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GMS 200 (1,247)
Lecture

MGT CHAP4.doc

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Department
Global Management Studies
Course Code
GMS 200
Professor
Masoomeh Moharrer

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Chapter 4: Environment, Organizational Culture and Diversity 1 Multiple Choice Questions CHAPTER INTRODUCTION st 116. In the 21 century, managers are learning to succeed in a world of __________. A. Information and technology utilization. B. Quality and speed. C. Customer service. D. B and C. E. A, B, and C. E GT Fa st 117. Contemporary managers are learning to do many things because of the impact of the 21 century environment. Which of the following is NOT one of the things that contemporary managers are learning to do? A. Contemporary managers are learning how to succeed in a world of intense competition. B. Contemporary managers are learning how to succeed in an environment of continued globalization of markets and business activities. C. Contemporary managers are learning how to succeed in a world of rapid technological change. D. Contemporary managers are learning to operate in a world that devalues information, quality, and speed. E. Contemporary managers are learning to respond to reneweddemands for ethical behaviour and social responsibility. D GT Ap ENVIRONMENT AND COMPETITIVE ADVANTAGE (STUDY QUESTION 1) st 118. __________ and __________ are indispensable to success in the 21 -century economy. A. Knowledge … large inventories. B. Knowledge … speed. C. Cost control … bureaucratic designs. D. A and C. E. A, B, and C. B GT Ap What Is Competitive Advantage? 119. An organization establishes a __________ when it has a core competency that sets it apart from its competitors and gives it an advantage over them in the marketplace. A. Core advantage. B. Market advantage. C. Competitive advantage. D. Competency advantage. E. Management advantage. C KT Fa 2 Schermerhorn & Wright: Management 120. Organizations can create a __________ by utilizing a __________ that clearly sets it apart from its competitors and gives it an advantage over them in the marketplace. A. Competitive advantage … core competency. B. Core competency … competitive advantage. C. Competitive advantage … specific environment. D. General environment … specific environment. E. Core advantage … competitive competency. A KT Fa 121. An organization can achieve a competitive advantage through which of the following ways? A. Pricing and customer service. B. Cost efficiency and quality. C. Products and quality. D. All of the above. E. None of the above. D GT Fa 122. The key result of achieving a competitive advantage is __________. A. An ability to sidestep government regulations. B. An ability to consistently do something of high value which one’s competitors cannot replicate quickly or do as well. C. An ability to drive the competition out of business and to make extraordinarily high profits. D. An ability to establish a monopolistic market position. E. An ability to dictate consumer needs and preferences. B GT Fa 123. __________ is especially important in the demanding global economy because nowhere in the world can managers rest on past successes and ignore what others are doing, either at home or abroad. A. Core advantage. B. Market advantage. C. Strategic advantage. D. Competitive advantage. E. Management advantage. D GT Ap The General Environment 124. The __________ consists of all the conditions in the external environment of an organization that forms a background context for managerial decision making. A. Task environment. B. General environment. C. Specific environment. D. Management environment. E. Organizational environment. B KT Fa Chapter 4: Environment, Organizational Culture and Diversity 3 125. General environment conditions exclude which one of the following categories? A. Technological conditions. B. Human relations conditions. C. Economic conditions. D. Legal-political conditions. E. Natural environment conditions. B GT Fa 126. Which of the following would NOT be a condition in the general environment? A. Economic conditions. B. Social-cultural conditions. C. Legal-political conditions. D. Extent and nature of competition. E. Technological conditions. D GT Fa 127. Economic conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. B GT Fa 128. Social-cultural conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. C GT Fa 129. Legal-political conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. A GT Fa 4 Schermerhorn & Wright: Management 130. Technological conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. D GT Fa 131. Natural environment conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. E GT Fa 132. Differences in general environment factors are most noticeable when __________. A. Organizations sell a variety of goods or services to their customers. B. Organizations must rely on many suppliers. C. Organizations operate internationally. D. Organizations must deal with several different labour unions. E. Organizations discharge waste chemicals in the environment. C GT Ap 133. Which of the following is NOT a diversity trend in organizations’ social-cultural environment? A. More women are working. B. People with disabilities are gaining more access to the workplace. C. People of color are a decreasing percentage of the workforce. D. More workers come from nontraditional families. E. Religious diversity of workers is increasing. C MN Ap Stakeholders and the Specific Environment 134. The term that is used to describe the actual organizations, groups, and persons with which an organization interacts and conducts business is __________. A. The general environment. B. The specific environment. C. The special environment. D. The multiple environment. E. The functional environment. B KT Fa Chapter 4: Environment, Organizational Culture and Diversity 5 135. The specific environment can be described in terms of which of the following? A. Stakeholders. B. Persons, groups, or institutions that are affected by the organization’s performance. C. The task environment. D. All of the above. E. None of the above. D GT Ap 136. Persons, groups, and institutions that are affected in some way by the organization’s performance are referred to as __________. A. Agencies. B. Stakeholders. C. Target populations. D. Corporate governance. E. Community dependents. B KT Fa 137. All of the following are important stakeholder elements in the task environment of most organizations EXCEPT: A. Customers. B. Suppliers. C. Supervisors. D. Competitors. E. Regulators. C GT Fa 138. Which of the following would NOT be an important stakeholder element in the specific environ- ment of most organizations? A. Customers. B. Suppliers. C. Competitors. D. Regulators. E. Political parties. E GT Fa 139. Which of the following statements about stakeholder analysis is/are true? A. Stakeholder analysis can be used to assess the organization’s current performance relative to strategic constituencies. B. Stakeholder analysis can be used to develop ideas for improving future performance relative to strategic constituencies. C. Stakeholder analysis helps focus management attention on value creation. D. A and B. E. A, B, and C. E GT Ap 6 Schermerhorn & Wright: Management 140. __________ refers to the extent to which the organization is developing value for and satisfying the needs of important strategic constituencies. A. Constituency development. B. Organization development. C. Value creation. D. Strategic needs management. E. Constituency creation. C KT Fa 141. Which of the following statements about a stakeholder analysis of value is/are true? A. Suppliers and communities are important resource input stakeholders in an organization’s value creation. B. Employees are important transformation process stakeholders in an organization’s value creation. C. Customers and owners are important product output stakeholders in an organization’s value creation. D. A and C. E. A, B, and C. E GT Fa Environmental Uncertainty 142. __________ means that there is a lack of complete information regarding what exists and what developments may occur in the external environment. A. Environmental complexity. B. Environmental dynamism. C. Environmental change. D. Environmental uncertainty. E. Environmental information. D KT Fa 143. Which of the following statements accurately describe the concept of environmental uncertainty? A. Environmental uncertainty consists of two components — complexity of the environment and rate of change in the environment. B. High environmental uncertainty occurs when the rate of change in the environment is high and the complexity of the environment is low. C. Low environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is high. D. All of the above statements accurately describe environmental uncertainty. E. None of the above statements accurately describe environmental uncertainty. A GT Fa Chapter 4: Environment, Organizational Culture and Diversity 7 144. All of the following are true statements regarding environmental uncertainty EXCEPT: A. There is a lack of complete information concerning what developments will occur in the external environment. B. Most organizations encounter relatively little uncertainty in their environments. C. Complexity refers to the number of different factors that exist in the environment. D. The rate of change in factors in the environment is one component of environmental uncertainty. E. Environmental uncertainty makes it difficult to understand potential implications for the organization. B GT Fa 145. The greater the level of environmental uncertainty, the __________. A. Greater the level of environmental complexity and the rate of change in the environment. B. More attention that management must direct toward the external environment. C. Greater the need for flexibility and adaptability in organizational designs and work practices. D. All of the above. E. None of the above. D GT Ap CUSTOMER-DRIVEN ORGANIZATIONS (STUDY QUESTION 2) Who Are the Customers? 146. Individuals who purchase the goods or services produced by an organization are called __________. A. Merchants. B. Internal customers. C. External customers. D. Satisfied customers. E. Producers. C GT Fa 147. Individuals in an organization who depend on the results of others’ work in order to do their own jobs well are called __________. A. Jobbers. B. Internal customers. C. External customers. D. Quality experts. E. Dependent employees. B GT Fa 8 Schermerhorn & Wright: Management 148. Gloria assembles circuit boards in a computer manufacturing plant. She gets the chips for the boards from David, assembles the boards, and then forwards them to Judy, who puts them into the finished components. This example illustrates the concept of __________. A. Integrated manufacturing processes. B. Efficient task assignments. C. Internal customers, who use the results of others’ work to do their job. D. Total quality management and shared responsibility. E. Deming’s path to quality. C GT Ap 149. Which one of the following statements does NOT accurately describe a practical implication of the concept of internal customers? A. Any job or function in the organization can represent an internal customer. B. Any job or function can be both a customer and a supplier. C. Internal customers refer only to jobs that are directly involved with the manufacture of a product. D. Internal customers have the right to expect high-quality and on-time inputs from earlier points in the workflow. E. Suppliers have the responsibility to deliver high-quality and on-time inputs to the next point in the workflow. C GT Ap What Customers Want 150. Which of the following characteristics do customers want in the goods and services they buy? A. High quality, low price, and on-time delivery. B. High quality, motivated employees, and low inventory carrying costs. C. High quality, low rice, and low scrap rates. D. High quantity, low costs, and high profit margins. E. High quality, minimal cycle time, and efficient procedures. A GT Fa 151. Organizations lose competitive advantage when they __________. A. Respond effectivelyto customer complaints. B. Can’t meet customer expectations. C. Provide high quality services. D. Keep prices low. E. Are profitable. B GT Fa Chapter 4: Environment, Organizational Culture and Diversity 9 152. __________ and __________ are two important lessons that have been learned by contemporary successful businesses. A. Always protect your stockholders … always treat your customers right. B. Always protect your reputation for shrewd financial management … always treat your employees right. C. Always protect your profits … always treat your customers right. D. Always protect your reputation for quality products/services … always treat your shareholders right. E. Always protect your reputation for quality products/services … always treat your customers right. E GT Ap Customer Relationship Management 153. A Harvard Business Review survey ranked which of the following as first and second among the most important goals in the success of organizations? A. Technological advancements and recruiting quality employees. B. Financial returns to stockholders and market share. C. Productivity and profitability. D. Satisfying internal and external customers. E. Customer service and product quality. E GT Fa 154. According to a survey by the market research firm, Michelson & Associates, customers abandon a retail store for which of the following reasons? A. Price fixing and false advertising. B. Poor service and product dissatisfaction. C. Product modification and excessive service charges. D. Employee grievances and poor working standards. E. Poor quality products and price fixing. B GT Fa 155. __________ involves establishing and maintaining high standards of customer service. A. External customer responsiveness. B. Customer relationship management. C. Value chain management. D. Business relationship management. E. Supply chain management. B KT Fa 156. __________ uses the latest information technology that allows organizations to maintain intense communication with customers as well as to gather and utilize data regarding the customers’ needs and preferences. A. Customer relationship management. B. Internal customer management. C. Value chain management. D. Total quality management. E. Supply chain management. A GT Fa 10 Schermerhorn & Wright: Management 157. __________ involves strategic management of all operations involving the suppliers of an organization’s resources. A. Value chain management. B. Internal customer management. C. Customer relationship management D. Total quality management. E. Supply chain management. E KT Fa 158. Achieving efficiency in all aspects of the __________ while ensuring on-time availability of quality resources for customer-driven organizations is the fundamental goal of __________. A. Value chain … value chain management. B. Quality chain … quality chain management. C. Supply chain … supply chain management. D. Customer chain … customer chain management. E. Production chain … production chain management. C GT Fa QUALITY-DRIVEN ORGANIZATIONS (STUDY QUESTION 3) 159. __________ indicates conformance with a rigorous set of international quality standards. A. Consumer protection certification. B. International Q certification. C. AAA certification. D. International customer service certification. E. ISO certification. E KT Fa 160. Organizations that want to compete in the world marketplace as “world-class companies” can gain a competitive advantage by having their operations achieve __________. A. Consumer protection certification. B. International Q certification. C. ISO certification. D. AAA certification. E. Manufacturing supply certification. C GT Ap 161. To receive ISO certification, companies must __________ and __________. A. Undergo extensive managerial training … be approved by the Management Development Institute. B. Receive governmental approval to apply for the certification exam … have at least 90% of the employees pass the certification exam. C. Refine and upgrade quality in all operations …. undergo a rigorous assessment by outside auditors to determine if quality standards are met. D. Apply for membership in the International Society for Operations (ISO) … receive approval from the ISO membership committee. E. Increase sales for three years in a row … decrease customer complaints in each year. C GT Ap Chapter 4: Environment, Organizational Culture and Diversity 11 Total Quality Management 162. The term total quality management is used to describe the process of __________. A. Training managers to monitor quality and then making them responsible for overall quality in their areas of responsibility. B. Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs. C. Reducing the need for quality inspections by training employees to be quality conscious. D. Producing holistic work environments. E. Designing and manufacturing quality products. B KT Fa 163. Which of the following characteristics does NOT accurately describe the process of total quality management? A. Making quality principles a part of the organization’s strategic objectives. B. Applying quality principles to all aspects of operations. C. Committing the organization to continuous quality improvement. D. Striving to meet customers’ needs by doing things right the first time. E. Committing the organization to the use of self-managing work teams. E KT Fa 164. Philip Crosby has developed what he calls the “four absolutes” of management for total quality control. Which of the following is NOT one of Crosby’s “four absolutes” of management? A. Quality means conformance to standards. B. Quality comes from defect prevention, not defect correction. C. Quality comes from multiple defect inspections. D. Quality as a performance standard must mean defect-free work. E. Quality saves money. C GT Fa Quality and Continuous Improvement 165. W. Edwards Deming’s comprehensive, rigorous, and learning-based approach to quality emphasizes __________. A. Constant innovation, use of statistical methods, and a continuous commitment to up-to- date training. B. Constant correction of defects and termination of employees responsible for the defects. C. Use of statistical methods to fix blame for low quality. D. Use of up-to-date technology to compensate for poorly trained workers. E. Continuous commitment to maximizing corporate profits. A GT Fa 166. Continuous improvement is the attempt to __________. A. Continually watch quality control to detect errors. B. Maintain the quality advantage by always looking for new ways to improve current performance. C. Look for ways to confirm current production methods. D. Seek competitive marketing opportunities. E. Monitor future production. B KT Fa 12 Schermerhorn & Wright: Management 167. The basic philosophy of __________ is that organization members should never be satisfied with current performance. A. Performance management. B. Continuous improvement. C. Performance appraisal. D. Supply chain analysis. E. Human resources management. B GT Fa 168. An important aspect of __________ is the belief that organization members should find ways to serve customer needs more quickly. A. Performance management. B. Performance appraisal. C. Supply chain analysis. D. Human resources management. E. Continuous improvement. E GT Fa 169. A(n) __________
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