SHRM-CP 2022: Business Acumen Competency

Question 1

Value

Answer 1

Can be defined/measured several ways. Generally, refers to an orgs success in meeting strategic goals. Is influenced by mission, culture and more.

Question 2

Value Chain

Answer 2

Process by which an organization creates a product or service it offers to the customer. Also known as a business model.

Question 3

Service-Level Agreement (SLA)

Answer 3

Defines output customers can expect.

Question 4

Organization Lifecycle: Intorduction

Answer 4

Revenue is low with little market awareness. Need to create an identity with customers and develop a value proposition.

Question 5

Organizational Lifecycle: Growth

Answer 5

Revenue beings to increase. Growth will vary by industry, enterprise, product. Shifts to creating processes that will increase efficiency without stifling innovation.

Question 6

Organizational Lifecycle: Maturity

Answer 6

Market is saturated with competitors and growth occurs through intro of new products/customer groups/acquisitions. Profit margins narrow and efficiency becomes more important.

Question 7

Organizational Lifecycle: Renewal, No Growth, Decline

Answer 7

When demand decreases, organizations can:
RENEW - completely changing offerings where they compete or how they competed.
Take no action and accept continued low revenue.
Take no action and experience a decline in revenue that will make it impossible to compete or operate.

Question 8

PESTLE Analysis

Answer 8

Political, Economic, Social, Technological, Legal, Environmental

Conducted to improve an org’s competitive market position.

Question 9

PESTLE: Political

Answer 9

Governmental and other political forces that can exert influence.

Question 10

PESTLE: Economic

Answer 10

Market and other economic conditions that affect an organization like interest and exchange rates, wages, COL and working hours.

Question 11

PESTLE: Social

Answer 11

Events and trends ins ocity that can affect present and future availability of talent

Question 12

PESTLE: Technological

Answer 12

Changes in tech capabilities and avialbility that can affect ability to produce/provide goods and services

Question 13

PESTLE: Legal

Answer 13

Laws and regulations that can affect an orgs operations.

Question 14

PESTLE: ENvironmental

Answer 14

Geographic and climate changes that might affect orgs operations.

Question 15

Supply and Demand

Answer 15

Fundamental concept of economics. Demand - customers diesre to purchase goods/services and willingness to accept price. Supply - availability of goods or services.

Question 16

Strategic Plan

Answer 16

Plan that defines an orgs prupsoe and direction to provide guidance on the org core values and objectives. Contains a vision/mission statement, core values, goals and objectives, SWOT analysis, Action plans

Question 17

Competitive Advantage

Answer 17

The factors that enable an org to outperform its rivals. This can be branding, product quality, customer service, access to superiro resources etc.

Question 18

Financial Projections

Answer 18

Estimate of an orgs future financial performance. Typically, address a specific 12 month peiord proken up monthly and by department/function

Question 19

Quality

Answer 19

Measure of comparison for products and services

Question 20

Business Intelligence

Answer 20

The ability to use information to gain a deeper understanding of an organization and its parts. Consists of 3 basic components of: Data Gathering, Data Warehousing, and Query and Reporting Capabilities

Question 21

Data Gathering

Answer 21

Data is routinely gathered through different computer systems in all parts of an org.

Question 22

Data Warehousing

Answer 22

Data gathered is translated into a standard format, cleaned or errors and duplications, and then stored in databases related to specific uses. ERGs can be used to integrate distinct databases to tap into the data warehousing capabilities.

Question 23

Enterprise Resource Planning (ERP)

Answer 23

A system that can integrate these distinct databases and sort, describe, and analyze data in myriad ways to create report graphics such as bar or pie charts.

Question 24

Query and Reporting Capabilities

Answer 24

Users need access to their information in order to make use of it - this can be done stand alone or integrated.

Question 25

Balanced Scorecard

Answer 25

can provide a concise impression of an orgs overall performance and link long-term goals to short-term outcomes.

Question 26

What makes a Balanced Scorecard effective?

Answer 26

Translating the vision - include accountability measurabile results
Communicating and Linking - gives org a clear ideaof what the overall objectives are and allows department to ensure they are alligned
Business planning - make it clear what goals have been set by the org and therefore enable departments to bette rintegrate their own plans.
Feedback and Learning - probides org with more opportunities to learn from onboing performance.

Question 27

Analytical Processing

Answer 27

Also, OLAP (Online Analytical Processing). Allows you to leverage relational database sores in separate table that will allow for manipulating data and more automated actions.