PFMP Question #681: Real Exam Question with Answer & Explanation

Question

Assume your food additive company performed a capacity analysis and found some resources had not maintained their skill sets and basically were not as productive as others in the company. Rather than have a massive reorganization, instead the executives decided to eliminate the jobs of these staff members, many of whom had been in the company for more than 20 years. Morale among the existing staff is low as people fear there will be more layoffs. Plus the government issued a new regulation that requires an additional Food and Drug Administration quality check before a new additive can be submitted for regulatory approval. One member of the executive team wants to acquire another company to enhance market share, and the existing plants in the Asia Pacific region require infrastructure upgrades. Given resource shortages, only one component can be selected to be added to the portfolio. The Board should select:

Options

• AComponent A--to enhance employee morale
• BComponent B--to add staff to work with the FDA trained in quality management
• CComponent C--to acquire the competitor to increase market share
• DComponent D--to upgrade the AP's plant infrastructure