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SHRM-CP PEOPLE Questions - Part 5
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
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
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.
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.
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