Exam 8: Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

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After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

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Which two variables rank as marketing's most important contributions to strategic management?

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Although there are many marketing variables that impact the success or failure of strategy-implementation efforts, two variables are central to the process. What are these variables? Discuss why they are so important.

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The percentage-of-sales method should be used for projecting the cost of goods sold and the expense items in the income statements.

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The process of strategic management is facilitated immensely in firms that have an effective information system.

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Stock issuances are always better than debt for raising capital.

(True/False)
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The attitude of U.S. firms toward research and development is best described by which of the following?

(Multiple Choice)
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Matching which factors would allow factories to produce desirable levels without extra shifts, overtime, or subcontracting?

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Segmentation often reveals that large, random fluctuations in demand actually consist of several small, predictable, and manageable patterns.

(True/False)
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Besides net profit from operations and the sale of assets, two basic sources of funds for an ongoing enterprise are debt and equity.

(True/False)
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All the methods for determining a business' worth can be grouped into three basic approaches: what a firm earns, what a firm spends, and what a firm will bring in the market.

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An area on a perceptual map where there is a cluster of ideal points indicates a market segment.

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If the rate of market growth and technical progress is rapid and there are few barriers to possible new entrants, then in-house R&D is the preferred solution.

(True/False)
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Business analytics

(Multiple Choice)
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Retained earnings is obtained by subtracting

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A conservative rule of thumb for measuring the value of a firm is to establish a business' worth to be 10 times the firm's most current annual profit.

(True/False)
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Projected financial analysis is an important strategy-implementation technique because

(Multiple Choice)
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In low earning periods, too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival.

(True/False)
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Which variable would be considered part of the "place" element of the marketing mix?

(Multiple Choice)
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It is okay for firms to create expectations that exceed the service the firm can or will offer if it will attract customers.

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