Question 1

Which of the following linkage mechanisms is most appropriate for participants who want to pool distinctive competences?

Accepted Answer

A) Interlocking directorate 
B) Joint venture 
C) Network 
D) Long- term contracts 
A) Interlocking directorate 
B) Joint venture 
C) Network 
D) Long- term contracts

Question 2

The more formal the linkage mechanism, the more control organizations have over each other's behavior.

Accepted Answer

A) True 
 B)False

Question 3

A personal computer manufacturer publicly announces that it plans to reduce prices by 25%. This is an example of ________.

Accepted Answer

A) signaling 
B) price leadership 
C) a third- party linkage mechanism 
D) co- optation 
A) signaling 
B) price leadership 
C) a third- party linkage mechanism 
D) co- optation

Question 4

When an organization relies on a small number of trading partners,

Accepted Answer

A) the risk of opportunism increases. 
B) bounded rationality decreases. 
C) bounded rationality increases. 
D) the risk in investing in specific assets decreases. 
A) the risk of opportunism increases. 
B) bounded rationality decreases. 
C) bounded rationality increases. 
D) the risk in investing in specific assets decreases.

Question 5

An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. They have reduced________ .

Accepted Answer

A) environmental complexity 
B) environmental dynamism 
C) innovation 
D) rites of enhancement 
A) environmental complexity 
B) environmental dynamism 
C) innovation 
D) rites of enhancement

Question 6

Strategic alliances are a linkage mechanism that can be used to manage both competitive and symbiotic interdependencies.

Accepted Answer

A) True 
 B)False

Question 7

A(n)________is a linkage that results when a director from one company sits on the board of another company.

Accepted Answer

A) strategic alliance 
B) network 
C) liaison 
D) interlocking directorate 
A) strategic alliance 
B) network 
C) liaison 
D) interlocking directorate

Question 8

The general environment:

Accepted Answer

A) is a reflection of an organization's domain. 
B) consists of outside stakeholders. 
C) consists of inside stakeholders. 
D) contains forces that shape the specific environment. 
A) is a reflection of an organization's domain. 
B) consists of outside stakeholders. 
C) consists of inside stakeholders. 
D) contains forces that shape the specific environment.

Question 9

Expanding internationally is one way for an organization to enlarge and protect its domain.

Accepted Answer

A) True 
 B)False

Question 10

One way to reduce uncertainty is to have the environmental forces interconnected. That is, when forces begin to interact, the environment becomes more predictable.

Accepted Answer

A) True 
 B)False

Question 11

The transaction cost approach implies that an organization should:

Accepted Answer

A) use relatively informal linkage mechanisms to avoid bureaucratic costs. 
B) minimize dependence on others for scarce resources. 
C) change its domain to decrease transaction costs. 
D) select a mechanistic structure to reduce costs. 
A) use relatively informal linkage mechanisms to avoid bureaucratic costs. 
B) minimize dependence on others for scarce resources. 
C) change its domain to decrease transaction costs. 
D) select a mechanistic structure to reduce costs.

Question 12

Environmental complexity is a function of the strength, number, and interconnectedness of the specific and general forces that an organization has to manage.

Accepted Answer

A) True 
 B)False

Question 13

The DeBeers diamond cartel uses trust to manage its linkages with suppliers and customers.This interorganizational linkage is called _________.

Accepted Answer

A) strategic alliance 
B) reputation 
C) merger 
D) co- optation 
A) strategic alliance 
B) reputation 
C) merger 
D) co- optation

Question 14

A CEO does not want to enter a lucrative market in an unstable country because he or she does not know how political forces and economic forces will affect his or her company's future business. This is an example of:

Accepted Answer

A) opportunism. 
B) a competitive interdependency. 
C) a symbiotic interdependency. 
D) bounded rationality. 
A) opportunism. 
B) a competitive interdependency. 
C) a symbiotic interdependency. 
D) bounded rationality.

Question 15

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

Accepted Answer

A) When organization A provides a service to organization B that few organizations can replicate 
B) When the environment that both organizations operate in is stable 
C) When a large number of trading partners are available to both sides 
D) When organization A is dependent on organization B for scarce resources 
A) When organization A provides a service to organization B that few organizations can replicate 
B) When the environment that both organizations operate in is stable 
C) When a large number of trading partners are available to both sides 
D) When organization A is dependent on organization B for scarce resources

Question 16

A frozen food manufacturer offers low- fat dinners. This company is responding to which of the following forces?

Accepted Answer

A) International 
B) Environmental 
C) Demographic and cultural 
D) Economic 
A) International 
B) Environmental 
C) Demographic and cultural 
D) Economic

Question 17

The pharmaceutical industry generally is considered to be operating in a certain environment because patents reduce the level of competition.

Accepted Answer

A) True 
 B)False

Question 18

You are a consultant to a large telecommunications company that markets many products to many customers. Briefly describe the level of uncertainty and recommend strategies for managing the organizational environment.

Accepted Answer

This company operates in a highly uncert

Question 19

Which of the following is not a general environment force?

Accepted Answer

A) Environmental 
B) Political 
C) Competitors 
D) Cultural 
A) Environmental 
B) Political 
C) Competitors 
D) Cultural

Question 20

Developing a good reputation is a way to manage symbiotic interdependencies.

Accepted Answer

A) True 
 B)False

Which of the following linkage mechanisms is most appropriate for participants who want to pool distinctive competences?

The more formal the linkage mechanism, the more control organizations have over each other's behavior.

A personal computer manufacturer publicly announces that it plans to reduce prices by 25%. This is an example of ________.

When an organization relies on a small number of trading partners,

An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. They have reduced________ .

Strategic alliances are a linkage mechanism that can be used to manage both competitive and symbiotic interdependencies.

A(n)________is a linkage that results when a director from one company sits on the board of another company.

The general environment:

Expanding internationally is one way for an organization to enlarge and protect its domain.

One way to reduce uncertainty is to have the environmental forces interconnected. That is, when forces begin to interact, the environment becomes more predictable.

The transaction cost approach implies that an organization should:

Environmental complexity is a function of the strength, number, and interconnectedness of the specific and general forces that an organization has to manage.

The DeBeers diamond cartel uses trust to manage its linkages with suppliers and customers.This interorganizational linkage is called _________.

A CEO does not want to enter a lucrative market in an unstable country because he or she does not know how political forces and economic forces will affect his or her company's future business. This is an example of:

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

A frozen food manufacturer offers low- fat dinners. This company is responding to which of the following forces?

The pharmaceutical industry generally is considered to be operating in a certain environment because patents reduce the level of competition.

You are a consultant to a large telecommunications company that markets many products to many customers. Briefly describe the level of uncertainty and recommend strategies for managing the organizational environment.

Which of the following is not a general environment force?

Developing a good reputation is a way to manage symbiotic interdependencies.

Organizations and Organizational Effectiveness

Organizational Stakeholders, Management, and Ethics

Basic Challenges of Organizational Design

Designing Organizational Structure: Coordination, Communication, and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competencies, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Entrepreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 3: Managing in a Changing Global Environment

Which of the following linkage mechanisms is most appropriate for participants who want to pool distinctive competences?

The more formal the linkage mechanism, the more control organizations have over each other's behavior.

A personal computer manufacturer publicly announces that it plans to reduce prices by 25%. This is an example of ________.

When an organization relies on a small number of trading partners,

An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. They have reduced________ .

Strategic alliances are a linkage mechanism that can be used to manage both competitive and symbiotic interdependencies.

A(n)________is a linkage that results when a director from one company sits on the board of another company.

The general environment:

Expanding internationally is one way for an organization to enlarge and protect its domain.

One way to reduce uncertainty is to have the environmental forces interconnected. That is, when forces begin to interact, the environment becomes more predictable.

The transaction cost approach implies that an organization should:

Environmental complexity is a function of the strength, number, and interconnectedness of the specific and general forces that an organization has to manage.

The DeBeers diamond cartel uses trust to manage its linkages with suppliers and customers.This interorganizational linkage is called _________.

A CEO does not want to enter a lucrative market in an unstable country because he or she does not know how political forces and economic forces will affect his or her company's future business. This is an example of:

Which of the following increases the threat that organization A will behave opportunistically towards organization B?

A frozen food manufacturer offers low- fat dinners. This company is responding to which of the following forces?

The pharmaceutical industry generally is considered to be operating in a certain environment because patents reduce the level of competition.

You are a consultant to a large telecommunications company that markets many products to many customers. Briefly describe the level of uncertainty and recommend strategies for managing the organizational environment.

Which of the following is not a general environment force?

Developing a good reputation is a way to manage symbiotic interdependencies.

Organizations and Organizational Effectiveness

Organizational Stakeholders, Management, and Ethics

Basic Challenges of Organizational Design

Designing Organizational Structure: Coordination, Communication, and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competencies, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Entrepreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters