MGMT Ch. 3 + 4

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According to the ____theory, companies go through long, simple periods of environmental stability, followed by short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability.

punctuated equilibrium theory

Typically the most important factor in the relationship between companies and their suppliers is ____.

how dependent they are on each other

The first step managers use to make sense of their changing environments is ____.

environmental scanning

Kodak makes digital cameras and paper for prints. Kodak would view the growing popularity of digital cameras as a(n) ____ in its external environment if it considered how digital cameras affect sales of cameras that use film. On the other hand, Kodak would view the growing popularity of digital cameras as a(n) ____ in its external environment if it considered the amount of Kodak processing paper used in printing pictures made by digital cameras.

threat; opportunity

The term ____ refers to the events and trends inside an organization that affect management, employees, and the organizational culture.

internal environment

____ is the degree to which an organization's external environment has an abundance or scarcity of critical organizational resources.

Resource scarcity

What are the two types of external organizational environments.

general and the specific

In terms of environmental complexity, ____ environments have few environmental factors, whereas ____ environments have many environmental factors.

simple; complex

Small manufacturers are successful often because Wal-Mart agrees to carry their products. If Wal-Mart does not like a price increase, it often will refuse to do business with the manufacturer. At this point, many small manufacturers will offer price reductions because they fear failure if they lose the Wal-Mart account. The relationship between these small manufacturers and Wal-Mart can be described as ____.

buyer dependent

Which of the following is a characteristic of successful organizational cultures?

all of these

More premature babies than ever before are surviving due to improvements in medical knowledge and care. This improved survival rate can be attributed to the ____ component of hospitals.

technological

Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two-acre yards. The other is offering a similar size of house with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the smaller lots most likely used ____ to determine what homebuyers desired.

proactive customer monitoring

The Edmonton Oilers ice hockey team develops a sense of history for its current players by raising banners showing its success - five championships - and the retired numbers of great players from the past in its stadium and locker room. What tactics for maintaining organizational culture are the Edmonton Oilers using?

organizational stories and organizational heroes

When Susan started work at Henderson Textile Co., she was amazed at its employees who would take 30-minute restroom breaks, leave for the day at 2 p.m., and generally belittle the company's management. Such employees' actions most likely developed over time as a result of a faulty ____.

organizational culture

All events outside a company that have the potential to influence or affect it occur in the ____ environment.

external

Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two-acre yards. The other is offering a similarly sized house with with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the larger lots could use ____ to determine why his homes are not selling.

reactive customer monitoring

Advocacy groups use a variety of tactics to convince businesses to comply with the group's stand on issues. Which of the following advocacy group tactics would be most likely to cause a business to fail?

product boycotts

Which of the following is the LEAST aggressive approach likely to be used by an advocacy group?

public communications

One of the difficulties encountered in recent mergers has been the inability of employees in the two existing organizational cultures to operate harmoniously. In other words, merging organizational cultures often lack the ____ that would increase the likelihood of a merger's success.

adaptability

Which of the following approaches will guarantee the successful change of an organizational culture?

none of these

Which of the following is a component of the specific environment that would directly influence a restaurant's day-to-day operation?

its regular customers

The creation of Ingram Distribution allows booksellers to streamline the ordering and return procedures of their books. Ingram made all the books bookstore owners wanted available in one centralized warehouse. Many new bookstore owners would be unwilling and/or unable to return to the method of ordering books from the individual publishers. This is an example of the creation of ____.

high buyer dependence on a supplier

Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. This reflects a change in the ____ component of the general environment.

political/legal

Which of the following is a component of Coca-Cola's specific environment and will directly influence how it does business?

Pepsi-Cola

____ is a primary source of organizational culture.

The company's founder

Which of the following is a secondary stakeholder group?

the media

According to the stakeholder model, which primary stakeholder group is theoretically most important to the company?

all primary stakeholders are of equal importance

What term describes the degree of concern people have about an ethical issue?

ethical intensity

If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy. Its sentence would be determined by ____.

the U.S. Sentencing Commission Guidelines

____ is strong when decisions have large, certain, immediate consequences and when we are physically or psychologically close to those affected by the decision.

Ethical intensity

The last step in the basic model of ethical decision making is to ____.

act

When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, the Indian government immediately ordered Coke to stop production. The Indian government served as a(n) ____.

primary stakeholder

What is social responsibility?

a business' obligation to pursue policies, make decisions, and take actions that benefit society

Ethical intensity depends in part upon ____.

temporal immediacy

The ____ model holds that the only social responsibility that businesses have is to maximize profit.

shareholder

Secondary stakeholders are important to a company because ____.

they can affect public perceptions and opinions

Which of the following statements about social responsibility is true?

Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.

In an article about BP Amoco, its CEO said that the company's commitment to ____ is all about trying to align its policies, values, and behavior with those of the societies in which it operates because, ultimately, superior performance means being in touch.

social responsibility

What does it mean when the text says that the U.S. Sentencing Guidelines use a "carrot and stick" approach?

The Guidelines offer lower fines to companies that take proactive steps.

Various persons or groups with a legitimate interest in a company's actions are called ____.

stakeholders

Managers can use integrity tests to _____.

select and hire ethical employees

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

official approval of the company's ethics code by government regulators

To create a compliance program that is acceptable under the U.S. Sentencing Guidelines, a company should ____.

do all of these

Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all international manufacturers of rubber chemicals. They have all been indicted as participants in a price-fixing scheme that drove up the costs of chemicals used to make shoes, tires, and other products. They would be most likely to use the ____ model to justify their actions.

shareholder

Ramin wood, which is used to make pool cues and picture frames, was declared an endangered species and its export is regulated by the government of Indonesia. In spite of attempts to control the sale of the wood, it is still being carried across Indonesia's national borders and sold in Malaysia where government officials pretend the wood was legally acquired. Companies that buy the illegally-acquired wood in Malaysia are ignoring their ____ responsibility to society.

legal

In recent years Kowalski's Markets expanded by purchasing four existing stores. One of the stores was located in Minneapolis' Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had an obligation to provide a neighborhood grocery store to that community. Which of the following is an example of a primary stakeholder group for Kowalski's markets?

customers in the Camden neighborhood

____ integrity tests indirectly estimate employee honesty by measuring psychological traits.

Personality-based

Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver, became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like room to a "soft room" protected by drywall that you could punch a hole through. Graf eventually had to take his concerns to the media before the plutonium was stored once again in a safe location. Graf actions can be described as a(n) ____.

whistleblower

For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. By providing the drugs at a fraction of their usual costs, GSK was acting at which level of social responsibility?

discretionary

After identifying the problem in the basic model of ethical decision-making, the next step is to ____.

identify the constituents

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