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 huncertainty hmeans hthat hmanagers hdo hnot hhave henough hinformation habout
hthe henvironment hto hunderstand hor hpredict hthe hfuture. hUncertainty harises hfrom htwo hrelated
hfactors: hcomplexity hand hdynamism.)
Michael hPorter, ha hnoted hauthority hon hstrategic hmanagement, hsaid hthat hsuccessful hmanagers?
A. should hlead hby hpersonality hand hnot hbuild ha hstrong horganizational hculture.
B. react hto hthe hcompetitive henvironment has htheir hprimary htask.
C. should hprimarily hfocus hon hinternal hstrengths hand hweaknesses.
D. act hin hways hthat hshape hor hchange hthe horganization's henvironment.
E. should hadopt hthe hphilosophies hof hmanagers hof hprofitable hcompanies. h- hanswer-D. hact hin hways
hthat hshape hor hchange hthe horganization's henvironment.
(According hto hPorter, hsuccessful hmanagers hdo hmore hthan hsimply hreact hto hthe henvironment; hthey hact
hin hways hthat hactually hshape hor hchange hthe horganization's henvironment.)
Why hwould ha hmanager hof hmarketing hfor ha hshopping hmall hbe hconcerned hwith hdemographics hof hactual hand
hpotential hmall hvisitors?
A. so hthat hshe hcan hbecome hfluent hin hmultiple hlanguages hand hcommunicate hwith hmall hvisitors.
B. so hthat hshe hcan hattract hretailers hthat hsell hproducts hthat happeal hto hthe hage, hgender, hand hincome
hlevels hof hmall hvisitors.
C. so hthat hshe hcan hdesign hfacilities hthat hmeet hthe hneeds hof helderly hand hdisabled hvisitors.
D. so hthat hshe hcan hdetermine hthe hproper hfull-time/part-time hemployee hmix.
E. so hthat hshe hcan hensure hthat hher hhuman hresources hdepartment hcan hpass han hequal hemployment
haudit. h- hanswer-B. hso hthat hshe hcan hattract hretailers hthat hsell hproducts hthat happeal hto hthe hage, hgender,
hand hincome hlevels hof hmall hvisitors.
(Demographics hare hmeasures hof hvarious hcharacteristics hof hthe hpeople hwho hmake hup hgroups hor hother
hsocial hunits. hA hmarketing hmanager hfor ha hshopping hmall hwould hdecide hwhat hstores hto hattract hand
hproducts hto hsell hbased hupon hthe hdemographics h(e.g., hage, hgender, hand hincome hlevels) hof hthe hmall
hvisitors.)
Which hof hthe hfollowing his ha hcharacteristic hof ha hstrong hculture?
A. having hquestions habout hcorporate hgoals hthat honly htop hmanagement hcan hanswer.
B. fostering haffective hconflict.
C. different hpeople hholding hdifferent hvalues hwithin hthe horganization.
, D. having hunclear hprinciples hto hguide hdecisions.
E. everyone hbelieving hin hthe horganization's hpractices. h- hanswer-E. heveryone hbelieving hin hthe
horganization's hpractices
(A hstrong hculture his hone hin hwhich heveryone hunderstands hand hbelieves hin hthe hfirm's hgoals, hpriorities,
hand hpractices. hIn hcontrast hto hstrong hcultures, hweak hcultures hhave hthe hfollowing hcharacteristics:
hdifferent hpeople hhold hdifferent hvalues, hthere his hconfusion habout hcorporate hgoals, hand hit his hnot hclear
hfrom hone hday hto hthe hnext hwhat hprinciples hshould hguide hdecisions.)
The hway hpeople hwithin ha hcompany hdress hand hact, htheir hinteractions hwith heach hother hand hwith
hcustomers, hand hthe hqualities hexpected hand happreciated hby htheir hmanagers hand hcompany hare
hexamples hof hthe?
A. organizational hstructure.
B. corporate hrules hand hregulations.
C. business htrait hmap.
D. business hsocial hstructure.
E. organization hculture. h- hanswer-E. horganization hculture.
(Organization hculture hincludes hthe hway hpeople hdress hand hbehave, hthe hway hthey hinteract hwith heach
hother hand hwith hcustomers, hand hthe hqualities hthat hare hlikely hto hbe hvalued hby htheir hmanagers.)
Which hof hthe hfollowing his ha hmacroenvironmental hfactor hthat hcan haffect han horganization?
A. organizational hstrategy
B. economic hrecession
C. organization h design
D. corporate hculture
E. internal hhiring hdecisions h- hanswer-B. heconomic hrecession
(Macroenvironmental hfactors hinclude hthe heconomy, htechnology, hlaws hand hregulations, hdemographics,
hsustainability, hand hthe hnatural henvironment.)
SweetStay hIncorporated his ha hhospitality hcorporation hthat hruns hthree hchains hof hhotels hin hthe hUnited
hStates. hRecently, hin hthe hface hof hsinking hmarket hshare, hSweetStay hreduced hits hdependence hon hthe
hhospitality hindustry hby hopening htwo hrestaurants. hThis his han hexample hof?
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 huncertainty hmeans hthat hmanagers hdo hnot hhave henough hinformation habout
hthe henvironment hto hunderstand hor hpredict hthe hfuture. hUncertainty harises hfrom htwo hrelated
hfactors: hcomplexity hand hdynamism.)
Michael hPorter, ha hnoted hauthority hon hstrategic hmanagement, hsaid hthat hsuccessful hmanagers?
A. should hlead hby hpersonality hand hnot hbuild ha hstrong horganizational hculture.
B. react hto hthe hcompetitive henvironment has htheir hprimary htask.
C. should hprimarily hfocus hon hinternal hstrengths hand hweaknesses.
D. act hin hways hthat hshape hor hchange hthe horganization's henvironment.
E. should hadopt hthe hphilosophies hof hmanagers hof hprofitable hcompanies. h- hanswer-D. hact hin hways
hthat hshape hor hchange hthe horganization's henvironment.
(According hto hPorter, hsuccessful hmanagers hdo hmore hthan hsimply hreact hto hthe henvironment; hthey hact
hin hways hthat hactually hshape hor hchange hthe horganization's henvironment.)
Why hwould ha hmanager hof hmarketing hfor ha hshopping hmall hbe hconcerned hwith hdemographics hof hactual hand
hpotential hmall hvisitors?
A. so hthat hshe hcan hbecome hfluent hin hmultiple hlanguages hand hcommunicate hwith hmall hvisitors.
B. so hthat hshe hcan hattract hretailers hthat hsell hproducts hthat happeal hto hthe hage, hgender, hand hincome
hlevels hof hmall hvisitors.
C. so hthat hshe hcan hdesign hfacilities hthat hmeet hthe hneeds hof helderly hand hdisabled hvisitors.
D. so hthat hshe hcan hdetermine hthe hproper hfull-time/part-time hemployee hmix.
E. so hthat hshe hcan hensure hthat hher hhuman hresources hdepartment hcan hpass han hequal hemployment
haudit. h- hanswer-B. hso hthat hshe hcan hattract hretailers hthat hsell hproducts hthat happeal hto hthe hage, hgender,
hand hincome hlevels hof hmall hvisitors.
(Demographics hare hmeasures hof hvarious hcharacteristics hof hthe hpeople hwho hmake hup hgroups hor hother
hsocial hunits. hA hmarketing hmanager hfor ha hshopping hmall hwould hdecide hwhat hstores hto hattract hand
hproducts hto hsell hbased hupon hthe hdemographics h(e.g., hage, hgender, hand hincome hlevels) hof hthe hmall
hvisitors.)
Which hof hthe hfollowing his ha hcharacteristic hof ha hstrong hculture?
A. having hquestions habout hcorporate hgoals hthat honly htop hmanagement hcan hanswer.
B. fostering haffective hconflict.
C. different hpeople hholding hdifferent hvalues hwithin hthe horganization.
, D. having hunclear hprinciples hto hguide hdecisions.
E. everyone hbelieving hin hthe horganization's hpractices. h- hanswer-E. heveryone hbelieving hin hthe
horganization's hpractices
(A hstrong hculture his hone hin hwhich heveryone hunderstands hand hbelieves hin hthe hfirm's hgoals, hpriorities,
hand hpractices. hIn hcontrast hto hstrong hcultures, hweak hcultures hhave hthe hfollowing hcharacteristics:
hdifferent hpeople hhold hdifferent hvalues, hthere his hconfusion habout hcorporate hgoals, hand hit his hnot hclear
hfrom hone hday hto hthe hnext hwhat hprinciples hshould hguide hdecisions.)
The hway hpeople hwithin ha hcompany hdress hand hact, htheir hinteractions hwith heach hother hand hwith
hcustomers, hand hthe hqualities hexpected hand happreciated hby htheir hmanagers hand hcompany hare
hexamples hof hthe?
A. organizational hstructure.
B. corporate hrules hand hregulations.
C. business htrait hmap.
D. business hsocial hstructure.
E. organization hculture. h- hanswer-E. horganization hculture.
(Organization hculture hincludes hthe hway hpeople hdress hand hbehave, hthe hway hthey hinteract hwith heach
hother hand hwith hcustomers, hand hthe hqualities hthat hare hlikely hto hbe hvalued hby htheir hmanagers.)
Which hof hthe hfollowing his ha hmacroenvironmental hfactor hthat hcan haffect han horganization?
A. organizational hstrategy
B. economic hrecession
C. organization h design
D. corporate hculture
E. internal hhiring hdecisions h- hanswer-B. heconomic hrecession
(Macroenvironmental hfactors hinclude hthe heconomy, htechnology, hlaws hand hregulations, hdemographics,
hsustainability, hand hthe hnatural henvironment.)
SweetStay hIncorporated his ha hhospitality hcorporation hthat hruns hthree hchains hof hhotels hin hthe hUnited
hStates. hRecently, hin hthe hface hof hsinking hmarket hshare, hSweetStay hreduced hits hdependence hon hthe
hhospitality hindustry hby hopening htwo hrestaurants. hThis his han hexample hof?
A. integration.
B. diversification.
