The Firm and Its Environment

Which of the following does not form part of a firm’s macro-environment?

• internal environment

• economic environment

• technological environment

• political environment

What term is used to describe the process which basic goods pass through as they are transformed into goods for final consumption?

• circular flow of income

• final delivery

• logistics

• value chain

Which of the following is not an example of an internal environment?

• employees

• office and plant layout

• reward system

• competition

An organization's __________ embraces the behavior, rituals, and shared meaning held by employees that distinguishes that organization from all others.

• external environment

• culture

• dominant culture

• ethics

Applying rationality to understand the sources and possible effects of environmental factors and to determine the organization's opportunities and threats is called:

• work analysis

• statistical analysis

• environmental analysis

• none of the above

The practices of a company for which it is accountable in relation to other parties is called:

• social responsibility

• code of ethics

• values

• culture

Which of the following would not be a reason for management carrying out an environmental or PESTEL analysis?

• To consider how organizational strategy should take account of changes in the outside world

• To identify all potential influences on the future of the organization

• To determine environmentally responsible business practices

• To determine the external factors most likely to impact upon the organization