Test on Business Strategies and Management Fundamentals

Question 1: Intensive strategies reduce the risk of relying only on one product.

A. Ano

B. Ne

Explanation: Reducing the risk of relying only on one product is listed as an advantage of diversification strategies, not intensive strategies.

Question 2: Which of the following are effective ways in which Total Quality Management (TQM) can reduce the cost of quality in a business?

A. Schedule activities to eliminate duplication of tasks.

B. Develop work systems that empower employees to find new ways of improving quality.

C. Work closely with suppliers to improve the quality of raw materials/inputs.

D. Increase staff turnover due to poor skills development.

Explanation: TQM can reduce the cost of quality by scheduling activities to eliminate duplication of tasks, developing work systems that empower employees to find new ways of improving quality, and working closely with suppliers to improve the quality of raw materials/inputs. Increasing staff turnover due to poor skills development is an impact of poorly implemented TQM, not a method to reduce quality costs.

Question 3: SWOT analysis is a model utilized for conducting an environmental analysis during the strategic management process.

A. Ano

B. Ne

Explanation: The study materials explicitly list SWOT as one of the models used for conducting an environmental analysis within the strategic management process.

Question 4: Which of the following is identified as a step in the strategic management process that involves looking back at the organization's aspirational direction?

A. Review the vision statement.

B. Implement a strategy using an action plan.

C. Ensure every process gets the product right the first time.

D. Formulate a defensive strategy.

Explanation: The study materials list "Review the vision statement" as a step in the strategic management process, which directly pertains to the organization's aspirational direction. Other options refer to different steps in the process or concepts unrelated to strategic management.

Question 5: The TQM element of monitoring and evaluation of quality processes is primarily concerned with establishing new financial budgets.

A. Ano

B. Ne

Explanation: Monitoring and evaluation of quality processes is a TQM element. Establishing financial budgets is not stated as its primary concern; 'Adequate financing and capacity' is a separate TQM element.