type: F 5.
__________ system draws resources from the external environment and
releases goods and services back to it. a. production b. closed c. open d. information e. management Answer: c Level: 2 Page: 83 Type: F 6.
is a part of Ford’s, a U.S. auto manufacturer, task environment. a. Inflation rate b. Chrysler c.
Securities and Exchange Commission (SEC), a government regulating agency d.
Amazon.com, an online bookseller e. Ford’s corporate culture Answer: b Level: 2 Page: 83 Type: A 7.
Ally Likens received “The Employee of the Month” Award at Internal Workings
Remodeling Service in April. Ally would be considered a part of which of these for Internal Workings? a. General environment b. Task environment c. Economic environment d. Internal environment e. Political activity Answer: d Level: 2 page: 83 Type: A 8.
The environment represents the outer layer of the environment and affects organizations .
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 a. task; indirectly b. general; directly c. internal; directly d. internal; indirectly e. general; indirectly Answer: e Level: 2 Page 83 Type: F 9.
Which of these is NOT a part of an organization's task environment. a. Customers b. Labor markets c. Competitors d. Employers e. Suppliers Answer: d Level: 2 Page: 83 Type: F 10.
Which of these is NOT a part of an organization's general environment? a. Technological b. Economic c. Competitors d. Legal-political e. Sociocultural Answer: c Level: 1 Page: 83 Type: F 11.
Which dimension of the external environment represents events
originating in foreign countries as well as opportunities for American companies in other countries? a. National dimension b. Global dimension c. International dimension d. Japan’s dimension e. U.S. dimension Answer: c Level: 1 Page: 84 Type: F 12.
In a recent survey of managers, __________ % said that multicultural
experience is important for leaders. a. 15 b. 18 c. 20
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 d. 28 e. 30 Answer: d Level: 2 Page: 84 Type: F 13.
Scientific and technological advancements in a specific industry as well
as in society at large are included in which general environment dimension? a. Sociocultural dimension b. Legal-political dimension c. Economic dimension d. Technological dimension e. Corporate culture dimension Answer: d Level: 1 Page: 84 Type: F 14.
The dimension of the general environment representing the demographic
characteristics, norms, customs, and values of the population within
which the organization operates is referred to as a(n) a. legal-political dimension. b. economic dimension. c. technological dimension. d. corporate culture dimension. e. sociocultural dimension. Answer: e Level: 1 Page: 85 Type: F 15.
When Miami Herald launches a Spanish-language newspaper, El Nuevo
Herald, with articles emphasizing Hispanic, Cuban, and Latin American
news and sports, it is responding to changes in environment. a. sociocultural b. technological c. economic d. competitors e. suppliers Answer: a Level: 2 Page: 85 Type: A 16.
__________environment consists of demographic factors, such as population density. a. Technological
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 b. Sociocultural c. Legal-political d. Internal e. Economic Answer: b Level: 2 Page: 85 Type: F 17.
The general environment dimension that includes consumer purchasing
power, the unemployment rate, and interest rates is called the a. legal-political dimension. b. sociocultural dimension. c. technological dimension. d. economic dimension. e. task dimension. Answer: d Level: 2 Page: 86 Type: F 18.
A recent significant trend in the economic environment is the frequency
with which companies seem to be involved in __________. a. mergers b. bankruptcy c. reorganizations d. layoffs e.
expansions outside the United States. Answer: a Level: 2 Page: 86 Type: F 19.
A government inspection has required your company to upgrade the
safety equipment in the manufacturing process of ice creamery. What
dimension of the external environment has influenced these upgrades? a. Technological b. Legal-political c. Task d. Sociocultural e. Economic Answer: b Level: 2 Page: 87 Type: A 20.
What dimension of the general environment includes federal, state, and local government regulations? a. Technological
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 b. Legal-political c. Economic d. Sociocultural e. International Answer: b Level: 1 Page: 87 Type: F 21.
An interest group that works within the legal-political framework to
influence companies to behave in socially responsible ways is called a(n) a. pressure group. b. legal group. c. political influence group. d. social group. e. none of the above. Answer: a Level: 1 Page: 87 Type: F 22.
IBM, Gateway, and Compaq were vying for dominance in the computer
industry. This is an example of which of the following? a. Task/legal political b. General/competitor c. Task/competitor d. General/economic e. Task/technological Answer: c Level: 2 Page: 88 Type: A 23.
When Ford Motor Company, the U.S. auto manufacturer, buys tires for its
cars from Firestone, it represents which dimension of the following? a. Task/customer b. General/customer c. Task/competitor d. Task/supplier e. Task/economic Answer: a Level: 2 Page: 88 Type: A 24.
For Southwest Airlines, all of the following can be suppliers EXCEPT a. Exxon (providing jet fuel). b.
Citibank (providing finances). c.
Delta Airlines (providing competition).
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 d. Boeing (providing planes). e.
All of the above are suppliers for Southwest Airlines. Answer: c Level: 3 Page: 88 Type: A 25.
Integrated Computers, Inc. wants to compile a profile of the customer it
will target in its next promotional mailing. What environment would this be found in? a. Internal environment b. Task environment c. Work environment d. General environment e. None of the above Answer: b Level: 2 Page: 88 Type: A 26.
__________ are included in an organization's task environment. a. Suppliers b. Accounting procedures c. Technology d. Government e. Demographic characteristics Answer: a Level: 2 Page: 88 Type: F 27.
Traditionally, many manufacturer and ________ relationships have been
adversarial, but recently, companies are finding that cooperation is the
key to saving money, maintaining quality, and speeding products to market. a. government b. employee c. supplier d. special interest groups e. customer Answer: c Level: 1 Page: 89 Type: F 28.
The represents people in the environment who can be hired to work for the organization. a. competitors b. labor market c. suppliers
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 d. customers e. government Answer: b Level: 1 Page: 89 Type: F 29.
Abraham’s Applesauce is in the process of hiring sixty new workers. The
personnel department has a large pool of unskilled labor to draw from due
to the high unemployment rate in the local area. Which dimension of the
external environment is involved here? a. Sociocultural b. Competitors c. Technological d. Labor market e. Legal-political Answer: d Level: 2 Page: 89 Type: A 30.
Which statement below is correct? a.
When environment is dynamic, uncertainty is low. b.
When the environment is unstable, uncertainty is low. c.
A dynamic environment has more uncertainty than a stable environment. d.
The stability of the environment does not determine the structure of the firm. e. None of the above. Answer: c Level: 3 Page: 91 Type: F 31.
Which of the following is NOT a part of adapting the organization to
changes in the environment for coping with high environmental uncertainty? a. Boundary-spanning roles b. Advertising/public relations c. Mergers/joint ventures d. Flexible structures e.
All of the above are a part of organizational response in adapting the organization
to changes in the environment. Answer: b Level: 2 Page: 91 Type: F 32.
Sarah’s Jewelry Shop has just hired a comparative shopper to visit other
local jewelry stores to gain product pricing information. What strategy is this describing? a. Boundary-spanning roles
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 b. A flexible structure c. Unfair practice d.
Increase planning and forecasting e. Joint venture Answer: a Level: 2 Page: 92 Type: A 33.
Based on the notion that organizations are dealing with a very turbulent
and uncertain external environment, more organizations are requiring
__________ to perform boundaryspanning activities. a. top leaders b. middle managers c. line managers d. all employees e. suppliers Answer: d Level: 2 Page: 92 Type: F 34.
Many organizations are adapting to the environment by developing more
of a __________ relationship rather than a _________ relationship with competitors. a. adversarial, partnership b. partnership, adversarial c. strategic, competitive d. competitive, strategic e. none of the above Answer: b Level: 2 Page: 93 Type: F 35.
Companies can reduce boundaries and increase collaboration with other organizations by creating a. flexible structures. b.
interorganizational partnerships. c. new company cultures. d. new supplier connections. e. none of the above. Answer: b Level: 1 Page: 93 Type: F 36.
When two or more organizations combine to become one, it is referred to as a a. joint venture.
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 b. flexible structure. c. mechanistic structure. d. merger. e. inorganic venture. Answer: d Level: 1 Page: 95 Type: F 37.
In a joint venture between large and small businesses, large businesses
can provide all of the following EXCEPT a. sales staff. b. research staff. c. financial resources. d. distribution channels. e. top level management. Answer: e Level: 2 Page: 95 Type: F 38.
Which of these defines culture? a.
The set of key values, beliefs, understandings, and norms shared by members of an organization b.
The ability to speak different languages c.
An object, act, or event that conveys meaning to others d.
A narrative based on true events that is repeated frequently and shared by organizational employees e. None of the above Answer: a Level: 1 Page: 95 Type: F 39.
Which of these is associated with surface level of organizational culture? a. Values b. Norms c. Manners of dress d. Beliefs e. All of the above. Answer: c Level: 2 Page: 95 Type: F 40.
Which of the following would be considered a visual representation(s) of
a company's corporate culture?
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 a.
All department heads have an executive office. b.
Each department has an award plaque for employee of the month. c.
All employees are dressed in professional business attire. d.
Top level executives drive company owned sports car. e. All of the above. Answer: e Level: 2 Page: 96 Type: A 41.
An object, act, or event that conveys meaning to others is referred to as a a. symbol. b. slogan. c. story. d. hero. e. culture. Answer: a Level: 1 Page: 96 Type: F 42.
Symbols, stories, and heroes are important because they a.
entertain executive level management. b.
address the concerns of government. c.
acquaint customers to the organization. d.
communicate the significant values of an organization. e.
give employees something to talk about. Answer: d Level: 1 Page: 96 Type: F 43.
Heroes are important to an organization due to the fact that they a.
exemplify key values of the organization. b.
exemplify a strong corporate culture. c.
serve as examples to other employees. d. all of the above. e. none of the above. Answer: d Level: 2 Page: 97-98 Type: F 44.
Which of these is a narrative based on true event that is repeated
frequently and shared by organizational employees? a. Symbol b. Slogan c. Story
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 d. Hero e. Culture Answer: c Level: 1 Page: 97 Type: F 45.
A figure who exemplifies the deeds, character, and attributes of a
corporate culture is referred to as a a. symbol. b. stories. c. slogan. d. hero. e. culture. Answer: d Level: 1 Page: 97 Type: F 46.
Which of these represent a phrase or sentence that succinctly express a key corporate value? a. Symbol b. Stories c. Culture d. Hero e. Slogan Answer: e Level: 1 Page: 98 Type: F 47.
McDonald’s “We Love to See You Smile” represents a a. ceremony. b. symbol. c. ritual. d. slogan. e. political activity. Answer: d Level: 2 Page: 98 Type: A 48.
“Chiquita. Perfect For Life.” was Chiquita’s a. ceremony. b. slogan.
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 c. symbol. d. ritual. e. all of the above. Answer: b Level: 2 Page: 98 Type: A 49.
If a company emphasizes that “no purchase is complete until the customer is satisfied,” then it's a. utilizing a symbol. b.
communicating its values to customers. c.
using a slogan to present their values to customers and employees. d.
utilizing a hero for the purpose of conveying values. e.
using customers to harass the employees. Answer: c Level: 1 Page: 98 Type: A 50.
What are managers concerned with in adaptive cultures? a.
Customers and processes that bring about useful change b. Themselves c.
All people who have ideas on changing the company d. Their immediate work group e. All of the above Answer: a Level: 2 Page: 99 Type: F 51.
Culture tends to differ between __________, but appears similar within __________. a. organizations, industries b. people, organizations c. groups, industries d. organizations, groups e.
industries, geographical regions Answer a Level: 2 Page: 99 Type: F 52.
All of the following are types of corporate cultures except a. adaptability culture. b. clan culture. c. consistency culture. d. involvement culture. e. achievement culture.
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 Answer: d Level: 2 Page: 100 Type: F 53.
The adaptability culture emerges in an environment that requires ______
response and ______ decision making. a. fast; high-risk b. fast; low-risk c. slow; high-risk d. slow; low-risk e. regulated; low-risk Answer: a Level: 3 Page: 100 Type: F 54.
__________ is suited to organizations that are concerned with servicing
specific customers in the external environment but without the intense
need for flexibility and rapid change. a. Adaptability culture b. Clan culture c. Achievement culture d. Consistency culture e. None of the above Answer: c Level: 2 Page: 101 Type: F 55.
The involvement culture has a(n) ________ focus on the involvement and
participation of employees to rapidly meet changing needs from the environment. a. external b. internal c. structural d. competitive e. technological Answer: b Level: 1 Page: 101 Type: F 56.
The consistency culture has a(n) ________ focus and an orientation for a ________ environment. a. external; stable b. external; dynamic c. internal; stable d. internal; dynamic e. structural; dynamic
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 Answer: c Level: 3 Page: 102 Type: F 57.
What is significant about corporate culture? a.
It is exactly the same for all companies within an industry. b.
It is the same regardless of the organization's environment. c.
It holds the people of an organization together. d.
It is only important to the top levels of management. e.
Having a culture directly translate into higher profitability. Answer: c Level: 2 Page: 102 Type: F 58.
Which of these is false about culture? a.
It serves as a compass for employee behavior. b.
It enables dispersed employees to work in concert toward shared goals that
meet changing needs from the environment. c.
It serves as the glue that gives people a sense of belonging. d.
Having a culture directly translates into higher profitability. e. All of the above are correct. Answer: d Level: 2 Page: 102-103 Type: F 59.
By defining and using signals and symbols, __________ influence corporate culture. a. corporate leaders b. team leaders c. cultural leaders d. industry leaders e. directional leaders Answer: c Level: 1 Page: 104 Type: F 60.
In a study by Kotter and Haskett evidence is provided to support the claim
that __________ is important for performance. a. managing cultural values b.
leading partnerships within an industry c.
surveying the external environment d.
managing client relationships as boundary spanners e. empowering employees Answer: a Level: 2 Page: 104 Type: F 61.
Leaders create a culture that everyone can believe in by directly involving
employees in determining what the company’s ________ should be.
Chapter Three * The Environment and Corporate Culture Test Bank lOMoARcPSD| 36067889 a. structure b. values c. budget d. socialization process e. selection process Answer: b Level: 2 Page: 104 Type: F 62.
For values to guide the organization, managers must __________. a.
make sure employees actions fit in the culture b. model the behavior c. select employees that fit d. understand how to do business e.
ask employees to stretch boundaries Answer: b Level: 2 Page: 105 Type: F
Chapter Three * The Environment and Corporate Culture Test Bank