Management Leading and Collaborating in a Competitive World 10th edition by bateman

Chapter 02 The External and Internal Environments True / False Questions 1. Organizations are open systems that affect and are affected by their external environments. True False 2. The external environment includes all relevant forces outside the organization's boundaries. True False 3. Strategy is an example of an input to an organization. True False 4. A firm's competitive environment includes new entrants, as well as substitutes and complements. True False 5. An organization's macroenvironment includes its customers and suppliers. True False 6. When investors bid up stock prices, companies have less capital to fuel their strategies. True False 7. While the stock market can impact a firm, it has no effect on the behavior of individual managers. True False 8. Firms that develop strategies that do not include technological advances will realize obsolescence and extinction. True False 9. U.S. government policies both impose strategic constraints and provide opportunities for organizations. True False 10 Regulatory agencies set rules but are typically weak institutions since . they do not have the power to investigate company practices or to take legal action to ensure compliance with the law. True False 11 Social metrics are measures of various characteristics of the people . who make up groups or other social units. True False 12 The fastest-growing age group in the U.S. civilian labor force is the . group between 30 and 40 years old. True False 13 Despite government crackdowns, immigration is one reason why the . labor force will be more ethnically diverse in the future than it is today. True False 14 The percentage of women participating in the U.S. workforce has . increased sharply since 1999. 15 A more diverse workforce presents managers with challenges as well as . opportunities. True False 16 Family leave, flexible working hours, and child care assistance have . been introduced as a direct result of the growing ethnic diversity in the workplace. True False 17 Porter's model for competitive analysis is one example of analyzing the . competitive environment for adapting to and even influencing the nature of competition. True False 18 Red Bull, an energy drink, is a competitor to Pepsi. . True False 19 The first question in understanding competitive environments from . Porter's model is "How strong is the competition?" True False 20 A barrier to entry is a condition that prevents customers from using a . firm's products or services. True False 21 According to Porter's model, Netflix streaming video would be . considered a substitute for Blockbuster DVD rental. True False 22 Landscaping products are complements when people are buying new . homes. 23 Powerful suppliers can increase a buying organization's profits, . especially when the organization must hold prices steady for its customers. True False 24 Needing to learn a new software program as a result of changing . suppliers is an example of a switching cost. True False 25 Input chain management is the managing of the network of facilities . and people that obtain materials from outside the organization, transform them into products, and distribute them to customers. True False 26 The goal of supply chain management is having the right product in the . right quantity at the right place at the right cost. True False 27 The Internet has empowered customers by providing an easy source of . information. True False 28 Environmental scanning means sorting through information available to . the public to interpret what is important and what is not. True False 29 Competitive intelligence is also known as corporate espionage. . True False 30 Benchmarking means comparing your processes to the best-in-class . performance by a company in a given area. 31 Organizations that are defenders are more likely to engage in strategic . maneuvering than are prospectors. True False 32 April, a manager in a call center, encourages her employees to solve . customers' problems without her approval of the particular situation. Here April has empowered her employees. True False 33 Southwest Airlines demonstrates the independent action strategy . known as competitive pacification by cutting fares when it enters a new market. True False 34 In a dynamic environment, bureaucratic organizations are more . efficient than organic organizations. True False 35 A strong organization culture is one in which everyone understands and . believes in the firm's goals, priorities, and practices. True False 36 Stories told by employees almost never have any connection to the . true culture of the organization. True False Multiple Choice Questions