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EXAM PREPARATION BANK - 300 QUESTIONS
STRATEGIC MANAGEMENT & PLANNING
1. A value chain is the sequence of activities that begins with raw materials. With which of the following
results does a value chain end?
a. Supply and demand
b. Operations and logistics
c. Outsourcing or insourcing
d. Delivery of products or services
Correct Answer: Delivery of products or services
Detailed Rationale: The value chain is a process where a company adds value to its raw materials to produce products
or services eventually delivered to the consumer.
THE VALUE CHAIN & OPERATIONS
2. What is the primary result when an effective value chain is created within an organization?
a. Profit margins are increased.
b. A mission statement is developed.
c. Customized products are standardized.
d. Total quality management is not required.
Correct Answer: Profit margins are increased.
Detailed Rationale: An effective value chain optimizes internal activities to provide the most value for the least cost,
thereby increasing the company's profit margin.
ORGANIZATIONAL STRUCTURE & DESIGN
,3. Industry and market analysis, competitor analysis, and social analysis are examples of which step in the
strategic planning process?
a. Analysis of mission and goals
b. Analysis of management implementation
c. Analysis of external opportunities and threats
d. Analysis of internal strengths and weaknesses
Correct Answer: Analysis of external opportunities and threats
Detailed Rationale: External analysis focuses on factors outside the organization's control, such as market trends and
competitor moves, categorized as opportunities or threats.
LEADERSHIP & DECISION MAKING
4. Skilled management, positive cash flow, and well-known brands are examples of which component of
the SWOT analysis?
a. Threats
b. Strengths
c. Weaknesses
d. Opportunities
Correct Answer: Strengths
Detailed Rationale: Strengths are internal, positive attributes of an organization that provide a competitive advantage,
such as strong branding or financial health.
SWOT ANALYSIS & COMPETITIVE ADVANTAGE
5. What denotes skills or expertise in an activity that constitutes the roots of competitiveness in an
organization?
a. Strategic values
b. Core competencies
c. Products and services
d. Opportunities and threats
Correct Answer: Core competencies
Detailed Rationale: Core competencies are the unique resources and strengths that allow an organization to
distinguish itself from competitors and create value.
HUMAN RESOURCE MANAGEMENT & ETHICS
,6. A value chain is the sequence of activities that begins with raw materials. With which of the following
results does a value chain end?
a. Supply and demand
b. Operations and logistics
c. Outsourcing or insourcing
d. Delivery of products or services
Correct Answer: Delivery of products or services
Detailed Rationale: The value chain is a process where a company adds value to its raw materials to produce products
or services eventually delivered to the consumer.
STRATEGIC MANAGEMENT & PLANNING
7. What is the primary result when an effective value chain is created within an organization?
a. Profit margins are increased.
b. A mission statement is developed.
c. Customized products are standardized.
d. Total quality management is not required.
Correct Answer: Profit margins are increased.
Detailed Rationale: An effective value chain optimizes internal activities to provide the most value for the least cost,
thereby increasing the company's profit margin.
THE VALUE CHAIN & OPERATIONS
8. Industry and market analysis, competitor analysis, and social analysis are examples of which step in the
strategic planning process?
a. Analysis of mission and goals
b. Analysis of management implementation
c. Analysis of external opportunities and threats
d. Analysis of internal strengths and weaknesses
Correct Answer: Analysis of external opportunities and threats
Detailed Rationale: External analysis focuses on factors outside the organization's control, such as market trends and
competitor moves, categorized as opportunities or threats.
ORGANIZATIONAL STRUCTURE & DESIGN
, 9. Skilled management, positive cash flow, and well-known brands are examples of which component of
the SWOT analysis?
a. Threats
b. Strengths
c. Weaknesses
d. Opportunities
Correct Answer: Strengths
Detailed Rationale: Strengths are internal, positive attributes of an organization that provide a competitive advantage,
such as strong branding or financial health.
LEADERSHIP & DECISION MAKING
10. What denotes skills or expertise in an activity that constitutes the roots of competitiveness in an
organization?
a. Strategic values
b. Core competencies
c. Products and services
d. Opportunities and threats
Correct Answer: Core competencies
Detailed Rationale: Core competencies are the unique resources and strengths that allow an organization to
distinguish itself from competitors and create value.
SWOT ANALYSIS & COMPETITIVE ADVANTAGE
11. A value chain is the sequence of activities that begins with raw materials. With which of the following
results does a value chain end?
a. Supply and demand
b. Operations and logistics
c. Outsourcing or insourcing
d. Delivery of products or services
Correct Answer: Delivery of products or services
Detailed Rationale: The value chain is a process where a company adds value to its raw materials to produce products
or services eventually delivered to the consumer.
HUMAN RESOURCE MANAGEMENT & ETHICS