Mastering Organizational Dynamics: Exam Prep Guide and Insights
School
Colorado Technical University**We aren't endorsed by this school
Course
MGM MGMT690
Subject
Management
Date
Dec 10, 2024
Pages
8
Uploaded by PrivateOysterPerson1197
Exam Name: Advanced Strategic Insights & Organizational DynamicsExam Time: 2 Hours and 30 MinutesTotal Score: 100 Points---INSTRUCTIONS:1. This exam consists of multiple choice, short answer, and calculation questions.2. Answer all questions to the best of your ability.3. Show all your work for calculation questions to receive partial credit.4. Allocate your time wisely to ensure you complete the exam.---1. (MC) Which of the following is NOT a component of the strategic management process?A. Environmental scanningB. Strategy formulationC. Strategy implementationD. Financial managementAnswer: D---2. (SA) Define "organizational culture" and explain how it influences individual behavior within an organization.Answer: Organizational culture refers to the shared values, attitudes, beliefs, and behaviors within an organization. It provides the foundation for the organization's norms, practices, and overall identity. Organizational culture influences individual behavior through its norms, which guide employee actions and decision-making. It also influences motivation and job satisfaction, as employees often feel more engaged and committed when they align with the culture.---3. (MC) Which of the following is a primary goal of operations management?A. Increasing customer satisfactionB. Reducing costsC. Enhancing product quality
D. All of the aboveAnswer: D---4. (Calc) A company's Human Resource department wants to determine the turnover rate for the past year. If the company had 100 employees at the start of the year and 120 at the end, and 15 employees left during the year, what is the turnover rate?Answer: To calculate the turnover rate, we need to first determine the average number of employees for the year, which is (100 + 120) / 2 = 110. The turnover rate is then calculated as (15 / 110) * 100% = 13.64%.---5. (SA) Discuss the role of financial management in strategic decision-making.Answer: Financial management plays a crucial role in strategic decision-making by providing insights into the financial health and viability of potential strategies. It involves analyzing financial data to assess the impact of different strategic options on the organization's financial performance. Financial management also ensures that the organization has the necessary resources to implement strategic initiatives and evaluates the return on investment for various projects and investments.---6. (Calc) A marketing manager wants to analyze the effectiveness of a recent advertising campaign. If the campaign cost $50,000 and generated an additional $200,000 in revenue, what is the return on advertising spend (ROAS)?Answer: ROAS is calculated as (Revenue Generated - Campaign Cost) / Campaign Cost. So, ROAS = ($200,000 - $50,000) / $50,000 = $150,000 / $50,000 = 3. This means that for everydollar spent on the campaign, the company gained $3 in revenue.---7. (MC) Which of the following is NOT a key project management process group?A. InitiatingB. PlanningC. ExecutingD. Monitoring and ControllingAnswer: None of the above. All are key project management process groups.
---8. (SA) Describe the difference between a transformational and a transactional leadership style.Answer: Transformational leadership is characterized by inspiring and motivating followersto exceed their own self-interests for the good of the organization. It focuses on developing followers' strengths and encouraging creativity and innovation. Transactional leadership, on the other hand, is based on an exchange relationship between leaders and followers. It involves setting clear goals, providing rewards for achieving those goals, and using punishment for non-compliance.---9. (Calc) An entrepreneur wants to determine the break-even point for a new product. If the fixed costs are $10,000 and the variable cost per unit is $5, and the selling price per unit is $15, how many units must be sold to break even?Answer: The break-even point is calculated as Fixed Costs / (Selling Price per Unit - VariableCost per Unit). So, the break-even point is $10,000 / ($15 - $5) = $10,000 / $10 = 1000 units.---10. (MC) Which of the following is a key aspect of entrepreneurship?A. InnovationB. Risk-takingC. Opportunity recognitionD. All of the aboveAnswer: D---11. (SA) Discuss the importance of business ethics and corporate social responsibility in the modern business environment.Answer: Business ethics and corporate social responsibility are crucial in the modern business environment due to increasing stakeholder expectations and the need for sustainable business practices. Ethical business practices contribute to a positive reputationand stakeholder trust, leading to long-term success and sustainability. Corporate social responsibility involves considering the impact of business operations on society and the
environment, which can lead to increased customer loyalty and employee engagement.---12. (Calc) A company's annual revenue for the past three years is $1 million, $1.2 million, and $1.5 million. Calculate the average annual revenue growth rate.Answer: To calculate the average annual revenue growth rate, we need to find the growth rate for each year and then average them. The growth rate for year 2 is (1.2 - 1) / 1 * 100% = 20%. The growth rate for year 3 is (1.5 - 1.2) / 1.2 * 100% = 25%. The average growth rate is (20% + 25%) / 2 = 22.5%.---13. (MC) Which of the following is NOT a primary function of human resource management?A. Recruitment and selectionB. Employee training and developmentC. Performance managementD. Marketing strategy developmentAnswer: D---14. (SA) Explain the concept of competitive advantage and its role in strategic management.Answer: Competitive advantage refers to the unique attributes of a company that give it an edge over competitors. It enables a company to outperform its competitors and achieve superior profitability. In strategic management, identifying and leveraging competitive advantages is crucial for formulating effective strategies and gaining a sustainable competitive edge in the market.---15. (Calc) A company wants to evaluate the efficiency of its operations. If the total manufacturing cost is $500,000 and the manufacturing capacity is 50,000 units, what is the unit cost of production?Answer: The unit cost of production is calculated as Total Manufacturing Cost / Manufacturing Capacity. So, the unit cost is $500,000 / 50,000 = $10 per unit.---
16. (MC) Which of the following is a key characteristic of a learning organization?A. Resistance to changeB. Continuous improvementC. Lack of innovationD. Hierarchical structureAnswer: B---17. (SA) Discuss the role of leadership in managing organizational change.Answer: Leadership plays a crucial role in managing organizational change by setting a clear vision, communicating the need for change, and providing support and guidance to employees throughout the change process. Effective leadership can inspire and motivate employees, address resistance to change, and ensure successful implementation of organizational change initiatives.---18. (Calc) An entrepreneur wants to determine the payback period for a new investment. If the initial investment is $100,000 and the expected annual cash flow is $25,000, what is the payback period?Answer: The payback period is calculated as Initial Investment / Annual Cash Flow. So, the payback period is $100,000 / $25,000 = 4 years.---19. (MC) Which of the following is a key component of an effective marketing strategy?A. Product developmentB. Pricing strategyC. Distribution channelsD. All of the aboveAnswer: D---20. (SA) Explain the concept of supply chain management and its importance in operations management.Answer: Supply chain management involves the coordination and integration of all
activities involved in the sourcing, procurement, conversion, and logistics of products or services. It encompasses the flow of materials, information, and funds from suppliers to manufacturers, distributors, retailers, and ultimately, the end consumers. Effective supply chain management is crucial for improving operational efficiency, reducing costs, and enhancing customer satisfaction.---21. (Calc) A company's annual revenue growth rate is 10% and its operating margin is 15%. If the current year's revenue is $1 million, what is the expected net income for the next year?Answer: To calculate the expected net income for the next year, we first need to determine the expected revenue. The expected revenue is calculated as Current Year's Revenue * (1 + Revenue Growth Rate). So, the expected revenue is $1 million * (1 + 10%) = $1.1 million. The expected net income is then calculated as Expected Revenue * Operating Margin. So, theexpected net income is $1.1 million * 15% = $165,000.---22. (MC) Which of the following is NOT a key process in project management?A. InitiatingB. PlanningC. ExecutingD. ControllingAnswer: None of the above. All are key processes in project management.---23. (SA) Discuss the difference between leadership and management.Answer: Leadership and management are related but distinct concepts. Leadership involvesinspiring and influencing individuals or groups towards a common goal, focusing on vision, strategy, and motivation. Management, on the other hand, focuses on planning, organizing, controlling, and coordinating resources to achieve organizational objectives. While leadership is about inspiring and influencing, management is about executing and achievingresults.---24. (Calc) A company's net profit margin is 10% and its total revenue is $500,000. Calculate the net profit.
Answer: The net profit is calculated as Net Profit Margin * Total Revenue. So, the net profit is 10% * $500,000 = $50,000.---25. (MC) Which of the following is NOT a key factor influencing individual behavior in organizations?A. Organizational cultureB. Leadership styleC. Job satisfactionD. Economic indicatorsAnswer: D---26. (SA) Explain the concept of strategic alignment and its importance in achieving organizational goals.Answer: Strategic alignment refers to the extent to which an organization's resources, capabilities, and activities are aligned with its strategic objectives. It ensures that all aspectsof the organization are working towards the same goals, leading to improved efficiency, effectiveness, and overall performance. Strategic alignment is crucial for achieving organizational goals by ensuring that resources are allocated effectively and that all employees are focused on the same objectives.---27. (Calc) A company's operating expenses are $200,000 and its gross profit is $300,000. Calculate the operating profit margin.Answer: The operating profit margin is calculated as Operating Profit / Gross Profit. So, the operating profit margin is $300,000 - $200,000 / $300,000 = $100,000 / $300,000 = 33.33%.---28. (MC) Which of the following is NOT a key component of a balanced scorecard?A. Financial perspectiveB. Customer perspectiveC. Internal process perspective
D. Economic indicatorsAnswer: D---29. (SA) Discuss the importance of ethical decision-making in leadership.Answer: Ethical decision-making is crucial in leadership as it builds trust, enhances reputation, and fosters a positive organizational culture. Ethical leaders consider the impactof their decisions on stakeholders, promote fairness and transparency, and demonstrate integrity and accountability. Ethical decision-making also contributes to long-term sustainability and success by creating a strong foundation for organizational values and behavior.---30. (Calc) A company's total assets are $1 million and its total liabilities are $500,000. Calculate the debt-to-asset ratio.Answer: The debt-to-asset ratio is calculated as Total Liabilities / Total Assets. So, the debt-to-asset ratio is $500,000 / $1 million = 0.5 or 50%.