Question 1

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 2

A final step in the SWOT analysis is to identify quantitative measures for the:

Accepted Answer

A)  Value propositions. 
B)  Competitor analyses. 
C)  Critical success factors. 
D)  Both A and C. 
E)  Both B and C. 
A)  Value propositions. 
B)  Competitor analyses. 
C)  Critical success factors. 
D)  Both A and C. 
E)  Both B and C.

Question 3

During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?

Accepted Answer

A) During the first step, when the value-chain activities are identified. 
B) During the first step, when the cost driver(s) are identified. 
C) During the second step, when the firm develops a competitive advantage by either reducing cost or adding value. 
D) The entire purpose of value chain analysis is to determine if the company has a cost advantage; therefore, it occurs in all steps. 
E) In the third step, when the company adopts and implements the balanced scorecard 
A) During the first step, when the value-chain activities are identified. 
B) During the first step, when the cost driver(s) are identified. 
C) During the second step, when the firm develops a competitive advantage by either reducing cost or adding value. 
D) The entire purpose of value chain analysis is to determine if the company has a cost advantage; therefore, it occurs in all steps. 
E) In the third step, when the company adopts and implements the balanced scorecard

Question 4

Which of the following would likely not be considered part of the value chain in a service firm?

Accepted Answer

A) Inspection of product. 
B) Advertising. 
C) Employee training. 
D) Customer service. 
E) Materials handling. 
A) Inspection of product. 
B) Advertising. 
C) Employee training. 
D) Customer service. 
E) Materials handling.

Question 5

The decline of the U.S. dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to:

Accepted Answer

A) Experience increasing sales in the U.S. 
B) Experience increasing sales worldwide. 
C) Locate plants in the U.S. to reduce overall manufacturing costs. 
D) Require dealers to make payments in the Euro. 
E) None of the above. 
A) Experience increasing sales in the U.S. 
B) Experience increasing sales worldwide. 
C) Locate plants in the U.S. to reduce overall manufacturing costs. 
D) Require dealers to make payments in the Euro. 
E) None of the above.

Question 6

Many products in the marketplace today are built from components designed and manufactured by sub-contractors. While the extent of this practice is not well known to consumers, manufacture and sale of multi-component units that use parts from many different companies continues to grow.
Required:
If the assembling company is using value-chain analysis in its strategic planning, comment on the following:
(a) The cost justification for subcontracting.
(b) The willingness of consumers to buy products they know contain subcontracted parts.
(c) The problems of quality control facing the assembling company.

Accepted Answer

Answer may vary
Feedback: (a) If a firm

Question 7

The cause and effect relationships among critical success factors are best captured in:

Accepted Answer

A) The balanced scorecard 
B) Business intelligence 
C) The value chain 
D) The strategy map 
E) SWOT analysis 
A) The balanced scorecard 
B) Business intelligence 
C) The value chain 
D) The strategy map 
E) SWOT analysis

Question 8

The World Resources Institute has defined:

Accepted Answer

A) Types of cost management. 
B) Categories for environmental performance indicators. 
C) Methods for achieving sustainability. 
D) Categories for economic performance indicators. 
E) None of the above. 
A) Types of cost management. 
B) Categories for environmental performance indicators. 
C) Methods for achieving sustainability. 
D) Categories for economic performance indicators. 
E) None of the above.

Question 9

The balanced scorecard:

Accepted Answer

A) Is not comprehensive, since it doesn't include all the critical success factors which contribute to competitive success. 
B) Helps focus managers' attention to bottom line profits. 
C) Is forward looking, stressing nonfinancial measures that can lead to benefits in the future. 
D) Fails to reflect environmental and social effects of the firm's operations. 
E) Is heavily weighted toward the financial critical success factors. 
A) Is not comprehensive, since it doesn't include all the critical success factors which contribute to competitive success. 
B) Helps focus managers' attention to bottom line profits. 
C) Is forward looking, stressing nonfinancial measures that can lead to benefits in the future. 
D) Fails to reflect environmental and social effects of the firm's operations. 
E) Is heavily weighted toward the financial critical success factors.

Question 10

It is becoming more common to see manufacturing firms use the value chain to take strategic steps to improve the overall profitability of the firm by:

Accepted Answer

A) Placing greater emphasis on the value chain 
B) Moving to an emphasis on upstream activities in the value chain 
C) Moving to an emphasis on downstream activities in the value chain 
D) Identifying most profitable customers 
E) Moving to an emphasis on both the upstream and downstream activities in the value chain 
A) Placing greater emphasis on the value chain 
B) Moving to an emphasis on upstream activities in the value chain 
C) Moving to an emphasis on downstream activities in the value chain 
D) Identifying most profitable customers 
E) Moving to an emphasis on both the upstream and downstream activities in the value chain

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

A final step in the SWOT analysis is to identify quantitative measures for the:

During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?

Which of the following would likely not be considered part of the value chain in a service firm?

The decline of the U.S. dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to:

The cause and effect relationships among critical success factors are best captured in:

The World Resources Institute has defined:

The balanced scorecard:

It is becoming more common to see manufacturing firms use the value chain to take strategic steps to improve the overall profitability of the firm by:

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

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

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

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

A final step in the SWOT analysis is to identify quantitative measures for the:

During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?

Which of the following would likely not be considered part of the value chain in a service firm?

The decline of the U.S. dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to:

The cause and effect relationships among critical success factors are best captured in:

The World Resources Institute has defined:

The balanced scorecard:

It is becoming more common to see manufacturing firms use the value chain to take strategic steps to improve the overall profitability of the firm by:

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

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