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61._____ occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or external organizational pressures that threaten their survival.

a.Cultural demise

b.Organizational decline

c.Cyclical decline

d.Organizational termination

e.Functional termination

62.David Waters intended Honolulu-based Centaur Zone Cafe to be the prototype of an international franchise of coffeehouses.  He opened his first coffeehouse right next to Hawaii Pacific University in October.  After a slow beginning, college students found the coffeehouse, and Waters made enough to pay the coffeehouse’s bills, but then came summer and his customers went home.  But by the time students returned, Hawaii’s poor economy was entering its seventh year of decline and the coffeehouse was running at a net loss.  Waters failed to see that a year-round business could not depend on college students nor did he take into account the Hawaiian economy.  He was in which stage of organizational decline?

a.blinded

b.inaction

c.crisis

d.divestment

e.dissolution

63.The first stage of organizational decline is:

a.crisis

b.inaction

c.blinded

d.faulty action

e.dissolution

64.Thomas Cook is the operator of travel tours. Its main business is in Germany. When the German government shortened the length of time school children were on vacation in the summer, the profitability of the company declined.  Its management failed to respond to the fact that German parents would have fewer days to travel than before. Its recognition of this threat without taking any action to alleviate it would have happened during the __________ stage of organizational decline.

a.blinded

b.inaction

c.crisis

d.divestment

e.dissolution

65.David Waters intended Honolulu-based Centaur Zone Cafe to be the prototype of an international franchise of coffeehouses. He opened his first coffeehouse right next to Hawaii Pacific University in October.  He tried several strategies to make the coffeehouse profitable, but none worked. Eleven months later Waters entered the _____ of organizational decline and closed the coffeehouse forever. He had underestimated the consequences of Hawaii’s worst-in-the-nation business and tax climate as well as trying to depend on college students as his primary customers.

a.blinded

b.inaction

c.crisis

d.divestment

e.dissolution

66.Thomas Cook is the operator of travel tours.  Its main business is in Germany.  When the German government shortened the length of time school children were on vacation in the summer, the profitability of the company declined.  Its management eventually responded to the decline in German customers by cutting the number of tours it offered to all its customers, closing some German offices, and taking other cost-cutting measures.  This action did not help the agency’s economic plight and would have occurred in the __________ stage of organizational decline.

a.blinded

b.forfeited

c.faulty action

d.dissolution

e.inaction

67.ICI is a British-based plastics manufacturer. Escalating raw material costs, a cyclical market, and a labor-intensive manufacturing process caused the company to sell its petrochemical division in order to become more profitable. This activity would have occurred in the __________ stage of organizational decline.

a.blinded

b.forfeited

c.faulty action

d.dissolution

e.crisis

68.The last stage of organizational decline is:

a.dissolution

b.inaction

c.blinded

d.faulty action

e.divestment

69.Thomas Cook is the operator of travel tours.  Its main business is in Germany.  When the German government shortened the length of time school children were on vacation in the summer, the profitability of the company declined.  Its management failed to recognize how this threat would affect its German tourists during the __________ stage of organizational decline.

a.entry

b.crisis

c.blinded

d.inaction

e.faulty action

70.From the late 1990s until 2004, Hot Topic was one of the fastest-growing and best-performing clothing chains. Hot Topic’s problem was that while it offered shoppers a unique concept when it was first launched, over time its merchandise became too narrowly focused on a niche market of fickle teens. As colorful and preppy clothing returned to popularity, Hot Topic’s merchandise, which was inspired by Goth and alternative music, did not change. Hot Topic stores are at risk of:

a.design intervention

b.design complacency

c.process duplication

d.process reengineering

e.organizational decline

 

 

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