PRINCIPLES OF MANAGEMENT -C483
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS L LATEST
VERSION 2025/2026.
Effective strategy answer five questions - ANS Where will we be active?
How will we get there? (by increasing sales or acquiring another company)
How will we win in the market? (by keeping prices low, or offering the best service)
How fast will we move and what sequence will we make changes?
How will we obtain financial return? (low cost or premium prices)
Strategic Planning hierarchy - ANS Managerial level: top
Level of detail: low
Time horizon: long (3-7 yrs)
tactical planning hierarchy - ANS Managerial level: middle
Level of detailed: medium
Time horizon: medium (1-2yrs)
Operational planning hierarchy - ANS Managerial: frontline
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Level of detail: high
Time horizon: short (>1 yr)
Concentration - ANS A strategy an organization uses to operate a single business and
compete in a single industry
concentric diversification - ANS A strategy used to add new businesses that produce related
products or are involved in related markets and activities.
conglomerate diversification - ANS A strategy used to add new businesses that produce
related products or are involved in unrelated markets and activities
Core capability - ANS A unique skill, and or knowledge an organization possesses that gives it
an edge over competitors
Corporate Strategy - ANS The set of businesses, markets or industries, in which an
organization competes, and the distribution of resources among those entities
differentiation strategy - ANS Strategy and organization uses to build competitive advantage
by being unique in its industry or market, segment along one or more dimensions
Functional strategies - ANS Strategies implemented by each functional area of the
organization, support the organizations business strategy
low-cost strategy - ANS A strategy an organization uses to build competitive advantage by
being efficient and offering a standard, no-frills product.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,not invented here syndrome (NIH) - ANS A negative attitude towards knowledge, (ideas and
technology,) derived from an external source
operational planning - ANS The process of identifying, the specific procedures and processes
required at lower levels of the organization
Situational Analysis - ANS A process planners use together, interpret in, summarize all
information relevant to the planning issue under consideration
Strategic control system - ANS A system designed to support managers in evaluating the
organizations progress regarding each strategy, and when discrepancies exist, take corrective
action
Strategic Management - ANS A process that involves manages from all parts of the
organization in the formulation and implementation of strategic goals and strategies
Strategic Planning - ANS A set of procedures for making decisions about the organization's
long-term goals and strategies
SWOT analysis - ANS A comparison of strengths, weaknesses, opportunities, and threats that
helps executives formulate strategy
Tactical planning - ANS A set of procedures for translating broad strategic goals and plans into
specific goals and plans that are relevant to a distinct portion of the organization, such as a
functional area like marketing.
Vertical Integration - ANS The acquisition or development of new businesses that produce
parts or components of the organizations product
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, ambidextrous organization - ANS an organization that is simultaneously good at exploitation
and exploration
computer-intergrated manufacturing (CIM) - ANS The use of computer-aided design and
computer-aided manufacturing to sequence and optimize multiple production process
A design approach in which all relevant functions cooperate jointly and continually in a
maximum effort aimed at producing high-quality products that meet customers' needs is known
as - ANS concurrent engineering
continuous process - ANS a process that is highly automated and has a continuous
production flow
Customer Relationship Management (CRM) - ANS A multifaceted process focusing on
creating two-way exchanges with customers to foster intimate knowledge of their needs, wants,
and buying patterns.
Dynamic capabilities - ANS Higher-level strategic capabilities (compared with ordinary
capabilities) that aid rapid adaptation.
Economies of scope - ANS Economies in which materials and processes employed in one
product can be used to make other related products
flexible factories - ANS Manufacturing plants that have short production runs, are organized
around products, and use decentralized scheduling.
High involvement organization - ANS A type of organization in which top management
ensures that there is consensus about the direction in which the business is heading
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS L LATEST
VERSION 2025/2026.
Effective strategy answer five questions - ANS Where will we be active?
How will we get there? (by increasing sales or acquiring another company)
How will we win in the market? (by keeping prices low, or offering the best service)
How fast will we move and what sequence will we make changes?
How will we obtain financial return? (low cost or premium prices)
Strategic Planning hierarchy - ANS Managerial level: top
Level of detail: low
Time horizon: long (3-7 yrs)
tactical planning hierarchy - ANS Managerial level: middle
Level of detailed: medium
Time horizon: medium (1-2yrs)
Operational planning hierarchy - ANS Managerial: frontline
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Level of detail: high
Time horizon: short (>1 yr)
Concentration - ANS A strategy an organization uses to operate a single business and
compete in a single industry
concentric diversification - ANS A strategy used to add new businesses that produce related
products or are involved in related markets and activities.
conglomerate diversification - ANS A strategy used to add new businesses that produce
related products or are involved in unrelated markets and activities
Core capability - ANS A unique skill, and or knowledge an organization possesses that gives it
an edge over competitors
Corporate Strategy - ANS The set of businesses, markets or industries, in which an
organization competes, and the distribution of resources among those entities
differentiation strategy - ANS Strategy and organization uses to build competitive advantage
by being unique in its industry or market, segment along one or more dimensions
Functional strategies - ANS Strategies implemented by each functional area of the
organization, support the organizations business strategy
low-cost strategy - ANS A strategy an organization uses to build competitive advantage by
being efficient and offering a standard, no-frills product.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,not invented here syndrome (NIH) - ANS A negative attitude towards knowledge, (ideas and
technology,) derived from an external source
operational planning - ANS The process of identifying, the specific procedures and processes
required at lower levels of the organization
Situational Analysis - ANS A process planners use together, interpret in, summarize all
information relevant to the planning issue under consideration
Strategic control system - ANS A system designed to support managers in evaluating the
organizations progress regarding each strategy, and when discrepancies exist, take corrective
action
Strategic Management - ANS A process that involves manages from all parts of the
organization in the formulation and implementation of strategic goals and strategies
Strategic Planning - ANS A set of procedures for making decisions about the organization's
long-term goals and strategies
SWOT analysis - ANS A comparison of strengths, weaknesses, opportunities, and threats that
helps executives formulate strategy
Tactical planning - ANS A set of procedures for translating broad strategic goals and plans into
specific goals and plans that are relevant to a distinct portion of the organization, such as a
functional area like marketing.
Vertical Integration - ANS The acquisition or development of new businesses that produce
parts or components of the organizations product
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, ambidextrous organization - ANS an organization that is simultaneously good at exploitation
and exploration
computer-intergrated manufacturing (CIM) - ANS The use of computer-aided design and
computer-aided manufacturing to sequence and optimize multiple production process
A design approach in which all relevant functions cooperate jointly and continually in a
maximum effort aimed at producing high-quality products that meet customers' needs is known
as - ANS concurrent engineering
continuous process - ANS a process that is highly automated and has a continuous
production flow
Customer Relationship Management (CRM) - ANS A multifaceted process focusing on
creating two-way exchanges with customers to foster intimate knowledge of their needs, wants,
and buying patterns.
Dynamic capabilities - ANS Higher-level strategic capabilities (compared with ordinary
capabilities) that aid rapid adaptation.
Economies of scope - ANS Economies in which materials and processes employed in one
product can be used to make other related products
flexible factories - ANS Manufacturing plants that have short production runs, are organized
around products, and use decentralized scheduling.
High involvement organization - ANS A type of organization in which top management
ensures that there is consensus about the direction in which the business is heading
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
