Business Acumen

Question 1

An org’s success in meeting its strategic goals

Answer 1

Value

Question 2

Process by which an org creates the product or service it offers to the customer

Answer 2

Value Chain

Question 3

Defines the output customers can expect, or the services HR will provide to a function

Answer 3

Service Level Agreement

Question 4

4 Steps of Organizational/Product Lifecycle

Answer 4

1. Introduction
2. Growth
3. Maturity
4. Renewal/No Growth/Decline

Question 5

Stage of the org lifecycle to create identity with customers and value prop

Answer 5

Introduction

Question 6

Stage of the org lifecycle where revenue begins to increase and focus shifts to creating processes to increase efficiency without stifling innovation

Answer 6

Growth

Question 7

Stage of the org lifecycle where growth occurs only through introduction of new products or customer groups, or through acquisition. Efficiency becomes more important.

Answer 7

Maturity

Question 8

Stage of the org lifecycle where an org completely changes their offerings, where they compete, or how they compete

Answer 8

Renewal

Question 9

Stage of the org lifecycle where an org takes no action and accepts continual low revenue

Answer 9

No Growth

Question 10

Stage of the org lifecycle where an org takes no action and experiences a decrease in revenue

Answer 10

Decline

Question 11

Availability of a good or service

Answer 11

Supply

Question 12

Customers’ desire to purchase goods and services and their willingness to accept the price

Answer 12

Demand

Question 13

Defines the org’s purpose and direction

Answer 13

Strategic Plan

Question 14

Factors that enable an org to outperform its rivals - produce goods or services better and more cheaply

Answer 14

Competitive Advantage

Question 15

Estimate of an org’s future financial performance, valuable tool for translating goals into targets

Answer 15

Financial Projections

Question 16

Recurring costs, regardless of org’s output

Answer 16

Fixed Costs

Question 17

Depend on the org’s output, can increase/decrease depending on how many goods/services org produces

Answer 17

Variable Costs

Question 18

Money generated through the sale of goods/services, gross income

Answer 18

Revenue

Question 19

Revenue minus costs

Answer 19

Net Income

Question 20

Calculation based on total income minus total expenses

Answer 20

Profit and Loss

Question 21

Ability to use info to gain a deeper understanding of an org and its parts, to see how the whole org is performing, and make sound business decisions

Answer 21

Business Intelligence

Question 22

Identifies areas critical to strategic success

Answer 22

Value Chain Analysis

Question 23

3 Components of business intelligence systems

Answer 23

1. Data gathering
2. Data warehousing
3. Query and reporting capabilities

Question 24

User’s point of access to the data and applications stored on an information system

Answer 24

Business intelligence portal

Question 25

Can analyze data faster and in more ways, drilling down or up

Answer 25

Online analytical processing

Question 26

Prior budget is basis for next, increased by set percentage. Additional funds requested based on needs

Answer 26

Incremental, traditional, line item budgeting

Question 27

All objectives are given a priority ranking, each unit or goal is ranked, then available funds are given in order

Answer 27

Zero-based budgeting

Question 28

Based on how much it costs to perform different enterprise activities, funding allocated based on strategic significance of activities

Answer 28

Activity-based budgeting

Question 29

Different units receive varying percentages of the budget. General funding is changed by a specified amount, and unit budgets are adjusted accordingly

Answer 29

Formula-based budgeting

Question 30

3 Components of the HR budget

Answer 30

- ongoing operational costs related to HR's essential services - overhead costs that do not directly contribute to HR function, related to occupancy - one-time project costs planned to support HR strategy

Question 31

4 Components of a business case

Answer 31

1. Executive summary 2. Recommended solution 3. Risks and opportunities 4. Estimated costs and time frame

Question 32

Presentation to management that establishes that a specific problem exists and argues the proposed solution is the best way to solve the problem

Answer 32

Business Case

Question 33

Statement of the org's financial position - assets, liabilities, and equity - at a given time

Answer 33

Balance Sheet

Question 34

What an org owns

Answer 34

Assets

Question 35

What an org owes

Answer 35

Liabilities

Question 36

What a company owes to either its owners or its shareholders

Answer 36

Equity

Question 37

Compares revenues, expenses, and profits over a specified period of time, aka P&L statement

Answer 37

Income Statement

Question 38

2 key metrics from income statement

Answer 38

Gross profit margin and Net profit margin

Question 39

Shows how money is flowing in and out the org through operations, investing, and financing over a period of time

Answer 39

Cash Flow Statement

Question 40

Gross Margin

Answer 40

(total sales - cost of goods sold) / total sales

Question 41

Profit Margin

Answer 41

(total sales - total costs) / total sales

Question 42

ROI

Answer 42

(gain from investment - cost of investment) / cost of investment

Question 43

6 Steps of Sales Pipeline

Answer 43

1. Identify leads 2. Gather information 3. Create proposal 4. Negotiate 5. Close sale 6. Monitor

Question 44

What a sales pipeline provides HR

Answer 44

Opportunity to measure sales team performance and identify training needs

Question 45

Founding document for an org, establishes purpose, details of structure, marketing plan, and financial projection

Answer 45

Business Plan

Question 46

Outlines how an org will maintain operations during an unplanned disruption

Answer 46

Business Continuity Plans

Question 47

Signifies competitive strength of an org in relation to its competitors

Answer 47

Share of Market

Question 48

4 Perspectives analyzed in a balanced scorecard

Answer 48

1. Financial 2. Business processes 3. Customers 4. Organizational capacity