Bus 102 Exam Questions and Answers

Bus 102 Exam Questions and Answers - Exam Questions 1....

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Exam Questions 1. Define and discuss the strengths and weaknesses of the pluralistic society. Identify and discuss the central components of the stakeholder environment. How might the stakeholder approach to business management improve sustainability in the competitive environment? Pluralism is a diffusion of power among society’s many groups and organizations. “A pluralistic society is one in which there is a wide decentralization and diversity of power concentration.” In spite of the pros and cons of pluralism, society has preferred this situation, for pluralism has worked to achieve some equilibrium in the balance of power of the dominant institutions that constitute our society. One of the strengths of a pluralistic society is that it prevents power from being concentrated in the hands of a few. It also maximizes freedom of expression and action. Additionally, it provides for a built-in set of checks and balances so that no single group dominates. Lastly, it maximizes the freedom of expression and action. A pluralistic society also has its weaknesses. It creates an environment in which diverse institutions pursue their own self-interests. There is no unified direction to bring together individual pursuits. Also, groups and institutions grow rapidly, and thus goals tend to overlap, causing confusion as to which organizations best serve which functions. It also forces conflict onto center stage because of its emphasis on autonomous groups, each pursuing own self-interests and objectives. The central components of the stakeholder environment are the government, employees, community, owners, and consumers. Within the stakeholder environment, each central component has a direct stake in the organization and its success, making them very influential. The government has the power to change and create laws and regulations. Employees can shape whether or not consumers have positive experiences with a company’s product or service. Employees can also have shares in the company. The community is comprised of the general public, environmental groups, and civic groups. Owners include private citizens, institutional groups, and board members. Consumers have purchasing power. If they stop buying from a company, that company loses money. Companies must continue to entice shoppers and increase sales. If consumers need and want change, companies are expected to change with them. The stakeholder view of the firm requires management to perceive its stakeholders as groups that think or perceive themselves as having a stake in the firm. A stakeholder view of the firm perceives stakeholders having the attributes of legitimacy, power, and urgency. Legitimacy refers to the perceived validity of the stakeholders’ claim to a stake. Owners, customers, and employees represent a high degree of legitimacy due to their direct relationships with the company. Power is the ability to produce an effect, meaning that the stakeholder could affect the business. An influential social activist group could use the media to support or go against a
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This note was uploaded on 07/17/2009 for the course BUS 102 taught by Professor Jasso during the Spring '09 term at UC Riverside.

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Bus 102 Exam Questions and Answers - Exam Questions 1....

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