1. Which of Porter's 'Five Forces' is being applied in an organization that is compelled to offer a price reduction on services?

A) Substitution
B) reference
C) Rivalry
D) Entry



2. A company has entered a phase with no new growth or business initiatives. An HR director is meeting with the HR team about the upcoming budget. What type of initiative is the HR director most likely to support?

A) Review and revision of the company's employee policies
B) New recruitment strategy centered on social media expertise
C) Development of a pay-for-performance system for high performers
D) Enhancement of work/life balance with no direct budget needs or impacts



3. Refer to the following scenario for the next 3 questions. A 30-year-old beverage company manufactures under its own label as well as private labels for a number of retailers that operate internationally. Slim margins and tight competition in the industry have caused the company to look at its operations and decide to merge with a competitor. The newly formed company will operate under the banner of the original company, and the second company will operate as an enhanced product line. The merger has created a lot of excitement among the leadership teams of both companies, as it means expansion into new markets and product lines. The merger information was shared with the European operations works council, and, after much discussion, is moving forward. Employees in the European locations are not, however, pleased that the merger is going ahead. The senior vice president (SVP) of HR has heard that employees are trying to mobilize and are planning a European Day of Action, where they will hold demonstrations, pass out leaflets, and conduct media interviews to share why this merger is not in the best interests of the employees. Employees are also requesting to meet with key organizational leaders, including the SVP of HR. The final hurdle that the organization is awaiting is regulatory approval. Once that is received, the newly merged entity will further review the combined operations and duplication of positions, roles, and responsibilities. They believe they can reduce the overall workforce by 15%. Which is the best first step the SVP of HR should take in response to the request of the European employees to meet with the organization's leaders?

A) A. Refuse to meet with the employees, moving forward with the merger before the employees can take any action.
B) B. Review the works council agreement to determine the best advice to provide management.
C) C. Agree to the meeting with the employees and gain their input and approval for the merger activities and reductions.
D) D. Dismiss the request to meet, as a merger has no bearing on roles, responsibilities, or rights of works councils.



4. Which actions should the SVP of HR take first to respond to the news about the threatened work actions?

A) A. Manage the risk by waiting to see the employees' actions and then respond accordingly.
B) B. Recommend that the organization lock out and then terminate employees who participate in this action.
C) C. Share the information with the senior leadership team so that they can formulate a response.
D) D. Review the business continuity plan with leaders and develop a short-term staffing plan.



5. Which action should the SVP HR take to effectively communicate information about the merger's effect on the workforce to the employees?

A) A. Issue a global communication that outlines high-level changes and advises that the company will involuntarily eliminate a portion of the workforce.
B) B. Create a global communication plan, beginning with a description of high-level changes and advising that details will follow after a thorough review.
C) C. Wait until the complete analysis has been done and then announce the impact to the employees, transparently sharing full details.
D) D. Outline the communication challenges for the leadership team; then have them cascade information, based on their communication preference, to employees.