Wrong Answers On PA

Question 1

Q: Industry and market analysis, competitor analysis, and social analysis are examples of which step in the strategic planning process?
Options:
A. Analysis of mission, vision, and goals
B. Analysis of management implementation
C. Analysis of external opportunities and threats
D. Analysis of internal strengths and weaknesses

Answer 1

Correct Answer: A
Explanation: This step involves assessing the broader context to align strategic goals with market realities. It’s essential for understanding external and internal factors that may affect the organization’s strategic direction.

Question 2

Q: According to Michael Porter’s competitive environment model, how can suppliers influence strategic planning?
Options:
A. Suppliers can reduce the threat from substitute products.
B. Suppliers can reduce the numbers of new entrants in the market.
C. Suppliers can reduce manufacturing time and increase product quality.
D. Suppliers can reduce technological, demographic, and legal threats in the environment.

Answer 2

Correct Answer: B
Explanation: Powerful suppliers can create barriers for new entrants by controlling prices or quality, thus influencing the market dynamics and strategic planning.

Explanation: Porter’s Five Forces model identifies suppliers as one of the competitive forces that shape industry strategy. If suppliers hold significant power, they can set terms that create barriers for new entrants by raising costs or limiting access to inputs.

Question 3

Q: A company offers unique products in its industry to create a competitive advantage.
Options:
A. Valorization
B. Differentiation
C. Customization
D. Standardization

Answer 3

Correct Answer: B
Explanation: Differentiation means offering unique products or services that stand out from competitors, giving the company a competitive edge.

Explanation: Differentiation is a strategy where a company offers products or services with unique features that set them apart from competitors, creating value that customers perceive as superior.

Question 4

Q: Happy Inc. is a leading provider of family entertainment and BCD is a broadcasting company with news, cable, and entertainment networks. Happy Inc. recently acquired BCD in hopes of boosting its primary business of family entertainment. Which type of corporate strategy is represented by Happy Inc.’s purchase of their distribution network?
Options:
A. Vertical integration
B. Strategic alliances
C. Networking
D. Horizontal benchmarking

Answer 4

Correct Answer: A
Explanation: Vertical integration involves acquiring operations within the supply chain, allowing a company to control more stages of production or distribution.

Explanation: Vertical integration involves a company expanding its business operations into different stages of the supply chain, such as acquiring a supplier or distributor to gain better control over the production and distribution process.

Question 5

Q: The introduction of statistical tools to analyze the causes of product defects is associated with which quality improvement approach?
Options:
A. Six Sigma
B. Flexible Process
C. Customer Process
D. Quality Customization

Answer 5

Correct Answer: A
Explanation: Six Sigma is a data-driven approach aimed at improving quality by identifying and eliminating defects in processes.

Explanation: Six Sigma is a methodology that uses data-driven techniques and statistical analysis to reduce defects and improve process quality.

Question 6

Q: How many defects per million are there at Six Sigma, assuming a product or process is defect-free 99.99966% of the time?
Options:
A. Less than 3.4
B. Less than 4.4
C. Less than 5.3
D. Less than 6.6

Answer 6

Correct Answer: A
Explanation: Six Sigma quality means achieving a defect rate of less than 3.4 defects per million opportunities.

Explanation: Six Sigma quality level aims for a defect rate of no more than 3.4 defects per million opportunities (DPMO), ensuring very high process accuracy.

Question 7

Q: Which company is an example of a job shop?
Options:
A. A company providing customized services in a low volume
B. A company producing higher volumes with less number of varieties
C. A company producing very high volumes using continuous process technologies
D. A company producing higher volumes with low variety of options

Answer 7

Correct Answer: A
Explanation: A job shop specializes in producing small batches of custom products, emphasizing flexibility over volume.

Explanation: A job shop produces small batches of custom products, emphasizing variety and flexibility rather than high volume production.

Question 8

Q: A company is trying to systematically improve processes by eliminating nonconformity of their products to product specifications. The company believes their continuous effort to reduce variation in their process outputs is key to their business success. Which quality process is the company utilizing?
Options:
A. ISO 9000
B. Six Sigma
C. Reengineering
D. Continuous processing

Answer 8

Correct Answer: B
Explanation: This process focuses on reducing variability in processes to achieve high-quality outputs.

Explanation: Six Sigma focuses on reducing variation and enhancing process control to improve the conformity of products to specifications.

Question 9

Q: Dr. Ohmae indicates that customer, corporation, and competitors should be integrated in a strategic triangle. What does Dr. Ohmae indicate that an organization can obtain by doing this?
Options:
A. Time-based competition
B. Sustained competitive advantage
C. Coordination of mutual adjustment
D. Decentralization of the organization

Answer 9

Correct Answer: B
Explanation: This strategic triangle suggests that balancing these elements helps organizations maintain a long-term competitive edge.

Explanation: Dr. Kenichi Ohmae’s strategic triangle emphasizes aligning these three key elements to achieve a competitive edge and maintain long-term success.

Question 10

Q: Which activity should management use to encourage intrapreneurship within an organization?
Options:
A. Allow employees to form a union
B. Motivate employees by giving extra time off
C. Provide employees extra training opportunities
D. Encourage employees to work on informal job assignments

Answer 10

Correct Answer: D
Explanation: Providing opportunities for innovation within job roles fosters a culture of intrapreneurship.

Explanation: Intrapreneurship is fostered by providing employees the freedom and support to work on innovative ideas, often outside their formal job scope.

Question 11

Q: Why is consideration of intentions important in conflict situations?
Options:
A. People tend to think before they act in some situations.
B. People have habitual patterns of response to conflict situations.
C. Selfish intentions of people often lead to poor decision making.
D. People respond based on their interpretation of others’ intentions.

Answer 11

Correct Answer: D
Explanation: Understanding perceived intentions helps individuals navigate conflicts more effectively.

Explanation: In conflict situations, understanding others’ intentions helps predict their responses and manage the conflict effectively.

Question 12

Q: Two team members disagreed over how to proceed with a new project they were working on together and both felt their positions were valid. Their manager brought them together to discover ways to resolve their disagreement moving forward. Which conflict-resolution technique did the manager use to help these team members?
Options:
A. Competing
B. Compromising
C. Avoiding
D. Accommodating

Answer 12

Correct Answer: B
Explanation: Compromising involves finding a mutually acceptable solution that partially satisfies both parties.

Explanation: Compromising involves finding a middle ground that partially satisfies both parties’ concerns.

Question 13

Q: What is the fourth step of the control process which ensures that operations are adjusted to achieve planned results?
Options:
A. Measuring performance
B. Taking corrective action
C. Setting performance standards
D. Comparing performance against standards

Answer 13

Correct Answer: B
Explanation: This step ensures adjustments are made when performance deviates from standards.

Explanation: The control process involves measuring performance, comparing it to standards, and taking corrective action if necessary to align results with goals.

Question 14

Q: A corporation recently disbanded its flex time schedule for employees and now requires that all employees work 9:00 a.m. to 6:00 p.m. Monday through Friday. The employees banded together in opposition to the change. What were the employees of the corporation experiencing?
Options:
A. Apathy
B. Timing
C. Peer pressure
D. Abilene paradox

Answer 14

Correct Answer: C
Explanation: The collective opposition indicates social influence within the group.

Explanation: Peer pressure describes how group norms influence members’ behavior and can lead to collective resistance.

Question 15

Q: The manager of the human resources department at a corporation agreed to authorize one-hour lunch breaks for all employees of the organization as long as the production manager agreed to shorten the morning and afternoon breaks of all employees to 15 minutes. Which approach were the managers using to enlist cooperation for the change?
Options:
A. Facilitation and support
B. Negotiation and reward
C. Participation and involvement
D. Education and communication

Answer 15

Correct Answer: B
Explanation: This approach involves trade-offs to gain cooperation.

Explanation: This approach uses mutual agreements with benefits to gain cooperation.

Question 16

Q: In the five dimensions of Hackman and Oldham’s model of job design, what does autonomy describe?
Options:
A. Information about job performance
B. Independence and discretion in making decisions
C. Important and positive impact on the lives of others
D. Different job activities involving several skills and talents

Answer 16

Correct Answer: B
Explanation: Autonomy refers to giving employees control over how they perform their work.

Explanation: Autonomy allows employees to make decisions about their work, leading to higher job satisfaction

Question 17

Q: A younger employee becomes irritated by the sound of an older employee’s voice and finds it difficult to work on projects with the older employee. This has caused conflict in the department. What is the source of conflict between the older and younger employees?
Options:
A. Structure
B. Differing values
C. Communication
D. Personal variables

Answer 17

Correct Answer: D
Explanation: Personal factors, like preferences and personality traits, can lead to interpersonal conflicts.

Explanation: Personal variables include individual differences and personal dislikes that may cause conflict.

Question 18

Q: A visually-impaired person has been hired to work in the human resources department of a small company. Which workplace accommodations would be reasonable in this situation?
Options:
A. The company will provide an interpreter for all face-to-face interviews.
B. The company will purchase a large computer screen and a Braille keyboard.
C. The company will hire a person to read all documents for the visually-impaired person.
D. The company will purchase a Braille reader and convert company documents to Braille.

Answer 18

Correct Answer: B
Explanation: Providing assistive technology supports the employee’s needs effectively.

Explanation: Reasonable accommodations are adjustments that enable an employee to work effectively without imposing undue hardship on the employer.

Question 19

Q: When selecting an organizational structure, which key elements should be considered?
Options:
A. Economics and ethics
B. Diversity and dynamics
C. Differentiation and integration
D. Job specification and segmentation

Answer 19

Correct Answer: C
Explanation: These elements help balance distinct job roles and coordinate them effectively within an organization.

Explanation: These elements balance the division of work and the coordination among different departments.

Question 20

Q: In which type of organizational structure are dual reporting relationships most likely to be found?
Options:
A. Functional structure
B. Divisional structure
C. Matrix structure
D. Network structure

Answer 20

Correct Answer: C
Explanation: A matrix structure has dual reporting relationships, where employees report to both functional and project managers.

Explanation: The matrix structure requires effective collaboration between project and functional teams to manage dual reporting lines.

Question 21

Q: Which theory suggests that people are motivated by a hierarchy of needs?
Options:
A. Herzberg’s Two-Factor Theory
B. Vroom’s Expectancy Theory
C. Maslow’s Hierarchy of Needs
D. McGregor’s Theory X and Theory Y

Answer 21

Correct Answer: C
Explanation: Maslow’s theory proposes that individuals are motivated to fulfill basic needs before moving on to higher-level needs.

Explanation: Organic structures are flexible and decentralized, promoting broad roles and adaptability.

Question 22

Q: A manager is encouraging employees by praising their successes, recognizing their achievements, and providing opportunities for professional development. Which type of leadership is being demonstrated?
Options:
A. Transformational leadership
B. Transactional leadership
C. Charismatic leadership
D. Laissez-faire leadership

Answer 22

Correct Answer: A
Explanation: Transformational leadership focuses on inspiring and motivating employees by recognizing their potential and fostering growth.

Explanation: Deming’s final point emphasizes committing to continuous improvement and making the necessary changes.

Question 23

Q: Which type of power stems from the leader’s ability to offer rewards?
Options:
A. Coercive power
B. Legitimate power
C. Expert power
D. Reward power

Answer 23

Correct Answer: D
Explanation: Reward power is derived from the capacity to provide benefits or incentives to others.

Explanation: These dimensions determine how individuals approach conflict, including methods like competing or collaborating.