Mgt503 - Principles Of Management - Lesson 12

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Principles Of Management Quizzes & Trivia

ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDING ORGANIZATIONAL CULTURE


Questions and Answers
  • 1. 

    ________  is defined as outside institutions and forces outside the organization that potentially affect an organization’s performance.

    • A.

      Environment

    • B.

      Climate

    • C.

      Habitat

    • D.

      Conditions

    Correct Answer
    A. Environment
    Explanation
    THE ENVIRONMENT:
    The impact of the external environment on a manager’s actions and behaviors cannot be overemphasized.
    There are forces in the environment that play a major role in shaping managers’ endeavors
    The environment is defined as outside institutions and forces outside the organization that potentially
    affect an organization’s performance.

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  • 2. 

    Major forces outside the organization with potential to influence significantly a product orservice’s likely success is called its Internal Environment

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    External Environment
    ‘Major forces outside the organisation with potential to influence significantly a product or
    service’s likely success is called its external environment.’

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  • 3. 

    The Mega EnvironmentThe Task EnvironmentBoth are Types of External Environment

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Types of external environments:
    The insights derived from systems theory have helped to highlight the importance of a managed interaction
    between an organization and its external environment. Two major divisions have been made in the external
    environment:
    1) The Mega Environment
    2) The Task Environment

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  • 4. 

    The mega-environment sometimes called General Environment

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The Mega Environment
    The mega-environment, or general environment as it is sometimes called, is that segment of the external
    environment that reflects the broad conditions and trends in the societies within which an organization
    operates

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  • 5. 

    The Task-environment is that segment of the externalenvironment that reflects the broad conditions and trends in the societies within which an organization operates.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The Mega Environment
    The mega-environment, or general environment as it is sometimes called, is that segment of the external
    environment that reflects the broad conditions and trends in the societies within which an organization
    operates.

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  • 6. 

    Major Elements of the Mega Environment(tick all which are  applicable)

    • A.

      Technology,

    • B.

      Legal-political

    • C.

      Socio-cultural

    • D.

      International element

    • E.

      Competitors

    Correct Answer(s)
    A. Technology,
    B. Legal-political
    C. Socio-cultural
    D. International element
    Explanation
    The major elements of the mega environment include technology, legal-political, socio-cultural, and international element. These elements are important factors that can greatly impact a business and its operations. Technology refers to advancements and innovations that can affect how a business operates and competes in the market. Legal-political factors involve laws, regulations, and government policies that can influence business activities. Socio-cultural factors consider the social and cultural aspects of a society that can shape consumer behavior and preferences. The international element takes into account global factors and trends that can impact business operations on a global scale. Competitors are not considered major elements of the mega environment.

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  • 7. 

    The technological element of the mega-environment reflects the current state ofknowledge regarding the production of products and services.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The technological element of the mega-environment reflects the current state of
    knowledge regarding the production of products and services.

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  • 8. 

    Encompasses the systems of producing, distributing, and consuming wealth.(above statement points towards which element of mega environment)

    • A.

      Economic element

    • B.

      Legal-political element

    • C.

      Socio-cultural element

    • D.

      International element

    Correct Answer
    A. Economic element
    Explanation
    The economic element of the mega-environment encompasses the systems of
    producing, distributing, and consuming wealth.
    a. In a capitalist economy, economic activity is governed by market forces
    and the means of production are privately owned by individuals, either
    directly or through corporations.
    b. In a socialist economy, the means of production are owned by the state
    and economic activity is coordinated by state plan.
    c. In practice, countries tend to have hybrid economies, incorporating
    elements of capitalism and socialism.
    d. Organizations are influenced in any given economic system by a variety of
    economic conditions over which they have little control, such as inflation
    and interest rates.

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  • 9. 

    The legal-political element of the mega-environment  includes the legal and governmental systems within which an organization must function.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The legal-political element of the mega-environment includes the legal and
    governmental systems within which an organization must function.
    a. Organizations must operate within the general legal framework of the
    countries in which they do business.
    b. Organizations are subject to an increase in lawsuits filed by customers or
    employees.
    c. The political issues which affect organizations include those which
    influence the extent of government regulation.

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  • 10. 

    Sociocultural trends can result in important shifts in demand for products

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The socio-cultural element of the mega-environment includes the attitudes,
    values, norms, beliefs, behaviors, and associated demographic trends that are
    characteristic of a given geographic area.
    a. The sociocultural element is of particular importance to multinational
    corporations.
    b. Sociocultural trends can result in important shifts in demand for products

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  • 11. 

    The__________of the mega-environment includes the developments in countries outside an organization’s home country

    • A.

      Socio-cultural element

    • B.

      Legal-political element

    • C.

      International element

    • D.

      Economic element

    Correct Answer
    C. International element
    Explanation
    The international element of the mega-environment includes the developments
    in countries outside an organization’s home country that have the potential impact
    to the organization. International factors far beyond the direct influence of a
    particular organization can have profound effects on its ability to operate
    successfully.
    a. Fluctuations of the dollar against foreign currencies influence the ability
    of an organization to compete in international markets.
    b. Free-trade agreement, such as the NAFTA, GATT can affect an
    organization either positively or negatively.

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  • 12. 

    Specific outside elements  with which an organization interfaces in the course of conducting its business.

    • A.

      The Task Environment

    • B.

      The Mega Environment

    Correct Answer
    A. The Task Environment
    Explanation
    The Task Environment
    The task environment is that segment of the external environment made up of specific outside elements
    (usually organizations) with which an organization interfaces in the course of conducting its business. The
    task environment depends on the products and services the organization offers and the locations where it
    conducts business. The organization may be more successful in affecting its task environment than it is its
    mega-environment.

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  • 13. 

    Elements of the Task Environment(Tick all applicable)

    • A.

      Suppliers

    • B.

      Government agencies

    • C.

      Customers and clients

    • D.

      Competitors

    • E.

      Labor supply

    Correct Answer(s)
    A. Suppliers
    B. Government agencies
    C. Customers and clients
    D. Competitors
    E. Labor supply
    Explanation
    An organization’s customers and clients are those individuals and organizations
    that purchase its products and/or services. It is becoming increasingly important
    to stay in touch with customers’ needs.
    2. An organization’s competitors are other organizations that either offers of have a
    high potential of offering rival products or services.
    a. Organization needs to keep abreast of who their competitors are and what
    they are doing.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 24, 2009
    Quiz Created by
    Zubair
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