Fundamentals of Management, 8e (Robbins et al.) Chapter 2 The Management Environment

Topics: Organizational culture, Stakeholder, Management Pages: 67 (16449 words) Published: October 5, 2014

Fundamentals of Management, 8e (Robbins et al.)
Chapter 2 The Management Environment

1) One of Zappos' key features is free returns on shoes that don't fit. Answer: TRUE
Explanation: An online shoe store needs to be allow customers to "try on" shoes. Zappos does this with free returns and no questions asked. Diff: 1 Page Ref: 29
Objective: 2.1

2) One element of Zappos' success is that it has limited selection, focusing on quality rather than a great number of different brands and styles. Answer: FALSE
Explanation: Zappos has an enormous selection. Selection is one of the advantages it has over conventional shoe stores. Diff: 2 Page Ref: 29
Objective: 2.1

3) One of Zappos' goals is to deliver WOW to its customers.
Answer: TRUE
Explanation: Delivering WOW is one of Zappos' ten corporate values. Diff: 2 Page Ref: 29
Objective: 2.1

4) A major cause of the shutdown of a BMW assembly plant in South Carolina in 2010 was a bank crisis in Iceland. Answer: FALSE
Explanation: A volcanic eruption in Iceland was the cause of the shutdown, preventing deliveries to the plant. Diff: 2 Page Ref: 30
AACSB: Dynamics of the global economy
Objective: 2.1
Learning Outcome: Identify the fundamental concepts and issues of international business and management

5) The external environment of an organization includes factors and forces that can affect how the organization operates. Answer: TRUE
Explanation: The external environment includes any outside agent that can influence the performance of the organization. Diff: 2 Page Ref: 30
AACSB: Multicultural and diversity understanding
Objective: 2.1
Learning Outcome: Describe the components of the management environment 6) The components of an organization's external environment include a technological component and a political component. Answer: TRUE

Explanation: The technological component may include such things as new software, while the political component may include office holders who directly affect a company's business. Diff: 2 Page Ref: 30

AACSB: Analytic skills
Objective: 2.1
Learning Outcome: Describe the components of the management environment

7) The sociocultural component of the external environment of an organization includes trends and traditions, but not basic attitudes and values. Answer: FALSE
Explanation: The sociocultural component of the external environment includes all beliefs and values as well as attitudes and behavioral patterns. Diff: 1 Page Ref: 30
Objective: 2.1
Learning Outcome: Describe the components of the management environment

8) The overall trend toward globalization is part of the political component of an organization's external environment. Answer: FALSE
Explanation: Globalization is part of the global component of an organization's external environment. Diff: 2 Page Ref: 31
AACSB: Dynamics of the global economy
Objective: 2.1
Learning Outcome: Identify the fundamental concepts and issues of international business and management

9) High interest rates have been identified as a major cause of the economic meltdown that began in 2008. Answer: FALSE
Explanation: Low interest rates, rather than high interest rates, have been named as a cause of economic problems. Diff: 2 Page Ref: 31
AACSB: Dynamics of the global economy
Objective: 2.1
Learning Outcome: Identify the fundamental concepts and issues of international business and management 10) Prior to the recession that began in 2008, many businesses became highly leveraged, which is another term for a company with a high debt-to-assets ratio. Answer: TRUE

Explanation: With cheap credit, companies tended to take on too much debt. Diff: 2 Page Ref: 31
AACSB: Analytic skills
Objective: 2.1

11) The U.S. housing market been identified as a major cause of the economic meltdown that began in 2008. Answer: TRUE
Explanation: When the bubble in the housing market burst, the...
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