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

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:

Patagonia, maker of clothing and gear for outdoor enthusiasts, is very conscious of sustainability issues. The company chose not to produce a product because:

During the strengths and weaknesses portion of a firm's SWOT analysis, which of the following would not be discovered?

A measure of research and development on the balanced scorecard could include:

The Euro is:

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

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

Exeter Industries produces and markets several lines of food and beverage products. The company plans to expand its market to cover a new geographical area, and the first products to be introduced into this new market are three of Exeter's coffees. A meeting of the marketing committee has been called to determine the pricing and promotional strategy for the introduction of these coffees. Exeter has adopted the differentiation strategy and is using the marketing committee to come up with the proper way to execute this strategy in the firm's pricing and promotional policy. Mark Williams, vice president of marketing, has suggested that Exeter continue its policy of premium pricing for Rich Roast Coffee in the new market. "Rich Roast is a superior blend of Brazilian coffees and should have little difficulty gaining customer acceptance. The use of other promotional strategies doesn't appear necessary at this time." Carol Randolph, general sales manager, agreed with this strategy for Rich Roast but recommended a different approach for Vitality Coffee, Exeter's brand of decaffeinated coffee. "Vitality is an unknown name in this region and will require a determined promotional effort to gain market share from other very competitive products. We could try penetration pricing or packaging options combined with either manufacturer's coupons or rebates. Whatever strategy we select, we should hit the market hard if we want to be successful." Dan Felton has been appointed regional sales manager for the new geographical area and is concerned about the acceptance of Mellow Roast Coffee, a blend of regular and decaffeinated coffees. "This is a brand new type of coffee in this region and may just sit on the shelf unless we develop an effective advertising campaign. Pricing or packaging options will be worthless unless the product gains some visibility and the targeted customer base is made aware of the benefits of Mellow Roast. We need a good slogan like "A gentle wakeup without caffeine stress!" Required: Mark Williams has suggested the continuance of premium pricing for Rich Roast Coffee. Explain the strategic role of premium pricing, and describe the economic circumstances in the marketplace that would encourage the use of this pricing strategy. (CMA adapted)

Which of the following is not a critical success factor?

All of the following are required resources for differentiation except:

A firm succeeds on its ability to deliver products to customers more quickly than rival companies in its industry. This skill is an example of the firm's:

The declining value of the U.S. dollar relative to other currencies in recent years means that:

Michael Porter's five competitive forces include which one of the following:

Which of the following is not an environmental performance indicator?

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

Studebaker Corporation, one of the earliest auto manufacturers, prospered in the late 1940's and into the 1950's. Its advertising after World War II emphasized quality of design and production. The corporation also used the stability of its work force in its advertisements, often featuring pictures of father and son working side by side in its factories. Required: (a) From just this brief description of Studebaker Corporation, which type of competitive strategy--cost leadership or differentiation,--would you guess Studebaker was using? Explain your choice. (b) Given your answer in Part (a), speculate on what market factors might have caused the corporation to go into bankruptcy and cease production in the mid-1960s.

NAFTA and WTO refer to

Which of the following does not represent a possible opportunity for a manufacturing firm as a part of SWOT analysis?

Using value-chain analysis, a firm can develop a competitive advantage by specifically looking for ways to:

Which of the following is not a key benefit of the balanced scorecard (BSC)?