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Fabtabtix, a designer clothing brand, has been selling clothes in the country of Grolania for over 30 years. With more number of people becoming fashion-conscious, the sale of designer wear has increased. As a result, Fabtabtix's business has been rapidly growing over the past few years. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.


A) technological component
B) sociocultural component
C) political component
D) economic component

E) C) and D)
F) B) and C)

Correct Answer

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Instead of taking a smoke break every two hours, employees at a local company were asked to take an extra 30 minutes for lunch. This is an example of behavioral substitution.

A) True
B) False

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Organizational heroes are organizational people admired for their qualities and achievements within an organization.

A) True
B) False

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Environmental uncertainty refers to the abundance or shortage of critical organizational resources in an organization's external environment.

A) True
B) False

Correct Answer

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In case of book publishing, identify an example of a sociocultural component in the general organizational environments that can indirectly influence all the organizations.


A) An increase in the number of competitors
B) The number of book distributors in a particular location
C) A trend toward reduced leisure time
D) An advocacy group supporting free books for children

E) B) and D)
F) B) and C)

Correct Answer

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Opulent Inc., a furniture design company based in Winona, designs a wide range of office and household furniture. Umber Corp. has recently started offering custom-made furniture in the same city. The managers at Opulent conduct a research to find out the strengths and weaknesses of Umber. The managers also try to figure out the strategies used by Umber. In the given scenario, which of the following strategies is being used by the managers at Opulent Inc.?


A) Demographic segmentation
B) Corporate governance
C) Proactive monitoring
D) Competitive analysis

E) All of the above
F) A) and D)

Correct Answer

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Which of the following is a component of the general environment that indirectly affects all organizations?


A) Political/legal trends
B) Customers
C) Industry regulations
D) Suppliers

E) C) and D)
F) B) and C)

Correct Answer

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Which of the following exemplifies a sociocultural component in the general organizational environments?


A) New FDA regulations on food handling and storage in fast food chains
B) Increase in the number of fast food chains offering similar menus
C) Increasing popularity of weight management programs
D) Shortage of spice suppliers

E) B) and C)
F) A) and D)

Correct Answer

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The country Bornizia recently experienced a drop in inflation. This change facilitated sales for many organizations and also increased employment. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.


A) technological changes in the country
B) political condition of the country
C) economy of the country
D) sociocultural aspect of the country

E) B) and D)
F) B) and C)

Correct Answer

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In the context of environmental complexity, a(n) __________is an environment with few environmental factors.


A) punctuated environment
B) simple environment
C) equilibrium environment
D) uncertain environment

E) B) and D)
F) None of the above

Correct Answer

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The industry regulation component of the specific environment of a company affects all businesses.

A) True
B) False

Correct Answer

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Supplier dependence is the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products.

A) True
B) False

Correct Answer

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Thutmach is a manufacturer of potato chips. It has been purchasing potatoes from Vegofaz, a vegetable wholesaler, for about a decade. Vegofaz offers discounts and benefits to Thutmach, and Thutmach, in turn, purchases potatoes only from Vegofaz even when other wholesalers approach Thutmach with better offers. In the context of the supplier component of a specific environment, this scenario best illustrates _____ between Thutmach and Vegofaz.


A) anti-competitive behavior
B) opportunistic behavior
C) relationship behavior
D) dissonant behavior

E) A) and C)
F) B) and C)

Correct Answer

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According to forecasts, different parts of the country Frecciatona are likely to be affected by water shortage. Following this news, the chief operations officer of Frantef Appliances, a company that manufactures and supplies household devices in Frecciatona, plans to introduce a new model of dishwasher that makes efficient use of small amounts of water. In the context of changing environments, this scenario best illustrates _____.


A) generational change
B) technological lockout
C) environmental uncertainty
D) buyer dependence

E) C) and D)
F) All of the above

Correct Answer

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Opportunistic behavior focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers.

A) True
B) False

Correct Answer

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Which of the following forms a component of the specific environment of an organization?


A) The suppliers
B) The political component
C) The technological component
D) The customers

E) A) and B)
F) A) and C)

Correct Answer

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Under the Family and Medical Leave Act, employees who have been on the job one year are guaranteed twelve weeks of unpaid leave per year.

A) True
B) False

Correct Answer

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__________is the degree to which a supplier relies on a purchaser because of the importance of that purchaser to the supplier and the difficulty of finding other purchasers for its products.


A) Buyer dependence
B) Internal dependence
C) Resource dependence
D) Supplier dependence

E) None of the above
F) B) and C)

Correct Answer

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Which of the following is an advocacy group tactic that involves actively trying to persuade consumers not to purchase a company's goods or services?


A) A class action lawsuit
B) Company divestment
C) Media advocacy
D) A product boycott

E) A) and B)
F) None of the above

Correct Answer

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After Lawminam, a law firm, acquired Craitren, a small law firm, the management of Lawminam framed new organizational policies that required all employees and managers to work for a minimum of 40 hours per week. The management also made it mandatory for all the employees to dress in business formals. In this scenario, Lawminam is most likely using _____.


A) behavioral opportunism
B) behavioral deskilling
C) behavioral conditioning
D) behavioral addition

E) B) and C)
F) All of the above

Correct Answer

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