Question 1

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 2

Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate target in a strategy map for a public company?

Accepted Answer

A) Learning and innovation. 
B) Internal processes. 
C) Financial performance. 
D) Customer service. 
E) Employees and community. 
A) Learning and innovation. 
B) Internal processes. 
C) Financial performance. 
D) Customer service. 
E) Employees and community.

Question 3

A strategy map is:

Accepted Answer

A) A detailed flowchart outlining which firm managers are responsible for each implementation of a firm's strategy and when these implementations are to take place. 
B) A cause and effect diagram of the relationships among the balanced scorecard perspectives to show how the achievement of critical success factors in each perspective affects the achievement of goals in other perspectives and the overall financial performance of the firm. 
C) A framework for the firm to achieve a desired organizational change in strategy while mapping the successes of other firms within the industry. 
D) A comprehensive framework of goals and measurable targets for executing those goals. 
A) A detailed flowchart outlining which firm managers are responsible for each implementation of a firm's strategy and when these implementations are to take place. 
B) A cause and effect diagram of the relationships among the balanced scorecard perspectives to show how the achievement of critical success factors in each perspective affects the achievement of goals in other perspectives and the overall financial performance of the firm. 
C) A framework for the firm to achieve a desired organizational change in strategy while mapping the successes of other firms within the industry. 
D) A comprehensive framework of goals and measurable targets for executing those goals.

Question 4

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:

Accepted Answer

There are likely to be a wide variety of

Question 5

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) Information of a record keeping nature. 
B) Reported financial information. 
C) Reported nonfinancial information. 
D) Information that addresses the strategic objectives of the organization. 
E) Long-term planning information. 
A) Information of a record keeping nature. 
B) Reported financial information. 
C) Reported nonfinancial information. 
D) Information that addresses the strategic objectives of the organization. 
E) Long-term planning information.

Question 6

In SWOT analysis,opportunities and threats are identified by:

Accepted Answer

A) Consultation with middle management. 
B) Talking with the rank and file workers. 
C) Looking outside the firm. 
D) Brainstorming techniques. 
E) Reviewing our corporate strategy. 
A) Consultation with middle management. 
B) Talking with the rank and file workers. 
C) Looking outside the firm. 
D) Brainstorming techniques. 
E) Reviewing our corporate strategy.

Question 7

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

Accepted Answer

A) Financial Performance. 
B) Financial Reporting. 
C) Learning and Growth. 
D) Customer Satisfaction. 
E) Internal Business Processes. 
A) Financial Performance. 
B) Financial Reporting. 
C) Learning and Growth. 
D) Customer Satisfaction. 
E) Internal Business Processes.

Question 8

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) Finding low-cost manufacturing locations. 
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) Finding low-cost manufacturing locations.

Question 9

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

Accepted Answer

A) Obtain information and conduct analyses. 
B) Determine the organization's strategy. 
C) Identify the alternative actions. 
D) Continue an on-going evaluation of the problem. 
E) Choose and implement the desired action. 
A) Obtain information and conduct analyses. 
B) Determine the organization's strategy. 
C) Identify the alternative actions. 
D) Continue an on-going evaluation of the problem. 
E) Choose and implement the desired action.

Question 10

Value activities can best be defined as:

Accepted Answer

A) Activities that firms in the industry must perform to improve a product. 
B) Activities that firms in the industry must perform in the process of converting raw material to final product,including customer service. 
C) Activities that firms in the industry must perform in the process of closing down a product line,including customer service. 
D) Activities that firms in the industry must perform to consider ways of marketing a product. 
E) Activities that firms in the industry must perform in the process of considering new products,including customer service. 
A) Activities that firms in the industry must perform to improve a product. 
B) Activities that firms in the industry must perform in the process of converting raw material to final product,including customer service. 
C) Activities that firms in the industry must perform in the process of closing down a product line,including customer service. 
D) Activities that firms in the industry must perform to consider ways of marketing a product. 
E) Activities that firms in the industry must perform in the process of considering new products,including customer service.

Question 11

Which of the following would not likely be a perspective of a balanced scorecard for a consumer products retailer?

Accepted Answer

A) Learning and innovation. 
B) Internal processes. 
C) Financial performance. 
D) Customer. 
E) The exploration of space. 
A) Learning and innovation. 
B) Internal processes. 
C) Financial performance. 
D) Customer. 
E) The exploration of space.

Question 12

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:

Accepted Answer

A) Core competency. 
B) Research effectiveness. 
C) Production efficiency. 
D) Cost control effectiveness. 
E) Value-chain analysis. 
A) Core competency. 
B) Research effectiveness. 
C) Production efficiency. 
D) Cost control effectiveness. 
E) Value-chain analysis.

Question 13

When a firm is determining its opportunities and threats,which of the following would not be mentioned?

Accepted Answer

A) An intense rivalry with a local competitor was beginning to start a price war. 
B) The firm just received a patent on its main product. 
C) The success of the firm's latest marketing campaign. 
D) In spite of its patent,there are several substitute products consumers could use. 
E) Increased efficiency in the manufacturing process. 
A) An intense rivalry with a local competitor was beginning to start a price war. 
B) The firm just received a patent on its main product. 
C) The success of the firm's latest marketing campaign. 
D) In spite of its patent,there are several substitute products consumers could use. 
E) Increased efficiency in the manufacturing process.

Question 14

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 balanced scorecard for Gordon Manufacturing with 3-4 perspectives and 3-4 quantitative critical success factors in each perspective.

Accepted Answer

The four perspective

Question 15

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

Accepted Answer

A) Improved automation and a higher output of products. 
B) Benchmarking and total quality management. 
C) Cost cutting and downsizing of personnel. 
D) Improvements in product development. 
A) Improved automation and a higher output of products. 
B) Benchmarking and total quality management. 
C) Cost cutting and downsizing of personnel. 
D) Improvements in product development.

Question 16

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

Accepted Answer

A) The goal of value chain analysis is to find areas where a company can either add value or reduce cost. 
B) The value chain focuses on the entire production process,as well as the sale of the product and service after the sale. 
C) If a company cannot compete in a specific area of the value chain,it might consider the option of outsourcing that portion of the value chain to someone who can perform it better. 
D) Throughout most industries,the most successful firms are the ones that operate within the entire value chain,thereby overseeing every aspect of the value chain for the customer. 
A) The goal of value chain analysis is to find areas where a company can either add value or reduce cost. 
B) The value chain focuses on the entire production process,as well as the sale of the product and service after the sale. 
C) If a company cannot compete in a specific area of the value chain,it might consider the option of outsourcing that portion of the value chain to someone who can perform it better. 
D) Throughout most industries,the most successful firms are the ones that operate within the entire value chain,thereby overseeing every aspect of the value chain for the customer.

Question 17

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

Accepted Answer

A) Cash flow. 
B) Growth in industry productivity. 
C) Sales growth. 
D) Earnings growth. 
E) Reduction in the cost of inventory. 
A) Cash flow. 
B) Growth in industry productivity. 
C) Sales growth. 
D) Earnings growth. 
E) Reduction in the cost of inventory.

Question 18

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

Accepted Answer

A) At the firm as a potential customer. 
B) Inside the firm at its specific resources. 
C) At the firm's competition. 
D) At the firm's product. 
E) Outside the firm from a consultant's perspective. 
A) At the firm as a potential customer. 
B) Inside the firm at its specific resources. 
C) At the firm's competition. 
D) At the firm's product. 
E) Outside the firm from a consultant's perspective.

Question 19

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

Accepted Answer

A) Economic,social,and environmental. 
B) Economic,social,and financial. 
C) Economic,environmental,and political. 
D) Social,environmental,and financial. 
A) Economic,social,and environmental. 
B) Economic,social,and financial. 
C) Economic,environmental,and political. 
D) Social,environmental,and financial.

Question 20

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

Accepted Answer

A) Demographic trends. 
B) Technological advances in the industry. 
C) An efficient process developed by our firm for manufacturing a product. 
D) Changes in regulation of the industry. 
E) Changes in the economic environment facing all industries. 
A) Demographic trends. 
B) Technological advances in the industry. 
C) An efficient process developed by our firm for manufacturing a product. 
D) Changes in regulation of the industry. 
E) Changes in the economic environment facing all industries.

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

Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate target in a strategy map for a public company?

A strategy map is:

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

In SWOT analysis,opportunities and threats are identified by:

Which one of the following is not usually included as a perspective of 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:

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

Value activities can best be defined as:

Which of the following would not likely be a perspective of a balanced scorecard for a consumer products retailer?

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:

When a firm is determining its opportunities and threats,which of the following would not be mentioned?

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

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

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

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

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

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

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters

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

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

Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate target in a strategy map for a public company?

A strategy map is:

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

In SWOT analysis,opportunities and threats are identified by:

Which one of the following is not usually included as a perspective of 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:

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

Value activities can best be defined as:

Which of the following would not likely be a perspective of a balanced scorecard for a consumer products retailer?

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:

When a firm is determining its opportunities and threats,which of the following would not be mentioned?

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

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

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

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

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

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

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters