MGT103-Chapter 2

Which of the following is a part of an organization's external environment?

• Board of directors

• Physical work environment

• Inflation

• Organization's culture

• Employees

In Asia, consumers have historically had an aversion to debt. However, in recent years credit card use has grown significantly, supported by aggressive marketing to promote growth in the region. This example comprises the _____dimension of an organization's general environment.

• economic

• technological

• sociocultural

• political-legal

• task

A business manufactures top-of-the-line cabinets. The _____ dimension of its general environment includes computer-assisted design software that helps to convert wood and people's idea into lovely, functional cabinets.

• legal

• sociocultural

• technological

• political

• economic

Alex, one of the proprietors of Atlas Corp. is worried. The stock market was not doing well, unemployment was 10 percent, inflation was on the rise again, and government debt was still increasing. These concerns of Alex are related to the _____ dimension of the general environment of Atlas Corp.

• legal

• sociocultural

• technological

• political

• economic

The set of broad dimensions and forces in an organization's surroundings that determines its overall context is called the _____ environment.

• task

• general

• physical work

• regulatory

• ethical

A company would begin to do business in another country only if the trade relationships with that country are relatively well defined and stable. In the context of general environment, which of the following does this point ofview reflect?

• Task

• Economic

• Technological

• Political-legal

• Competitive

Competitors, customers, suppliers, strategic partners, and regulators make up the _____ environment of an organization.

• technological

• general

• economic

• political-legal

• task

Eastlawn Pharmacy is a local drugstore that has been serving the neighborhood for over 25 years. Recently, a national pharmacy chain opened one of its stores two blocks from Eastlawn. Eastlawn is experiencing a change in its

• task environment.

• internal environment.

• physical work environment.

• government regulations.

• organizational culture.

Nonstop is a free instant messaging and voice chat service that allows users to communicate with each other, using a microphone and/or a webcam, over the Internet. Its popularity is increasing and, as a result, the number of people using Chatterbox, another instant texting service, has decreased. Nonstop is a _____ to Chatterbox.

• competitor

• supplier

• customer

• strategic partner

• regulator

A diner received many warnings from the local Board of Health regarding the quality of its food. The Board of Health objected to the trans-fats used for frying and the freshness of bread and meat used at the diner. The Board is playing the role of a(n) _____ in the restaurant's environment.

• competitor

• customer

• supplier

• regulator

• investor