PRINCIPLES OF MANAGEMENT EXAM 1
ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ What happens when an effective value chain is created?
a. A mission statement is developed
b. Profit margins are increased
c. Customized products are standardized
d. Total quality management is not required.
Answer: Profit margins are increased
◉ Industry and market, competitor analysis, and social analysis are
examples of which step in strategic planning process?
a. Analysis of external opportunities and threats
b. Analysis of mission, vision, and goals
c. Analysis of internal strengths and weaknesses
d. Analysis of management implementation.
Answer: Analysis of external opportunities and threats
◉ Skilled management, positive cash flow, and well known brands
are examples of which component of the SWOT analysis?
a. Strengths
,b. Weaknesses
c. Opportunities
d. Threats.
Answer: Strengths
◉ What denotes skill or expertise in an activity that constitutes the
roots of competitiveness in an organization?
a. Products and services
b. Strategic values
c. Opportunities and threats
d. Core competencies.
Answer: core competencies
◉ According to Michael Porters competitive environment model,
how can suppliers influence strategic planning?
a. Suppliers can reduce manufacturing time and increase product
quality
b. Supplier can reduce technological, demographic, and legal threats
in the environment
c. Suppliers can reduce the numbers of new entrants in the market
d. Suppliers can reduce the threat from substitute products.
Answer: Suppliers can reduce mfg time and increase product quality
, ◉ A company offers unique products in its industry to create a
competitive advantage. Which type of strategy is the company using?
a. Custsomization
b. Differentiation
c. Standardization
d. Valorization.
Answer: Differentiation
◉ 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?
a. Vertical integration
b. Strategic alliances
c. Networking
d. Horizontal benchmarking.
Answer: Vertical integration
◉ What is the first step of organizational strategic planning?
a. Developing operation goals
b. Developing external opportunities
ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ What happens when an effective value chain is created?
a. A mission statement is developed
b. Profit margins are increased
c. Customized products are standardized
d. Total quality management is not required.
Answer: Profit margins are increased
◉ Industry and market, competitor analysis, and social analysis are
examples of which step in strategic planning process?
a. Analysis of external opportunities and threats
b. Analysis of mission, vision, and goals
c. Analysis of internal strengths and weaknesses
d. Analysis of management implementation.
Answer: Analysis of external opportunities and threats
◉ Skilled management, positive cash flow, and well known brands
are examples of which component of the SWOT analysis?
a. Strengths
,b. Weaknesses
c. Opportunities
d. Threats.
Answer: Strengths
◉ What denotes skill or expertise in an activity that constitutes the
roots of competitiveness in an organization?
a. Products and services
b. Strategic values
c. Opportunities and threats
d. Core competencies.
Answer: core competencies
◉ According to Michael Porters competitive environment model,
how can suppliers influence strategic planning?
a. Suppliers can reduce manufacturing time and increase product
quality
b. Supplier can reduce technological, demographic, and legal threats
in the environment
c. Suppliers can reduce the numbers of new entrants in the market
d. Suppliers can reduce the threat from substitute products.
Answer: Suppliers can reduce mfg time and increase product quality
, ◉ A company offers unique products in its industry to create a
competitive advantage. Which type of strategy is the company using?
a. Custsomization
b. Differentiation
c. Standardization
d. Valorization.
Answer: Differentiation
◉ 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?
a. Vertical integration
b. Strategic alliances
c. Networking
d. Horizontal benchmarking.
Answer: Vertical integration
◉ What is the first step of organizational strategic planning?
a. Developing operation goals
b. Developing external opportunities
