C483 Principles of Management Practice Test
Exam Review Questions with Verified Correct
Answers
A value chain is the sequence of activities that begin with raw materials. What result does a
value chain end with?
Delivery of products and services
What happens when an effective value chain is created?
Profit margins are increased
Market Analysis competitor analysis and social analysis are examples of which step in the
strategic planning process?
Analysis of external opportunities and threats
Skilled management, positive cash flow, and well-known brands are examples of which
component of the SWOT analysis
Strengths
According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
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?
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?
, Vertical Integration
What denotes skills or expertise in an activity that constitutes the roots of competitiveness in
an organization?
Core Competencies
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
U.S.
What describes the owner's dream?
Strategic vision
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and
capabilities and its changing marketing opportunities
What is the first step of organizational strategic planning?
Developing a strategic mission
What is the principle of re-engineering?
To revolutionize key organizational systems and processes
Six Sigma
The introduction of statistical tools to analyze the causes of product defects is associated with
which quality improvement approach?
How many defects per million are there at Six Sigma, assuming a product or process is defect-
free 99.99966% of the time?
Less than 3.4
What is the last step to Deming's 14 points of quality management?
To take action to accomplish the transformation.
Process checklists and project audits are components of which management process?
Quality Assurrance
What is the main objective of an internal quality audit?
Exam Review Questions with Verified Correct
Answers
A value chain is the sequence of activities that begin with raw materials. What result does a
value chain end with?
Delivery of products and services
What happens when an effective value chain is created?
Profit margins are increased
Market Analysis competitor analysis and social analysis are examples of which step in the
strategic planning process?
Analysis of external opportunities and threats
Skilled management, positive cash flow, and well-known brands are examples of which
component of the SWOT analysis
Strengths
According to Michael Porter's competitive environment model, how can suppliers influence
strategic planning?
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?
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?
, Vertical Integration
What denotes skills or expertise in an activity that constitutes the roots of competitiveness in
an organization?
Core Competencies
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
U.S.
What describes the owner's dream?
Strategic vision
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and
capabilities and its changing marketing opportunities
What is the first step of organizational strategic planning?
Developing a strategic mission
What is the principle of re-engineering?
To revolutionize key organizational systems and processes
Six Sigma
The introduction of statistical tools to analyze the causes of product defects is associated with
which quality improvement approach?
How many defects per million are there at Six Sigma, assuming a product or process is defect-
free 99.99966% of the time?
Less than 3.4
What is the last step to Deming's 14 points of quality management?
To take action to accomplish the transformation.
Process checklists and project audits are components of which management process?
Quality Assurrance
What is the main objective of an internal quality audit?
