Exam 6: Internal Analysis

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is return on sales times asset turnover.

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________________ is comparing the performance of a business component such as warehouse operations with similar operations in other companies.

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Benchmarking.

According to the book, strategies should be driven by three factors-organizational strengths and weaknesses, market needs, and environmental trends.

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Performance measures reflecting long-term profitability include all but one of the following:

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goal of analysis is to develop strategies that either exploit a firm's strengths or correcting / compensating for weaknesses.

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the following are ways to increase shareholder value except:

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Competences should be evaluated based on strength and revenue potential.

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the following are guidelines for measuring customer satisfaction except __________.

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One strength of shareholder value analysis is that it encourages priority to be given to other stakeholders.

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Kunz found that in their passbook business, small customers were profitable.

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of the more important assets of many firms is the size of the customer base.

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Shareholder value analysis holds that the flow of profits emanating from an investment should exceed the cost of capital.

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