Question 1

All of the following are required resources for cost leadership except:

Accepted Answer

A) Substantial capital investment. 
B) Unique skills compared to industry standards. 
C) Products designed for ease of manufacturing. 
D) Process engineering skills. 
A) Substantial capital investment. 
B) Unique skills compared to industry standards. 
C) Products designed for ease of manufacturing. 
D) Process engineering skills.

Question 2

To increase profitability, technology companies such as IBM have shifted their strategic focus toward:

Accepted Answer

A) Increasing equipment sales. 
B) Improving software applications. 
C) Providing new and enhanced customer services. 
D) None of the above. 
A) Increasing equipment sales. 
B) Improving software applications. 
C) Providing new and enhanced customer services. 
D) None of the above.

Question 3

Levis Strauss and Co, maker of Levi's familiar 501 and 505 brands of jeans, also make a new brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans was to sell a competitively priced pair. The jeans will be about one-half the price of the familiar 501 and 505 jeans. To get costs down Levi's will:
• Use cheaper fabrics and materials.
• Shun costly mass-market advertising.
• Strictly limit the number of fits, styles, and colors.
Required:
1. Assess the new strategy at Levi. What do you think are the potential benefits and risks?
2. How will the firm's value chain and balanced scorecard change as a result of the new strategy?

Accepted Answer

Answer may vary
Feedback: 1. The risks o

Question 4

A local pharmaceutical firm has just announced its discovery of a revolutionary new drug for dieting. However, due to its deteriorating relationship with its union, the unionized portions of the company's employees have threatened to strike. In addition, the company's stock has started to drop due to the firm's difficulty in paying off some of its debt. In this example, what was the firm's core competency(ies)?

Accepted Answer

A) Its research and development. 
B) Its human resources abilities. 
C) Its financing activities. 
D) Its operating activities. 
A) Its research and development. 
B) Its human resources abilities. 
C) Its financing activities. 
D) Its operating activities.

Question 5

The differentiation strategy requires all of the following resources, except:

Accepted Answer

A) Strong marketing capability. 
B) Long tradition in the industry or unique skills. 
C) Product engineering. 
D) Products designed for ease of manufacture. 
E) Corporate reputation for quality or technology leadership. 
A) Strong marketing capability. 
B) Long tradition in the industry or unique skills. 
C) Product engineering. 
D) Products designed for ease of manufacture. 
E) Corporate reputation for quality or technology leadership.

Question 6

Which of the following is not a critical success factor?

Accepted Answer

A) Financial factor. 
B) Learning and growth. 
C) Governmental relations. 
D) Brand recognition. 
A) Financial factor. 
B) Learning and growth. 
C) Governmental relations. 
D) Brand recognition.

Question 7

After critical success factors (CSFs) have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measure for these CFSs. These measures are important to help the organization:

Accepted Answer

A) Make profit for any extended period. 
B) Increase sales above previous year(s). 
C) Develop policies to enhance customer profitability. 
D) Improve productivity in selected product areas. 
E) Monitor progress toward achieving strategic goals. 
A) Make profit for any extended period. 
B) Increase sales above previous year(s). 
C) Develop policies to enhance customer profitability. 
D) Improve productivity in selected product areas. 
E) Monitor progress toward achieving strategic goals.

Question 8

Which of the following best describes the type of information that cost management must provide that is important for the success of the organization?

Accepted Answer

A) Short term information for decision making. 
B) Reported financial information. 
C) Reported nonfinancial information. 
D) Information that addresses the strategic objectives of the organization. 
E) Long-term planning information. 
A) Short term information for decision making. 
B) Reported financial information. 
C) Reported nonfinancial information. 
D) Information that addresses the strategic objectives of the organization. 
E) Long-term planning information.

Question 9

The main objective of value chain analysis is to identify stages of the value chain where the firm can:

Accepted Answer

A) Justify increases in the price of the product or service. 
B) Increase value to the customer or reduce cost in some way. 
C) Outsource production to other producers. 
D) Improve efficiency 
A) Justify increases in the price of the product or service. 
B) Increase value to the customer or reduce cost in some way. 
C) Outsource production to other producers. 
D) Improve efficiency

Question 10

Which one of the following customer critical success factors is best measured by warranty expense?

Accepted Answer

A) Quality. 
B) Dealer and distributor efficiency and effectiveness. 
C) Timeliness of delivery. 
D) Customer satisfaction. 
A) Quality. 
B) Dealer and distributor efficiency and effectiveness. 
C) Timeliness of delivery. 
D) Customer satisfaction.

All of the following are required resources for cost leadership except:

To increase profitability, technology companies such as IBM have shifted their strategic focus toward:

The differentiation strategy requires all of the following resources, except:

Which of the following is not a critical success factor?

After critical success factors (CSFs) have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measure for these CFSs. These measures are important to help the organization:

Which of the following best describes the type of information that cost management must provide that is important for the success of the organization?

The main objective of value chain analysis is to identify stages of the value chain where the firm can:

Which one of the following customer critical success factors is best measured by warranty expense?

Cost Management and Strategy

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

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Exam 2: Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

All of the following are required resources for cost leadership except:

To increase profitability, technology companies such as IBM have shifted their strategic focus toward:

The differentiation strategy requires all of the following resources, except:

Which of the following is not a critical success factor?

After critical success factors (CSFs) have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measure for these CFSs. These measures are important to help the organization:

Which of the following best describes the type of information that cost management must provide that is important for the success of the organization?

The main objective of value chain analysis is to identify stages of the value chain where the firm can:

Which one of the following customer critical success factors is best measured by warranty expense?

Cost Management and Strategy

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters