COMMERCE 4PA3 EXAM STUDY GUIDE
NEW SOLUTION MCMASTER UNIVERSITY
EXAMINATION TEST 2026 FULL QUESTIONS
AND ACCURATE SOLUTIONS GRADED A+
⩥ Three fundamental components of general manager's job. Answer: -
Setting direction: vision, mission, & values
- Creating strategy
- Implementing change
- Must also assess both current and long-term performance
⩥ Assessment of organizational performance is based on:. Answer: 1.
Operating performance
2. Organizational health
⩥ Operating performance:. Answer: "harder" quantitative measure of
financial and market performance
⩥ Typical measures of operating performance:. Answer: 1. Profitability
2. Financial Position
3. Market Performance
,⩥ Profitability:. Answer: Profit margins, key expense ratios, ROE, ROA,
economic value
added
⩥ Financial position:. Answer: leverage ratios (D/E, interest coverage),
liquidity ratios,
activity ratios (asset and inventory turnover)
⩥ Market Performance:. Answer: (growth in sales, market share, new
products as % of sales)
⩥ Organizational health:. Answer: "softer" qualitative measures
⩥ Typical measures of organizational health:. Answer: - Enthusiasm
- Boundaries
- Problem solving
- Learning
- Sustainability
⩥ Who made the "balance scorecard". Answer: Robert Kaplan & David
Norton
,⩥ The Performance Matrix. Answer: This tool looks at organizational
health:
Quadrant 2: Complacent Organization
Quadrant 1: Desired State
Quadrant 4: Crisis
Quadrant 5: Troubled Organization
⩥ what are the 3 reasons to develop a vision?. Answer: 1. Resolve
confusion over purpose of the business (why it exists)
2. Revitalize the business (new vision means it is time for change)
3. To enforce informal "sense of vision" for a company that is already
performing well
⩥ Setting Direction: Vision, Mission, Values. Answer: - All highly
successful companies have set of core values & purpose that remains
fixed
even if business strategies evolve
- Apple redid theirs after a shift in business strategy (Apple computers)
- Collins and Porras research
⩥ Values:. Answer: basic beliefs that govern individual and group
behavior in an organization
, ⩥ Core purpose:. Answer: defines the reason for being and may never be
fully realized
⩥ Mission statement:. Answer: - Clear and compelling goal that serves
to unify an organization's efforts
- Must stretch and challenge the organization yet still be achievable
⩥ Reasonable Expectations of a Vision Process. Answer: 1. Settle some
fundamental questions about the purpose of the business
2. Prompt and reinforce the day-to-day actions consistent with their
meaning
3. Provide direction in formulation of more specific strategy of firm
⩥ Three questions to put to an emerging vision:. Answer: 1. Does it
showcase desirable and feasible destination?
2. Does it do so without jeopardizing management's flexibility to
maneuver as
circumstances change?
3. Does it stretch the organization?
⩥ Feasibility:. Answer: Whether you can reasonably expect to get to
your visionary destination
NEW SOLUTION MCMASTER UNIVERSITY
EXAMINATION TEST 2026 FULL QUESTIONS
AND ACCURATE SOLUTIONS GRADED A+
⩥ Three fundamental components of general manager's job. Answer: -
Setting direction: vision, mission, & values
- Creating strategy
- Implementing change
- Must also assess both current and long-term performance
⩥ Assessment of organizational performance is based on:. Answer: 1.
Operating performance
2. Organizational health
⩥ Operating performance:. Answer: "harder" quantitative measure of
financial and market performance
⩥ Typical measures of operating performance:. Answer: 1. Profitability
2. Financial Position
3. Market Performance
,⩥ Profitability:. Answer: Profit margins, key expense ratios, ROE, ROA,
economic value
added
⩥ Financial position:. Answer: leverage ratios (D/E, interest coverage),
liquidity ratios,
activity ratios (asset and inventory turnover)
⩥ Market Performance:. Answer: (growth in sales, market share, new
products as % of sales)
⩥ Organizational health:. Answer: "softer" qualitative measures
⩥ Typical measures of organizational health:. Answer: - Enthusiasm
- Boundaries
- Problem solving
- Learning
- Sustainability
⩥ Who made the "balance scorecard". Answer: Robert Kaplan & David
Norton
,⩥ The Performance Matrix. Answer: This tool looks at organizational
health:
Quadrant 2: Complacent Organization
Quadrant 1: Desired State
Quadrant 4: Crisis
Quadrant 5: Troubled Organization
⩥ what are the 3 reasons to develop a vision?. Answer: 1. Resolve
confusion over purpose of the business (why it exists)
2. Revitalize the business (new vision means it is time for change)
3. To enforce informal "sense of vision" for a company that is already
performing well
⩥ Setting Direction: Vision, Mission, Values. Answer: - All highly
successful companies have set of core values & purpose that remains
fixed
even if business strategies evolve
- Apple redid theirs after a shift in business strategy (Apple computers)
- Collins and Porras research
⩥ Values:. Answer: basic beliefs that govern individual and group
behavior in an organization
, ⩥ Core purpose:. Answer: defines the reason for being and may never be
fully realized
⩥ Mission statement:. Answer: - Clear and compelling goal that serves
to unify an organization's efforts
- Must stretch and challenge the organization yet still be achievable
⩥ Reasonable Expectations of a Vision Process. Answer: 1. Settle some
fundamental questions about the purpose of the business
2. Prompt and reinforce the day-to-day actions consistent with their
meaning
3. Provide direction in formulation of more specific strategy of firm
⩥ Three questions to put to an emerging vision:. Answer: 1. Does it
showcase desirable and feasible destination?
2. Does it do so without jeopardizing management's flexibility to
maneuver as
circumstances change?
3. Does it stretch the organization?
⩥ Feasibility:. Answer: Whether you can reasonably expect to get to
your visionary destination
