TEST 1 CHAPTER 3

Question 1

Organizations that are affected by, and that

affect, their external environment

Answer 1

Open systems

Question 2

Goods and services that organizations take in and use to create products or services

Answer 2

Inputs

Question 3

The products and services organizations create

Answer 3

Outputs

Question 4

All relevant forces outside a firm’s boundaries

Answer 4

External environment

Question 5

The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations

EXAMPLE: Laws and Regulations, Economy, Technology, Demographics, Social Values

Answer 5

Macroenvironment

Question 6

The immediate environment
surrounding a firm; includes suppliers,
customers, rivals, and the like

EXAMPLE: Rivals, New competitors, Customer, Substitute services or products, Suppliers

Answer 6

Competitive environment

Question 7

Searching for and sorting through information about the environment

Answer 7

Environmental scanning

Question 8

Information that helps managers determine how to compete better.

Answer 8

Competitive intelligence

Question 9

The process of comparing an organization’s

practices and technologies with those of other companies

Answer 9

Benchmarking

Question 10

A narrative that describes a particular set
of future conditions
• Best-case, worst-case

Answer 10

Scenario