Exam 18: Business Strategy, Performance Measurement, and the Balanced Scorecard

Under a well-constructed management control system, an organization needs to make some decisions about its Performance Measurement Process (PMP). Sarah is a manager for a small toy factory, and she knows she must be mindful of the role the management control system will play in motivating employees to head in the same direction while also aligning with company goals. Sarah is in the early phases of her design, but she knows that upper management would like the company to be extremely profitable while also keeping employees satisfied. With this in mind, please answer the following questions. a. In addition to acknowledging the complexity of the design for this process, what are some additional considerations that Sarah should make? b. How does responsibility change for employees as they move into upper-level management positions? What should Sarah keep in mind while setting up the PMP? c. What are the most significant aspects of the performance evaluation process from an employee's perspective? How can Sarah ensure her PMP considers all these aspects?

When an organization starts up, they decide on their mission and vision, and these two components inform every step of their goal achievement. Which of the following best represents the component that results from coordination of business units across the organization tracking dollars and dates?

From an employee's perspective, one of the most important aspects of working for an organization is to be evaluated fairly. For the performance evaluation process, there are aspects from this perspective and each is important. Which of the following best represents the personal goals perspective?

As a company begins to fine tune its strategy, it is prudent to identify their strengths and weaknesses in addition to outside opportunities and threats. This SWOT analysis will ensure they can effectively evaluate and deal with items that will either help or hurt their chances of success. Which of the following represents an Opportunity for a mobile dog grooming business?

Stucker Corp. just started their annual company-wide evaluation of the most recent year's performance. Management will look at many financial and nonfinancial measures as part of this comprehensive review. Their accountant compiled the following information: Sales: $9,320,568 Operating Expenses: $7,623,004 Weighted Average Common Shares Outstanding ($2 per share): $12,467,200 If the company does not have preference shares and there is no income tax, then how much will their earnings per share (EPS) be for the year?

Once a business is ready to grow, they hire qualified candidates to work for them. The type of compensation offered and additional offerings will vary depending on the job. If a company is looking to hire sales staff, then what would the most appropriate form of compensation be?

In an effort to balance financial and nonfinancial performance measures, an organization may complete a balanced scorecard (BSC). Manufacturers, service entities, and governmental organizations often use this tool to assess performance. Which of the following best represents the correct ordering from lowest to highest level of the four traditional perspectives?

A football team knows that to accomplish their goals, those goals need to range from high-level organizational thinking to each individual player. The team has the following levels: franchise, team, and individual. What is an objective that would likely appear at both the team and individual levels?

An organization is designing a system to evaluate its performance. Below is a list of various measures that could accomplish this goal. Please follow the instructions and answer the following questions. a. Classify each measure as financial or nonfinancial and as leading or lagging. When is it appropriate to use each? b. Classify each measure according to the functional area of the organization that would find it most relevant and applicable - for example, sales and marketing, manufacturing, human resource, accounting and finance, and upper management. c. How are companies able to use these measures to evaluate performances at both the individual and company-wide levels?

Global Dynamics is a large corporation with offices throughout the United States. They specialize in helping businesses grow and tackle issues with staffing and overall logistics. Global Dynamics has a variety of departments including accounting, human resources, sales, and customer service. Which of the following best represents a task for the Chief Information Officer at Global Dynamics?

Trevor is an aspiring baker who eventually hopes to leave his current full-time job and bake instead. He knows that planning now will make all the difference as he moves towards making his dream a reality. He plans to begin by baking out of his house and eventually open a small brick-and-mortar location. According to Porter's Five Forces, which of the following represents competitive rivalry for Trevor?

Teresa is a dog groomer who has recently become licensed and is now able to take on clients. She decided to go out on her own at the end of the current year and start her own business, Happy Wags Dog Grooming. The goal of Happy Wags will be to provide a spa-like experience for dogs where they will be pampered and groomed and given a fun experience while in Teresa's care. She is aware that there will be challenges to starting her own business, and she wants to be sure she gets it right. When Teresa took a business class in college, she learned about SWOT analysis and how it helps create a strategy for new businesses. Teresa secured a location in an up-and-coming downtown neighborhood that has attracted many other new businesses recently. She would like to have her business strategy and SWOT analysis completed in the next couple of months. Taking all of this into consideration, answer the following questions. a. As part of the SWOT analysis, what are some examples of Happy Wags' internal strengths and weaknesses? b. As part of the SWOT analysis, what are some examples of external opportunities and threats for Happy Wags? c. Why do companies use a SWOT analysis as part of their strategy, and what are some advantages and disadvantages of opting to use this method?

A small textile manufacturer just completed their balanced scorecard (BSC) for the upcoming year. After evaluating feedback from customers and employees, they have decided to focus their efforts on several areas. If the company wishes to increase their unique fabric offerings, then which of the following pairs would be the most effective initiative and the best measure to use?

One important aspect of performance measurement is appropriately assigning responsibility based on the level of employee in the hierarchy of the company. If done incorrectly or in an imbalanced fashion, then employees may feel as though they have an unfair work environment. Which of the following responsibilities would be more appropriate to assign to a staff-level employee?

Once a business is ready to move from identifying industry challenges to overcoming them, the company may choose to complete a SWOT analysis. This tool helps the organization identify internal and external factors affecting them. Which of the following correctly aligns with the elements of SWOT?

A salon is working to update and revitalize their positioning within the market. They will be completing a balanced scorecard (BSC) and are starting with a couple of objectives from the learning and growth perspective. Why is each objective above important in this perspective? What would an appropriate initiative, measure, and target for each objective be?

At the completion of the most recent fiscal year, the management of Fast Cars, Inc., a dealership firm, is evaluating their performance. They created a balanced scorecard at the beginning of the year and identified an objective of increasing customer satisfaction. As part of their review process at the end of the year, what could they do next?

A small ceramics company is compiling data about its performance during the last two fiscal years. They reported the following: Using the information above, what is their after-tax income for year 1?

Jones Corp. is a newly formed organization that will produce 10-key calculators that it intends to sell to office supply stores and directly from its own online platform. Jones is in the planning stages of their business and are formulating a strategic plan. As part of this initial planning, the owners know that they must first identify a mission and vision. Which of the following best represents a vision for Jones?

Alison is a baker who specializes in gluten-free cakes. She wants to determine what strategy makes sense for her business and has created the following options: 1) a regular cake at $25.00 per cake or 2) a cake with a base price of $30.00 with modifications costing extra. If Alison decides to proceed with option 1, then what is an appropriate internal business process perspective goal for Alison?