WGU-C483 Principles of Management
Exam UPDATED QUESTIONS AND
CORRECT ANSWERS
Delivery of products or services - CORRECT ANSWER A value chain is the sequence of
activities that begins with raw materials.
What result does a value chain end with?
Choose 1 answer
Supply and demand
Operations and logistics
Outsourcing or insourcing
Delivery of products or services
Profit margins are increased. - CORRECT ANSWER What happens when an effective value
chain is created?
Choose 1 answer
Profit margins are increased.
A mission statement is developed.
Customized products are standardized.
Total quality management is not required.
Analysis of external opportunities and threats - CORRECT ANSWER Industry and market
analysis, competitor analysis, and social analysis are examples of which step in the strategic planning
process?
Analysis of mission, vision, and goals
Analysis of management implementation
Analysis of external opportunities and threats
Analysis of internal strengths and weaknesses
,Strengths - CORRECT ANSWER Skilled management, positive cash flow, and well-known
brands are examples of which component of the SWOT analysis?
Threats
Strengths
Weaknesses
Opportunities
Core competencies - CORRECT ANSWER What denotes skills or expertise in an activity that
constitutes the roots of competitiveness in an organization?
Choose 1 answer
Strategic values
Core competencies
Products and services
Opportunities and threats
Suppliers can reduce manufacturing time and increase product quality. - CORRECT ANSWER
According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
Suppliers can reduce the threat from substitute products.
Suppliers can reduce the numbers of new entrants in the market.
Suppliers can reduce manufacturing time and increase product quality.
Suppliers can reduce technological, demographic, and legal threats in the environment.
Differentiation - CORRECT ANSWER A company offers unique products in its industry to
create a competitive advantage.
Which type of strategy is the company using?
Valorization
Differentiation
,Customization
Standardization
Vertical integration - CORRECT ANSWER Happy Inc. is a leading provider of family
entertainment and BCD is a broadcasting company with news, cable, and entertainment networks.
Happy Inc. recently acquired BCD in hopes of boosting its primary business of family entertainment.
Which type of corporate strategy is represented by Happy Inc.'s purchase of their distribution
network?
Choose 1 answer
Vertical integration
Strategic alliances
Networking
Horizontal benchmarking
Strategic vision - CORRECT ANSWER A local business has provided services to its customers
for 40 years. The business's mission is "To give our customers the best service in town." The owner of
the business has had a long-standing dream to franchise the business and become the best provider of
its service in the United States.
What describes the owner's dream?
Choose 1 answer
Strategic vision
Strategic mission
Strategic planning
Strategic management
Developing a strategic mission - CORRECT ANSWER What is the first step of organizational
strategic planning?
Choose 1 answer
, Developing operational goals
Developing internal strengths
Developing a strategic mission
Developing external opportunities
Six Sigma - CORRECT ANSWER The introduction of statistical tools to analyze the causes of
product defects is associated with which quality improvement approach?
Six Sigma
Flexible Process
Customer Process
Quality Customization
To revolutionize key organizational systems and processes - CORRECT ANSWER What is the
principal idea of reengineering?
Choose 1 answer
To analyze system failures
To focus on creating two-way exchanges with customers
To revolutionize key organizational systems and processes
To improve total quality in all businesses for the benefit of producers and consumers
Less than 3.4 - CORRECT ANSWER How many defects per million are there at Six Sigma,
assuming a product or process is defect-free 99.99966% of the time?
Choose 1 answer
Less than 3.4
Less than 4.4
Less than 5.3
Less than 6.6
To take action to accomplish the transformation - CORRECT ANSWER What is the last step to
Deming's 14 points of quality management?
Exam UPDATED QUESTIONS AND
CORRECT ANSWERS
Delivery of products or services - CORRECT ANSWER A value chain is the sequence of
activities that begins with raw materials.
What result does a value chain end with?
Choose 1 answer
Supply and demand
Operations and logistics
Outsourcing or insourcing
Delivery of products or services
Profit margins are increased. - CORRECT ANSWER What happens when an effective value
chain is created?
Choose 1 answer
Profit margins are increased.
A mission statement is developed.
Customized products are standardized.
Total quality management is not required.
Analysis of external opportunities and threats - CORRECT ANSWER Industry and market
analysis, competitor analysis, and social analysis are examples of which step in the strategic planning
process?
Analysis of mission, vision, and goals
Analysis of management implementation
Analysis of external opportunities and threats
Analysis of internal strengths and weaknesses
,Strengths - CORRECT ANSWER Skilled management, positive cash flow, and well-known
brands are examples of which component of the SWOT analysis?
Threats
Strengths
Weaknesses
Opportunities
Core competencies - CORRECT ANSWER What denotes skills or expertise in an activity that
constitutes the roots of competitiveness in an organization?
Choose 1 answer
Strategic values
Core competencies
Products and services
Opportunities and threats
Suppliers can reduce manufacturing time and increase product quality. - CORRECT ANSWER
According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
Suppliers can reduce the threat from substitute products.
Suppliers can reduce the numbers of new entrants in the market.
Suppliers can reduce manufacturing time and increase product quality.
Suppliers can reduce technological, demographic, and legal threats in the environment.
Differentiation - CORRECT ANSWER A company offers unique products in its industry to
create a competitive advantage.
Which type of strategy is the company using?
Valorization
Differentiation
,Customization
Standardization
Vertical integration - CORRECT ANSWER Happy Inc. is a leading provider of family
entertainment and BCD is a broadcasting company with news, cable, and entertainment networks.
Happy Inc. recently acquired BCD in hopes of boosting its primary business of family entertainment.
Which type of corporate strategy is represented by Happy Inc.'s purchase of their distribution
network?
Choose 1 answer
Vertical integration
Strategic alliances
Networking
Horizontal benchmarking
Strategic vision - CORRECT ANSWER A local business has provided services to its customers
for 40 years. The business's mission is "To give our customers the best service in town." The owner of
the business has had a long-standing dream to franchise the business and become the best provider of
its service in the United States.
What describes the owner's dream?
Choose 1 answer
Strategic vision
Strategic mission
Strategic planning
Strategic management
Developing a strategic mission - CORRECT ANSWER What is the first step of organizational
strategic planning?
Choose 1 answer
, Developing operational goals
Developing internal strengths
Developing a strategic mission
Developing external opportunities
Six Sigma - CORRECT ANSWER The introduction of statistical tools to analyze the causes of
product defects is associated with which quality improvement approach?
Six Sigma
Flexible Process
Customer Process
Quality Customization
To revolutionize key organizational systems and processes - CORRECT ANSWER What is the
principal idea of reengineering?
Choose 1 answer
To analyze system failures
To focus on creating two-way exchanges with customers
To revolutionize key organizational systems and processes
To improve total quality in all businesses for the benefit of producers and consumers
Less than 3.4 - CORRECT ANSWER How many defects per million are there at Six Sigma,
assuming a product or process is defect-free 99.99966% of the time?
Choose 1 answer
Less than 3.4
Less than 4.4
Less than 5.3
Less than 6.6
To take action to accomplish the transformation - CORRECT ANSWER What is the last step to
Deming's 14 points of quality management?
