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SHRM-CP Certification Exam Questions 2023 - Day 48
1. A service organization determines that it hasΒ limited international experience and knowledge and that this isΒ preventing it from delivering services to those in need on a global basis. What does this exemplify?
A) Environmental factor
B) Weakness
C) Social factor
D) Opportunity
2. Strategy Development Which three generic strategies for success are identified in Michael Porter's model?
A) Divisional, functional, matrix
B) Cost leadership, differentiation, focus
C) Customer intimacy, innovation, control
D) Introduction, maturity, decline
3. What guidance from HR is useful to an organization that has decided to pursue a greenfield operation?
A) Data regarding the skill sets that exist in the new operation
B) Demographic characteristicsΒ of the new location
C) Recommendations for organizational alliances to pursue
D) Best practices for implementing a greenfield operation
4. Which corporate activity requires an HR strategy of organizational growth?
A) Centers of excellence
B) Corporate divestitures
C) Shared services
D) Mergers and acquisitions
5. An international discount supermarket chain's competitive strategy is to provide the lowest-price products by minimizing operational overhead. Which generic competitive strategy is it using?
A) Differentiation
B) Value chain
C) Focus
D) Cost leadership
6. Which is the most low-risk strategy for global market expansion?
A) Internal expansion
B) Acquisition
C) Licensing
D) Merger
7. A three-year-old company has achieved excellent results through perceptive market timing and aggressive marketing. Which type of strategy is the company following?
A) Effective organizational structure
B) Strong corporate culture strategy
C) Efficient cost advantage strategy
D) Successful differentiation strategy
8. What term refers to a company building a new global location from the ground up?
A) Turnkey operation
B) Greenfield operation
C) Brownfield operation
D) Internal expansion
9. Strategy Implementation and Evaluation Why is it important that employees understand how day-to-day activities support the strategic goals of the organization?
A) It drives employee behavior, as the connection to how they are able to contribute is evident.
B) The daily activities for all functions across the organization can then be prioritized.
C) Employees will then accept the strategic goals of the organization as their own.
D) It provides a flow of information to all employees and teams within the organization.
10. What type of business problem is solved most appropriately by using Six Sigma tools?
A) Improving quality
B) Improving work flows
C) Minimizing inventories and redundancies
D) Speeding up processes
A) Environmental factor
B) Weakness
C) Social factor
D) Opportunity
2. Strategy Development Which three generic strategies for success are identified in Michael Porter's model?
A) Divisional, functional, matrix
B) Cost leadership, differentiation, focus
C) Customer intimacy, innovation, control
D) Introduction, maturity, decline
3. What guidance from HR is useful to an organization that has decided to pursue a greenfield operation?
A) Data regarding the skill sets that exist in the new operation
B) Demographic characteristicsΒ of the new location
C) Recommendations for organizational alliances to pursue
D) Best practices for implementing a greenfield operation
4. Which corporate activity requires an HR strategy of organizational growth?
A) Centers of excellence
B) Corporate divestitures
C) Shared services
D) Mergers and acquisitions
5. An international discount supermarket chain's competitive strategy is to provide the lowest-price products by minimizing operational overhead. Which generic competitive strategy is it using?
A) Differentiation
B) Value chain
C) Focus
D) Cost leadership
6. Which is the most low-risk strategy for global market expansion?
A) Internal expansion
B) Acquisition
C) Licensing
D) Merger
7. A three-year-old company has achieved excellent results through perceptive market timing and aggressive marketing. Which type of strategy is the company following?
A) Effective organizational structure
B) Strong corporate culture strategy
C) Efficient cost advantage strategy
D) Successful differentiation strategy
8. What term refers to a company building a new global location from the ground up?
A) Turnkey operation
B) Greenfield operation
C) Brownfield operation
D) Internal expansion
9. Strategy Implementation and Evaluation Why is it important that employees understand how day-to-day activities support the strategic goals of the organization?
A) It drives employee behavior, as the connection to how they are able to contribute is evident.
B) The daily activities for all functions across the organization can then be prioritized.
C) Employees will then accept the strategic goals of the organization as their own.
D) It provides a flow of information to all employees and teams within the organization.
10. What type of business problem is solved most appropriately by using Six Sigma tools?
A) Improving quality
B) Improving work flows
C) Minimizing inventories and redundancies
D) Speeding up processes
1. Right Answer: B
Explanation: This is an example of an internal problem or weakness. In a SWOT analysis, strengths and weaknesses reflect the internal environment of the organization and opportunities and threats pertain to the external environment.
2. Right Answer: B
Explanation: According to Michael Porter, there are three potentially successful generic strategies: cost leadership, differentiation, and focus.
3. Right Answer: B
Explanation: The demographics in the location is useful information when an organization has decided to build from the ground up. A new staff will be required, and tapping into the local market will be necessary.Β Data about current skill sets is not applicable in a greenfield operation, as this strategy requires building from the ground up. There is no existing workforce. While recommendations about talent management concerns are helpful with any growth strategy an organization may decide to use, the selection of companies to pursue for an alliance is not within the purview of HR. In addition, a greenfield operation does not involve alliances or partnerships with other organizations. Best practices regarding how to implement a greenfield operation are not the responsibility of the HR department.
4. Right Answer: D
Explanation: Organizations often use mergers and acquisitions as part of a growth strategy. Divestitures are part of a retraction strategy. Centers of excellence and shared services are structural alternatives rather than growth or retraction strategies.
5. Right Answer: D
Explanation: To achieve cost leadership, an organization must be the low-cost producer in its industry. Sources of cost advantage vary depending on the industry; it may originate from economies of scale, proprietary technology, preferential access to raw materials, or reduced costs in advertising and research, among other factors. Successful low-cost producers use all sources of cost advantage.
6. Right Answer: C
Explanation: Licensing does not take a large initial investment or major organizational commitment. It is, therefore, a relatively low-risk way to expand globally.
7. Right Answer: D
Explanation: Differentiation strategies focus on setting a product or service apart from its competition by giving it unique characteristics that consumers value. Differentiation comes from a variety of factors, including product/service features, marketing approach, and delivery system.
8. Right Answer: B
Explanation: A new facility may be constructed on what was once a 'green field.' A new global location built from the ground up is often referred to as a greenfield operation.
9. Right Answer: A
Explanation: Employees are more motivated and driven to perform when they understand how the work they do supports the organization's strategy. This is one of five elements needed for the effective implementation of strategy.
10. Right Answer: A
Explanation: Quality issues can be solved by using Six Sigma tools. Six Sigma is a strategy that identifies and removes the causes of defects and errors in manufacturing and business processes. Other business problems that can be solved by using Six Sigma include too much variation, challenging root cause identifications, numerous technical considerations, and other complex issues. Lean Six Sigma is a strategy that eliminates waste and improves process flows.
Explanation: This is an example of an internal problem or weakness. In a SWOT analysis, strengths and weaknesses reflect the internal environment of the organization and opportunities and threats pertain to the external environment.
2. Right Answer: B
Explanation: According to Michael Porter, there are three potentially successful generic strategies: cost leadership, differentiation, and focus.
3. Right Answer: B
Explanation: The demographics in the location is useful information when an organization has decided to build from the ground up. A new staff will be required, and tapping into the local market will be necessary.Β Data about current skill sets is not applicable in a greenfield operation, as this strategy requires building from the ground up. There is no existing workforce. While recommendations about talent management concerns are helpful with any growth strategy an organization may decide to use, the selection of companies to pursue for an alliance is not within the purview of HR. In addition, a greenfield operation does not involve alliances or partnerships with other organizations. Best practices regarding how to implement a greenfield operation are not the responsibility of the HR department.
4. Right Answer: D
Explanation: Organizations often use mergers and acquisitions as part of a growth strategy. Divestitures are part of a retraction strategy. Centers of excellence and shared services are structural alternatives rather than growth or retraction strategies.
5. Right Answer: D
Explanation: To achieve cost leadership, an organization must be the low-cost producer in its industry. Sources of cost advantage vary depending on the industry; it may originate from economies of scale, proprietary technology, preferential access to raw materials, or reduced costs in advertising and research, among other factors. Successful low-cost producers use all sources of cost advantage.
6. Right Answer: C
Explanation: Licensing does not take a large initial investment or major organizational commitment. It is, therefore, a relatively low-risk way to expand globally.
7. Right Answer: D
Explanation: Differentiation strategies focus on setting a product or service apart from its competition by giving it unique characteristics that consumers value. Differentiation comes from a variety of factors, including product/service features, marketing approach, and delivery system.
8. Right Answer: B
Explanation: A new facility may be constructed on what was once a 'green field.' A new global location built from the ground up is often referred to as a greenfield operation.
9. Right Answer: A
Explanation: Employees are more motivated and driven to perform when they understand how the work they do supports the organization's strategy. This is one of five elements needed for the effective implementation of strategy.
10. Right Answer: A
Explanation: Quality issues can be solved by using Six Sigma tools. Six Sigma is a strategy that identifies and removes the causes of defects and errors in manufacturing and business processes. Other business problems that can be solved by using Six Sigma include too much variation, challenging root cause identifications, numerous technical considerations, and other complex issues. Lean Six Sigma is a strategy that eliminates waste and improves process flows.
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