Test Prep - WGU - Principles of
Management - C483 Exam
Questions and Answers
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 - Correct Answers: Delivery of products or services
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. - Correct Answers: Profit margins are increased.
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 - Correct Answers: Analysis of external opportunities and
threats
,Skilled management, positive cash flow, and well-known brands are examples of which component of
the SWOT analysis?
Threats
Strengths
Weaknesses
Opportunities - Correct Answers: Strengths
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 - Correct Answers: Core competencies
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. - Correct
Answers: Suppliers can reduce manufacturing 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?
Valorization
,Differentiation
Customization
Standardization - Correct Answers: 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?
Choose 1 answer
Vertical integration
Strategic alliances
Networking
Horizontal benchmarking - Correct Answers: Vertical integration
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 - Correct Answers: Strategic vision
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 - Correct Answers: Developing a strategic mission
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 - Correct Answers: Six Sigma
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 - Correct Answers:
To revolutionize key organizational systems and processes
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 - Correct Answers: Less than 3.4
Management - C483 Exam
Questions and Answers
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 - Correct Answers: Delivery of products or services
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. - Correct Answers: Profit margins are increased.
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 - Correct Answers: Analysis of external opportunities and
threats
,Skilled management, positive cash flow, and well-known brands are examples of which component of
the SWOT analysis?
Threats
Strengths
Weaknesses
Opportunities - Correct Answers: Strengths
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 - Correct Answers: Core competencies
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. - Correct
Answers: Suppliers can reduce manufacturing 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?
Valorization
,Differentiation
Customization
Standardization - Correct Answers: 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?
Choose 1 answer
Vertical integration
Strategic alliances
Networking
Horizontal benchmarking - Correct Answers: Vertical integration
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 - Correct Answers: Strategic vision
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 - Correct Answers: Developing a strategic mission
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 - Correct Answers: Six Sigma
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 - Correct Answers:
To revolutionize key organizational systems and processes
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 - Correct Answers: Less than 3.4
