Business Acumen

Question 1

What is a value chain

Answer 1

The process by which an organization creates product or service for its customers

Question 2

What is another word for value chain

Answer 2

Org business model

Question 3

How can an organization achieve competitive advantage?

Answer 3

Being the best in one area of the value chain or more effective coordination

Question 4

How does HR protect value in the value chain

Answer 4

Manage labor supply to promote productivity, perf dev processes

Question 5

Stages of the product or organization life cycle concept

Answer 5

Introduction, growth, maturity

Question 6

What can happen after maturity in the life cycle concept?

Answer 6

Renewal
No growth
Decline

Question 7

How is growth achieved in the maturity stage

Answer 7

Through acquisition, introduction of new products / services, efficency is more important

Question 8

How can an enteprise renew themselves

Answer 8

changing their offerings, where or how they compete

Question 9

During what stage of the product or org lifecycle can the org become less agile due to its formality

Answer 9

Maturity

Question 10

What is a PESTLE analysis stand for

Answer 10

Political
Economic
Social
Technological
Legal
Environmental

Question 11

What is a PESTLE analysis used for

Answer 11

Environmental scanning of the macroeconomic environment to see what may effect strategic decisions

Question 12

What is net revenue

Answer 12

Revenue minus costs - also known as net earnings

Question 13

Three main components of the org’s business intelligence system

Answer 13

Data gathering
Data warehousing
Query and reporting capabilities

Question 14

What happens in data warehousing

Answer 14

Data is scrubbed and translated into a standard format and stored for a specific use

Question 15

What is an ERP

Answer 15

Enterprise Resource Planning System

Question 16

What is the function of an ERP

Answer 16

Integrates specific databases

Question 17

What is the purpose of the balanced scorecard?

Answer 17

It links short term activities to the long term vision

Question 18

Drawback of the incremental budgeting process

Answer 18

It does not account for changes in business circumstances as its a set percentage YoY

Question 19

What is zero-based budgeting?

Answer 19

All expenses are resubmitted, priority ranked and funding is allocated that way - time intensive process

Question 20

Activity based budgeting

Answer 20

How much it costs to perform enterprise activiti4es

Question 21

Formula based budgeting

Answer 21

Different BUs receive different percentages of funding

Question 22

Key component of a budget sheet

Answer 22

assets, liabilities and equities at A PARTICULAR time

Question 23

Is accounts receivable an asset or liability

Answer 23

Asset

Question 24

What is net income formula

Answer 24

Revenue - expenses (aka bottom line)

Question 25

What is the difference between an income statement and a balance sheet

Answer 25

Income statement is over a time frame (ie a quarter, a year, etc)

Question 26

What is another term for P&L statement?

Answer 26

Income statement

Question 27

Assets =

Answer 27

Liabilities + equity

Question 28

What are equities

Answer 28

What a company owes to its shareholders after debts and liabilities

Question 29

Net income =

Answer 29

Revenues = expenses

Question 30

Downfall of financial measures?

Answer 30

Short term results can be over-emphasized

Question 31

What ratio helps measure management performance

Answer 31

EBITDA

Question 32

What number indicates good ROI

Answer 32

Over 1