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WorksheetsCH 2 THE MANAGEMENT ENVIRONMENT & ISSUES
Total questions: 16
Worksheet time: 7mins
The external environment refers to factors that are:
Inside the organization
Controlled by the organization
Outside the organization and affect performance
Only related to competitors
Which of the following is a Political factor in PEST?
Customer preferences
Government regulations
Inflation rates
Technology innovation
Inflation and exchange rates are part of which PEST factor?
Political
Economic
Sociocultural
Technological
Customers preferring healthy food is an example of:
Political change
Economic issue
Sociocultural factor
Technological trend
Using Artificial Intelligence (AI) tools in businesses is a:
Political factor
Economic factor
Sociocultural factor
Technological factor
A global village means:
One country producing for itself
The world becoming interconnected
Decrease in global trade
Only domestic markets growing
A multidomestic corporation:
Centralizes decisions at headquarters
Standardizes products globally
Adapts to each local country
Eliminates geographical boundaries
Global corporations:
Decentralize decisions
Customize for every country
Centralize decisions at home country
Operate only in Asia
Which market entry mode involves selling local products abroad?
Exporting
Licensing
Franchising
Foreign subsidiary
Licensing is suitable when:
A firm wants tight control
The firm has valuable intangible property
A firm wants to protect technology
A firm wants to avoid sharing profits
PEST analysis helps firms make better business decisions.
TRUE
FALSE
Global organizations treat the world as a single market.
TRUE
FALSE
Transnational corporations eliminate artificial geographical boundaries.
TRUE
FALSE
Wholly owned subsidiaries are the cheapest mode of entering foreign markets.
TRUE
FALSE
Just in time is the organizational commitment to constantly improve the quality of products or services.
TRUE
FALSE
Empowerment gives employees the tools and resources necessary to make confident decisions in the workplace without supervision.
TRUE
FALSE
