Kafli 3 Flashcards
GraphiX, an advertising firm, has a flat organisational structure with decentralised authority and a culture that encourages creativity. Which of the following environmental forces does this scenario represent?
A.
GraphiX’s micro-environment.
B.
GraphiX’s macro-environment.
C.
GraphiX’s external environment.
D.
GraphiX’s internal environment.
D.
GraphiX’s internal environment.
The Haven is a company that provides landscaping services to businesses and homes. Which of the following is likely to be part of the company’s micro-environment?
A.
A training programme by the employee development team of The Haven to train all employees of the company in how to use a new design tool.
B.
A new company that provides customised garden architecture and installation services to commercial spaces.
C.
A real estate company that holds shares of The Haven and provides capital for the company’s strategic plans.
D.
A new piece of legislation that requires all private companies with foreign investors to pay an additional tax on their revenue.
B.
A new company that provides customised garden architecture and installation services to commercial spaces.
Which of the following is likely to be part of a company’s general environment?
A.
The business processes of the company.
B.
Laws governing wages and overtime pay.
C.
Rival firms providing similar products to those provided by the company.
D.
The structure and culture of the company.
B.
Laws governing wages and overtime pay.
Which of the following is a reason interest in organisational culture has grown?
A.
Because culture is part of an organisation’s competitive environment
B.
Because academics believe that culture influences behaviour
C.
Because culture is independent of beliefs and values
D.
Because cultures develop before common values can be formed
B.
Because academics believe that culture influences behaviour
On her first day at Anagram Inc., Fiona observes that the office is designed in such a manner that employees sit in cubicles and managers occupy closed cabins. She further notices that all employees are dressed formally and address their managers as ‘sir’ or ‘ma’am’. Which of the following is a level of culture that Fiona observes in this scenario?
A.
Artefacts.
B.
Intellectual assets.
C.
Values.
D.
Core business principles.
A.
Artefacts.
Aman has joined the creative team of a marketing company as a graphic designer. After working with the team for a few weeks, he realises that a discussion with copywriters is essential to developing creative advertisements that meet client requirements. He aims to follow this practice for future projects. Which of the following levels of culture does this scenario best illustrate?
A.
Technology and courses.
B.
Artefacts.
C.
Beliefs and values.
D.
Intellectual assets.
C.
Beliefs and values.
XPro, a multinational information technology organisation, is led and driven by the ideals of its CEO, who is the dominant central figure holding authority. All organisational decisions are taken by the CEO rather than being based on the consensus of employees. By contrast, Mirage, a painters’ organisation, is centred on the needs of its members rather than specific organisational objectives. It focuses on serving its employees better. In the context of Handy’s cultural types, which of the following is most likely true of XPro and Mirage?
A.
XPro has a person culture, whereas Mirage has a task culture.
B.
XPro has a role culture, whereas Mirage has a task culture.
C.
XPro has a power culture, whereas Mirage has a person culture.
D.
XPro has a role culture, whereas Mirage has a power culture.
C.
XPro has a power culture, whereas Mirage has a person culture.
While taking the annual employee engagement survey, Amanda, a sales executive in a retail company, checks the ‘Disagree’ box corresponding to the following statements: ‘I have clarity on the values and beliefs of the organisation’ and ‘I have clarity on the objectives of the organisation’. Her responses are based on the belief that the values and the objectives of the company constantly keep changing, which makes it difficult for her to understand the behaviour expected of her. In the context of Martin’s perspectives on culture, which of the following is most likely to represent Amanda’s perspective on her organisation’s culture?
A.
Integration.
B.
Differentiation.
C.
Fragmentation.
D.
Unification.
C.
Fragmentation.
Which of the following is a way in which the culture of an organisation affects its performance?
A.
By creating the macro-environment that contributes to and affects the success of the organisation.
B.
By creating the external context within which the managers and employees in the organisation need to work.
C.
By identifying artefacts such as beliefs and values that are not visible but help to create a positive first impression on the new employees in the organisation.
D.
By communicating the values of the founders of the organisation to its employees and maintaining them through shared experiences.
D.
By communicating the values of the founders of the organisation to its employees and maintaining them through shared experiences.
In the context of Porter’s five forces, which of the following is a situation in which rivalry among competing firms is likely to be strong?
A.
When the fixed costs of a firm are low.
B.
When costs associated with leaving an industry are high.
C.
When market growth is fast and eliminates monopoly.
D.
When a firm’s products are distinctive and difficult to substitute.
B.
When costs associated with leaving an industry are high.
Wonder Treats, a frozen foods manufacturing company, is planning to open a manufacturing plant in Japan that would employ Japanese nationals and sell exclusively to the Japanese market. In the context of a PESTEL analysis, which of the following is a socio-cultural factor that is likely to affect the company’s decision?
A.
The disposable incomes of prospective customers in Japan.
B.
The unemployment rate in Japan.
C.
The transport infrastructure in Japan.
D.
The attitudes of Japanese workers toward work and leisure.
D.
The attitudes of Japanese workers toward work and leisure.
A petroleum company had planned to open a refinery in an offshore country. However, research by its research and development team revealed that the country lacked good transportation facilities and other infrastructure, which would make moving refined goods difficult. As a result, the company abandoned its plan. In this scenario, which of the following PESTEL factors affected the company’s decision?
A.
Technological factors.
B.
Socio-cultural factors.
C.
Legal factors.
D.
Political factors.
A.
Technological factors.
An oil exploration and production company recently set up a new plant in Alaska, United States. The company is likely to have a significant impact on the economy and, hence, on the general public. Now that the plant is operational, which of the following is likely to be an expectation of the public as a stakeholder of the company?
A.
Payment of satisfactory dividends.
B.
Adherence to law and protection of the existing quality of life.
C.
Timely repayment of loans.
D.
Provision of suitable working conditions and fair income.
B.
Adherence to law and protection of the existing quality of life.
Identify a way in which managers are different from the other stakeholders of a firm.
A.
Managers are the only group of stakeholders who are responsible for the day-to-day operations of the firm.
B.
Managers are the only group of stakeholders who have control over the corporate governance policies of the firm.
C.
Managers are the only group of stakeholders who have a contractual relationship with all other stakeholders of the firm.
D.
Managers are the only group of stakeholders who are part of both the micro- and macro-environments of the firm.
C.
Managers are the only group of stakeholders who have a contractual relationship with all other stakeholders of the firm.
