Deck 4: Internal Strategic Audit

Question 1

Strengths are positive attributes unique to the organization's ability to specifically achieve its objectives and gain profits.

Answer 1

False

Question 2

Distinct competence is the strength enjoyed by an organization, which clearly sets it apart from its strategic group.

Answer 2

False

Question 3

Internal Factor Evaluation (IFE) Matrix summarizes the firm's internal strengths and weaknesses by functional areas.

Answer 3

True

Question 4

McKinsey's 7-S Framework is a diagnostic tool for an organization's external environment.

Question 5

The Balanced Scorecard is a performance tool that enables a company to translate its vision and strategy into a tangible set of performance measures.

Question 6

Executives cannot view a company from several perspectives at the same time, but implementing the Balanced Scorecard can help to track the current performance.

Question 7

The financial perspective of the Balanced Scorecard is gauged by the measures of stakeholder value.

Question 8

Primary activities are represented by five important categories: inbound logistics, operations, outbound logistics, marketing and sales, and service.

Question 9

External strategic audit helps digital marketers to discover, categorize, analyze, and evaluate all the social media data towards a brand /product/service.

Question 10

While formulating a strategy, organizations must pay explicit attention to the financial analysis only.

Question 11

Alfred Chandler argues that strategy determines the structure and the environment within which a firm operates.

Question 12

Functional structure requires the organization to develop specific geographical regions of their market, and each region includes the functions necessary to produce and market the products.

Question 13

Matrix structure establishes dual reporting relationships.

Question 14

In an era of corporate downsizing and rapid change, geographical structure allows for maximum flexibility and lean administration.

Question 15

Corporate culture comprises the philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together and are followed by the stakeholders.

Question 16

Artifacts are the visible and tangible results of activity grounded in values and assumptions.

Question 17

Advertising, entertainment, and consulting companies mostly follow Bet-your-company culture.

Question 18

Leverage ratios measure the extent to which the company utilizes debt financing in its operations.

Question 19

Profit margin is computed by measuring the rate of return earned on the assets of the company.

Question 20

Mc-Kinsey 7S framework is a holistic view of a business, especially a diagnostic tool for an organization's internal environment. It remains a useful tool to review the operational effectiveness and to determine how to best align to support the strategic direction of any industry.

Question 21

Organizations' strategies always follow their respective structure.

Question 22

A strategic business unit is categorized under divisionalized structure.

Question 23

Regardless of their sizes, all organizations have an active Research and Development function.

Question 24

In general, creditors will rarely tend to prefer a moderate debt ratio.

Question 25

____________ is the strength enjoyed by an organization that clearly sets it apart from its competitors.

A) Firm infrastructure
B) Distinctive competence
C) Autonomy
D) Product line

Question 26

The hard elements of the 7-S framework are:

A) Structure, Skills, Systems
B) Structure, Strategy, Systems
C) Staff, Style, Systems
D) Shared Values, Structure, Strategy

Question 27

The soft elements of the 7-S Framework are:

A) Structure, Staff, Style, Shared Values
B) Systems, Style, Strategy, Skills
C) Skills, Staff, Style, Shared Values
D) Skills, Staff, Style, Systems

Question 28

Balanced Scorecard is a _____________ and management approach.

A) Strategy framework
B) Human resource framework
C) Business performance measurement
D) Logistics measurement

Question 29

__________ perspective of the Balanced Scorecard reflects that a business needs to be able to continually improve its capabilities for effectively operating, sustaining, and adapting business processes.

A) Financial
B) Customer
C) Internal Business Process Perspective
D) Learning and Growth Perspective

Question 30

Porter's value chain model divides the organization into:

A) Primary activities and secondary activities
B) Primary activities and support activities
C) Management activities and Service activities
D) Logistics and Operations

Question 31

___________ should be thought of as the difference between the total value and the cost of performing the value activities involved.

A) Margin
B) Cost Allocation
C) Value Allocation
D) Monetary Logistics

Question 32

_________ valuation of a firm is a well-accepted measure of its ability to be (and remain) competitive, as well as its attractiveness to investors.

A) Stock
B) Marketing
C) Financial
D) Brand

Question 33

Alfred Chandler explains that changes in the ________ necessitates changes in the ________.

A) Strategy, structure
B) Environment, structure
C) Structure, strategy
D) Management, network

Question 34

A major strength of the functional structure, which becomes one of the most potentially serious weaknesses of the product structure, when various product/service divisions represent one product/service is ____________.

A) Loss of profits
B) Loss of market share
C) Loss of economies of scale
D) Loss of management formation

Question 35

___________ is a situation in which various structural components are achieved simultaneously.

A) Financial evaluation
B) Strategic Business Unit
C) Matrix structure
D) Internal Factor Evaluation (IFA) Matrix

Question 36

The appropriateness of the matrix structure depends upon:
(i) Pressure exists to share scare resources across product lines;
(ii) Environmental pressure exists for two or more critical outputs;
(iii) Environmental context of the organizations is both simple and certain.

A) All of the above
B) i and iii
C) ii and iii
D) i and ii

Question 37

_________ structure allows maximum flexibility and lean administration.

A) Functional structure
B) Geographical structure
C) Product structure
D) Network structure

Question 38

___________ is when Apple makes a contract with LG to manufacture the touch screen display panel for iPhone 5.

A) Outsourcing
B) Networking
C) Outbound logistics
D) Inbound logistics

Question 39

Culture exists simultaneously on three levels:

A) Basic assumptions, artifacts, faith
B) Basic assumptions, values, artifacts
C) Geography, values, artifacts
D) Basic assumptions, values, social principles

Question 40

Which company type falls under the work-hard, play-hard culture?

A) Government agencies
B) Architectural firms
C) Real estate offices
D) Surgery

Question 41

_________ ratios indicate the effectiveness of the company in utilizing their resources.

A) Current ratio
B) Quick ratio
C) Return on investment
D) Activity ratio

Question 42

If the resulting percentage for either of the ____________ ratios is ____________than the average for the industry, there is potential cause for alarm from a control perspective.

A) Profitability, higher
B) Profitability, lower
C) Leverage, higher
D) Activity, higher

Question 43

The resulting number from __________ tells you the average elapsed time in days between the sale and the collection of cash.

A) Inventory turnover
B) Current ratio
C) Profitability ratio
D) Average collection period

Question 44

Network structure is an organization built around alliances with other ____________.

A) Organizations
B) Units
C) Departments
D) All of the above

Question 45

In a ___________, the organization revolves around organizational outputs such as products or services, and tends to be best suited to environments which experience moderate to high uncertainty and change.

A) Strategic Business Unit
B) Product structure
C) Functional structure
D) Geographical structure
E) Network structure

Question 46

In situations where the organization operates in a relatively stable environment with little uncertainty, the _________ is most effective.

A) Network structure
B) Product structure
C) Geographical structure
D) Functional structure

Question 47

___________ is concerned with the collection, analysis, and communication of financial information for the firm.

A) Finance
B) Accounting
C) Finance structure
D) Operations

Question 48

__________ helps digital marketers to discover, categorize, analyze, and evaluate all the social media data towards a brand/product/service.

A) Brand Management
B) Marketing department
C) Social media audit
D) Digital Communications

Question 49

Among of the following options: (i) Inbound and Outbound logistics; (ii) Operations; (iii) Service; (iv) Technology
Which of them belong to the primary activities of the value chain?

A) i, ii, iii
B) i, ii, iv
C) ii, iii, iv
D) All of the above

Question 50

"Corporate culture is similar to a glue that helps the company stay together." In the light of this statement, explain the significance of corporate culture for the survival of an organization and identify a few of the factors important to establish a strong corporate culture.

Question 51

Explain the role of an Internal Factor Evaluation (IFE) Matrix in determining the strategic position of an organization.

Question 52

"For a number of reasons, strengths may, over time, become weaknesses and a distinctive competence, or a strength of virtually any kind, is not forever." Critically evaluate the statement with real examples.

Question 53

In such a rapidly changing corporate world, assess the importance of performance tools like Balanced Scorecard (BSC) in achieving competitive advantage and sustaining distinctive competencies.

Question 54

Explain Porter's value chain approach and its relevance to SWOT analysis.

Question 55

In your opinion, which of the organizational structures would be the most appropriate in the current business world? Elaborate by taking into consideration two factors: fierce competition, and globalization.

Question 56

"Different companies may have different policies for recording the same accounting transaction. This means that comparing the ratio results of different companies may be like comparing apples and oranges." List the pros and cons of financial ratio analysis and discuss its impact in strategic planning process of an organization.

Question 57

Is the strategy a determinant of the structure or it goes the opposite way? Comment and elaborate with examples.