DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
Management, 13e (Bateman)
Chapter 2 The External and Internal Environments
1) Organizations are open systems that affect and are affected by their external environments.
2) Raw materials are an example of inputs.
3) When investors bid up stock prices, companies have less capital to fuel their strategies.
4) A more diverse workforce presents managers with challenges as well as opportunities.
5) According to Michael Porter's model, the competitive environment includes rivalry among
current competitors and the impact of new entrants, substitute and complementary products,
suppliers, and customers.
6) Organizations are at an advantage if they depend on a single powerful supplier because such
dependency ensures consistency.
7) Environmental uncertainty refers to the lack of information needed to understand or predict the
future.
8) Enrico has used environmental scanning to gather information that will help him make his
company more competitive. This is an example of cognitive intelligence.
9) April, a manager in a call center, encourages her employees to solve customers' problems
without her approval of the particular situation. In this case, April is trying to empower her
employees.
10) A strong organization culture is one in which lower-level employees do not concern
themselves with the firm's goals, priorities, and practices because management deals with those
issues.
11) What term is used to describe all the relevant forces outside an organization's boundaries?
A) environmental scanning
B) competitive intelligence
C) external environment
D) competitive environment
E) organizational climate
12) A firm's ________ includes its rivals, suppliers, customers, new entrants, substitutes, and
complementary products.
A) environmental scanning
B) competitive intelligence
C) external environment
D) competitive environment
E) organizational climate
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
13) Bettie's Bags buys leather and lesser quantities of canvas, zippers, metal snaps, and other
materials to manufacture purses. Which of the following is Bettie's Bags' output?
A) leather
B) canvas
C) zippers
D) snaps
E) purses
14) Although a top executive team may have unique ________ strengths and ideas about its goals,
it must consider ________ factors before taking action.
A) external; internal
B) internal; external
C) traditional; unconventional
D) unconventional; traditional
E) past; future
15) Which of the following statements about the impact of the stock market is true?
A) The stock market has little effect on the amount of capital a company has.
B) If a company exceeds its performance expectations, its stock price will often drop.
C) Publicly held companies are more insulated from the stock market than privately held
companies.
D) The stock market may have a profound effect on the behavior of individual managers.
E) Stock market fluctuations have little effect on the compensation of managers.
16) A failure to develop a strategy that incorporates ________ may doom a firm to obsolescence.
A) hierarchical bureaucracy
B) many layers of middle management
C) classic production methods
D) technological advances
E) closed communication systems
17) Which of the following is a U.S. government policy or action that is most likely to provide an
opportunity for businesses?
A) deductions in the tax code
B) fines on heavy polluters
C) laws against bribing officials
D) court rulings against monopolies
E) failure to rule a new product as safe
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
18) U.S. government policies impose strategic constraints on business organizations, such as the
requirement that businesses with 50 or more full-time employees offer health insurance. Juan is the
manager of a small factory with 75 employees. Juan sees these government regulations and laws as
a detriment to his business and its profitability. What is Juan missing in his assessment of
government regulations and laws and their impact on his business?
A) The law is changing every day and may increase the size of businesses required to provide
health insurance.
B) The health insurance requirement is likely to increase labor costs.
C) The health insurance requirement can be used strategically when recruiting and retaining talent.
D) Giving more generous benefits lowers the cost of compensating employees.
E) Bribes and kickbacks are illegal practices in the United States.
19) What are demographics?
A) trends regarding how the people within a society think and behave
B) conditions that prevent new companies from entering an industry
C) measures of various characteristics of the people who make up social units
D) the fixed costs that buyers face if they change suppliers
E) the lack of information needed to understand or predict the future
20) How is immigration affecting U.S. demographics?
A) It is increasing the diversity of the workforce.
B) It is decreasing the number of workers.
C) It is decreasing the number of consumers.
D) It is making the educational levels of the workforce more similar.
E) It is decreasing the amount of paperwork needed to hire workers.
21) Which of the following was introduced as the result of an evolving societal trend?
A) shares of stock
B) hourly wages
C) levels of management
D) offshoring
E) family leave
22) Which of the following was designed to help managers analyze the competitive environment
and adapt to or even influence the nature of competition?
A) Dell's IdeaStorm
B) Michael Porter's model
C) B2B selling
D) Peter Drucker's theory
E) organizational smoothing
23) Which of the following is a barrier to entry?
A) consumer demand for a product
B) brand identification
C) the existence of a popular complement
D) a low-cost distribution method
E) an inexpensive production process
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
24) Karl's office has always used Bentley computers. His technical people have suggested that he
switch all his employees over to Best computers. Karl is reluctant because it will mean not only
replacing all the computers but also buying all new software and taking the time to train everyone.
Karl is worried about
A) barriers to entry.
B) benchmarking.
C) environmental uncertainty.
D) switching costs.
E) strategic maneuvering.
25) Supply chain management refers to the
A) search for information that is unavailable to most people and the process of interpreting what is
important and what is not.
B) identification of the best-in-class performance by a company in a given area and the comparison
of your processes to the company's processes.
C) procedure of sharing power with employees, thereby enhancing their confidence and their
belief that they are influential contributors to the organization.
D) creation of new products, advanced production techniques, and better ways of managing and
communicating.
E) managing of the network of facilities and people that obtain raw materials, transform them into
products, and distribute them to customers.
26) The goal of ________ is having the right product in the right quantity at the right place at the
right cost.
A) barriers to entry
B) benchmarking
C) supply chain management
D) empowerment
E) open systems
27) Tomiko is the manager of Davis Freight, a mid-sized trucking company. The owners have
assigned Tomiko the task of applying strategic decision making to analyze the competitive
environment. Tomiko does an analysis of the competitors currently in the market and how much
market share each has. In addition, Tomiko looks at trends in the trucking industry and how Davis
has addressed those trends. Tomiko assesses the possibility of new entrants to the market,
factoring in barriers to entry in the trucking business. In addition, Tomiko studies substitutes and
complements, as well as suppliers and customers. Is Tomiko covering all of her bases in assessing
the competitive environment?
A) Tomiko has covered the bases necessary for her analysis and is ready to present it.
B) Tomiko failed to consider the impact of capital requirements and brand identification.
C) Tomiko needs to include an assessment of the tactics other companies use to compete.
D) Tomiko should look at the impact of both cost disadvantages and distribution channels.
E) Tomiko should not consider the impact trends in the industry as part of her assessment.
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
Competitive World 13th Edition Bateman
Management, 13e (Bateman)
Chapter 2 The External and Internal Environments
1) Organizations are open systems that affect and are affected by their external environments.
2) Raw materials are an example of inputs.
3) When investors bid up stock prices, companies have less capital to fuel their strategies.
4) A more diverse workforce presents managers with challenges as well as opportunities.
5) According to Michael Porter's model, the competitive environment includes rivalry among
current competitors and the impact of new entrants, substitute and complementary products,
suppliers, and customers.
6) Organizations are at an advantage if they depend on a single powerful supplier because such
dependency ensures consistency.
7) Environmental uncertainty refers to the lack of information needed to understand or predict the
future.
8) Enrico has used environmental scanning to gather information that will help him make his
company more competitive. This is an example of cognitive intelligence.
9) April, a manager in a call center, encourages her employees to solve customers' problems
without her approval of the particular situation. In this case, April is trying to empower her
employees.
10) A strong organization culture is one in which lower-level employees do not concern
themselves with the firm's goals, priorities, and practices because management deals with those
issues.
11) What term is used to describe all the relevant forces outside an organization's boundaries?
A) environmental scanning
B) competitive intelligence
C) external environment
D) competitive environment
E) organizational climate
12) A firm's ________ includes its rivals, suppliers, customers, new entrants, substitutes, and
complementary products.
A) environmental scanning
B) competitive intelligence
C) external environment
D) competitive environment
E) organizational climate
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
13) Bettie's Bags buys leather and lesser quantities of canvas, zippers, metal snaps, and other
materials to manufacture purses. Which of the following is Bettie's Bags' output?
A) leather
B) canvas
C) zippers
D) snaps
E) purses
14) Although a top executive team may have unique ________ strengths and ideas about its goals,
it must consider ________ factors before taking action.
A) external; internal
B) internal; external
C) traditional; unconventional
D) unconventional; traditional
E) past; future
15) Which of the following statements about the impact of the stock market is true?
A) The stock market has little effect on the amount of capital a company has.
B) If a company exceeds its performance expectations, its stock price will often drop.
C) Publicly held companies are more insulated from the stock market than privately held
companies.
D) The stock market may have a profound effect on the behavior of individual managers.
E) Stock market fluctuations have little effect on the compensation of managers.
16) A failure to develop a strategy that incorporates ________ may doom a firm to obsolescence.
A) hierarchical bureaucracy
B) many layers of middle management
C) classic production methods
D) technological advances
E) closed communication systems
17) Which of the following is a U.S. government policy or action that is most likely to provide an
opportunity for businesses?
A) deductions in the tax code
B) fines on heavy polluters
C) laws against bribing officials
D) court rulings against monopolies
E) failure to rule a new product as safe
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
18) U.S. government policies impose strategic constraints on business organizations, such as the
requirement that businesses with 50 or more full-time employees offer health insurance. Juan is the
manager of a small factory with 75 employees. Juan sees these government regulations and laws as
a detriment to his business and its profitability. What is Juan missing in his assessment of
government regulations and laws and their impact on his business?
A) The law is changing every day and may increase the size of businesses required to provide
health insurance.
B) The health insurance requirement is likely to increase labor costs.
C) The health insurance requirement can be used strategically when recruiting and retaining talent.
D) Giving more generous benefits lowers the cost of compensating employees.
E) Bribes and kickbacks are illegal practices in the United States.
19) What are demographics?
A) trends regarding how the people within a society think and behave
B) conditions that prevent new companies from entering an industry
C) measures of various characteristics of the people who make up social units
D) the fixed costs that buyers face if they change suppliers
E) the lack of information needed to understand or predict the future
20) How is immigration affecting U.S. demographics?
A) It is increasing the diversity of the workforce.
B) It is decreasing the number of workers.
C) It is decreasing the number of consumers.
D) It is making the educational levels of the workforce more similar.
E) It is decreasing the amount of paperwork needed to hire workers.
21) Which of the following was introduced as the result of an evolving societal trend?
A) shares of stock
B) hourly wages
C) levels of management
D) offshoring
E) family leave
22) Which of the following was designed to help managers analyze the competitive environment
and adapt to or even influence the nature of competition?
A) Dell's IdeaStorm
B) Michael Porter's model
C) B2B selling
D) Peter Drucker's theory
E) organizational smoothing
23) Which of the following is a barrier to entry?
A) consumer demand for a product
B) brand identification
C) the existence of a popular complement
D) a low-cost distribution method
E) an inexpensive production process
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Management Leading and Collaborating in
Competitive World 13th Edition Bateman
24) Karl's office has always used Bentley computers. His technical people have suggested that he
switch all his employees over to Best computers. Karl is reluctant because it will mean not only
replacing all the computers but also buying all new software and taking the time to train everyone.
Karl is worried about
A) barriers to entry.
B) benchmarking.
C) environmental uncertainty.
D) switching costs.
E) strategic maneuvering.
25) Supply chain management refers to the
A) search for information that is unavailable to most people and the process of interpreting what is
important and what is not.
B) identification of the best-in-class performance by a company in a given area and the comparison
of your processes to the company's processes.
C) procedure of sharing power with employees, thereby enhancing their confidence and their
belief that they are influential contributors to the organization.
D) creation of new products, advanced production techniques, and better ways of managing and
communicating.
E) managing of the network of facilities and people that obtain raw materials, transform them into
products, and distribute them to customers.
26) The goal of ________ is having the right product in the right quantity at the right place at the
right cost.
A) barriers to entry
B) benchmarking
C) supply chain management
D) empowerment
E) open systems
27) Tomiko is the manager of Davis Freight, a mid-sized trucking company. The owners have
assigned Tomiko the task of applying strategic decision making to analyze the competitive
environment. Tomiko does an analysis of the competitors currently in the market and how much
market share each has. In addition, Tomiko looks at trends in the trucking industry and how Davis
has addressed those trends. Tomiko assesses the possibility of new entrants to the market,
factoring in barriers to entry in the trucking business. In addition, Tomiko studies substitutes and
complements, as well as suppliers and customers. Is Tomiko covering all of her bases in assessing
the competitive environment?
A) Tomiko has covered the bases necessary for her analysis and is ready to present it.
B) Tomiko failed to consider the impact of capital requirements and brand identification.
C) Tomiko needs to include an assessment of the tactics other companies use to compete.
D) Tomiko should look at the impact of both cost disadvantages and distribution channels.
E) Tomiko should not consider the impact trends in the industry as part of her assessment.
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
mynursytest.store
