Which of the following refers to the immediate environment surrounding a firm, including suppliers,
customers, rivals, and new entrants?
A. relational environment
B. business situation
C. macroenvironment
D. competitive environment
E. business atmosphere - answer-D. competitive environment
(The competitive environment is the immediate environment surrounding a firm. It includes suppliers,
customers, rivals, new entrants, and substitute products.)
In competition, a complement of a health club membership might be?
A. workout clothes.
B. free tickets to the movie.
C. an online workout program.
D. a karate club.
E. an adjacent furniture store - answer-A. workout clothes.
(A complement is a potential opportunity because customers buy more of a given product if they also
demand more of the complementary product. The two products are often used together.)
The internal environment includes?
A. competitors and the economy.
B. customers and suppliers.
C. government and social issues.
D. legal and political factors.
E. culture and climate. - answer-E. culture and climate.
,(The internal environment includes a firm's culture, climate, and values. The external environment
includes all relevant forces outside the organization's boundaries.)
In Michael Porter's competitive environment model, the five parts of the model are?
A. supply chain management, competitors, rival firms, the economy, and the macroenvironment.
B. customer satisfaction, rival firms, the macroenvironment, the economy, and suppliers.
C. new entrants, the macroenvironment, substitutes and complements, employees, and the economy.
D. new entrants, the macroenvironment, the economy, rival firms, and competitors.
E. suppliers, new entrants, customers, substitutes and complements, and rival firms. - answer-E.
suppliers, new entrants, customers, substitutes and complements, and rival firms.
(According to Porter, successful managers do more than simply react to the environment; they act in
ways that actually change the organization's environment. His model focuses on new entrants,
customers, substitutes and complements, suppliers, and rival firms.)
Which of the following aspects of organization culture will tell you what the firm's desired public image
is?
A. the employee handbook
B. the stories people tell
C. the corporate mission statement
D. the organization's important business practices
E. the organization's symbols, rights, and ceremonies - answer-C. the corporate mission statement
(Corporate mission statements and official goals tell you what the firm's desired public image is.)
Complexity and dynamism in the environment result in?
A. environmental uncertainty.
B. conflicting competitive intelligence.
C. organizational dynamism.
D. low levels of opportunity.
E. strategic maneuvering. - answer-A. environmental uncertainty.
,(Environmental uncertainty means that managers do not have enough information about the
environment to understand or predict the future. Uncertainty arises from two related factors:
complexity and dynamism.)
Michael Porter, a noted authority on strategic management, said that successful managers?
A. should lead by personality and not build a strong organizational culture.
B. react to the competitive environment as their primary task.
C. should primarily focus on internal strengths and weaknesses.
D. act in ways that shape or change the organization's environment.
E. should adopt the philosophies of managers of profitable companies. - answer-D. act in ways that
shape or change the organization's environment.
(According to Porter, successful managers do more than simply react to the environment; they act in
ways that actually shape or change the organization's environment.)
Why would a manager of marketing for a shopping mall be concerned with demographics of actual and
potential mall visitors?
A. so that she can become fluent in multiple languages and communicate with mall visitors.
B. so that she can attract retailers that sell products that appeal to the age, gender, and income levels of
mall visitors.
C. so that she can design facilities that meet the needs of elderly and disabled visitors.
D. so that she can determine the proper full-time/part-time employee mix.
E. so that she can ensure that her human resources department can pass an equal employment audit. -
answer-B. so that she can attract retailers that sell products that appeal to the age, gender, and income
levels of mall visitors.
(Demographics are measures of various characteristics of the people who make up groups or other
social units. A marketing manager for a shopping mall would decide what stores to attract and products
to sell based upon the demographics (e.g., age, gender, and income levels) of the mall visitors.)
Which of the following is a characteristic of a strong culture?
A. having questions about corporate goals that only top management can answer.
B. fostering affective conflict.
C. different people holding different values within the organization.
, D. having nunclear nprinciples nto nguide ndecisions.
E. everyone nbelieving nin nthe norganization's npractices. n- nanswer-E. neveryone nbelieving nin nthe
norganization's npractices
(A nstrong nculture nis none nin nwhich neveryone nunderstands nand nbelieves nin nthe nfirm's ngoals, npriorities,
nand npractices. nIn ncontrast nto nstrong ncultures, nweak ncultures nhave nthe nfollowing ncharacteristics:
ndifferent npeople nhold ndifferent nvalues, nthere nis nconfusion nabout ncorporate ngoals, nand nit nis nnot nclear
nfrom none nday nto nthe nnext nwhat nprinciples nshould nguide ndecisions.)
The nway npeople nwithin na ncompany ndress nand nact, ntheir ninteractions nwith neach nother nand nwith
ncustomers, nand nthe nqualities nexpected nand nappreciated nby ntheir nmanagers nand ncompany nare
nexamples nof nthe?
A. organizational nstructure.
B. corporate nrules nand nregulations.
C. business ntrait nmap.
D. business nsocial nstructure.
E. organization nculture. n- nanswer-E. norganization nculture.
(Organization nculture nincludes nthe nway npeople ndress nand nbehave, nthe nway nthey ninteract nwith neach
nother nand nwith ncustomers, nand nthe nqualities nthat nare nlikely nto nbe nvalued nby ntheir nmanagers.)
Which nof nthe nfollowing nis na nmacroenvironmental nfactor nthat ncan naffect nan norganization?
A. organizational nstrategy
B. economic nrecession
C. organization n design
D. corporate nculture
E. internal nhiring ndecisions n- nanswer-B. neconomic nrecession
(Macroenvironmental nfactors ninclude nthe neconomy, ntechnology, nlaws nand nregulations, ndemographics,
nsustainability, nand nthe nnatural nenvironment.)
SweetStay nIncorporated nis na nhospitality ncorporation nthat nruns nthree nchains nof nhotels nin nthe nUnited
nStates. nRecently, nin nthe nface nof nsinking nmarket nshare, nSweetStay nreduced nits ndependence non nthe
nhospitality nindustry nby nopening ntwo nrestaurants. nThis nis nan nexample nof?
A. integration.
B. diversification.
customers, rivals, and new entrants?
A. relational environment
B. business situation
C. macroenvironment
D. competitive environment
E. business atmosphere - answer-D. competitive environment
(The competitive environment is the immediate environment surrounding a firm. It includes suppliers,
customers, rivals, new entrants, and substitute products.)
In competition, a complement of a health club membership might be?
A. workout clothes.
B. free tickets to the movie.
C. an online workout program.
D. a karate club.
E. an adjacent furniture store - answer-A. workout clothes.
(A complement is a potential opportunity because customers buy more of a given product if they also
demand more of the complementary product. The two products are often used together.)
The internal environment includes?
A. competitors and the economy.
B. customers and suppliers.
C. government and social issues.
D. legal and political factors.
E. culture and climate. - answer-E. culture and climate.
,(The internal environment includes a firm's culture, climate, and values. The external environment
includes all relevant forces outside the organization's boundaries.)
In Michael Porter's competitive environment model, the five parts of the model are?
A. supply chain management, competitors, rival firms, the economy, and the macroenvironment.
B. customer satisfaction, rival firms, the macroenvironment, the economy, and suppliers.
C. new entrants, the macroenvironment, substitutes and complements, employees, and the economy.
D. new entrants, the macroenvironment, the economy, rival firms, and competitors.
E. suppliers, new entrants, customers, substitutes and complements, and rival firms. - answer-E.
suppliers, new entrants, customers, substitutes and complements, and rival firms.
(According to Porter, successful managers do more than simply react to the environment; they act in
ways that actually change the organization's environment. His model focuses on new entrants,
customers, substitutes and complements, suppliers, and rival firms.)
Which of the following aspects of organization culture will tell you what the firm's desired public image
is?
A. the employee handbook
B. the stories people tell
C. the corporate mission statement
D. the organization's important business practices
E. the organization's symbols, rights, and ceremonies - answer-C. the corporate mission statement
(Corporate mission statements and official goals tell you what the firm's desired public image is.)
Complexity and dynamism in the environment result in?
A. environmental uncertainty.
B. conflicting competitive intelligence.
C. organizational dynamism.
D. low levels of opportunity.
E. strategic maneuvering. - answer-A. environmental uncertainty.
,(Environmental uncertainty means that managers do not have enough information about the
environment to understand or predict the future. Uncertainty arises from two related factors:
complexity and dynamism.)
Michael Porter, a noted authority on strategic management, said that successful managers?
A. should lead by personality and not build a strong organizational culture.
B. react to the competitive environment as their primary task.
C. should primarily focus on internal strengths and weaknesses.
D. act in ways that shape or change the organization's environment.
E. should adopt the philosophies of managers of profitable companies. - answer-D. act in ways that
shape or change the organization's environment.
(According to Porter, successful managers do more than simply react to the environment; they act in
ways that actually shape or change the organization's environment.)
Why would a manager of marketing for a shopping mall be concerned with demographics of actual and
potential mall visitors?
A. so that she can become fluent in multiple languages and communicate with mall visitors.
B. so that she can attract retailers that sell products that appeal to the age, gender, and income levels of
mall visitors.
C. so that she can design facilities that meet the needs of elderly and disabled visitors.
D. so that she can determine the proper full-time/part-time employee mix.
E. so that she can ensure that her human resources department can pass an equal employment audit. -
answer-B. so that she can attract retailers that sell products that appeal to the age, gender, and income
levels of mall visitors.
(Demographics are measures of various characteristics of the people who make up groups or other
social units. A marketing manager for a shopping mall would decide what stores to attract and products
to sell based upon the demographics (e.g., age, gender, and income levels) of the mall visitors.)
Which of the following is a characteristic of a strong culture?
A. having questions about corporate goals that only top management can answer.
B. fostering affective conflict.
C. different people holding different values within the organization.
, D. having nunclear nprinciples nto nguide ndecisions.
E. everyone nbelieving nin nthe norganization's npractices. n- nanswer-E. neveryone nbelieving nin nthe
norganization's npractices
(A nstrong nculture nis none nin nwhich neveryone nunderstands nand nbelieves nin nthe nfirm's ngoals, npriorities,
nand npractices. nIn ncontrast nto nstrong ncultures, nweak ncultures nhave nthe nfollowing ncharacteristics:
ndifferent npeople nhold ndifferent nvalues, nthere nis nconfusion nabout ncorporate ngoals, nand nit nis nnot nclear
nfrom none nday nto nthe nnext nwhat nprinciples nshould nguide ndecisions.)
The nway npeople nwithin na ncompany ndress nand nact, ntheir ninteractions nwith neach nother nand nwith
ncustomers, nand nthe nqualities nexpected nand nappreciated nby ntheir nmanagers nand ncompany nare
nexamples nof nthe?
A. organizational nstructure.
B. corporate nrules nand nregulations.
C. business ntrait nmap.
D. business nsocial nstructure.
E. organization nculture. n- nanswer-E. norganization nculture.
(Organization nculture nincludes nthe nway npeople ndress nand nbehave, nthe nway nthey ninteract nwith neach
nother nand nwith ncustomers, nand nthe nqualities nthat nare nlikely nto nbe nvalued nby ntheir nmanagers.)
Which nof nthe nfollowing nis na nmacroenvironmental nfactor nthat ncan naffect nan norganization?
A. organizational nstrategy
B. economic nrecession
C. organization n design
D. corporate nculture
E. internal nhiring ndecisions n- nanswer-B. neconomic nrecession
(Macroenvironmental nfactors ninclude nthe neconomy, ntechnology, nlaws nand nregulations, ndemographics,
nsustainability, nand nthe nnatural nenvironment.)
SweetStay nIncorporated nis na nhospitality ncorporation nthat nruns nthree nchains nof nhotels nin nthe nUnited
nStates. nRecently, nin nthe nface nof nsinking nmarket nshare, nSweetStay nreduced nits ndependence non nthe
nhospitality nindustry nby nopening ntwo nrestaurants. nThis nis nan nexample nof?
A. integration.
B. diversification.
