PGA LEVEL 1 Exam Questions And 100% Correct Answers
BUSINESS PLANNING - Answer
Business planning process - An organized plan that clearly describes explicit goals and
objectives and strategy for accomplishing them
PGA Business Planning Model (5 phases) - Ano 1. Define the business
2. Assess current state of the business
3. Develop business goals, objects, and strategies
4. Prepare financial forecasts/budgets
5. Monitor performance
Long term vs short term - Ano Long term = 3-5 years
Short term = less than 1 year
Mission-definition of the business-Answer to the question, what is the purpose
Vision-definition of the business-Answer a phrase that paints a picture
where want to be in future
core values-definition of the business-Answer individual words that shape the mission,
vision
assess the current state of the business. -Answer awareness and application of
performance data, assessing core areas, SWOT and prioritizing findings
,Goals vs. Objectives -Answer goals intended to be accomplished 3-5 years
objectives within 1 year help to accomplish goal
SMART goals and objectives - Response Specific
Meaningful
Achievable
Realistic
Time-oriented
Strategies define what your going to to do to achieve objectives
Action plans define. - Response specific "how to" strategies
Horizontal analysis - Response usually centers on a specific revenue or expense metric
-Linear trend = evaluates positive and negative trends over time
-Base year analysis = categories values are compared to one benchmark year
Formula for linear trend- % change - Solution Later Year - Previous Year/Previous year =
% Change
Formula for linear trend- Average % change - Solution sum of all linear trend
calculations/Number of calculations
Base year analysis formula - Solution comparison year/Base year x 100%
typically used after a significant change at facility
Vertical analysis - Solution compares values in the same column of forecast or budget
, ex. COGS compared to total sales
COGS as % of Sales - Answer COGS/Total Merchandise sales
gross margin as a % of sales - Answer Gross margin/total merchandise sales
operating budget - Answer take figures from forecast and realistically estimate when
revenues and expenses will occur over the year
cash flow budgets - Answer Projects how much money a facility will have in bank at end
of every month or week - actual dollars in and out
capital budget - Answer projects the costs of those purchases and large scale projects
performance monitoring - Answer systematic performance and key metrics against
objectives, strategies and budget
variances constantly monitored and analyzed
CUSTOMER RELATIONS - Answer
customer relations model - Answer - Moments of truth
- Resources, staffing, systems
- Interaction strategies
- Interpersonal skills
- Positive engagement routines
Four Interaction Strategies - Answer 1) Directing
2) Convincing
3) Involving
4) Supporting
BUSINESS PLANNING - Answer
Business planning process - An organized plan that clearly describes explicit goals and
objectives and strategy for accomplishing them
PGA Business Planning Model (5 phases) - Ano 1. Define the business
2. Assess current state of the business
3. Develop business goals, objects, and strategies
4. Prepare financial forecasts/budgets
5. Monitor performance
Long term vs short term - Ano Long term = 3-5 years
Short term = less than 1 year
Mission-definition of the business-Answer to the question, what is the purpose
Vision-definition of the business-Answer a phrase that paints a picture
where want to be in future
core values-definition of the business-Answer individual words that shape the mission,
vision
assess the current state of the business. -Answer awareness and application of
performance data, assessing core areas, SWOT and prioritizing findings
,Goals vs. Objectives -Answer goals intended to be accomplished 3-5 years
objectives within 1 year help to accomplish goal
SMART goals and objectives - Response Specific
Meaningful
Achievable
Realistic
Time-oriented
Strategies define what your going to to do to achieve objectives
Action plans define. - Response specific "how to" strategies
Horizontal analysis - Response usually centers on a specific revenue or expense metric
-Linear trend = evaluates positive and negative trends over time
-Base year analysis = categories values are compared to one benchmark year
Formula for linear trend- % change - Solution Later Year - Previous Year/Previous year =
% Change
Formula for linear trend- Average % change - Solution sum of all linear trend
calculations/Number of calculations
Base year analysis formula - Solution comparison year/Base year x 100%
typically used after a significant change at facility
Vertical analysis - Solution compares values in the same column of forecast or budget
, ex. COGS compared to total sales
COGS as % of Sales - Answer COGS/Total Merchandise sales
gross margin as a % of sales - Answer Gross margin/total merchandise sales
operating budget - Answer take figures from forecast and realistically estimate when
revenues and expenses will occur over the year
cash flow budgets - Answer Projects how much money a facility will have in bank at end
of every month or week - actual dollars in and out
capital budget - Answer projects the costs of those purchases and large scale projects
performance monitoring - Answer systematic performance and key metrics against
objectives, strategies and budget
variances constantly monitored and analyzed
CUSTOMER RELATIONS - Answer
customer relations model - Answer - Moments of truth
- Resources, staffing, systems
- Interaction strategies
- Interpersonal skills
- Positive engagement routines
Four Interaction Strategies - Answer 1) Directing
2) Convincing
3) Involving
4) Supporting
