Name: 
 

Chapter 2 The Environment and Corporate Culture



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

Kraft has created Tassimo, a coffee brewing machine for home use.  While one cup of Tassimo-brewed coffee costs six times more than a cup of instant coffee, it does cost less than coffee bought outside the home.  With its new coffee machine, Kraft is responding to consumers’ desire for healthier eating and for more convenience.  The development of Tassimo reflects how companies develop products in response to changes in the _____ dimension of its general environment.
a.
international
b.
technological
c.
sociocultural
d.
economic
e.
task
 

 2. 

India’s fragmented retail market is characterized by millions of tiny, ramshackle shops.  It is nearly impossible for foreign retailers to enter the market.  To bypass restrictive conditions in India and reach the large market in India, some international retailers have been operating as wholesalers while letting their Indian partners conduct the actual retail transactions.  In this situation, international retailers are acting as:
a.
suppliers
b.
customers
c.
competitors
d.
employees
e.
outsourcers
 

 3. 

In an environmentally unadaptive corporate culture, managers:
a.
tend to behave somewhat insularly, politically, and bureaucratically
b.
pay close attention to all of their constituencies
c.
initiate change when needed to serve their legitimate interests
d.
strongly value people and processes that can create useful change
e.
must rely on delegation and change agents
 

 4. 

Elements of the external environment of an organization include:\
a.
Government legislation changes
b.
Employee morale
c.
Managerial motivation
d.
Organizational culture
e.
Physical layout of the workplace
 

 5. 

Elements of the general environment of an organization include:
a.
Transportational, socio-political, economic, legal-political
b.
Transactional, socio-cultural, environmental, legal-political
c.
Technological, socio-cultural, environmental, legal-political
d.
Technological, socio-cultural, economic, legal-political
e.
Technological, socio-cultural, economic, lateral
 

 6. 

Elements of the internal environment of an organization include:
a.
Competitors, culture, and suppliers
b.
Competitors, labour market, and government
c.
Employees, government and customers
d.
Customers, culture, and competitors
e.
Employees, culture, and management
 

 7. 

Which of the following is part of the organization’s legal-political dimension of the general environment?
a.
Federal government regulations
b.
Provincial government regulations
c.
Local government regulations
d.
All of the above
e.
None of the above
 

 8. 

Customers are people and organizations who
a.
Supply parts to the organization
b.
Sell services to the organization
c.
Acquire goods or services from the organization
d.
Provide labour to the organization
e.
Help to market the organization’s products or services
 

 9. 

Examples of competing organizations in Canada are:
a.
McDonald’s and The Hudson Bay Company
b.
Bell Canada and Zellers
c.
Tim Horton’s and Ford Motor Company
d.
Tim Horton’s and Starbuck’s
e.
Wal-Mart and Starbuck’s
 

 10. 

An example of a supplier to a paper manufacturing company would likely be a
a.
Telephone company
b.
Logging company
c.
Government organization
d.
Steel company
e.
Clothing company
 

 11. 

Competitive intelligence (CI) refers to activities that are designed to
a.
Help communication inside the organization
b.
Increase production of existing products
c.
Minimize waste in factory operations
d.
Gain assistance from government tax programs
e.
Get as much information as possible from one’s rivals
 

 12. 

Characteristics of the partnership orientation include:
a.
Suspicion
b.
Lawsuits
c.
Short-term contracts
d.
Trust
e.
Limited information and feedback
 

 13. 

Visible elements of corporate culture does NOT include
a.
Artifacts
b.
Artificial intelligence (AI)
c.
Slogans and ceremonies
d.
Symbols
e.
Office layout
 

 14. 

One positive way of showing that a company has a history of standing behind its workers and supporting them in delivering excellent customer service is
a.
To tell stories
b.
To punish initiative
c.
To create new rules
d.
To deny training to employees
e.
To create new discipline procedures
 

 15. 

Elements of an organization with a results-oriented culture might include:
a.
Criticism of personal initiative
b.
Team-based projects
c.
Group support sessions
d.
A reward for the most products sold
e.
No individual bonuses
 



 
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