True/false. Write 'T' if the statement is true and 'F' if the statement is false



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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1)



In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure.

1)


_______


2)



The dominant view in management theory suggests that managers are omnipotent.

2)


_______


3)



The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.

3)


_______


4)



The symbolic view of management helps to explain the high turnover among college and professional sports coaches, who are often fired and replaced when their teams perform poorly.

4)


_______


5)



In the omnipotent view of management, much of an organization's success or failure is due to forces outside management's control.

5)


_______


6)



If an organization subscribes to the symbolic view of management, it is unreasonable to expect managers to have a significant effect on the organization's performance.

6)


_______


7)



A manager's role in the omnipotent view of management is to create meaning out of randomness, confusion, and ambiguity.

7)


_______


8)



The part of the environment that is directly relevant to achievement of an organization's goals is the specific environment.

8)


_______


9)



The term suppliers includes providers of financial and labour inputs.

9)


_______


10)



To a national television network like the CBC, your home DVD player could be considered a competitor.

10)


______


11)



Economic conditions are part of the organization's specific environment.

11)


______


12)



Demographic conditions are part of the organization's general environment.

12)


______


13)



The European Union (EU) and the North American Free Trade Agreement (NAFTA) have both created regional trading alliances.

13)


______


14)



The General Agreement on Tariffs and Trade (GATT) was signed in 1992 to create the EU.

14)


______


15)



Through the creation of the EU, each member country now has increased border controls, nationalist policies, and protected industries.

15)


______


16)



The three original partners of NAFTA are Canada, the United States, and Mexico.

16)


______


17)



NAFTA has strengthened the economic power of all three member countries.

17)


______


18)



Mercosur is a trading alliance between 10 southeast Asian nations.

18)


______


19)



The World Trade Organization was formed in 1995 and evolved from the Maastricht Treaty, an agreement in effect since the end of World War II.

19)


______


20)



The legal-political environment is an important factor of managing in a foreign environment.

20)


______


21)



Only when a country's legal-political environment is unstable or revolutionary is it of concern to managers.

21)


______


22)



Research indicates that organizational culture has a stronger impact on employees than national culture.

22)


______


23)



A command economy is one in which resources are primarily owned and controlled by the private sector.

23)


______


24)



Power distance refers to the degree to which a society encourages people to be tough, confrontational, assertive, and competitive.

24)


______


25)



People in a society that is high in uncertainty avoidance don't feel threatened by uncertainty and experience low levels of anxiety, stress, and aggressiveness.
25)

______



26)



Jim was born and raised in a country with a long-term orientation. In his culture, leisure time is highly valued because it is a vital part of the long-term health plan for the individual.

26)


______


27)



Multinational corporations became commonplace in the mid-1960s.

27)


______


28)



By decentralizing management authority to the local country, the transnational corporation reflects an ethnocentric attitude.

28)


______


29)



"Born globals" are companies that choose to go global from inception; they commit resources up front (material, people, financing) to doing business in more than one country.

29)


______


30)



Multidomestic corporations use one strategy for all global operations based on the different domestic influences that are present in the firm's original home market.

30)


______


31)



Transnational corporations run their businesses from their home country.

31)


______


32)



Global sourcing called global outsourcing refers to the practice of purchasing materials or labour from around the world wherever it is cheapest.

32)


______


33)



Importing is an approach to going global that involves making products at home and selling them overseas.

33)


______


34)



Setting up a foreign subsidiary involves a higher degree of risk and commitment than franchising.

34)


______


35)



Shareholders are defined as any constituency in the organization's external environment that may be affected by the organization's decisions and actions.

35)


______


36)



The Environmental Uncertainty Matrix ranges in complexity from "stable to dynamic" on the horizontal axis and from "simple to complex" (degree of change) on the vertical axis.

36)


______


MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

37)



What are the two views of managerial impact on the success or failure of the organization?

37)


______

A)



symbolic and interactive

B)



omnipotent and symbolic

C)



omnipotent and reflective

D)



dynamic and reflective

E)



reflective and interactive


38)



The omnipotent view of management means __________.

38)


______

A)



managers have little or no responsibility for an organization's success or failure

B)



the top manager is the only person in charge

C)



managers are directly responsible for an organization's success or failure

D)



managers are directly responsible for all internal factors within their control

E)



outside forces have the most influence on organizational outcomes


39)



The __________ view of management is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.

39)


______

A)



interactive

B)



symbolic

C)



omnipotent

D)



reflective

E)



dynamic


40)



The symbolic view of management means __________.

40)


______

A)



managers are only responsible for those factors that influence organizational performance

B)



successful managers become role models for employees

C)



employees are directly responsible for an organization's success or failure

D)



managers have only a limited effect on organizational outcomes

E)



managers are directly responsible for an organization's success or failure


41)



Internal constraints that restrict a manager's decision options arise from __________.

41)


______

A)



the rules and policies implemented by top managers

B)



the organization's culture

C)



the activities of industry competitors

D)



the organization's environment

E)



the laws and regulations governing workplace practices


42)



According to the symbolic view, managers have a(n) __________ effect on substantive organizational outcomes.

42)


______

A)



unlimited

B)



negative

C)



substantial

D)



moderate

E)



limited


43)



Managers operate within the internal and external constraints imposed by __________.

43)


______

A)



federal and provincial governments

B)



the organization's board of directors

C)



the organization's culture and environment

D)



industry regulation

E)



the employees of the organization


44)



Despite the existence of both internal and external constraints, managers can still improve organizational performance by

44)


______

A)



influencing the organization's culture and environment.

B)



electing new government officials at the federal and provincial levels.

C)



introducing new rules and procedures.

D)



redesigning the organization's structure.

E)



delegating more responsibility to employees.


45)



The external environment consists of the global environment, __________.

45)


______

A)



primary environment, and the secondary environment

B)



primary environment, and the general environment

C)



specific environment, and the general environment

D)



organizational culture, and the general environment

E)



national culture, and the specific environment


46)



An organization's specific environment __________.

46)


______

A)



is the same regardless of the organization's age

B)



includes economic and global conditions that may affect the organization

C)



is unique and changes with conditions

D)



is determined by the top level of management

E)



includes demographic and technological conditions that may affect the organization


47)



The specific environment of organizations consists of external forces that have a direct impact on managers' decisions and actions. The main forces are customers, suppliers, competitors, and __________.

47)


______

A)



pressure groups

B)



employees

C)



shareholders

D)



lawyers

E)



legislators


48)



Which of the following is an example of a force in the general environment?

48)


______

A)



customers

B)



competitors

C)



suppliers

D)



demographics

E)



pressure groups


49)



The primary goal of managers when dealing with suppliers is to ensure a steady flow of __________.

49)


______

A)



inputs at the lowest price available

B)



cheap labour to produce products at the lowest possible cost

C)



industry entrants to help maximize the competition among suppliers

D)



customers at the distribution outlets

E)



cash from investors into the organization


50)



For an amusement theme park like Paramount Canada's Wonderland in Toronto, an insurance provider would be an example of which factor in its specific environment?

50)


______

A)



competitor

B)



pressure group

C)



supplier

D)



customer

E)



government agency


51)



For an organization such as a hospital that needs nurses, the labour union and the local labour market are examples of which factors in its specific environment?

51)


______

A)



government agency and competitor

B)



pressure group and supplier

C)



pressure group and competitor

D)



customer and special-interest group

E)



both are examples of suppliers


52)



Which of the following is included in an organization's specific environment?

52)


______

A)



competitors

B)



inflation

C)



government legislation

D)



interest rates

E)



demographics


53)



According to the textbook, the __________ environment includes those external forces that have a direct and immediate impact on managers' decisions and actions and are directly relevant to the achievement of the organization's goals.

53)


______

A)



general

B)


primary

C)


forward

D)


specific

E)


secondary


54)



United Parcel Service represents which factor to Canada Post in its specific environment?

54)


______

A)



supplier

B)



pressure group

C)



government agency

D)



customer

E)



competitor


55)



Economic conditions include all of the following factors except __________.

55)


______

A)



stock market fluctuations

B)



federal government legislation

C)



inflation

D)



interest rates

E)



changes in disposable income


56)



Political/legal conditions in Canada include all of the following factors except __________.

56)


______

A)



interest rates

B)



the competition bureau

C)



human rights

D)



egg marketing boards

E)



employment equity


57)



To a cable television provider like Shaw Cablesystems, a satellite TV company like Bell would be considered a __________.

57)


______

A)



customer

B)



regulator

C)



pressure group

D)



competitor

E)



supplier


58)



Neighbourhood activists who protest against the building of "big box" stores would be considered which factor in the specific environment for Wal-Mart or Home Depot?

58)


______

A)



pressure group

B)



customer

C)



government agency

D)



competitor

E)



supplier


59)



The global environment of an organization includes which of the following?

59)


______

A)



pressure groups

B)



stakeholders

C)



issues directly relevant to achieving organizational goals

D)



suppliers

E)



demographic conditions


60)



Which of the following is usually part of an organization's general environment?

60)


______

A)



political conditions

B)



weather conditions

C)



competitors

D)



pressure groups

E)



suppliers


61)



Interest rates, inflation rates, and stock market indexes are all examples of what factor in an organization's general environment?

61)


______

A)



sociocultural

B)



legal

C)



political

D)



economic

E)



technological


62)



A downturn in contributions from the public to the United Way charity is an example of the impact from what factor in its general environment?

62)


______

A)



economic

B)



global

C)



political

D)



technological

E)



sociocultural


63)



The Canadian Human Rights Act is an example of a __________.

63)


______

A)



political/sociological condition

B)



sociocultural condition

C)



demographic condition

D)



political/legal condition

E)



sociolegal condition


64)



Which Act makes it illegal for employers to discriminate on the basis of race, national or ethnic origin, colour, religion, age, sex, marital status, mental or physical disability, or sexual orientation?

64)


______

A)



Canadian Human Rights Act

B)



Canadian Charter of Rights and Freedoms

C)



Canadian Civil Liberties Act

D)



Canada's Employment Equity Act

E)



Canada's Competition Act


65)



Sociocultural conditions consist of the __________.

65)


______

A)



demographic profiles of an organization's suppliers

B)



laws that govern human rights and the competitive activities of organizations in a society

C)



changing expectations of the society in which organizations operate

D)



socialization processes that help to maintain organizational cultures

E)



level of unemployment and real economic incomes of workers


66)



When researchers discovered a link between trans fatty acids and heart disease, many consumers became concerned. As a result, Ontario-based Voortman's Cookies decided to eliminate all trans fats from its products. Voortman's was responding to changing __________ conditions.

66)


______

A)



economic

B)



technological

C)



sociocultural

D)



competitive

E)



political/legal


67)



As employees have begun to seek more balance in their lives, organizations have had to adjust by offering family leave policies, more flexible work hours, and even on-site child care facilities. This is an example of how changing __________ conditions can affect an organization.

67)


______

A)



demographic

B)



political/legal

C)



technological

D)



economic

E)



sociocultural


68)



As more consumers have become aware of the use of rendered feed and the poor treatment of chickens in many large-scale poultry farms, some farm managers have switched to all-natural feed and "free range" breeding methods. This is an example of how changing __________ conditions can affect an organization.

68)


______

A)



political/legal

B)



economic

C)



technological

D)



demographic

E)



sociocultural


69)



Human resources managers are increasingly using the Internet to search for qualified candidates through on-line résumé systems and job-posting websites. This is an example of how changing __________ conditions can affect an organization.

69)


______

A)



technological

B)



demographic

C)



political/legal

D)



economic

E)



sociocultural


70)



Which of the following demographic groups includes individuals who were born between the years 1947-1966?

70)


______

A)



the baby boomers

B)



the Depression group

C)



Generation Y

D)



the World War II group

E)



Generation X


71)



According to the textbook, the members of which one of the following demographic groups are thinking, learning, creating, shopping, and playing in fundamentally different ways that are likely to greatly impact organizations and managers?

71)


______

A)



Generation Y

B)



the Depression group

C)



Generation X

D)



the World War II group

E)



the baby boomers


72)



For most organizations, the most rapidly changing factor has been __________ conditions.

72)


______

A)



technological

B)



economic

C)



political/legal

D)



global

E)



sociocultural


73)



The enhanced speed and quality of managerial decision making due to improvements in office automation is an example of the impact of which general environmental factor?

73)


______

A)



political

B)



demographic

C)



sociocultural

D)



global

E)



technological


74)



Through the creation of the EU, member countries now have __________.

74)


______

A)



government subsidies

B)



protected industries

C)



a single market

D)



border controls

E)



nationalistic policies


75)



Canada exports __________ of its total exports to the United States.

75)


______

A)



nearly 90 percent

B)



nearly 80 percent

C)



one-half

D)



one-third

E)



70 percent


76)



Which of the following is a trading alliance of Southeast Asian nations?

76)


______

A)



Southern Cone Common Market

B)



FTAA

C)



Mercosur

D)



ASEAN

E)



NAFTA


77)



Which of the following is a multilateral trading system formed in 1995?

77)


______

A)



GATT

B)


WTO

C)


Mercosur

D)


ASEAN

E)


NAFTA


78)



The WTO is a global organization that evolved from __________.

78)


______

A)



GATT

B)



NAFTA

C)



EEC

D)



ASEAN

E)



the Maastricht Treaty


79)



Canada's economy is best described as __________.

79)


______

A)



a command economy with no private sector control

B)



a market economy with no government control

C)



a command economy with some private sector control

D)



a command economy with some government control

E)



a market economy with some government control


80)



Three economic issues that a global manager might need to understand include __________.

80)


______

A)



tax policies, political stability, and cultural differences

B)



currency exchange rates, inflation rates, and tax policies

C)



tax policies, employment laws, and cultural differences

D)



inflation rates, tax policies, and political stability

E)



employment laws, currency exchange rates, and political stability


81)



From a cultural standpoint, research indicates that __________ has a greater effect on employees than __________.

81)


______

A)



employment law; religion

B)



national culture; employment law

C)



national culture; organizational culture

D)



organizational culture; national culture

E)



organizational culture; religion


82)



The cultural dimension of __________ measures the degree to which the members of a society expect power to be unequally shared.

82)


______

A)



humane orientation

B)



power distance

C)



in-group collectivism

D)



uncertainty avoidance

E)



assertiveness


83)



The cultural dimension of __________ measures the degree to which a society relies on social norms and procedures to alleviate the unpredictability of future events.

83)


______

A)



assertiveness

B)



power distance

C)



performance orientation

D)



uncertainty avoidance

E)



future orientation


84)



According to Hofstede, managers and employees vary on five dimensions of national culture. Which of the following represents one of the five dimensions that Hofstede identified?

84)


______

A)



Power avoidance

B)


Freedom vs. Restraint

C)



Open-Minded vs. Close-minded

D)


Achievement vs. Nurturing


85)



When an organization drops its structure based on countries and reorganizes according to industries, it is pursuing a global business approach known as __________.

85)


______

A)



transactional organization

B)



polycentric organization

C)



multinational organization

D)



borderless organization

E)



multicultural organization


86)



XYZ is an international corporation that has recently changed its philosophy. It has decentralized management and decision making to the local countries in which it operates. XYZ is pursuing a __________ approach.

86)


______

A)



global

B)



multidomestic

C)



natural global

D)



intra-governmental

E)



multicultural


87)



John and Sylvie recently opened a high-tech firm. From its inception the co-founders committed significant resources to the pursuit of business in various countries. John and Sylvie have created a company that can best be classified as a

87)


______

A)



strategic international alliance

B)



born global

C)



greenfield franchise

D)



venture capitalist

E)



joint alliance


88)



Which of the following definitions is most accurate for a multinational corporation?

88)


______

A)



a company that maintains significant operations in at least two countries but decentralizes management to each country

B)



a company that maintains significant operations in at least two countries but is managed from a base in the home country

C)



a company that maintains significant operations in at least two countries

D)



a company that maintains significant operations in at least two countries and has multiple home bases

E)



a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers


89)



Which of the following definitions best describes a borderless corporation?

89)


______

A)



a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers

B)



a company that maintains significant operations in at least two countries

C)



a company that maintains significant operations in at least two countries but decentralizes management to each country

D)



a company that maintains significant operations in at least two countries but is managed from a base in the home country

E)



a company that maintains significant operations in at least two countries and has multiple home bases


90)



IBM is the world's largest information technology company with over 300,000 employees in 170 countries. It once had a country-based structure, but reorganized into industry groups to compete more effectively in the global marketplace. IBM is best described as a __________ organization.

90)


______

A)



multicultural

B)



borderless

C)



philanthropic

D)



multinational

E)



polycentric


91)



Multinational corporations (MNCs) became commonplace in the __________.

91)


______

A)



1960s

B)


1940s

C)


1970s

D)


1980s

E)


1950s


92)



Which of the following strategies for going global involves the lowest level of risk and investment?

92)


______

A)



foreign subsidiary

B)



strategic alliances

C)



foreign contracting

D)



licensing and franchising

E)



exporting


93)



Which of the following strategies for going global involves the highest level of risk and investment?

93)


______

A)



strategic alliances

B)



exporting

C)



foreign contracting

D)



licensing and franchising

E)



foreign subsidiary


94)



Which of the following strategies for going global involves a higher level of risk and investment than strategic alliances?

94)


______

A)



licensing

B)



foreign contracting

C)



exporting

D)



franchising

E)



foreign subsidiary


95)



Which approach to going global involves making products at home and selling them overseas?

95)


______

A)



foreign contracting

B)



franchising

C)



licensing

D)



exporting

E)



importing


96)



Many organizations, especially small businesses, start doing business globally by __________.

96)


______

A)



exporting and importing

B)



licensing and franchising

C)



establishing foreign subsidiaries

D)



hiring foreign brokers to represent their product line

E)



forming joint ventures


97)



Which approach to going global did McDonald's Canada use when it opened restaurants in Russia?

97)


______

A)



franchising

B)



exporting

C)



licensing

D)



strategic alliances

E)



foreign contracting


98)



A joint venture is a specific type of __________.

98)


______

A)



licensing agreement

B)



foreign contracting arrangement

C)



foreign subsidiary

D)



strategic alliance

E)



franchise


99)



A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities would be called a __________.

99)


______

A)



franchising agreement

B)



transnational venture

C)



strategic alliance

D)



foreign subsidiary

E)



brokering agreement


100)



McDonald's Canada, GM Canada, and IBM Canada are all examples of U.S. __________ operating in Canada.

100)


_____

A)



transnational ventures

B)



franchises

C)



subsidiaries

D)



strategic alliances

E)



joint ventures


101)



Compared to many other countries, Canada's legal-political environment is considered __________.

101)


_____

A)



fixed

B)


stable

C)


radical

D)


dynamic

E)


unstable


102)



From a legal-political standpoint, some large corporations have postponed doing business with China and other Asian countries due to __________.

102)


_____

A)



stable government policies

B)



fluctuating currency exchange rates

C)



unstable inflation rates

D)



political interference

E)



diverse tax policies


103)



Which of the following are the two dimensions of environmental uncertainty?

103)


_____

A)



degree of complexity and degree of impact

B)



degree of impact and degree of uncertainty

C)



degree of change and degree of flexibility

D)



degree of risk and degree of complexity

E)



degree of change and degree of complexity


104)



Since the emergence of digital music formats, the recorded music industry has been operating in an environment that is best described as __________.

104)


_____

A)



flexible

B)


stable

C)


dynamic

D)


divergent

E)


static


105)



If the components in an organization's environment change frequently, it is called a __________ environment.

105)


_____

A)



difficult

B)



dynamic

C)



divergent

D)



dysfunctional

E)



transitory


106)



Managers try to minimize __________ because it is a threat to an organization's effectiveness.

106)


_____

A)



uncertainty

B)



technology

C)



efficiency

D)



product development

E)



inflation


107)



Given a choice, most managers would prefer to operate in environments that are __________.

107)


_____

A)



dynamic and flexible

B)



simple and stable

C)



simple and dynamic

D)



complex and stable

E)



complex and dynamic


108)



__________ are any constituencies in the organization's external environment that are affected by the organization's decisions and actions.

108)


_____

A)



Stakeholders

B)



Pressure groups

C)



Consumers

D)



Stockholders

E)



Suppliers


109)



The degree of __________ refers to the number of components in an organization's environment and the extent of the knowledge that the organization has about those components.

109)


_____

A)



flexibility

B)



risk

C)



complexity

D)



change

E)



stability




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