C483 Principles of Management Pre-Assessment
Exam Questions with Verified Correct Answers
What result does a value chain end with?
Delivery of products or services
What is the first step of organizational strategic planning?
Developing a strategic mission
What happens when an effective value chain is created?
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 external opportunities and threats
Skilled management, positive cash flow, and well-known brands are examples of which
component of the SWOT analysis?
Strengths
What denotes skills or expertise in an activity that constitutes the roots of competitiveness in
an organization?
Core capabilities
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.
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.
, 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.
Strategic vision
The introduction of statistical tools to analyze the causes of product defects is associated with
which quality improvement approach?
Six Sigma
What is the principal idea of reengineering?
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?
Less than 3.4
What is the last step to Deming's 14 points of quality management?
To take action to accomplish the transformation
Which company is an example of a job shop?
A company providing customized services in a low volume
A company is trying to systematically improve processes by eliminating nonconformity of
their products to product specifications. The company believes their continuous effort to
reduce variation in their process outputs is key to their business success.
Six Sigma
Which concept entails all aspects of interaction a company has with its customers in both
sales and service-related environments?
Customer relationship management
Dr. Ohmae indicates that customer, corporation, and competitors should be integrated in a
strategic triangle. What does Dr. Ohmae indicate that an organization can obtain by doing
this?
Sustained competitive advantage
Exam Questions with Verified Correct Answers
What result does a value chain end with?
Delivery of products or services
What is the first step of organizational strategic planning?
Developing a strategic mission
What happens when an effective value chain is created?
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 external opportunities and threats
Skilled management, positive cash flow, and well-known brands are examples of which
component of the SWOT analysis?
Strengths
What denotes skills or expertise in an activity that constitutes the roots of competitiveness in
an organization?
Core capabilities
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.
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.
, 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.
Strategic vision
The introduction of statistical tools to analyze the causes of product defects is associated with
which quality improvement approach?
Six Sigma
What is the principal idea of reengineering?
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?
Less than 3.4
What is the last step to Deming's 14 points of quality management?
To take action to accomplish the transformation
Which company is an example of a job shop?
A company providing customized services in a low volume
A company is trying to systematically improve processes by eliminating nonconformity of
their products to product specifications. The company believes their continuous effort to
reduce variation in their process outputs is key to their business success.
Six Sigma
Which concept entails all aspects of interaction a company has with its customers in both
sales and service-related environments?
Customer relationship management
Dr. Ohmae indicates that customer, corporation, and competitors should be integrated in a
strategic triangle. What does Dr. Ohmae indicate that an organization can obtain by doing
this?
Sustained competitive advantage
