Exam 12: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

The gross margin percentage is an example of the ________ measure of a balanced-scorecard.

In the analysis of strategy maps, strong ties are those causal links where the impact of one strategic objective on realization of another is average when compared to the strength of the other ties in the map.

Which of the following statements is true of successfully implementing a balanced scorecard?

For each of the following measures, identify which perspective of the balanced scorecard it represents: financial, customer, internal-business-process, or learning-and growth. 1.service response time 2.market share 3.gross margin percentage 4.defect rates 5.customer satisfaction 6.information system availability 7.new-product development time 8.revenue growth 9.employee turnover rates 10.setup time

Maloney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Maloney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy. Required: a.Is Maloney's strategy one of product differentiation or cost leadership? Explain briefly. Identify at least one key element that you would expect to see included in the balanced scorecard: b.for the financial perspective. c.for the customer perspective. d.for the internal business process perspective. e.for the learning and growth perspective.

The financial perspective of the balanced scorecard identifies targeted customers and market segments and measures the company's success in these segments.

The cost leadership strategy is for products and services that are similar to a competitors products and services.

Strategic Analysis of Profitability of King Philip Company: What is the revenue amount for 2018 (e)?

Engineered costs ________.

Discretionary costs are not easily controllable compared to engineered costs.

Advertising cost is an example of a discretionary cost.

Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

Buck Corporation plans to grow by offering a computer monitor, the CM3000 that is superior and unique from the competition. Buck believes that putting additional resources into R&D and staying ahead of the competition with technological innovations are critical to implementing its strategy. Required: a.Is Buck's strategy one of product differentiation or cost leadership? Explain briefly. Identify at least one key element that you would expect to see included in the balanced scorecard: b.for the financial perspective. c.for the customer perspective. d.for the internal business process perspective. e.for the learning and growth perspective.

What is re-engineering. Can you contrast a re-engineering approach to change with a kaizen approach to change?

Which of the following statements is a valid argument for BarGraphs to reduce its manufacturing capacity?

Companies which strive to achieve cost leadership should never try to implement business process re-engineering measures.

Kellogg Parts Company provided the following information: What is the partial productivity ratio?

Can a company identify unused capacity and, if so, how can unused capacity be managed?

Ralph Company has been very aggressive in developing various types of financial and nonfinancial measurement schemes to help with the evaluation of its manufacturing processes. It appears that some of the managers are suboptimizing in that their decision processes are geared solely for their department's benefit, sometimes to the detriment of the organization as a whole. Required: What changes in the evaluation system could the company implement to help minimize the suboptimization of the managers' decision-making process?