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HRE BUSINESS MODELS
REVISION
The two ways in which the environment influences organizations are the need for information about changes in the environment and the need for : - Exact answer resources from the environment. _____ link and coordinate an organization with key elements in the external environment. - Exact answer Boundary-spanning roles Which of the following is a characteristic of the general environment? - Exact answer It includes those sectors that will indirectly impact a firm. The sociocultural sector of an organization is concerned with issues such as: - Exact answer the working conditions of workers hired by contractors Environmental complexity refers to heterogeneity, or the number and dissimilarity of external elements that affect an organization's operations. - Exact answer True When several sectors change simultaneously, the environment becomes _____. - Exact answer Turbulent Economic conditions are included in the general environment. - Exact answer True In organizations characterized by very simple, stable environments, almost no managers are assigned to integration roles. - Exact answer True Universities function in the _____ environment. - Exact answer Complex and stable Environmental _____ refers to heterogeneity, or the number and dissimilarity of external elements. - Exact answer Complexity
Imagine the day when artificial intelligence will enable all of us to drive fully autonomous vehicles that can navigate directions on their own and respond to the movement of surrounding vehicles. Our cars and trucks will take us wherever we want to go while we talk, read, watch streaming media, or even take naps on the way. Of the following industries, which will be most affected by this dramatic change in the technology sector? - Exact answer Car insurance providers Leo Burton is the CEO of a cigarette manufacturing company. He and his employees suffered a major loss when tobacco products were banned in his country. Leo's organization was affected by changes in the _____. - Exact answer government sector Which of the following is a characteristic of the complex, stable environment? - Exact answer External elements do not change rapidly in this environment. A(n) _____ involves the purchase of one organization by another so that the buyer assumes control. - Exact answer acquisition As the CEO of a furniture manufacturer in Michigan, you are painfully aware that sales have been dropping off in recent years, forcing you to lay off some employees and decrease production. You aren't sure why, but you thought it was due to competition from foreign manufacturers entering the U.S. market. The HR manager just told you something that has made you pause. She says that a number of employees have recently quit their jobs in your factory to go work for two other manufacturers in the same area, both of which are increasing production. What step should you take to cope with the uncertainty? - Exact answer Form a competitive intelligence team to study your organization's competitors Percy developed a new accounting system which processed data that was previously computed by ten accountants. As a result, the new technology replaced ten employees. Due to Percy's innovation, the technological sector impacted the _____ environment of the organization. - Exact answer General
you've noticed that Pacific's prices have increased an average of 4% each year, which is troubling since resources are already so tight. Following the resource-dependence theory, which strategy would you choose to reduce dependence on other organizations and maintain control of resources? - Exact answer Enter into a joint venture As one of the largest retailers, Walmart purchases huge quantities of wholesale products from its suppliers. This enables the organization to negotiate lower prices on these products, which it passes along to customers in the form of "price rollbacks." Which type of interorganizational relationship does this describe? - Exact answer Collaborative network Which of the following theories argues that organizations try to minimize their reliance on other organizations for the supply of important resources and try to influence the environment to make resources available? - Exact answer The Resource-dependence theory In today's economy, organizations think of themselves as teams that _____ rather than autonomous companies that compete with all others. - Exact answer create value jointly Which of the following is a characteristic of the new orientation to interorganizational relationships? - Exact answer Equity and fair dealing Trained by his father, Bob Butler is an excellent appliance repair person. Under Bob's guidance, Butler Appliance Repair has grown, and Bob now employs several other repair technicians, which he's personally trained. However, more and more often, potential clients are asking whether Butler's repair techs are licensed and bonded. They're not, which has caused Bob to lose a growing amount of business. Bob is wondering if it would be worth it for him and his three repair techs to take a course and get licensed. In this instance, which type of forces could cause institutional adaptation? - Exact answer Normative In the context of mechanisms for institutional adaptation, benchmarking is a: - Exact answer mimetic process.
____ are the external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations. - Exact answer Coercive forces Getwel Corp. and Sebastian Inc. are two computer manufacturers that share with each other the details of commonly occurring issues and customer complaints. This enables them to work together and provide better service to their customers and also saves the time required to diagnose the issues. Which of the following does this scenario illustrate? - Exact answer A Collaborative network A relatively small grocery store chain operates 35 stores in three New England states. Recently, the organization has been facing intensified competition from resource-rich dominant players like Kroger and Walmart, new players with innovative services like Amazon, and new low-cost leaders like Aldi. This small chain is seeing declining sales because it cannot offer consumers the same or better products, services, or prices as any of these competitors. Which type of interorganizational relationship does this describe? - Exact answer Resource dependence Business intelligence refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant. - Exact answer True ou are one of the co-founders of Omnitech Games, an app developer that creates games that can be played on smartphones. Your organization has had three major successes, but it has also developed a couple of duds that didn't sell at all. You and your partner recognize you're operating in a challenging, ever-changing environment. You want to make sure you're creating new games that will take advantage of technological changes, appeal to evolving consumer preferences, and beat the growing number of competitors. What step should you take to help cope with the uncertainty? - Exact answer Create two boundary-spanning roles to monitor technological advances and consumer preferences Imagine the day when artificial intelligence will enable all of us to drive fully autonomous vehicles that can navigate directions on their own and respond to the movement of surrounding vehicles. Our cars and trucks will take us
An organization's _____ is the chosen environmental field of action. - Exact answer domain Boundary spanners prevent an organization from stagnating by keeping top managers informed about environmental changes. - Exact answer True Uber, one of the biggest peer-to-peer ridesharing and delivery organizations, has recognized that self-driving vehicles would eliminate the organization's need for human drivers, which are its biggest operating expense. Thus, the organization set up a new division dedicated to developing self-driving vehicles and sought out investments of $1 billion. Toyota then committed to contributing somewhere between $500 and $ million to Uber's product development. Why is Toyota such a good ally for Uber? - Exact answer Toyota is able to offer valuable financial and technological resources. Environmental _____ refers to heterogeneity, or the number and dissimilarity of external elements. - Exact answer. complexity Cooptation occurs when leaders from important sectors in the environment are made part of an organization. - Exact answer True You've just started your new job as the Operations Manager of an organization that manufactures wooden toys and other household items made from wood, and now you're hearing about all kinds of issues. Demand for the organization's products has grown so rapidly that the production plant can barely keep up. Plus, the plant's foreman says he doesn't receive the right raw materials at the right times, and you've discovered that there isn't a good system in place for ordering these supplies. To top it all off, the sales team is worried that the organization won't be able to fill all the orders, now that they've worked so hard to find great customers. What is the first step you should take to cope with the uncertainty? - Exact answer. Establish a materials purchasing department, which will act as a buffer department
Located in central California's agricultural region, South Coast Fruits processes locally grown fruits of all kinds. Growers transport their crops to South Coast's facilities, and the organization then cleans, prepares, and packages the fruit for sale to grocery stores and other commercial buyers. Into which quadrant of the environmental uncertainty framework does South Coast Fruits fall? - Exact answer Simple and stable with low uncertainty Which of the following environments has the lowest level of uncertainty? - Exact answer The simple, stable environment In today's economy, organizations think of themselves as teams that _____ rather than autonomous companies that compete with all others. - Exact answer create value jointly The social basis for the mimetic process is that the innovations are culturally supported. - Exact answer True _____ is defined as the general perspective that an organization's actions are desirable, proper, and appropriate within the environment's system of norms, values, and belief. - Exact answer Legitimacy Getwel Corp. and Sebastian Inc. are two computer manufacturers that share with each other the details of commonly occurring issues and customer complaints. This enables them to work together and provide better service to their customers and also saves the time required to diagnose the issues. Which of the following does this scenario illustrate? - Exact answer A Collaborative network Arkal Corp. manufactures wooden chairs and Borston Corp. manufactures plastic chairs. Arkal Corp. wants to enter into a resource-dependence relationship with Borston Corp. Which of the following types of resource- dependence relationships is most likely to result in Arkal Corp. gaining full control over the joint outcome? - Exact answer Acquisition ____ means identifying who is best at something in an industry and then duplicating the technique for creating excellence, perhaps even improving it in the process. - Exact answer Benchmarking
You are the CEO of a digital camera manufacturer. Although your organization's products are moderately priced, they are known for their high quality, and as a result, sales and profits have skyrocketed. Lately, you've been having trouble with your supplier for lenses. That organization produces excellent quality, but delivery is unreliable and prices are rising. Plus, the organization has been unwilling to make minor modifications that would better fit your products. Following the resource-dependence theory, which strategy would you choose to reduce dependence on other organizations and maintain control of resources? - Exact answer Make an acquisition Organizational changes that result from coercive forces occur due to _____. - Exact answer dependence Dave, the operations manager at a paper mill, is deeply concerned. The Environmental Protection Agency has just tightened restrictions on the amount of pollution mills can legally emit into the environment. He's not sure his mill will meet the new restrictions, and the last time he had to make modifications like this, it cost the mill more than a million dollars. In this instance, which type of forces could cause institutional adaptation? - Exact answer Coercive Garin Corp., an automobile manufacturing company, tried to increase its sales by releasing car models with new colors. In the light of its huge success, other automobile manufacturers began doing the same. Which of the following mechanisms for institutional adaptation is best illustrated in this scenario? - Exact answer Mimetic forces A company may use any or all of the mechanisms of mimetic, coercive, or normative forces to change itself for greater _____ in the institutional environment. - Exact answer legitimacy In the _____, companies join together to become more competitive and to share scarce resources. - Exact answer collaborative-network perspective
Companies that use a global _____ structure have typically been those with mature product lines and stable technologies. - Exact answer geographic In intercultural teams, members remain in separate locations around the world and conduct their work electronically. - Exact answer False In the _____ stage of international development, a company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries. - Exact answer multinational In business for more than 30 years, you've seen the market for the engine parts you manufacture fluctuate, and you've learned the hard way that you've got to run a cost-effective business to weather the lean years. Recently, you've been wondering if you should invest in a new manufacturing plant in Asia or South America, where local raw materials and labor are less expensive. But then you'll have to balance that with the cost of the new plant, as well as the expense of shipping the finished goods back to your customers in the U.S. Which of the following provides the strongest motivation for you to expand globally? - Exact answer Low-cost production factors In the _____ stage of international development, market potential is limited and is primarily in the home country. - Exact answer domestic Hill Fog is a brand of bottled water in India. Asif, the marketing manager at Hill Fog, is aware of the global environment and is considering initial foreign involvement in the United States to expand production volume and realize economies of scale. Hill Fog is in the _____ stage of international development - Exact answer domestic Which of the following structures is great for standardizing production and sales around the globe? - Exact answer Global product structure You are the CEO of a global financial services organization with more than 100,000 employees operating in nearly 95 countries. You recognize the need for flexibility and autonomy among the different operating units, yet
Penrose Inc. is an American corporation that provides business consulting, information technology, and outsourcing services. The company has extensive experience in a number of international markets and has established facilities in several foreign countries. Penrose Inc. is in the _____ stage of international development. - Exact answer multinational As the product manager for the pudding product line of a growing snack foods manufacturer in the U.S., you were excited to learn that senior leadership is thinking about going global. However, initial research into new markets has revealed that consumers in Great Britain think your puddings are too sweet, while consumers in Bangladesh think your products aren't sweet enough. Plus, the target audience changed depending on the market, which means a unique marketing strategy for each. You're starting to doubt that entering foreign markets will work for your product and others made by your organization. Which strategy makes the most sense for your organization to use to expand globally? - Exact answer Multidomestic or localization strateg A global matrix structure works best when coordination to share resources is less important. - Exact answer False Over the years, Phoenix Electronics has grown through international acquisitions. The organization's many businesses are grouped into three geographic units: North America, South America, and Asia. Unfortunately, the three division presidents don't communicate, often compete for resources, and usually fight for dominance in the eyes of the CEO. What is the primary benefit Phoenix would get from establishing a global coordination group at the organization's headquarters? - Exact answer Better decision making and control With the transnational model, the management philosophy is based on _____ rather than either autonomous divisions or units being wholly reliant on headquarters for decision making. - Exact answer interdependence Which of the following arises from a set of codified principles and regulations that describe how people are required to act, that are generally
accepted in society, and that are enforceable in the courts? - Exact answer Rule of Law Some years ago, Wells Fargo was caught up in a far-reaching and devastating scandal. Top-level executives wanted to increase the number of accounts and credit cards opened through the bank, so they set high quotas for bank tellers and bankers. In order to meet those quotas, employees began engaging in unethical behavior by convincing bank customers to open accounts and credit cards that they really didn't need or want. Some employees reported the problem to their managers, but the unethical practice continued, even though the organization's code stated that bank employees should operate in the best interest of the customers. Of the following, which is the most likely explanation of this widespread problem? - Exact answer The organization's culture favored financial performance over ethical behavior. Supply chains are a source of ongoing ethical challenges for global organizations because they are so broad and diffuse that managers cannot monitor the actions of all supply chain contractors and subcontractors. - Exact answer True A hybrid organization is best served by a structure in which employees are divided into two departments: one focused on social welfare and the other focused on profit goals. - Exact answer False Operating with only 12 employees, Bay City Tax Associates is a privately owned, family-operated organization that provides tax and accounting services. Which of the following represents Bay City's three most important stakeholder groups? - Exact answer Owners, employees, customers The bottom of the pyramid refers to the approximately one billion people who earn less than US$1 a day. - Exact answer False Although written codes of ethics and value statements are important, they hold little value because managers have no means of enforcing the guidelines contained in these documents. - Exact answer False
Operating with only 12 employees, Bay City Tax Associates is a privately owned, family-operated organization that provides tax and accounting services. Which of the following represents Bay City's three most important stakeholder groups? - Exact answer Owners, employees, customers Some years ago, Wells Fargo was caught up in a far-reaching and devastating scandal. Top-level executives wanted to increase the number of accounts and credit cards opened through the bank, so they set high quotas for bank tellers and bankers. In order to meet those quotas, employees began engaging in unethical behavior by convincing bank customers to open accounts and credit cards that they really didn't need or want. Some employees reported the problem to their managers, but the unethical practice continued, even though the organization's code stated that bank employees should operate in the best interest of the customers. Of the following, which is the most likely explanation of this widespread problem? - Exact answer The organization's culture favored financial performance over ethical behavior. You were brought in from another organization to assume the CEO position at Renew, a hybrid employment agency focused on putting the unemployed and underemployed back to work. Now that you're on the job, however, you can see that this organization is suffering from an extreme case of mission drift. Which of the following is the first technique you should employ to start restoring balance right away? - Exact answer Set clear goals, establish performance measurements, and communicate them out to the entire organization Which of the following is the best example of a sustainability effort? - Exact answer A paper mill redesigning the mill to use less water and lower the amount of emissions it releases into the environment The CEO has asked you to devise a way to generate ideas that will facilitate sustainability. Which of the following is the first step you would take to start designing a sustainability program in your organization? - Exact answer Set up multiple sustainability task forces made up of employees from all levels and all departments
Hillary is the operations manager at HealthTrans, an organization that uses a fleet of about 30 vehicles to transport sick and elderly people to doctor and hospital appointments. The company uses a sophisticated computer system to combine trips and use its resources as efficiently as possible. Employees are reasonably well-paid with decent benefits, and they all value their contribution to the community. Recently, Hillary used an ESG scorecard to evaluate HealthTrans. She was somewhat surprised to find that the organization scored lower than she expected. Of the following, which step should Hillary take to raise the score? - Exact answer Start replacing company vehicles with hybrids or electric cars Now authorized in more than 20 states and the District of Columbia, a _____ corporation is a for-profit entity that specifies positive social and environmental impact as well as profit in its legally chartered goals. - Exact answer benefit Corporate social responsibility refers to an organization's contributions to the welfare and interests of: - Exact answer shareholders, employees, customers, members of the community, and the environment. Which of the following is one of the United Nations' Sustainable Development Goals related to the health of the biosphere? - Exact answer Conserve and sustain marine resources A hybrid organization is best served by a structure in which employees are divided into two departments: one focused on social welfare and the other focused on profit goals. - Exact answer False As the operations manager of a home appliance manufacturer, you've been asked to set key performance indicators to measure your organization's sustainability efforts. You've asked each department head to submit at least one sustainability KPI, and now you're in the process of reviewing their submissions. Some managers have done a great job, while others have missed the mark. Which of the following is an appropriate KPI? - Exact answer To reduce the amount of electric energy used in the manufacturing plants by 3% each year over the next 10 years
