Podcast
Questions and Answers
Which of the following best describes the role of top managers and C-suite executives in relation to an organization's external environment?
Which of the following best describes the role of top managers and C-suite executives in relation to an organization's external environment?
- To monitor external conditions and ensure the organization's mission, strategies, and practices align with these conditions. (correct)
- To isolate the organization from the influences of the external environment to maintain internal stability.
- To primarily focus on internal practices and ignore external conditions to increase efficiency.
- To lobby the government to change laws and regulations to benefit the organization.
Which of the following is the MOST direct effect of reshoring initiatives on the economic environment?
Which of the following is the MOST direct effect of reshoring initiatives on the economic environment?
- Reduced need for quality control in manufacturing processes
- Job creation and a financial boost for local economies (correct)
- Decreased consumer spending due to higher product costs
- Increased unemployment rates in domestic markets
How do legal-political conditions in the global business environment MOST significantly affect multinational corporations?
How do legal-political conditions in the global business environment MOST significantly affect multinational corporations?
- They require corporations to adapt to varied laws, regulations, and political philosophies. (correct)
- They eliminate the need for corporations to engage in corporate social responsibility initiatives.
- They ensure uniform standards across all countries, simplifying international operations.
- They allow corporations to operate without oversight in countries with less strict regulations.
Which action BEST exemplifies how a company responds to socio-cultural conditions related to gender equality?
Which action BEST exemplifies how a company responds to socio-cultural conditions related to gender equality?
How have technological advancements MOST affected the work-life balance of employees?
How have technological advancements MOST affected the work-life balance of employees?
Which of the following actions BEST demonstrates an organization's proactive response to natural environment concerns?
Which of the following actions BEST demonstrates an organization's proactive response to natural environment concerns?
Which of the following scenarios BEST represents the complexities organizations face when dealing with Internet censorship in different countries?
Which of the following scenarios BEST represents the complexities organizations face when dealing with Internet censorship in different countries?
What is the PRIMARY challenge for organizations when managing a workforce comprised of different generational cohorts?
What is the PRIMARY challenge for organizations when managing a workforce comprised of different generational cohorts?
Which factor MOST significantly drives the shift from offshoring to reshoring for companies like Superior Radiant?
Which factor MOST significantly drives the shift from offshoring to reshoring for companies like Superior Radiant?
How do extreme imbalances in economic conditions MOST directly impact organizational strategy?
How do extreme imbalances in economic conditions MOST directly impact organizational strategy?
What is the PRIMARY implication of the digital native phenomenon on workplace dynamics?
What is the PRIMARY implication of the digital native phenomenon on workplace dynamics?
Which of the following scenarios BEST explains why the regulation of 'fintech' companies is being debated?
Which of the following scenarios BEST explains why the regulation of 'fintech' companies is being debated?
Which of the following BEST describes the potential impact of high executive pay on socio-cultural conditions?
Which of the following BEST describes the potential impact of high executive pay on socio-cultural conditions?
Which of the following BEST illustrates how technology impacts employee productivity from the employer’s perspective?
Which of the following BEST illustrates how technology impacts employee productivity from the employer’s perspective?
Why is there increasing emphasis on organizations to adopt 'carbon neutral,' 'green,' and 'sustainable' practices?
Why is there increasing emphasis on organizations to adopt 'carbon neutral,' 'green,' and 'sustainable' practices?
What is the PRIMARY ethical issue associated with offshoring e-waste to countries like Ghana, China, and Vietnam?
What is the PRIMARY ethical issue associated with offshoring e-waste to countries like Ghana, China, and Vietnam?
Based on learning objective 4.1, how might an organization prepare for possible future developments in the technological environment?
Based on learning objective 4.1, how might an organization prepare for possible future developments in the technological environment?
In the context of value creation, how do businesses MOST effectively create value for their suppliers?
In the context of value creation, how do businesses MOST effectively create value for their suppliers?
Which of the following is the BEST example of how changing socio-cultural conditions have influenced advertising strategies?
Which of the following is the BEST example of how changing socio-cultural conditions have influenced advertising strategies?
How might increased awareness of income inequality MOST likely affect a company's compensation policies?
How might increased awareness of income inequality MOST likely affect a company's compensation policies?
What strategy BEST exemplifies a company adapting to the increasing demand for 'green products and services'?
What strategy BEST exemplifies a company adapting to the increasing demand for 'green products and services'?
What is a PRIMARY challenge for global firms dealing with varying national policies on Internet censorship?
What is a PRIMARY challenge for global firms dealing with varying national policies on Internet censorship?
How do provinces MOST effectively compete to attract new plants from companies such as General Motors and Toyota?
How do provinces MOST effectively compete to attract new plants from companies such as General Motors and Toyota?
In what way does the shift toward reshoring directly address public criticism of lost local jobs?
In what way does the shift toward reshoring directly address public criticism of lost local jobs?
Which of the following is the MOST direct implication of Apple paying $60 million to retain the iPad name in China?
Which of the following is the MOST direct implication of Apple paying $60 million to retain the iPad name in China?
What potential risk do airline pilots face due to overreliance on automation, according to the U.S. National Transportation Safety Board?
What potential risk do airline pilots face due to overreliance on automation, according to the U.S. National Transportation Safety Board?
Which strategic response BEST illustrates an organization addressing the ethical implications of offshore e-waste disposal?
Which strategic response BEST illustrates an organization addressing the ethical implications of offshore e-waste disposal?
According to Learning Objective 4.2, how can businesses create value for local communities?
According to Learning Objective 4.2, how can businesses create value for local communities?
In the context of the external environment, how do regulators MOST directly affect an organization?
In the context of the external environment, how do regulators MOST directly affect an organization?
Which of the following is the MOST significant way an organization can create value for its investors/owners?
Which of the following is the MOST significant way an organization can create value for its investors/owners?
Considering the socio-cultural conditions related to income inequality, what action by a company would BEST demonstrate a commitment to addressing this issue?
Considering the socio-cultural conditions related to income inequality, what action by a company would BEST demonstrate a commitment to addressing this issue?
How might an organization leverage technology to BEST address the socio-cultural condition of limited access to education for some communities?
How might an organization leverage technology to BEST address the socio-cultural condition of limited access to education for some communities?
What potential negative impact does 'social notworking' in the workplace have on organizations?
What potential negative impact does 'social notworking' in the workplace have on organizations?
In response to concerns about the natural environment, what action BEST demonstrates a company's commitment to sustainability beyond regulatory compliance?
In response to concerns about the natural environment, what action BEST demonstrates a company's commitment to sustainability beyond regulatory compliance?
How do advocacy groups MOST effectively influence an organization's practices regarding environmental sustainability?
How do advocacy groups MOST effectively influence an organization's practices regarding environmental sustainability?
In the context of Learning Objective 4.2, how can a business create value for the broader society, including future generations?
In the context of Learning Objective 4.2, how can a business create value for the broader society, including future generations?
How might shifts in socio-cultural conditions MOST likely influence a company's approach to employee benefits and well-being programs?
How might shifts in socio-cultural conditions MOST likely influence a company's approach to employee benefits and well-being programs?
What is the PRIMARY role of top managers and C-suite executives regarding an organization's external environment?
What is the PRIMARY role of top managers and C-suite executives regarding an organization's external environment?
A company is deciding whether to offshore or reshore its manufacturing operations. Which consideration reflects an economic environmental factor?
A company is deciding whether to offshore or reshore its manufacturing operations. Which consideration reflects an economic environmental factor?
Which situation BEST illustrates the challenges organizations face due to legal-political conditions in the global environment?
Which situation BEST illustrates the challenges organizations face due to legal-political conditions in the global environment?
An organization implements a mentorship program specifically designed to support women in leadership roles. Which condition is this organization MOST likely addressing?
An organization implements a mentorship program specifically designed to support women in leadership roles. Which condition is this organization MOST likely addressing?
How have technological advancements specifically impacted the demand for continuous employee training and development?
How have technological advancements specifically impacted the demand for continuous employee training and development?
A company invests in renewable energy sources to power its manufacturing plants and reduces its carbon footprint. Which environmental factor is the company addressing with these actions?
A company invests in renewable energy sources to power its manufacturing plants and reduces its carbon footprint. Which environmental factor is the company addressing with these actions?
What challenge do organizations MOST likely face when operating in countries with strict Internet censorship policies?
What challenge do organizations MOST likely face when operating in countries with strict Internet censorship policies?
Considering the presence of multiple generational cohorts in the workplace, which management approach is generally MOST effective?
Considering the presence of multiple generational cohorts in the workplace, which management approach is generally MOST effective?
Which of the following factors would MOST likely drive a company's decision to move from offshoring back to reshoring?
Which of the following factors would MOST likely drive a company's decision to move from offshoring back to reshoring?
How can extreme imbalances in economic conditions MOST directly affect an organization's strategic planning?
How can extreme imbalances in economic conditions MOST directly affect an organization's strategic planning?
What is the PRIMARY impact of 'digital natives' on workplace communication and collaboration?
What is the PRIMARY impact of 'digital natives' on workplace communication and collaboration?
Why is the regulation of 'fintech' companies a subject of ongoing debate?
Why is the regulation of 'fintech' companies a subject of ongoing debate?
How might high executive pay impact socio-cultural conditions of a community?
How might high executive pay impact socio-cultural conditions of a community?
From an employer's perspective, how does technology BEST enhance employee productivity?
From an employer's perspective, how does technology BEST enhance employee productivity?
Why is there increasing emphasis on organizations adopting 'carbon neutral,' 'green,' and 'sustainable' practices?
Why is there increasing emphasis on organizations adopting 'carbon neutral,' 'green,' and 'sustainable' practices?
What is the PRIMARY ethical challenge associated with offshoring e-waste to developing countries?
What is the PRIMARY ethical challenge associated with offshoring e-waste to developing countries?
How can an organization proactively prepare for potential future developments in the technological environment?
How can an organization proactively prepare for potential future developments in the technological environment?
What is the BEST way for a business to create value for its suppliers?
What is the BEST way for a business to create value for its suppliers?
How have socio-cultural conditions influenced advertising strategies in recent years?
How have socio-cultural conditions influenced advertising strategies in recent years?
How can increased awareness of income inequality MOST affect a company's compensation policies?
How can increased awareness of income inequality MOST affect a company's compensation policies?
What is the BEST example of a company adapting to the increasing demand for 'green products and services'?
What is the BEST example of a company adapting to the increasing demand for 'green products and services'?
What is a PRIMARY difficulty for global firms dealing with varying national policies on Internet censorship?
What is a PRIMARY difficulty for global firms dealing with varying national policies on Internet censorship?
How can businesses create value for local communities?
How can businesses create value for local communities?
How can an organization create the MOST value for its investors/owners?
How can an organization create the MOST value for its investors/owners?
How can a business create value for the broader society, including future generations?
How can a business create value for the broader society, including future generations?
What organizational capability is MOST essential for effectively navigating the dynamic external environment?
What organizational capability is MOST essential for effectively navigating the dynamic external environment?
How do organizations MOST effectively balance the benefits of technological advancements with the potential drawbacks of increased employee availability demands?
How do organizations MOST effectively balance the benefits of technological advancements with the potential drawbacks of increased employee availability demands?
What proactive step can organizations take to address the ethical concerns associated with the use of offshore e-waste disposal?
What proactive step can organizations take to address the ethical concerns associated with the use of offshore e-waste disposal?
Which strategy would BEST enable a company to address socio-cultural conditions related to income inequality?
Which strategy would BEST enable a company to address socio-cultural conditions related to income inequality?
When considering 'reshoring' initiatives, how can companies BEST reconcile the potential for increased labor costs with the need to maintain competitive pricing?
When considering 'reshoring' initiatives, how can companies BEST reconcile the potential for increased labor costs with the need to maintain competitive pricing?
Flashcards
External Environment
External Environment
All external conditions that influence managerial decision-making.
External Environment Factors
External Environment Factors
Economic, legal-political, socio-cultural, technological, and natural environment conditions.
Macro-economic Conditions
Macro-economic Conditions
Financial markets, inflation, income levels, and job creation impacting an economy’s health.
Offshoring
Offshoring
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Reshoring
Reshoring
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Legal-Political Conditions
Legal-Political Conditions
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Fintech
Fintech
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Internet Censorship
Internet Censorship
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Socio-Cultural Conditions
Socio-Cultural Conditions
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Generational Cohorts
Generational Cohorts
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Digital Immigrants
Digital Immigrants
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Digital Natives
Digital Natives
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Sustainability
Sustainability
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E-waste
E-waste
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Specific/Task Environment
Specific/Task Environment
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Stakeholders
Stakeholders
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Study Notes
- The external environment consists of external conditions that set the context for managerial decision-making
- This environment includes economic, legal-political, socio-cultural, technological, and natural environment conditions
- Top managers monitor these conditions and link them with the organization’s mission, strategies, and internal practices
Economic Conditions
- Economic conditions include long-term joblessness, income inequality, and China’s growing economic power
- Economic conditions are part of a changing set of environmental forces.
- Macroeconomic conditions affect the prospects for companies, consumer spending, and provincial/national priorities
- Provinces compete on tax incentives to attract new plants, involving hundreds of jobs and financial boosts
- Companies are considering reshoring jobs back home due to costs and other factors
Legal-Political Conditions
- Legal-political issues include immigration, education, tax, and health care reform
- These reflect laws, regulations, government policies, and the objectives of political parties
- Canadian lawmakers debate financial regulation, trade agreements, job protection, and minimum wage
- Corporate execs monitor trends like regulating "fintech" companies
- Legal-political conditions vary globally, requiring firms to adjust to different laws and politics
- Countries vary on internet censorship, posing dilemmas for global firms like Google, Yahoo!, and Twitter
Socio-Cultural Conditions
- Socio-cultural issues include income inequality, labor disadvantages, and discrimination
- These issues relate to education, social networks, technology access, mentoring, and the "glass ceiling"
- Socio-cultural conditions involve demographics, norms, and social values related to employment, gender roles, ethics, human rights, and lifestyles
- The workplace is a mix of generational cohorts, such as digital natives and digital immigrants
- Generational differences affect shopping, learning, and work styles
- 75% of women aged 18–32 believe more must be done to ensure workplace equality
- Social attitudes toward women at work are shifting positively, but gender wage gaps and bias remain
- Canadian women earn 87 cents per dollar earned by men
- Social values affect organizations' employment practices, reputation management, and product development
- Public is growing more critical of high executive pay, with Canada’s 100 highest-paid CEOs receiving an average of $11.8 million each in 2018
Technological Conditions
- More work duties go into employees personal lives due to technology
- Some employers see employees doing personal things online, a loss of productivity called "social notworking.”
- There are worries about pilot training due to high technological dependency and automation
Natural Environment Conditions
- Concerns for the environment are ever present and global
- Calls for being "carbon neutral," "green," and "sustainable" are common
- People are working to reduce water consumption, waste, improve energy efficiency, and eliminate pollution
- Consumers are asking for "green products and services" in their every day lives
- There are rising concerns on organizations preserving/respecting the environment
- E-waste is often sent to graveyards in countries like Ghana, China, and Vietnam
- Canada is one of the worst e-waste offenders
- E-waste workers face hazards disassembling and salvaging the products
Environment and Value Creation
- Specific or task environment: The organizations/groups/persons with whom an organization interacts and conducts business
- Stakeholders: The persons/groups/institutions affected by the organization’s performance
- Stakeholders include customers, suppliers, competitors, regulators, advocacy groups, investors/owners, employees, and society
- Organizations contribute to their environments by creating value for their stakeholders
- Businesses create value for customers through product pricing and quality, and for owners in profits
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