 Choose The Correct Answer:-
20
1. Which of the following are NOT part of external environmental factors for
an organization?
a.
b.
c.
d.
Changes to the economy
Political factors
Government regulations
Poor performance from upper management
2. With the introduction of Photostat Machines in the market, the carbon paper
industry was adversely affected. Which component of environment was
responsible for it?
a.
b.
c.
d.
Economic
Political
Technological
All of the Above
3. Which of the following are the dimensions of the business environment
a.
b.
c.
d.
Economic & Social
Technological & Economic
Legal & Social
All of the above
4. ________ refers to negative and unfavourable external factors that are likely
harmful for a factory.
1.
2.
3.
4.
Opportunities
Conflicts
Threats
None of these
5. The countries unemployment rate is an external force impacting on which
environment?
a.
b.
c.
d.
Economic
Political
Social
Technological
6. Which of these is not a key objective for a business?
a.
b.
c.
d.
Survival in the market
Growth
Profit
Customer service
7. it refers to the factors or elements outside the organization which may affect,
either positively or negatively, the performance of the organization.
a.
b.
c.
d.
External Business Environment
Business Environment
Internal Business Environment
Environment
8. It refers to the national or local laws, international laws, and rules and
regulations that influence organizational management.
a.
b.
c.
d.
Political Situations
Economic Situations
Sociocultural Situations
Technological Situations
9. They are those who ensure the organizations continuous flow of needed and
reasonably priced input or materials required for producing their goods and
rendering their services.
a.
b.
c.
d.
Pressure groups
Costumers
Suppliers
Employees
10. An interest groups that try to exert influence on the organization’s decisions
or actions.
a.
b.
c.
d.
Stakeholders
Pressure Groups
Suppliers
Employees
11. It involves the use of varied types of electronic gadgets and advanced
technology such as computers, robotics, microprocessors and others that have
revolutionized business management; e – commerce, teleconferencing, and
sophisticated and information systems.
a.
b.
c.
d.
Political Situations
Economic Situations
Sociocultural Situations
Technological Situations
12. It includes the inflations, rates of interest, changing options in stock markets
and people’s spending habits.
a.
b.
c.
d.
Political Situations
Economic Situations
Sociocultural Situations
Technological Situations
13. Consumer tastes and expectations is which type of PESTEL factor?
a.
b.
c.
d.
e.
Technological
Political
Environmental
Ethical
None are correct
14.Decision making is
.
1.
2.
3.
4.
5.
finding the answer to a question.
choosing one alternative from among several.
staffing positions within the organizational hierarchy.
motivating employees to pursue organizational goals.
fixing problems that arise in the operations of the business.
15.finding the answer to a question.
a.
b.
c.
d.
choosing one alternative from among several.
staffing positions within the organizational hierarchy.
motivating employees to pursue organizational goals.
fixing problems that arise in the operations of the business.
16.An innate belief about something without conscious consideration is called
a.
b.
c.
d.
e.
escalation of commitment.
coalition.
intuition.
groupthink.
self-reaction.
17.According to the rational decision-making approach, what is the fifth step of
the decision-making process?
a.
b.
c.
d.
e.
Identify the problem
Generate alternatives
Evaluate alternatives
State the situational goal
Determine the decision type
18.In ________, the decision maker examines alternatives only until a solution
that meets minimal requirements is found.
a.
b.
c.
d.
e.
optimizing
suboptimizing
compromising
satisficing
narrowing
19.What term refers to the act of persisting & insisting with a failing course of
action?
a.
b.
c.
d.
e.
brainstorming
groupthink
escalation of commitment
group polarization
risk propensity
20.____ is the extent to which a decision maker is willing to be reserved and
cautious when making a decision.
a.
b.
c.
d.
e.
Individual ethics
Risk
Individual stressors
Organizational culture
Leadership style
5
True / False Questions
1. Managers make decisions whenever they are engaged in planning, organizing,
leading, or controlling.
True
False
2. A routine decision is called a nonprogrammed decision. True False
True
False
3. A manager who makes a decision based on his judgment is using a less rational
process than a manager who makes a decision using her intuition.
True
False
4. When managers know the possible outcomes of a decision and can assign
probabilities to each of these outcomes in terms of their likelihood of
occurrence, a situation called risk occurs.
True
False
5. When the outcomes of decision alternatives are known and their probabilities
can be determined, a situation of uncertainty exists.
True
False
6. According to March and Simon, managerial decision making is frequently more
of a science than an art, especially when nonprogrammed decisions are
involved.
True
False
7. Pat, a manager, committed a large amount of resources to a potential new
product. Later, Pat received feedback that the product would not succeed but
continued to commit major resources in an attempt to save the project from
ruin. Escalating commitment has occurred on Pat's part.
True
False
8. When a manager generalizes inappropriately from a small sample to a new
situation and makes a poor decision as a result, representativeness bias has
occurred.
True
False
9. When a manager chooses an acceptable alternative instead of the optimum
alternative, we say that a satisficing decision has occurred.
True
False
10.When the information available to a manager is incomplete because the
manager must make a decision quickly, this is due to “ Cognitive Limitations”
True
False
Short Cases Scenarios:-
5
( Time Constraint – Satisficing – Bounded Rationality – Non-programmedProgrammed )
1. A manager considers a limited sample of the potential alternative solutions for
a problem and selects one that is acceptable instead of attempting to select the
optimum solution. This type of decision is called:
2. Chris, the fleet manager for an office supply company, has limited staff and
between himself and them, they don't have enough time to evaluate all
possible alternative new delivery trucks the company might buy. Chris is
suffering from:
3. In the administrative model of decision making, when the number of possible
alternatives to a decision is so large that the manager cannot possibly evaluate
all of them before making a decision, this is called:
4. Peck's Frozen Custard has been focusing on a target market located in
northwestern Virginia. They are attempting to decide whether to expand stores
to the Washington, D.C. metropolitan area. What type of decision is this?
5. John, an office manager, orders photocopy paper whenever the number of
cases of paper in the storeroom falls below a certain amount. This represents
which type of decision?
10
Complete The Following Sentences:-
1. Mary schedules a meeting with Clarise, a subordinate, because Clarise's
performance has dropped below a certain level. This represents
____________________ decision for the organization.
2. Apple Company is trying to decide whether or not to launch nationally a new
product that this organization has never sold previously. This represents
____________________decision for the organization.
3. When managers estimate the possible outcomes of a decision and can assign
probabilities to each of these outcomes in terms of their likelihood of
occurrence in the future, this is known as ______________________.
4. When managers cannot assign probabilities of future occurrence to possible
alternatives to a decision, this is known as _________________.
5. _____________________is searching for and choosing an acceptable/minimal
response, rather than trying to make the best decision.
6. When an organization has committed significant resources to a project and the
project manager continues to invest the organization's resources in this project even
when he receives information that the project is badly failing, this is called
________________________.
7. The process by which managers respond to opportunities and threats facing
their organization by analyzing options and taking actions is known as
_____________________ .
8. ______________ bias is being over-reliant on the first piece of information
you hear.
9. Sally hears stories about shootings in the media, she interprets them in a way
that supports and confirms her existing beliefs. This is an example of
_______________ bias.
10. In managerial decision-making, the ability of a manager to discover ideas
based on his experience as possible alternative solving a particular problem is
known as __________________ decision.
Bonus Questions
5
1. How does a manager want to achieve his objectives?
a.
b.
c.
d.
Efficiently
Effectively
Efficiently and effectively
None of the above
2. An example of Opportunities or Threats from the external environment
a.
b.
c.
d.
Competitors
GDP per capita
Sales
Strengths
3. Satisfying customer needs would be considered a
a.
b.
c.
d.
Political Factor
Economic Factor
Social Factor
Technological Factor
4. One important method for enhancing creativity is to make it a part of the
organization's ____.
a.
b.
c.
d.
standard operating procedures.
decision-making processes.
culture.
strategic plans.
5. ____ is the extent to which a decision maker is willing to be reserved and
warned when making a decision.
a.
b.
c.
d.
e.
Individual ethics
Risk condition
Individual stress
Organizational culture
Leadership style