Practice Questions
QUESTION 1
1. Why is
accountability important in Strategic Alignment?
a. To
identify non-value adding resources
b. To
identify resources that are not part of a process
c. To
identify process participants
d. To
identify the process owner
QUESTION 2
1. What is
the difference between a primary process and a support process according to the
value chain?
a. The
primary process involves no value creation, the support process create all the
value
b. The
support processes support outsourcing and offshoring and have nothing to do
with primary processes
c. The
primary process involves value creation activities, the support processes
support primary activities
d. None of
the above
QUESTION 3
1. Which of
the following value chain activities helps to sustain a competitive advantage?
a. Quality
b. Service
c. Lower
switching costs
d. All of
the above
QUESTION 4
1. Value
chain analysis helps strategic alignment because:
a. It helps
to analyse strategic plans
b. It helps
to recognise distinct areas where outsourcing can be used
c. It helps
keep suppliers happy
d. It helps
to recognise strategically distinct areas for process improvement
QUESTION 5
1. Which of
the following is NOT a value chain support activity?
a. Operations
b. Human
Resources
c. Firm
Infrastructure
d. Procurement
QUESTION 6
1. Which of
the following is used to align strategic goals with processes through the use
of ‘improvement’ indicators and measures?
a. BPR
b. ERP
c. VCA
d. TQM
QUESTION 7
1. In
strategic alignment why is it important to map out process functions?
a. So we can
clearly see the relationships between managers
b. So we can
clearly see the relationships between functions
c. So we
can identify reasons to reprimand operations managers
d. None of
the above
QUESTION 8
1. From
which of the following traditions do ERP systems stem from?
a. OD and
TQM
b. OD and
BPR
c. TQM and
BPR
d. None of
the above
QUESTION 9
1. Vertical
integration is …………………
a. Setting
up a business overseas
b. The
process of acquiring and consolidating elements of a value chain to achieve
more control
c. The
process of having suppliers provide goods and services that were previously
provided internally
d. Taking
over or merge with, another firm which is in the same industry
QUESTION 10
1. The
following are the main reasons for offshoring. Select the statement that is
untrue.
a. To
increase control over suppliers
b. To access
lower labour costs
c. To build
robust value chain networks for global markets
d. None of
the above
QUESTION 11
1. What is
the purpose of ‘value chain analysis’?
a. To
analyse the fit between processes and management
b. To
analyse the fit between processes and outcomes
c. To
analyse the fit between processes and income
d. To
analyse the fit between processes and benchmarks
QUESTION 12
1. Select
the statement that is correct.
a. ERP
systems follow an Organisational Development logic
b. ERP
systems follow a TQM logic
c. ERP
systems follow a BPR logic
d. All of
the above
QUESTION 13
1. How does
the environment/context a business
operates in affect its value creation activities?
a. A
business operates in a competitive environment, this creates the need for
differentiation of product
b. A
business operates in a competitive environment, this creates the need for good
support processes
c. A
business operates in a competitive environment, this creates the need for a
value chain
d. All of
the above
QUESTION 14
1. Which of
the following is NOT a value chain primary activity?
a. Inbound
Logistics
b. Information
Technology
c. Service
d. Marketing
and Sales
QUESTION 15
1. The term
‘strategic alignment’ means:
a. Alignment
of business processes with corporate objectives
b. Alignment
of business processes with support processes
c. Alignment
of business performance with the stock market
d. Alignment
of business processes with performance indicators
QUESTION 16
1. Which of
the following are most important for strategic alignment?
a. Money and
time
b. People
and processes
c. People and
Money
d. Money and
competitive advantage
QUESTION 17
1. Firms
using cost leadership strategy can achieve competitive advantage by:
a. Focusing
on cheap goods/services
b. Focusing
on goods/services with standard features and high production volumes
c. Focussing
on products/services perceived as higher quality than competition
d. All of
the above
QUESTION 18
1. How does
differentiation supports competitive advantage?
a. By
keeping away new entrants costs must be raised
b. By
increasing profits
c. By minimising
fixed costs
d. By
creating a unique value to customers
QUESTION 19
1. As it
relates to establishment of efficient processes, an ERP system creates value
for a corporation:
a. To create
more efficient processes
b. To create
more efficient processes and increase productivity gains
c. To
minimise competition
d. To create
more flexible process and maximise sales revenue
QUESTION 20
1. What is
Process-Oriented Organisational Design?
a. A change
in structure to improve process functionality
b. A change
in process to improve efficiency
c. A change
in outsourcing to offshoring
d. A change
in organisational culture
