Career Insider Verbal Aptitude Test 0005

Structure

Umbrella organisation: It supports the Executive Board with the management of the entire corporate group. Some members of the umbrella organisation are members of the Executive  Board at the same time. Among other individuals, Thomas Morton is a member of the Executive Board. The umbrella organisation is superordinate to three divisions:

Materials: As a rule, customers are from the automotive, shipbuilding and mechanical engineering industry. As well as that some customers are producers and manufacturers of household appliances or metal products. Every customer has special requirements with regard to materials. The Materials Division offers globally innovative materials.

Traffic: This division is Steel Ltd’s largest and most important, and it also produces transport systems as well as system components. In terms of customer clusters, most customers lie in Western Europe, but also countries all over the world.

Engineering: The Engineering Division specialises in mechanical engineering and plant engineering. Although this division somewhat small, the corporate group will not withdraw from this sector in the foreseeable future because it is of strategic importance.

 

Strategy

The assertion of the leading position in the world market:

Innovations: Steel Ltd. has developed new processing technologies which improve the quality of stainless steel, titanium and nickel alloys. Some of these technologies are particularly energy-saving. Various materials have been optimised in order to save environmental resources on a sustainable basis.

Capacity expansion: It was possible to expand the production of transport system components through the expansion or the new establishment of assembly locations. Synergy effects were achieved through the consolidation and relocation of production sites.

Increased Flexibility: For a more individualised handling of orders with regard to special orders, Steel Ltd. has made the working hours of skilled workers – who are employed in the Engineering Division and who have a wealth of experience in their respective sphere of activity – more flexible.

 

Principles

Corporate governance principles: All divisions and the umbrella organisation as well as the research organisation are obligated to comply with them. These include:

Shareholder’s rights: These include the acquisition and free sale of shares, exercising the right to vote as well as a participator’s share in the corporate profit.

Executive Board of Directors and Supervisory Board obligations: They are obligated to comply with the interests of Steel Ltd. The Executive Board decides on the corporate strategy and has to regularly inform the Supervisory Board about the state of the corporate group. If the Executive Board decides on the corporate strategy, the Supervisory Board has to approve it.

Remuneration: The remuneration of the Executive Board members is determined by the Supervisory Board, whereas the Executive Board decides on the remuneration of the top corporate management executives.

Transparency: is not ensured if financial reports are not provided in a timely manner, at optimum every financial quarter.

 

Products & Services

Construction: In addition to the construction of machines, these products and services also comprise the construction of turnkey chemical and industrial facilities as well as power plants.

Automotive: Steel Ltd. supplies vehicle manufacturers with chassis and electronic components. Due to increasing customer demands Steel Ltd. develops complete system components such as braking systems, stabiliser and damping systems as well as active safety systems.

Metals & Composites: These products and services encompass metals in particular. These include, among other things, special steel and aluminum alloys, but also metal ceramics. Special materials can be developed for special requirements and also manufactured by Steel Ltd. if needed. The prices of special materials essentially depend on the quantity ordered.

Research and development: are conducted in collaboration with universities and advanced technical colleges in Germany, Great Britain, France and the USA. The new developments are brought into production within the shortest possible time.

 

Locations

Traffic: Chassis components for passenger vehicles and heavy good vehicles are manufactured in the USA, whereas electronic systems are rather produced in Australia, Asia, Europe and South America.

Materials: In addition to Europe, the USA and Asia, steel as well as aluminum alloys are also manufactured in Australia. In some countries in which Steel Ltd. manufactures aluminum alloys the company also produces metal ceramics.

Engineering: The regional hubs lie in Germany, France, Great Britain and Northern Italy. For the most part, research and development are conducted in Great Britain.

Regional hubs: In Europe, particularly in Germany, Steel Ltd. has a strong position in all corporate segments. If one assumes the number of employees as a criterion, then Steel Ltd’s most important branch location is Dortmund.

 

Board of Directors

Dr. Thomas Morton: Chairman of the Board and certified economist. He has been on the Executive Board for five years. After earning his doctorate in San Francisco he was working for the American aircraft manufacturer Thunder for ten years as the production manager.

Melanie Grison: Director of the Traffic Division. After completing her apprenticeship with Steel  Ltd. as a machine fitter she studied mechanical engineering and then returned to Steel Ltd. as a major customer consultant. Later she assumed project management functions in New York and  Los Angeles and then became head of the Traffic Division.

Anthony Crown: Information scientist and head of the Engineering Division. He initially worked as a systems analyst in the realm of statical calculation, but then switched to Steel Ltd’s IT department as IT project manager and become head of the Engineering division after five years.

Dr. Howard Jacob: Economist and head of the Materials Division. For ten years he was active for a steel manufacturer in various Asian countries (among others, Malaysia and Hong Kong), and then on account for a good offer he switched to Steel Ltd. to work as a strategy consultant. 

Instruction: In this test, you will be presented with statements that need to be evaluated individually. Your task is to evaluate the truthfulness of the individual statements based only on the information contained in the brief. First, read the statement then select and look at the material to evaluate that statement.

Then, evaluate the statement. Select TRUE if the statement is absolutely true given the information contained in the brief. Select FALSE if the statement is absolutely untrue given the information contained in the brief. Select CANNOT SAY if you cannot absolutely say, without further information, whether the statement is true or false based on the information contained in the brief.

 

Question 1

Steel Ltd. does not conduct research in collaboration with advanced technical colleges.

 

Question 2

Steel Ltd. does not produce aluminum alloys in any country in which it produces metal ceramics.

 

Question 3

Steel Ltd. is subdivided into two divisions, Materials and Traffic.

 

Question 4

Steel Ltd manufactures metal ceramics in Australia, among other countries.

 

Question 5

Steel Ltd. manufactures steel in Australia, among other countries.

 

Question 6

Steel Ltd. probably produces metal ceramics in Australia.

 

Question 7

Steel Ltd. produces metal ceramics in the USA.

 

Question 8

Steel Ltd’s Construction products and services include the manufacture of machinery for power plants.

 

Question 9

Steel Ltd’s research organisations are obligated to the principle of transparency.

 

Question 10

Steel Ltd’s shareholders’ rights allow them only to acquire or to sell shares.

 

Question 11

Steel Ltd’s Traffic Division has customers in Turkey, among other places.

 

Question 12

Steel Ltd’s umbrella organisation also supports the Executive Board during the preparation of the annual report for Steel Ltd as a whole.

 

Question 13

Steel Ltd’s umbrella organisation consists of the Executive Board and the Supervisory Board.

 

Question 14

Steel Ltd’s umbrella organisation fulfills tasks which concern the entire Steel Ltd. group.

 

Question 15

Steel production is Steel Ltd’s strategic core business.

 

Question 16

The customers of Steel Ltd’s Traffic Division lie only in Western Europe.

 

Question 17

The customers of the Materials Division are exclusively from the automotive, shipbuilding and mechanical engineering industries. They also include household appliance and metal goods manufacturers.

 

Question 18

The Engineering Division is not obligated to comply with Steel Ltd’s corporate principles.

 

Question 19

The Engineering Division is of strategic importance, above all in Europe.

 

Question 20

The Engineering Division offers innovative materials worldwide.

 

Test Solutions

Question 1

Suggested Solution: False

Product & Services - Research and development:

is conducted in collaboration with universities and advanced technical colleges in Germany, Great Britain, France and the USA.

 

Question 2

Suggested Solution: False

Locations - Materials:

In some countries in which Steel Ltd. manufactures aluminium alloys the company also produces metal ceramics.

 

Question 3

Suggested Solution: False

Structure - Umbrella organisation:

The umbrella organisation is superordinate to three divisions.

 

Question 4

Suggested Solution: Cannot Say

Locations - Materials:

In addition to Europe, the USA and Asia, steel as well as aluminium alloys are also manufactured in Australia. In some countries in which Steel Ltd. manufactures aluminium alloys the company also produces metal ceramics.

 

Question 5

Suggested Solution: True

Locations - Materials:

steel as well as aluminium alloys are also manufactured in Australia.

 

Question 6

Suggested Solution: True

Locations - Materials:

In addition to Europe, the USA and Asia, steel as well as aluminium alloys are also manufactured in Australia. In some countries in which Steel Ltd. manufactures aluminium alloys the company also produces metal ceramics.

 

Question 7

Suggested Solution: Cannot Say

Locations - Materials:

In addition to Europe, the USA and Asia, steel as well as aluminium alloys are also manufactured in Australia. In some countries in which Steel Ltd. manufactures aluminium alloys the company also produces metal ceramics.

 

Question 8

Suggested Solution: True

Locations - Materials:

Construction: In addition to the construction of machines, these products and services also comprise the construction of turnkey chemical and industrial facilities as well as power plants.

 

Question 9

Suggested Solution: True

Principles - Corporate governance principles:

All divisions and the umbrella organisation as well as the research organisation are obligated to comply with them.

 

Question 10

Suggested Solution: False

Principles - Shareholder’s rights:

These include the acquisition and free sale of shares, exercising the right to vote as well as a participator’s share in the corporate profit.

 

Question 11

Suggested Solution: Cannot Say

Locations - Traffic:

Chassis components for passenger vehicles and heavy good vehicles are manufactured in the USA, whereas electronic systems are rather produced in Australia, Asia, Europe and South America.

 

Question 12

Suggested Solution: Cannot Say

Structure - Umbrella organisation:

It supports the Executive Board with the management of the entire corporate group.

 

Question 13

Suggested Solution: Cannot Say

Structure - Umbrella organisation:

 

Question 14

Suggested Solution: True

Structure - Umbrella organisation:

It supports the Executive Board with the management of the entire corporate group.

 

Question 15

Suggested Solution: True

Structure - Traffic:

This division is Steel Ltd’s largest and most important, and it also produces transport systems as well as system components.

 

Question 16

Suggested Solution: False

Structure - Traffic:

In terms of customer clusters, most customers lie in Western Europe, but also countries all over the world.

 

Question 17

Suggested Solution: Cannot Say

Structure -Materials:

As a rule, customers are from the automotive, shipbuilding and mechanical engineering industry. As well as that some customers are producers and manufacturers of household appliances or metal products.

 

Question 18

Suggested Solution: False

Principles - Corporate governance principles:

All divisions and the umbrella organisation as well as the research organisation are obligated to comply with them.

 

Question 19

Suggested Solution: Cannot Say

Structure - Engineering:

the corporate group will not withdraw from this sector in the foreseeable future because it is of strategic importance.

 

Question 20

Suggested Solution: False

Structure - Materials:

The Materials Division offers globally innovative materials.