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

Which one of the following is not usually included as a perspective of the balanced scorecard?

The five steps of strategic decision making include all of the following steps except:

Both cost leadership and differentiated firms can improve on execution through:

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?

In SWOT analysis, strengths and weaknesses are most easily identified by looking:

The Global Reporting Initiative is an independent group that partners with other groups to address the measurement of sustainability, including a partnership with:

Gordon Manufacturing produces high-end furniture products for the luxury hotel industry. Gordon has succeeded through excellence in design, careful attention to quality in manufacturing and in customer service, and through continuous product innovation. The manufacturing process at Gordon begins with a close consultation with each customer so that the finished product exactly meets the customer's specifications. This commonly means unique designs, special fabrics, and high levels of manufacturing quality. In addition, Gordon believes that a key competitive edge it has over other competitors is that it has an outstanding design staff that is able to work with customers to come up with product designs that go beyond the customer's expectations. Anticipating a growth in the demand for luxury hotel rooms, Gordon has expanded its operations to include one new manufacturing plant, and by refitting some of the older plants with newer, more efficient equipment. The installation of the new equipment has caused some delays in filling some customer orders, and Gordon has shifted production from those plants with the delays to other manufacturing plants. The result has been an increase in some processing costs, transportation costs, and delays in meeting customer order deadlines. Also, the introduction of the new equipment has created some tensions with employees who see the new, more efficient equipment as a potential threat to their job security. There is also some disagreement among managers as to whether the new equipment will improve or reduce quality. Required: Develop a SWOT analysis for Gordon Manufacturing. List one or more items in each category.

Over the past several years it has become increasingly important for firms to improve achievement towards their social and environmental responsibilities. What is the best way the management accountant can help the firm improve on sustainability?

Which of the following statements concerning value chain analysis is false?

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

Which of the following types of organizations can most benefit from value chain analysis?

SWOT analysis, a valuable analysis tool, stands for:

Effective execution of the cost leadership strategy requires all of the following except:

With regard to critical success factors, which one of the following would not be considered a financial measure of success?

Sustainability is the balancing of short and long term goals in all three dimensions of the company's performance. Those three areas are:

Williams Instruments manufactures specialized surgical equipment for hospitals and clinics throughout the world. One of Williams' most popular products, comprising 40% of its revenues and 35% of its profits, is a blood pressure measuring device. Average production and sales are 400 units per month. Williams has achieved its success in the market through excellent customer service and product reliability. The manufacturing process consists primarily of assembly of components purchased from various electronic firms, plus a small amount of metalworking and finishing. The manufacturing operations cost $600 per unit. The purchased parts cost Williams $800, of which $300 is for parts which Williams could manufacture in its existing facility for $100 in materials for each unit, plus an investment in labor and equipment which would cost $175,000 per month. Also, Williams is considering outsourcing to another firm, Matrix Concepts, Inc., the marketing, distribution, and servicing for its units. This would save Williams $75,000 in monthly materials and labor costs. The cost of the contract would be $125 per product. Required: (1) Prepare a value chain analysis for Williams to assist in the decision whether to manufacture or buy the parts, and whether to contract out the marketing, distribution, and servicing of the units. (2) Should Williams continue to: (a) purchase the parts or manufacture them? (b) provide the marketing, distribution and service, or outsource this activity to Matrix? Explain your answers.

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)?

Gordon Manufacturing produces high-end furniture products for the luxury hotel industry. Gordon has succeeded through excellence in design, careful attention to quality in manufacturing and in customer service, and through continuous product innovation. The manufacturing process at Gordon begins with a close consultation with each customer so that the finished product exactly meets the customer's specifications. This commonly means unique designs, special fabrics, and high levels of manufacturing quality. In addition, Gordon believes that a key competitive edge it has over other competitors is that it has an outstanding design staff that is able to work with customers to come up with product designs that go beyond the customer's expectations. Required: Present a value chain for Gordon Manufacturing with at least five activities and explain the role of each activity in the value chain.

Some of the indicators of a growing concern for sustainability include:

The tire business is becoming increasingly competitive as new manufacturers from Southeast Asia and elsewhere enter the global marketplace. At the same time, customer expectations for performance, tread life, and safety continue to increase. An increasing variety of vehicles, from the small and innovative gas/electric vehicles to the large SUVs, place more demands on tire designers and on tire manufacturing flexibility. Established brands such as Goodyear and Firestone must look to new ways to compete and maintain profitability. Required: 1. Is the competitive strategy of a global tire maker cost leadership or differentiation? Explain your answer. 2. What are the ethical issues, if any, for tire manufacturers?