ODB Chapter 3

The complex network of changing pressures and forces that affect

the way it operates is the concept of

• organization’s environment

• organization's domain

The forces from outside stakeholder groups that directly affect an organization’s ability to secure resources is the concept of...

• Specific environment

• General environment

The forces that shape the specific environment and affect the ability of all

organizations in a particular environment to obtain resources is the concept of...

• Specific environment

• General environment

Which one is the source of uncertainty for organization?

• Complexity

• Dynamism

• Diversity of environment

• All of the answer are correct

A theory that argues the goal of an organization is to minimize its dependence on other organizations for the supply of scarce resources in its environment and to find ways of influencing them to make resources available.

• Resource dependence

  theory

• Resource independence

  theory

Which one below is the concept of symbiotic interdependencies?

• Reputation

• Cooptation

• Strategic alliances

• Merger and acquisition

Which one below is the concept of competitive interdependencies?

• Collusion and cartels

• 3rd party linkage mechanism

• Strategic alliances

• Merger and acquisition

Which one below is the concept of strategic alliances?

• Short-term contracts

• Networks

• Minority ownership

• Joint ventures

A theory that states the goal of an organization is to minimize the costs of exchanging resources in the environment and the costs of managing exchanges inside the organization

• Transaction cost

  theory

• Specific assets theory

• Bureaucratic costs theory

How to avoid bureaucratic cost?

• Keiretsu

  A group of organizations, each of which owns shares in the other organizations in the group, that work together to further the group’s interests.

• Franchising

  A business authorized to sell a company’s products in a certain area. The franchiser sells the right to use its resources (e.g., its name or operating system) to a person or group (the franchisee) in return for a flat fee or a share of the profits.

• Outsourcing

  The process of moving a value creation activity that was performed inside an organization to outside where it is done by another company.

• Specific assets

  Investments—in skills, machinery, knowledge, and information—that create value in one particular exchange

  relationship but have no value in any other exchange relationship.