THE ENVIRONMENT AND CORPORATE CULTURE

TRUE/FALSE

1. The general environment and the task environment are the two layers of an organization's external environment.

ANS: T

2. The outer layer of the external environment is the task environment.

ANS: F

3. Current employees, management, and especially corporate culture are part of an organization's internal environment.

ANS: T

4. According to Spotlight on Skills in Chapter 2, the Chinese concept of guanxi is a supportive, mutually beneficial connection between two people.

ANS: T

5. According to Spotlight on Skills in Chapter 2, one of the rules of doing business in China is remembering that relationships are short-term.

ANS: F

6. Wine merchants have seen extraordinary growth in the sale of red wine and an associated decline in other types of alcoholic beverages because a large percentage of the Chinese market has adopted red wine consumption as the fad of the moment. This is an example of how the sociocultural dimension can influence an industry.

ANS: T

7. One significant trend in the economic environment is entrepreneurial start-ups that are taking advantage of new competitive rules.

ANS: T

8. The legislatures in many undeveloped nations are reducing perceived operational risks for foreign investors who are looking for new manufacturing locations. This would be part of the legal-political dimension of the general environment.

ANS: T

9. Customers and competitors are two important sectors of the economic dimension of a firm's general environment.

ANS: F

10. The task environment includes sectors that have a direct working relationship with the organization, such as customers, suppliers, and the labor market.

ANS: T

11. Suppliers are the people in the environment who acquire goods and services from the organization.

ANS: F

12. If British Petroleum (BP) provides jet fuel for American Airlines (AA), then BP is considered a supplier for AA.

ANS: T

13. Cooperation with suppliers is becoming an exception rather than the rule.

ANS: F

14. People in the environment who can be hired to work for an organization make up the labor market.

ANS: T

15. The reason that organizations care so much about the external environment is that this environment creates uncertainty for organization managers.

ANS: T

16. A merger occurs when there is a strategic alliance between two or more organizations.

ANS: F

17. The set of key values, beliefs, and norms that are shared by members of an organization are combined to create the symbols of an organization.

ANS: F

18. According to Spotlight on Skills in Chapter 2, it is important to demand documentation or proof for someone's ideas to be sure they are not plagiarizing.

ANS: FNAT: AACSB Analytic | Ethical Responsibilities

19. Corporate culture includes stories that keep an organization's values alive.

ANS: T

20. A symbol is a figure who exemplifies the deeds, character, and attributes of a corporate culture.

ANS: F

21. A slogan is a phrase or sentence that succinctly expresses a key corporate value.

ANS: T

22. The security supervisor who once challenged IBM's chairman because he wasn't carrying the appropriate clearance identification to enter a security area is an example of a hero.

ANS: T

23. An achievement culture is found in an environment that requires fast response and requires high-risk decision making.

ANS: F

24. The involvement culture is suited to organizations that are concerned with serving specific customers in the external environment but without the intense need for flexibility and rapid change.

ANS: F

25. The consistency culture has an internal focus and a consistency orientation for a dynamic environment.

ANS: T

26. When an organization pays little attention to either cultural values or business results, it is unlikely to survive for long.

ANS: T

27. A primary way in which managers shape cultural norms and values to build a high-performance culture is through cultural leadership.

ANS: T

MULTIPLE CHOICE

1. The ____ includes all elements existing outside the boundary of the organization that have the potential to affect the organization.a. organizational environmentb. internal environmentc. task environmentd. general environmente. technological environment

ANS: A

2. The ____ environment represents the outer layer of the environment and affects organizations ____.a. task; indirectlyb. general; directlyc. internal; directlyd. internal; indirectlye. general; indirectly

ANS: E

3. The organization's external environment has two layers: ____ and ____.a. general; taskb. general; internalc. internal; taskd. task; culturale. cultural; general

ANS: A

4. Which of these is a part of an organization's internal environment?a. its customersb. employeesc. the consumer price indexd. its suppliers

e. its competitors

ANS: B

5. The internal environment includes:a. current employees, management, and the corporate cultureb. current employees, management, but not the corporate culturec. government, technology, and the economyd. government, technology, corporate culture, and the economye. corporate culture alone

ANS: A

6. Mike Wood and Jim Marggraff discovered that as parents become more educated, they have higher demands for educational toys. Therefore, the LeapPad, an educational toy, was born. The creators of this new product had to keep all of the following in mind EXCEPT:a. internal environmentb. external environmentc. task environmentd. employee environmente. organizational environment

ANS: D

7. Which dimension of the general environment represents events originating in foreign countries as well as opportunities for American companies in other countries?a. national dimensionb. global dimensionc. international dimensiond. task dimensione. ethnocentric dimension

ANS: C

8. China has been referred to as "the workshop of the world" because so many manufacturers have relocated their operations to China to take advantage of its cheap, productive labor. The influence of the "workshop of the world" on global manufacturing illustrates which dimension of the general environment?a. national dimensionb. global dimensionc. international dimensiond. task dimensione. ethnocentric dimension

ANS: C

9. Which of these is NOT a part of an organization's general environment?a. technologicalb. economicc. competitors

d. legal-politicale. sociocultural

ANS: C

10. Scientific and technological advancements in a specific industry as well as in society at large are included in which general environment?a. sociocultural dimensionb. legal-political dimensionc. economic dimensiond. technological dimensione. corporate culture dimension

ANS: D

11. In the business world, computer networking and the use of microprocessors have allowed managers to monitor and control numerous automated production lines from off-site locations. This ability to increase productivity reflects how the ____ influences the general environment.a. sociocultural dimensionb. legal-political dimensionc. economic dimensiond. technological dimensione. corporate culture dimension

ANS: D

12. 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 dimensionb. economic dimensionc. technological dimensiond. corporate culture dimensione. sociocultural dimension

ANS: E

13. In past years, women in India have wanted a lighter complexion. Annual sales for skin lightening ointments in India were approximately $150 million. In the current decade, people in India have come to view skin lightening as a demeaning process and one that no woman should engage in. This is an example of a change in the:a. legal-political dimensionb. economic dimensionc. technological dimensiond. corporate culture dimensione. sociocultural dimension

ANS: E

14. When The Dallas Times launched a Spanish-language newspaper, El Nuevo Herald, with articles emphasizing Hispanic, Cuban, and Latin American news and sports, it was responding to changes in the ____ dimension.a. socioculturalb. technologicalc. economicd. competitorse. suppliers

ANS: A

15. McDonald's, the fast-food chain, opened its first drive-thru hamburger outlet in China in the autumn of 2005 to capitalize on growing car ownership and demand for western-style fast food in the nation. McDonald's added drive-thrus in response to changes in the ____ dimension of China's general environment.a. socioculturalb. technologicalc. economicd. competitorse. suppliers

ANS: A

16. Anyone considering doing business in China, according to Spotlight on Skills in Chapter 2, should keep in mind all of the following rules except:a. Business is always personalb. Don't skip the small talkc. Remember that relationships are not short-termd. Be efficient with use of timee. Make contact frequently

ANS: D

17. Lying at the heart of Chinese culture, ____ is a supportive, mutually beneficial connection between two people.a. kaizenb. ganqingc. renqingd. kanseie. guanxi

ANS: E

18. The general economic health of the country or region is typically determined by:a. geographical distribution, population density, age, and educational levelsb. fair trade statutes, safety laws, protective legislation, and export restrictionsc. consumer purchasing power, unemployment rate, interest ratesd. legislative branches of the government and number of laws passed each yeare. geographical distribution, fair trade status and consumer purchasing power

ANS: C

19. Which of the following is a part of the legal-political dimension?a. geographical distribution, population density, age, educational levelsb. fair trade statutes, safety laws, protective legislation, export restrictionsc. consumer purchasing power, unemployment rate, interest ratesd. legislative branches of the government and number of laws passed each yeare. geographical distribution, fair trade status, consumer purchasing power

ANS: B

20. The ____ dimension of the general environment includes federal, state, and local government regulations.a. technologicalb. legal-politicalc. economicd. socioculturale. international

ANS: B

21. Which of the following is a dimension of the general environment?a. competitorsb. labor marketc. current employeesd. economice. customers

ANS: D

22. Consumers think of salmon as pink, but the pink coloration is a result of a food additive. Salmon is naturally a grayish color. Salmon farmers in the European Union (EU) will have to stop adding the pink additive due to a new food safety initiative enacted by the EU. This is an example of a change in the:a. technological dimensionb. sociocultural dimensionc. task environmentd. economic dimensione. legal-political dimension

ANS: E

23. A number of foreign companies have decided to halt outsourcing work to India because of a new tax ruling passed by the Indian legislature that would enable the Indian government to take part of the companies' worldwide earnings. This is an example of the ____ dimension of the general environment.a. technologicalb. legal-politicalc. taskd. socioculturale. economic

ANS: B

24. An interest group that works within the legal-political framework to influence companies to behave in socially responsible ways is called a:a. pressure groupb. legal groupc. political influence groupd. social alliancee. stakeholder coalition

ANS: A

25. Firoza Ismail sells Coca-Cola at her convenience store in British Columbia. Ismail would be considered a part of Coca-Cola's:a. general environmentb. demographic environmentc. economic environmentd. task environmente. channel environment

ANS: D

26. The ability of customers to affect an organization's reputation and sales through Internet sites is an example of something that could be found in the ____.a. internal environmentb. task environmentc. work environmentd. general environmente. demographic environment

ANS: B

27. When Maytag, an appliance manufacturer, buys microprocessors from Intel for its new washing machines, the action occurs in the ____ dimension of the ____ environment.a. customer; taskb. customer; generalc. competitor; taskd. supplier; taske. economic; task

ANS: D

28. Applebee's, T.G.I. Friday's, and Outback Steakhouse are locked in a titanic power struggle to dominate the restaurant industry. They can be described as:a. suppliersb. competitorsc. customersd. labor market operatorse. co-conspirators

ANS: B

29. ____ provide the raw materials needed for output production.a. Competitorsb. Customersc. Developing nationsd. Supplierse. Retailers

ANS: D

30. Which of the following is a part of the task environment for Dell, a U.S. computer manufacturer?a. Inflation rateb. Hewlett-Packard (H-P), a computer manufacturerc. Securities and Exchange Commission (SEC), a government regulating agencyd. Amazon.com, an on-line booksellere. Dell's corporate culture

ANS: B

31. Which of the following is NOT one of the sectors of task environment?a. competitorsb. labor marketc. current employeesd. economicse. customers

ANS: D

32. Traditionally, many manufacturer and ____ relationships have been adversarial. Recently, companies are finding that cooperation is the key to saving money, maintaining quality, and speeding products to market.a. governmentb. employeec. supplierd. special interest groupse. customer

ANS: C

33. The ____ represents people in the environment who can be hired to work for the organization.a. competitorsb. labor marketc. suppliersd. customerse. government

ANS: B

34. China has been referred to as "the workshop of the world" because so many manufacturers have relocated their operations to China to take advantage of its cheap, productive labor. One company that has recently moved to China is Japan's leading producer of paper. The ____ dimension of the external environment is involved in the Japanese company's relocation.a. socioculturalb. competitorsc. technologicald. labor markete. legal-political

ANS: D

35. Which statement about the environment is true?a. When the environment is dynamic, uncertainty is low.b. When the environment is unstable, uncertainty is low.c. When external factors change rapidly, the organization experiences high uncertainty.d. The stability of the environment does not determine the structure of the firm.e. Environmental uncertainty is unaffected by how dynamic an organization is.

ANS: C

36. Which of the following is necessary for adapting the organization to changes in the environment and for coping with high environmental uncertainty?a. boundary-spanning rolesb. advertising/public relationsc. inflexibility of management styled. work-specific task assignmentse. bureaucratic structure

ANS: A

37. In today's turbulent activities, the most successful companies involve every employee in:a. marketingb. productionc. entrepreneurial activitiesd. creating a cultural paradigme. boundary-spanning activities

ANS: E

38. Which of the following would be considered a visible representation of organizational culture?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 cars.e. All of these would be considered visual representations of organizational culture.

ANS: E

39. ____ are associated with the surface level of organizational culture.a. Valuesb. Normsc. Manners of dressd. Beliefse. All of these

ANS: C

40. An example of a corporate culture can be seen in:a. an object, act, or event that conveys meaning to others.b. manner of dress, stories, physical symbols, organizational ceremonies, and office layout.c. an association made of organizations with similar interests for the purpose of influencing

the environment.d. roles assumed by people and or departments that link and coordinate the organization with

key elements of the external environment.e. an association of people gathered together to discuss areas of disagreement.

ANS: B

41. According to Spotlight on Skills in Chapter 2, all of the following are guidelines to use when conducting business online EXCEPT:a. know your group before you postb. crosspost your bloggingsc. do not threaten or insultd. do not post advertisementse. if you are responding to one person, send that person a private e-mail

ANS: BNAT: AACSB Analytic | Information Technologies

42. Symbols, stories, and heroes are important because they:a. entertain executive level managementb. address the concerns of governmentc. acquaint customers to the organizationd. characterize an organization's culturee. give employees something to talk about

ANS: D

43. An object, act, or event that conveys meaning to others is referred to as a:a. symbolb. sloganc. storyd. heroe. culture

ANS: A

44. When Fordham Middle School gives an award each school month to one student who has involved himself or herself in some worthy cause, it is an example of a:a. storyb. heroc. symbold. ceremonye. slogan

ANS: C

45. Which of these is a narrative based on true events that is repeated frequently and shared by organizational employees?a. symbolb. sloganc. storyd. heroe. culture

ANS: C

46. Harold Geneen ran ITT in the 1960s. He publicly humiliated his top 120 executives monthly at grueling four-day, 14-hour meetings. What type of symbolic management tool was Geneen using?a. ceremoniesb. reinforcementc. symbolsd. sloganse. none of these

ANS: E

47. Stories are important to an organization because they:a. keep the company's key values aliveb. tell employees who is importantc. entertain the employeesd. point out how difficult it is to succeede. do all of these

ANS: A

48. A figure who exemplifies the deeds, character, and attributes of a corporate culture is referred to as a:a. symbolb. storyc. slogand. heroe. culture

ANS: D

49. Which of these represent a phrase or sentence that succinctly expresses a key corporate value?a. symbolb. storyc. cultured. heroe. slogan

ANS: E

50. Heroes are important in a corporate culture because they:a. entertain executive level managementb. address the concerns of governmentc. acquaint customers with the organizationd. exemplify the character and attributes of an organization's culturee. give employees something to talk about

ANS: D

51. Kodak's "Share Moments. Share Life." represents a:a. ceremonyb. symbolc. rituald. slogane. cultural motto

ANS: D

52. If a company emphasizes that "no purchase is complete until the customer is satisfied," then it is:a. utilizing a symbolb. communicating its values to customersc. using a slogan to present its values to customers and employeesd. utilizing a hero for the purpose of conveying valuese. using customers to harass the employees

ANS: C

53. Marion Kalhoun had two rules posted next to the front door at his dairy store. Rule #1: The customer is always right! Rule #2: If the customer is ever wrong, reread Rule #1. These rules represent:a. a sloganb. a storyc. a symbold. a ceremonious statemente. a corporate motto

ANS: A

54. Ceremonies are planned activities that make up a special event and are conducted for the benefit of an audience. Which of the following is NOT an example of a ceremony?a. an annual homecoming festivity held for Corvette ownersb. a car dealer's annual sales contestc. the last day of a laid-off employeed. an annual sales meetinge. the introduction of a new generation of a computer

ANS: C

55. Managers in adaptive cultures:a. care deeply about customers and processes that bring about useful changeb. tend to be egotisticalc. value risk-reducing managementd. care only about their immediate work groupe. are described by all of these

ANS: ANAT: AACSB Analytic | Individual Dynamics

56. Culture tends to differ between ____, but appears similar within ____.a. organizations; industriesb. people; organizationsc. groups; industriesd. organizations; groupse. industries; geographical regions

ANS: A

57. All of the following are types of corporate cultures EXCEPT:a. adaptability cultureb. involvement culturec. consistency cultured. democratic culturee. achievement culture

ANS: D

58. The adaptability culture emerges in an environment that requires ____ response and ____ decision making.a. fast; high-riskb. fast; low-riskc. slow; high-riskd. slow; low-riske. regulated; low-risk

ANS: A

59. The ____ 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 cultureb. clan culturec. achievement cultured. consistency culturee. participative culture

ANS: C

60. The involvement culture has a(n) ____ focus on the involvement and participation of employees to rapidly meet changing needs from the environment.a. externalb. internalc. structurald. competitivee. technological

ANS: B

61. The consistency culture has a(n) ____ focus and an orientation for a ____ environment.a. external; stableb. external; dynamicc. internal; stabled. internal; dynamice. structural; dynamic

ANS: C

62. The corporate culture:a. is exactly the same for all companies within an industry.b. is the same regardless of the organization's environment.c. holds the people of an organization together.d. is only important to the top levels of management.e. is accurately described by none of these.

ANS: C

63. Which of these statements about culture is FALSE?

a. CEOs site organizational culture as their most important mechanism for attracting employees, motivating, and retaining talented employees

b. Culture enables dispersed employees to work in concert toward shared goals that meet changing needs from the environment.

c. Culture serves as the glue that gives people a sense of belonging.d. Having a culture directly translates into higher profitability.e. Cultural values can energize and motivate employees.

ANS: D

64. A high-performance culture is based on all of the following except:a. solid organizational missionb. shared adaptive valuesc. individual employee ownership of bottom-line resultsd. individual employee ownership of organization's cultural backbonee. singular focus on business results

ANS: E

65. In a study by Kotter and Haskett evidence is provided to support the claim that ____ is important for performance.a. managing cultural valuesb. leading partnerships within an industryc. surveying the external environmentd. managing client relationships as boundary spannerse. empowering employees

ANS: A

66. A cultural leader:a. is the figurehead of the organization.b. uses symbols and signals to influence corporate culture.c. serves as a reference for the rest of the organization.d. creates moral structure for the organization.e. monitors sociocultural trends

ANS: BNAT: AACSB Analytic | Individual Dynamics

67. A cultural leader would NOT:a. articulate a vision of new organizational changeb. generate excitement about the visionc. make sure that existing slogans match new valuesd. knowingly hire new employees who don't share the new visione. "walk the talk"

ANS: DNAT: AACSB Analytic | Individual Dynamics

Scenario TopPick Cards, Inc.

At TopPick Cards, Inc. (TCI), new employees are typically young, recent college graduates. Each employee enters a specific area in the company, such as finance or marketing, and spends his or her career in that area in order to develop a high level of expertise in it.

Part of this emphasis on technical expertise involves learning about customer needs and finding ways to change in order to meet those needs. The corporate culture at TCI is supportive of employees who look for new ways to meet customers' needs. In fact, a common expression at TCI is, "Customers come first." One popular story at TCI is about a sales representative who was able to make all of his sales calls in the middle of an ice storm. The sales manager enjoyed the story so much that he bought a case of ice scrapers, and when a sales representative does something noteworthy, the manager presents him or her with a "TCI Ice Scraper Award."

68. Refer to the scenario above. The ice scraper is a:a. herob. sloganc. ceremonyd. symbole. functional icon

ANS: D

69. Refer to the scenario above. The sales representative in the "ice storm" story is a:a. sloganb. heroc. corporate systemd. storye. corporate norm

ANS: B

70. Refer to the scenario above. The phrase, "Customers come first" is a(n):a. sloganb. ceremonyc. fabled. economic mottoe. workplace heuristic

ANS: A

71. Refer to the scenario above. Based on your reading about TCI, how would you describe the relationship between the company's culture and the environment?a. inflexibleb. reactivec. adaptived. obstructive

e. mechanistic

ANS: C

72. Refer to the scenario above. TCI's culture would be described as a(n) ____ culture.a. adaptabilityb. achievementc. involvementd. bureaucratice. consistency

ANS: A

Scenario Stanton's Jewelry

Herman John had been in the jewelry business for 36 years and was thinking seriously about selling the business and retiring. Many things had changed. New competitive jewelry chains had sprung up. Much of what they sold came from international suppliers who he believed provided lower quality than his domestic producers. Their prices were lower and many potential customers bought on price, not recognizing the quality difference. The business had its cycles, too. In good economic times people had more discretionary income and were able to afford his jewelry, but business declined in economic recessions. It seemed increasingly difficult to keep and train employees at the store. The last clerk stayed six months and then took a job with a competitor. Yes, it was time to sell and retire.

73. Refer to the scenario above. John's employees are in the:a. general environmentb. internal environmentc. task environmentd. sociocultural environmente. economic environment

ANS: B

74. Refer to the scenario above. The diamond industry has been accused of providing financial support for the bloody civil wars currently being fought in Africa. Rebel forces control many diamond mines. Sometimes the only way a jeweler like John can find good-quality, affordable diamonds is to buy from rebel leaders. Concerns about the source of diamonds is part of the ____ dimension of the ____ environment.a. external; ethicalb. political-legal; taskc. ethical; generald. economic; taske. international; general

ANS: E

75. Refer to the scenario above. During the time John has owned his jewelry store, what is a fashionable look and what is an out-of-date look for jewelry has changed, just as people's tastes in clothes and other accessories have changed. These fashion changes reflect changes in the ____ dimension of the ____ environment.a. external; taskb. sociocultural; generalc. supplier; taskd. ethical; generale. economic; general

ANS: B

76. Refer to the scenario above. The new competitive jewelry chains are in the:a. technological environmentb. internal environmentc. task environmentd. economic environmente. sociocultural environment

ANS: C

77. Refer to the scenario above. John's current customers are in the:a. general environmentb. internal environmentc. task environmentd. organizational environmente. economic environment

ANS: C

78. Refer to the scenario above. Diamond merchants from the Netherlands who sell to John and his competitors are in the:a. general environmentb. international environmentc. internal environmentd. task environmente. economic environment

ANS: D

Scenario Hughston Industries

Mona Kiertz is the sales manager for Hughston Industries. Some of the sales executives were showing signs of burnout. They were losing interest in their jobs and were no longer highly motivated to gain new accounts. The reward system focused on the old reliable accounts, but Kiertz was now under pressure to expand the customer base. She had recently been to a seminar on corporate value systems. She recognized that the company's CEO wanted a change in the way employees thought about the firm and in the way they related to one another. She further recognized that a lasting solution to her problem required a fundamental shift in perceptions.

79. Refer to the scenario above. Kiertz will be working primarily with the ____ environment.a. taskb. externalc. internald. economice. general

ANS: C

80. Refer to the scenario above. Kiertz could use the following to explain the corporate culture:a. structured symbolic logicb. stories about political heroesc. stories about company officers to stress a valued. heroes who work for competitorse. all of these

ANS: C

81. Refer to the scenario above. In order for the changes needed to be implemented, Kiertz must assume Hughston has a(n) ____ culture.a. obstructiveb. mechanisticc. inflexibled. functionale. adaptability

ANS: E

82. Refer to the scenario above. The changes will be most successful at Hughston if the organization has a(n) ____ type of culture.a. achievableb. clanc. involvementd. consistencye. achievement

ANS: E

83. Refer to the scenario above. By ensuring that people in the organization have a voice in how the vision of the CEO is to be met, Kiertz assumes the role of:a. cultural ombudsmanb. achievement monitorc. task supervisord. cultural leadere. task master

ANS: D

SHORT ANSWER

1. What is the composition of the external organizational environment?

ANS:The external environment consists of all elements existing outside the boundary of the organization that have the potential to affect the organization.

2. How do the general environment and the internal environment differ?

ANS:The general environment is the outer layer that is widely dispersed and affects organizations indirectly. The internal environment includes the elements within the organization's boundaries.

3. List the five dimensions of the general environment.

ANS:Technological, sociocultural, economic, legal/political, and international.

4. U.S.-based Dixon Ticonderoga Co. is in trouble because of increased competition from low-cost pencil manufacturers in China. Which dimension of the general environment is having the greatest impact on this company?

ANS:the international dimension

5. Briefly describe the technological dimension of the general environment.

ANS:The technological dimension includes the scientific and technological advancements in a specific industry and in society at large.

6. What are the components of the sociocultural dimension of the general environment?

ANS:The components of the sociocultural dimension includes demographic characteristics as well as the norms, customs, and values of the general population.

7. What are the components of the legal-political dimension of the general environment?

ANS:The components of the legal-political dimension include government regulations at the local, state, and federal levels.

8. What is a pressure group?

ANS:A pressure group is an interest group that works within the legal-political framework to influence companies to behave in socially responsible ways.

9. What is the composition of the task environment?

ANS:It includes the sectors that have a direct working relationship with the organization.

10. In terms of the internal environment, what one word best defines the relationship between GMC, Ford, Nissan, Toyota, and Volkswagen?

ANS:competitors

11. What are suppliers?

ANS:They are people and organizations that provide raw materials the organization uses to produce its output.

12. What is the collective name for people in the environment who can be hired to work for the organization?

ANS:labor market

13. How would an organizational manager define uncertainty?

ANS:Uncertainty would be defined as not having sufficient information about environmental factors to understand and predict environmental needs and changes.

14. What type of uncertainty does an organization experience when environmental factors are rapidly changing?

ANS:high uncertainty

15. What are the three types of strategies that organizations can use to adapt to environmental changes?

ANS:Organizations can use boundary-spanning roles, interorganizational partnerships, and mergers or joint ventures.

16. Define culture.

ANS:Culture is the set of key values, beliefs, understandings, and norms shared by members of an organization.

17. List three visible artifacts of an organization's culture.

ANS:

Possible responses would include dress, heroes, office layout, symbols, slogans, and ceremonies.

18. What is the name for a narrative based on true events that is repeated frequently and shared among organizational employees?

ANS:story

19. How would you explain the following statement: "The deeds of organizational heroes should not be too extraordinary."

ANS:The deeds of heroes are extraordinary, but not so extraordinary that other employees cannot attain the same deeds.

20. What do slogans communicate?

ANS:Slogans communicate key corporate values.

21. List two reasons why ceremonies are held in an organization.

ANS:Possible responses would include: to reinforce valued accomplishments, to create a bond among people by allowing them to share an important event, and to anoint and celebrate heroes.

22. Name one of the two dimensions that the four types of culture are based on.

ANS:Responses will be either (1) the extent to which the external environment requires flexibility or stability, or (2) the extent to which a company's strategic focus is internal or external.

23. What type of culture emerges in an environmental situation with high-risk decision making and fast feedback from the environment?

ANS:adaptability

24. What type of culture values competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results?

ANS:achievement culture

25. What type of culture places high value on HR and creates a family-like atmosphere?

ANS:involvement

26. What type of culture do organizations with internal focuses and consistency orientations for a stable environment need?

ANS:consistency

27. What is a cultural leader?

ANS:A cultural leader is a manager who defines and uses signals and symbols to influence corporate culture.

ESSAY

1. Define the external organizational environment. List the four things this environment includes that could influence an organization.

ANS:The external organizational environment consists of all elements that exist outside the organization's boundaries that have the potential to affect the organization.

The environment includes competitors, resources, technology, and economic conditions.

2. Explain why the task and general environments are important to organizations.

ANS:The task environment is the part of the external environment that is closest to the organization and affects its day-to-day transactions. It directly affects the organization's basic operations and performance. The general environment is more widely dispersed and affects the organization indirectly and affects all organizations about equally.

3. Name the six dimensions of the general environment and describe each dimension.

ANS:The six dimensions of the general environment are international, technological, sociocultural, economic, legal-political, and natural. The international dimension refers to events originating in foreign countries as well as opportunities for American companies in other countries. The technological dimension refers to the scientific and technological advancements within a specific industry and society. The sociocultural dimension represents the demographic characteristics of the general population. The economic dimension represents the general economic health of the country or area in which the organization operates. The legal-political dimension refers to the local, state, and federal regulations and the political activities designed to influence company behavior. The natural dimension includes all elements that occur naturally on Earth.

4. Briefly describe the task environment and its four primary sectors.

ANS:The task environment is the portion of the external environment that directly influences the organization's operations and performance.

The task environment is made up of customers, competitors, suppliers, and the labor market. These sectors typically conduct day-to-day transactions with the organization.

5. Based on the model in the text, discuss the relationship between external environmental characteristics and uncertainty.

ANS:The external environment can be evaluated along two dimensions. First, one can evaluate (high to low) a number of factors in the environment. Second, one can evaluate (high to low) the rate of change of those factors. When both variables are low, low uncertainty characterizes the external environment. When both variables are high, the external environment is marked by a high level of uncertainty. A highly uncertain environment requires organizations to adapt and/or attempt to influence the external environment.

6. What are the three basic strategies for dealing with increased uncertainty with respect to customers, competitors, suppliers, or government regulations?

ANS:The three basic strategies are boundary-spanning roles, interorganizational partnerships, and mergers or joint ventures.

7. Analyze the different levels of culture.

ANS:Culture can be analyzed at three levels. At the surface, there are the visible representations of culture, such as ceremonies and patterns of behaviors. These representations are easily observable. The second level of culture can be found in expressed ideas and values. These ideas and values can be identified through an analysis of such things as symbols and stories. The third level of culture refers to those values and understandings that are so deeply held that they are unobservable and operate at a subconscious level.

8. How would you describe the culture at your college or university? Give specific examples of the symbols, slogans, and ceremonies at your school.

ANS:Culture refers to the set of key values, beliefs, understandings, and norms shared by members of an organization. Among the examples students might point to are faculty dress (casual or business attire), student conduct code, theme for the year, mission statement, and graduation ceremony.

9. Distinguish between adaptive and unadaptive cultures.

ANS:

Healthy cultures help companies adapt to the environment. Adaptive cultures are concerned about customers and those internal people and processes that bring about useful change. In unadaptive corporate cultures, managers are concerned about themselves and their values tend to discourage risk taking and change.

10. List the four categories of culture and describe what kind of environments each fits best in.

ANS:Adaptability culture fits best in fast-response, high-risk decision-making environments. Achievement culture fits best in results-oriented cultures that value competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results. Involvement culture fits best in internal and employee-need focused environments where the organization is seen as having a caring, family-like atmosphere. Consistency culture fits best in internally-focused organizations that have a consistency orientation for a stable environment.

11. Briefly discuss the two ways in which the cultural leader influences corporate culture.

ANS:First, the cultural leader is able to articulate a vision that others can believe in and get excited about. Second, the cultural leader knows that the visible artifacts (e.g., ceremonies), as well as day-to-day behaviors, must support the cultural vision.