Management Practice Exam – Flashcards
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_____ refers to the shared beliefs, values and norms that influence how people and management work together to achieve organizational goals. A. Orginizational structure B. Orginizational culture C. Organazational Hiearchy D. Orginizational effectiveness E. Orginizational intelligence
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B. Orginizational culture
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Successful differentiation allows a firm to..... A. Be the industry best cost provider B. Set the industry ceiling floor C. Avoid being dragged into a price war with industry rivals and not overly concerned wheter entry barriers into the industry are high or low. D. Command a premium price for its products and/or increase unite, sales and or give buyer equity to its brand. E. Take sales and market shares away from the rivals by undercutting them on a price.
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D. Command a premium price for its products and/or increase unite, sales and or give buyer equity to its brand.
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The process by which maangers decide how to divide tasks into specific jobs is known as ______. A. Job design B. Job procurement C. Span of control D. Task of analyzability E. Integrating mechanization
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A. Job design
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When managers organize divisions base solely on the type of customer they focus on they use a ______. A. Product structure B. Geographic structure C. Market structure D. Functional structure E. Product team structure
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C. Market structure
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The difference between a resource and a capability is: A. A resource is a productive input or a competitive asset, while a capability is the capacity of the firm to perform some internal activity competently. B. A resource is a reserve supply or a back-up supply function, whereas a capability is the ability to manage the resource function. C. A resource is a mechanism used for carrying out some responsibility, while a capability possesses the qualities needed to do a particular thing. D. A resource is the firms fixed assets, while a capability defines whether a firm is competent to perform some function E. All of these
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E. All of these OR A.
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Giving lower-level managers and non managerial employees the right to make important decisions about how to use organizational resources is referred as ______. A. Span of control B. Centralizing authority C. Minimum chain of command D. Decentralizing authority E. Maximum chain of command
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D. Decentralizing authority
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A company's "macro-environment" refers to: A. The industry and the competitive arena in which the company operates. B. General economic conditions plus the factors driving change in the markets where a company operates. C. The strategically relevant factors outside a company's industry boundaries - economic conditions, political factors, social-cultural forces, technological factors, environmental factors, and legal/regulatory conditions. D. The competitive market environment that exists between a company and its competitors E. The dominant economic features of a company's industry
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C. The strategically relevant factors outside a company's industry boundaries - economic conditions, political factors, social-cultural forces, technological factors, environmental factors, and legal/regulatory conditions.
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A _____ refers to an organizational structure that simultaneously groups people and resources by function and by product. A) Matrix structure B) Market structure C) Product structure D) Functional structure E) Divisional structure
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A) Matrix structure
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The most powerful and widely used tool for diagnosing the principle competitive pressure in a market is the: A. Five Forces Model B. SWOT C. Competition intelligence D. Dynamic simulation E. Competitor profiling
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A. Five Forces Model
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The principle of ______ states that top managers should always construct a hierarchy with the fewest levels of authority necessary to efficiently and effectively use organizational resources. A. Minimum chain of command B. Unity of command C. Unity of direction D. Centralization E. Dual command
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A. Minimum chain of command
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Which of the following statements is consistent with the principles of scientific management? A. Stick to the current method of performing tasks and focus only on increasing the speed. B. New methods of performing tasks out to be communication verbally rather than in writing. C. Allow workers to establish their own rules and SOPs. D. Establish a standard pay system that is independent of performance. E. Increase job specialization in order to make the production process more efficient.
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A. Stick to the current method of performing tasks and focus only on increasing the speed.
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_____ is the process by which managers create a specific type of organizational structure and culture. A. Forward vertical integration B. Tactical planning C. Contingency planning D. Economies of scale E. Organizational design
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E. Organizational design
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Well stated objectives are: A. Quantifiable or measurable and contain deadlines for achievements B. Clear, succinct, and concise so as to identify the company's risk and return options C. Historical probability of success determinants in meeting customer- product goals. D. Directly related to the dividend payout ratio for stockholder returns. E. All of these.
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A. Quantifiable or measurable and contain deadlines for achievements
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The nature of strength of the competitive forces the prevail in an industry is generally a joint product of: A. Competition from rival sellers B. Competition from potential new entrants C. Competition from producers of substitute products D. Competitive pressures stemming from bargaining power of both suppliers and buyers E. All of these
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E. All of these
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SST consulting has offices in different locations around the country. Each division is self-contained and caters to the needs of the specific region in which it is located. This is an example of a ________. A. Market structure B. Customer Structure C. Product Structure D. Functional structure E. Geographic structure
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E. Geographic structure
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The managerial purpose of setting objectives includes: A. Converting the strategic vision into specific performance targets - results and outcomes the organization wants to achieve. B. Using the objectives as a yardstick for tracking the company's progress and performance. C. Challenging and helping stretch the organization to perform at its full potential and deliver the best positive results. D. Pushing company personnel to be more attentive and to exhibit more urgency in improving the company's financial performance and business position. E. All of these
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E. All of these
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A cross-functional team refers to a: A. Group of employees who specialize to all the tasks required to produce the end product. B. Organizational structure in which each kind of customer is served by a self-contained division. C. Group of managers brought together from different departments to perform organizational tasks. D. Organizational structure in which each region of a country or area of the world is served by a self-contained division.
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C. Group of managers brought together from different departments to perform organizational tasks.
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The Six Sigma process of define, measure, analyze, improve and control (DMAIC) is: A. An improvement system for existing processes falling below specification and needing incremental improvements B. An improvement system used to develop new processes or products at 100 percent defect-free levels. C. A system of substantial procedures for achieving 100 percent control over how a task is performed. D. An improvement system used to develop new processes or product at Six Sigma levels. E. A systematical procedure for elimination 100 percent of variability in how a task is performed.
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A. An improvement system for existing processes falling below specification and needing incremental improvements
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Which of the following statements about total quality management (TQM) is false? A. TQM aims at instilling enthusiasm and commitment to doing things right from the top to bottom of the organization. B. TQM produces significant results very quickly, with very little benefit emerging after the time of six months. C. TQM doctrine preaches that there's no such thing as a "good enough" and that everyone assumes responsibility to participate in continuous improvement. D. Effective use of TWM entails creating a corporate culture bent on continuously improving the performance of every task and every value chain activity. E. Total quality management is a philosophy of managing a set of business practices that emphasizes the continuous improvement in all phases of operations, 100 percent accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based web design, benchmarking, and total customers.
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B. TQM produces significant results very quickly, with very little benefit emerging after the time of six months.
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The extent to which a job requires the worker to use a wide range of knowledge and abilities is known as ______. A. Task identity B. Task significance C. Autonomy D. Skill variety E. Span of control
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D. Skill variety
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The degree to which a job allows a worker to schedule the tasks of the job and decide how to carry out these tasks is known as ______. A. Autonomy B. Task identity C. Task significance D. Skill of variety E. Span of control
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A. Autonomy
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Which of the following revelations from a different research studies came to be known as the Hawthorne effect? A. Group members subjecting those workers who violate the group norms to sanctions. B. Productivity increasing regardless of the level of illumination in the workplace. C. Workers concealing the true potential efficiency of a work system to protect their interests. D. Workers productivity being affected more by the attention received from researchers than by the work setting. E. Employees in a "no-talking" workplace developing ways of talking to one another out the sides of their mouths.
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D. Workers productivity being affected more by the attention received from researchers than by the work setting.
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Company's values or core values concern: A. Whether and to what extent it intends to operate in an ethical and socially responsible manner. B. How aggressively it will seek to maximize profits and enforce high ethical standards. C. The beliefs and operating principles built into the company's "balanced scorecard" for measuring performance. D. The beliefs, traits and behavioral norms that a company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission. E. The beliefs, principles and ethical standards that are incorporated into the companies strategic intent and business model.
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D. The beliefs, traits and behavioral norms that a company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission.
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The extent to which a job requires that a worker perform all the activities that are required to complete a job is called: A. skill variety B. task identity C. task significance D. span of control E. autonomy
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B. task identity
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Strategy-making is: A. Primarily the responsibility of key executives rather than a task for a companies entire management team. B. more of a collaborative group effort that involves all managers and sometimes key employees as opposed to being the function and responsibility of a few high-level executives C. first and foremost the function and responsibility of a company's strategic planning staff D. first and foremost the function and responsibility of a company's board of directors E. first and foremost the function of a company's chief executive officer-who formulates strategic initiatives and submits them to the board of directors for approval
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B. more of a collaborative group effort that involves all managers and sometimes key employees as opposed to being the function and responsibility of a few high-level executives
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Which of the following is true of scientific management? A. It resulted in jobs that were usually non-repetitive B. it brought all workers more gain than hardship C. It revealed the maximum efficiency of work systems D. it resulted in job dissatisfaction for many workers E. It resulted in increased trust between managers and workers
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D. it resulted in job dissatisfaction for many workers
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A company's strategy evolves over time as a consequence of: A. the need to keep strategy in step with changing circumstances, market conditions and changing customer needs and expectations B. the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy C. the need to abandon some strategy features that are no longer working well D. the need to respond to the newly initiated actions and competitive moves of rival firms E. All of these
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E. All of these
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The strategic role of a company's reward system is to: A. Compensate employees for performing their assigned duties in a diligent fashion B. boost employee morale in ways that create widespread job satisfaction C. enlist employees commitment to successful strategy execution and operating excellence by rewarding them, both monetarily and non-monetarily, for their valuable contributions. D. relieve managers of the burden of closely monitoring each employee's performance. E. boost labor productivity and help lower the firm's overall labor costs
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C. enlist employees commitment to successful strategy execution and operating excellence by rewarding them, both monetarily and non-monetarily, for their valuable contributions.
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A broad differentiation strategy improves profitability: A. it is focused on product innovation B. differentiating enhances product performance and quality C. the differentiating features appeal to sophisticated and prestigious buyers D. the higher price the product commands exceeds the added costs of achieving the differentiation E. the differentiator charges a price that is only fractionally higher than the industry's low cost provider
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B. differentiating enhances product performance and quality OR D
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Management's most powerful tool for winning employee commitment to good strategy execution and operating excellence is: A. the establishment of strategy-supportive policies and procedures B. empowering employees and encouraging them to adopt best practices C. setting stretch objectives D. a structure of rewards and incentives tied tightly to the achievement of the organizations strategic priorities E. aggressive use of TQM and Six Sigma quality control programs
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D. a structure of rewards and incentives tied tightly to the achievement of the organizations strategic priorities
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Strategy is about competing differently than rivals, thus strategy success is about: A. the sources of sustained advantages and superior profitability B. those emergent, unplanned, reactive and adaptive strategies that are more appropriate than deliberate or intended ones that drive the realized strategy C. matching internal resources and capabilities to the industry environment D. keeping the firm current with the rapid pace of change in the industry E. All of these
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A. the sources of sustained advantages and superior profitability or E
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Six Sigma's DMADV process of define, measure, analyze, design and verify is a particularly good vehicle for: A. improving performance when there are small variations in how well and activity is performed. if there are wide variations then the Six Sigma DMVSI has to be used B. achieving 100 percent control over how a task is performed and eliminating 100 percent of the variability in how a task is performed C. improving performance when there are wide variations in how well an activity is performed D. developing new processes or products at Six Sigma quality levels E. improving customer satisfaction where six sigma improves manufacturing processes
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D. developing new processes or products at Six Sigma quality levels
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In trying to gain employees wholehearted commitment to good strategy execution and operation excellence managers are well advised to use such incentives as: A. providing attractive perks and fringe benefits B. giving frequent words of praise, special recognition at company gatherings, stimulating assignments and opportunities to transfer to attractive locations C. creating a work atmosphere in which there is a genuine caring and mutual respect among workers D. relying on opportunities for promoting from within (or the risk of being sidelines) E. All of these
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E. All of these
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Six Sigma programs: A. utilize advanced statistical methods to improve quality be reducing defects and variability in the performance of business processes B. consist of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process C. are based on three principles: (1) all work is a statically controllable process; (2) no well-controlled process allows variability; and (3) defect-free work requires tight statistical controls. D. suggest that all activities can be controlled, employee empowerment is the best control tool, and 100 percent control is possible E. All of these
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A. utilize advanced statistical methods to improve quality be reducing defects and variability in the performance of business processes
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_____ refers to a system of task and authority relationships that controls how employees use resources to achieve a company's goals: A. corporate variance B. work sharing C. management scalability D. organizational structure E. job rotation
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D. organizational structure
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_____ refers to the number of subordinates who report directly to a manager: A. esprit de corps B. synergy C. economies of scale D. span of control E. autonomy
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D. span of control
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The management theory that focuses on the use of rigorous quantitive techniques to asset managers to make the best use of organizational resources is called: A. contingency theory B. management science theory C. administrative management theory D. behavioral management theory E. human relations theory
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B. management science theory
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A winning strategy is one that A. builds strategic fit, is socially responsible and maximizes shareholder wealth B. is highly profitable and boosts the company's market share C. fits the company's internal and external situation, builds sustainable competitive advantage and improves company performance D. results in a company becoming the dominant industry leader E. can pass the ethical standards test, the strategic intent test and the profitability test
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C. fits the company's internal and external situation, builds sustainable competitive advantage and improves company performance
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The resolute standard for judging whether individuals, teams and organizational units have done a good job most be measure by: A. comparing industry performance standards against the company's own internal criteria B. the level of rapid growth in the industry demand C. whether they meet or beat performance targets that reflect good strategy execution D. the number of rivals existing in the marketplace and their growth results E. the relative competitive strengths of the industry leaders and how vulnerable they are to (industry?)
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C. whether they meet or beat performance targets that reflect good strategy execution
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The generic types of competitive strategies include: A. Market share growth provider, sales revenue leader strategy, and market share retention strategy. B. Offensive strategies, defensive strategies and counter maneuvers strategies C. Low-cost provider, broad differentiation, best-cost provider, focused low-cost and focused differentiation strategies. D. Low-cost/low-price strategies, high-quality/high-price strategies, and medium quality-medium price strategies, E. Price leader strategies, price follower strategies, technology leader strategies, and first-mover strategies
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C. Low-cost provider, broad differentiation, best-cost provider, focused low-cost and focused differentiation strategies.
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Employee engagement is _______. A. Motivation and satisfaction B. Commitment and satisfaction C. State of mind D. Behavior and state of mind E. Behavior, state of mind and emotions
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D. Behavior and state of mind
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When managers organize divisions based solely on the type of customer they focus on they adopt a ______. A. Product structure B. Geographic structure C. Market structure D. Functional structure E. Product team structure
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C. Market structure
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A company's mission statement typically addresses which of the following questions? A. Who we are and what do we do? B. What objectives and level of performance do we want to achieve. C. Where are we going and what should our strategy be? D. What approach should we take to achieve the sustainable competitive advantage E. What business model should we employ to achieve our objectives and our vision?
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A. Who we are and what do we do?
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A low-cost leader's basis for competitive advantage is: A. Meaningful lower prices than rival firms B. Using a low cost/low price approach to gain the biggest market share. C. High buyer switching costs. D. Meaningfully lower overall costs then rivals on comparable products. E. Higher unit sales than rivals
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D. Meaningfully lower overall costs then rivals on comparable products.
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The four tests of a resource's competitive power are often referred to as: A. The SCIR test, which asks if a resource is sustainable, competitive, internalized and reproducible. B. The competitive advantage sustainable method test C. The reliability resources simulation D. The VRIN test, which asks if a resource is valuable, rare, immititable, and non substitutable. E. The organizational capability metric analysis.
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D. The VRIN test, which asks if a resource is valuable, rare, immititable, and non substitutable.
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Managers should focus on which of the following to improve the Inner Work Life? A. Enable progressed and rewards for progress B. Rewards and human touch C. Enable progress and human touch D. Clear goals and rewards for goals E. Human touch and communications
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C. Enable progress and human touch
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A company's value chain identifies A. The steps it goes through to convert its net income into value for shareholders B. The primary activities and related support activities it performs in cracking customer value C. The series of steps it takes to get a product from the raw materials stage into the hands of the end users. D. The activities it performs in transforming its competencies in distinctive competencies. E. The competencies and competitive capabilities that undergo in its efforts to create a value for the customers and shareholders.
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B. The primary activities and related support activities it performs in cracking customer value
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Inner Work Life examines which 3 internal aspects of the individual? A. Emotions, commitment, satisfaction B. Commitment, satisfaction, perception C. Emotions, perceptions and satisfaction D. Emotions perceptions motivation
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D. Emotions perceptions motivation
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A winning strategy must pass which three tests? A. the Dominant Market Test, the Sustainable Test and the ____ Test. B. The fit test, the competitive advantage test and the performance test C. The sustainable advantage test, the fit test, and the profit test D. The performance test, the dominant market test and the Fit test
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B. The fit test, the competitive advantage test and the performance test
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Management actions to improve employee engagement include _____. A. Worthwhile mission B. Proactive HR Practices C. Well designed organization D. Performance mgmt. system E. All of the above
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E. All of the above
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What is the primary target market of best cost-provider A. Value hunting buyers B. Price-conscious buyers C. Best-price driven buyers D. Value-conscious buyers E. Brand-conscious buyer
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D. Value-conscious buyers
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According to Amabile and Kramer, engaged people are more _______ A. Creative B. Productive C. Collegial D. Committed E. All of the Above
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E. All of the Above
