PRINCIPLES OF MANAGEMENT C483
WGU EXAM QUESTIONS WITH 100%
CORRECT ANSWERS L LATEST
VERSION 2025/2026.
Describe strategic planning - ANS Making decisions about the organization's long-term goals
and strategies
Describe strategic goals - ANS major target long-term goals that are effective and efficient
describe strategy - ANS pattern of actions and resource allocations designed to achieve the
goals of the organization. 1. Where will we be active? 2. How will we get there (increase sales or
acquire another company)? 3. How will we win the in the marketplace (keep prices low or offer
the best service)? 4. how fast will we move in what sequence will we make the changes? 5.How
will we obtain financial returns (low cost or premium prices)? *In setting a strategy, managers
try to match the organization's skills and resources to the opportunities found in the external
environment.
Explain what a Core Competency/ Capability means for an organization. - ANS Core
Capability: (or competence) when resources are valuable, rare, inimitable, and organized.
Something company does especially well relative to its competitors. (EX: Honda small engine)
Core competencies typically refers to a set of skills or expertise in some activity rather than
physical or financial assets.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Porter's 5 Model - ANS Porter's 5 Model is a method used to help managers analyze the
competitive environment and adapt to or influence the nature of their competition.
Describe Porter's 5 Model and how it is used in the strategic planning process. - ANS 1.
understand the competitive environment, organization's must identify competitors.
2. analyze how to compete.
3. new entrants (Netflix took out blockbuster)
4. substitutes and complements (coke for starbucks; starbucks complement is a cake pop) 5.
suppliers: switching costs ( fixed costs buyers face when they change suppliers), supply chain
management ( managing of the network of facilities and people that obtain materials from
outside the organization, transform them into products, and distribute them to customers.)
6. customers: without customers a company wont survive (final customer ex: mcdonalds)
(Intermediate customer ex: customer who purchases raw materials or wholesale products
before selling them)
Explain a SWOT Analysis - ANS 1. SWOT analysis: assessment of the organization's strengths,
weaknesses, opportunities, and threats
2. SWOT analysis helps managers summarize the relevant important facts from their external
and internal analysis
SWOT analysis strengths and weaknesses - ANS -strength and weaknesses: interal recources
EX: organization's strengths might include skilled management, positive cash flow, and well-
known highly regarded brands.
Weakness might be lack of spare production capacity and the absence of reliable suppliers
SWOT analysis opportunities and threats - ANS -SWOT analysis helps managers summarize
the relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
How SWOT analysis helps managers: - ANS -SWOT analysis helps managers summarize the
relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
Name the 5 types of corporate strategies that organizations use - ANS 1. corportate strategy
2. concentration strategy
3. vertical integration strategy
4. concentric diversification strategy
5. conglomerate diversification strategy
define corporate strategy - ANS identifies the set of businesses, markets, or industries in
which the organization competes and the organization competes and the distribution of
resources among those businesses shows basic alternatives for a corporate strategy, ranging
from very specialized to highly diverse
Concentration Strategy - ANS focuses on a single business competing in a single industry
vertical integration strategy - ANS involves expanding the domain of the organizatoin into
supply channel or to distributors
concentric diversification strategy - ANS involves moving into a new business that are related
to the company's original core business
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
WGU EXAM QUESTIONS WITH 100%
CORRECT ANSWERS L LATEST
VERSION 2025/2026.
Describe strategic planning - ANS Making decisions about the organization's long-term goals
and strategies
Describe strategic goals - ANS major target long-term goals that are effective and efficient
describe strategy - ANS pattern of actions and resource allocations designed to achieve the
goals of the organization. 1. Where will we be active? 2. How will we get there (increase sales or
acquire another company)? 3. How will we win the in the marketplace (keep prices low or offer
the best service)? 4. how fast will we move in what sequence will we make the changes? 5.How
will we obtain financial returns (low cost or premium prices)? *In setting a strategy, managers
try to match the organization's skills and resources to the opportunities found in the external
environment.
Explain what a Core Competency/ Capability means for an organization. - ANS Core
Capability: (or competence) when resources are valuable, rare, inimitable, and organized.
Something company does especially well relative to its competitors. (EX: Honda small engine)
Core competencies typically refers to a set of skills or expertise in some activity rather than
physical or financial assets.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Porter's 5 Model - ANS Porter's 5 Model is a method used to help managers analyze the
competitive environment and adapt to or influence the nature of their competition.
Describe Porter's 5 Model and how it is used in the strategic planning process. - ANS 1.
understand the competitive environment, organization's must identify competitors.
2. analyze how to compete.
3. new entrants (Netflix took out blockbuster)
4. substitutes and complements (coke for starbucks; starbucks complement is a cake pop) 5.
suppliers: switching costs ( fixed costs buyers face when they change suppliers), supply chain
management ( managing of the network of facilities and people that obtain materials from
outside the organization, transform them into products, and distribute them to customers.)
6. customers: without customers a company wont survive (final customer ex: mcdonalds)
(Intermediate customer ex: customer who purchases raw materials or wholesale products
before selling them)
Explain a SWOT Analysis - ANS 1. SWOT analysis: assessment of the organization's strengths,
weaknesses, opportunities, and threats
2. SWOT analysis helps managers summarize the relevant important facts from their external
and internal analysis
SWOT analysis strengths and weaknesses - ANS -strength and weaknesses: interal recources
EX: organization's strengths might include skilled management, positive cash flow, and well-
known highly regarded brands.
Weakness might be lack of spare production capacity and the absence of reliable suppliers
SWOT analysis opportunities and threats - ANS -SWOT analysis helps managers summarize
the relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
How SWOT analysis helps managers: - ANS -SWOT analysis helps managers summarize the
relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
Name the 5 types of corporate strategies that organizations use - ANS 1. corportate strategy
2. concentration strategy
3. vertical integration strategy
4. concentric diversification strategy
5. conglomerate diversification strategy
define corporate strategy - ANS identifies the set of businesses, markets, or industries in
which the organization competes and the organization competes and the distribution of
resources among those businesses shows basic alternatives for a corporate strategy, ranging
from very specialized to highly diverse
Concentration Strategy - ANS focuses on a single business competing in a single industry
vertical integration strategy - ANS involves expanding the domain of the organizatoin into
supply channel or to distributors
concentric diversification strategy - ANS involves moving into a new business that are related
to the company's original core business
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
