CHAP2

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

Which of the following is a concern of the technological dimension of an organization's general environment?

• Organization's policies and practices

• Inflation, interest rates, and unemployment

• Tools, methods, and technology

• Government regulations

• Offices, production facilities, and cafeteria

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 of view reflect?

• Task

• Economic

• Technological

• Political-legal

• Competitive

The dimension of the general environment consists of government regulation of business and the relationship between business and government.

• technological

• task

• political-legal

• competitive

• socio-economic

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.