BUS 100 - CHAPTER 2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

BUS 100 - CHAPTER 2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Public issue - Answers any issue that is of mutual concern to an organization and one or more of its stakeholders -sometimes called social issues or sociopolitical issues -sometimes have public policy or legislative implications Performance-expectations gap - Answers the gap between what the firm wants to do or is doing and what stakeholders expect -emergence of a new public issue indicates a performance-expectations gap -failure to understand stakeholder concerns and to respond appropriately causes the performance-expectations gap to GROW -LARGER the gap, the greater the risk of stakeholder backlash or of missing major business opportunity Stakeholder expectations - Answers A mixture of people's opinions, attitudes, and beliefs about what constitutes reasonable business behavior How emerging public issues are an opportunity and risk - Answers opportunity: correctly anticipating the emergence of a public issue can confer a competitive advantage risk: issues that firms do not anticipate and plan for effectively can seriously hurt a company Public issues and company responses: sexual harassment - Answers -when sexual harassment occurs, the perpetrator either resigns or is fired Public issues and company responses: consumer safety - Answers -with E. coli and salmonella outbreaks, corporations like Chipotle have pledged $10 million to help local growers meet new safety standards Public issues and company responses: protection of personal information - Answers -Instances of the illegal acquisition, or hacking of individuals' personal identification and financial information Businesses addressing social issues - Answers -4/5 millennial "need business to get involved in addressing social issues and believe business can make a greater impact" -"compared to governments, businesses have the potential and the possibility to make real change in society happen faster and more efficiently" Environmental Analysis - Answers A method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities Environmental intelligence - Answers the acquisition of information gained from analyzing the multiple environments affecting organizations Eight Strategic Radar Screens - Answers -Customer environment (Includes the demographic factors, such as gender age, marital status, and other factors, of the organization's customers as well as their social values, or preferences and technology usage) -Competitor environment (Includes information on the number and strength of the organization's competitors, whether they are potential or actual allies, patterns of aggressive growth versus static maintenance of market share, and the potential for customers to become competitors if they "Insource" products or services previously purchased from the organization) -Economic environment (Includes information about costs, prices, international trade, and any other features of the economic environment) -Technological environment (Includes the development of new technologies and their applications affecting the organization, its customers, and other stakeholder groups) -Social environment (Includes cultural patterns, values, beliefs, trends, and conflicts among the people in the societies where the organization conducts business or might conduct business) -Political environment (Includes the structure, process, and actions of all levels of government) -Legal environment (Includes patents, copyrights, trademarks, and considerations of intellect property, as well as antitrust considerations and trade protectionism and organizational liability issues) -Geophysical environment (relates to awareness of the physical; surroundings of the organization's facilities and operations, whether it is the organization's headquarters or its field offices and distribution centers, and the organization's dependency and impact on natural resources) What do the eight strategic radar screens represent? - Answers A system of interrelated segments, each one connected to and influencing the others Obstacles that must be overcome in business environments - Answers -structural (reporting relationships between groups of managers) -cultural (changing traditional ways of doing things) Competitive Intelligence - Answers refers to the systematic and continuous process of gathering, analyzing and managing external information about the organization's competitors that can affect the organization's plans, decisions, and operations -benefits an organization by helping it better understand what other companies in its industry are doing -enables managers in companies of all sizes to make informed decisions ranging from marketing, research and development, and investing tactics to long-term business strategies What gives companies an advantage? - Answers when they successfully gather and analyze competitive information, then implement strategic decisions Businesses may be tempted to use unethical or illegal means to obtain information but... - Answers they must balance the importance of acquiring information about its competitors' practices with the need to comply with all applicable laws Stakeholder materiality - Answers Adaptation of an accounting term that focuses on the importance or significance of something. -In this case, it describes a method used to prioritize the relevance of the stakeholders and their issues to the company Issues management - Answers managing issues when a company has identified it and detected a gap between society's expectations and its own practices Issue management process (continuously cycles back to the beginning and repeats) - Answers -identify issue (Involves anticipating emerging concerns, sometimes called "horizon issues" because they seem to be just coming up over the horizon like the first morning sun) -analyze issue (organizations must understand how the issue is likely to evolve, and how it is likely to affect them) -generate options (generating, evaluating, and selecting among possible options) -take action (organization must design and implement a plan of action) -evaluate results (must continue to assess the results and make adjustments if necessary) How can public affairs professionals help companies and nonprofits manage their operations? - Answers -anticipate governmental concerns and actions -understand how stakeholders influence a firm's license to operate -help their organization deal with emerging threats and opportunities When does the public affairs function become even more necessary? - Answers when political risk and economic uncertainty are high Three basic capabilities required for effective global leadership - Answers -an understanding of the changing business context (emerging environmental and social trends affecting the firm) -an ability to lead in the face of complexity (leaders needed to be flexible, creative, and willing to learn from their mistakes) -connectedness (the ability to engage with external stakeholders in dialogue and partnership) Stakeholder engagement - Answers refer to the process of ongoing relationship building between a business and its stakeholders The four stages that the nature of business's relationship with its stakeholders often evolves through - Answers -Inactive (companies simply ignore stakeholder concerns) -reactive (companies generally act only when forced to do so, and then in a defensive) -proactive (companies try to anticipate stakeholder concerns) -Interactive (stance means that companies actively engage with stakeholders in an ongoing relationship of mutual respect, openness, and trust)