Question 1

A firm has decided to use the balanced scorecard.Which of the following is not an advantage the company will gain by using the balanced scorecard?

Accepted Answer

A) It links the firm's CSFs to its strategy. 
B) It helps the firm monitor progress to achievement of its strategic goals. 
C) It can provide a basis for implementing strategic changes desired by the firm 
D) It provides a comprehensive financial overview of the firm. 
E) It helps to coordinate activities in the firm

Question 2

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 satisfaction. 
E) Research and development.

Question 3

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.

Question 4

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

Accepted Answer

A) Service firms. 
B) Not-for-profit organizations. 
C) Manufacturing firms. 
D) All types of organizations can benefit from value chain analysis.

Question 5

In terms of strategic cost management for not-for-profit organizations, which of the following is false?

Accepted Answer

A) Not-for-profit organizations can benefit from strategic cost management since they must prove their effectiveness and efficiency to a number of different stakeholders. 
B) The balanced scorecard can be used to measure the organization's performance. 
C) Value chain analysis can be used for analyzing the organization's product design, product testing, advertising, and production processes. 
D) SWOT analysis is most helpful for non-profit organizations when it deals with the organization's competitive threats, opportunities, and critical success factors.

Question 6

The financial critical success factor of profitability can be measured by:

Accepted Answer

A) Community service activities. 
B) Customer returns and complaints. 
C) Number of product defects. 
D) Number of design changes. 
E) Earnings from operations.

Question 7

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.

Question 8

A major U.S. automaker from 1902 to 1966, Studebaker Corp. prospered in the late 1940s and into the 1960s. 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.

Accepted Answer

The answer of A major U.S. automaker from 1902 to...

Question 9

Which of the following is not a term used for a phase of the value chain?

Accepted Answer

A) Operations. 
B) Upstream. 
C) Downstream. 
D) Marketing.

Question 10

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

Accepted Answer

A) Quality. 
B) Dealer and distributor efficiency and effectiveness. 
C) Timeliness of delivery. 
D) Customer satisfaction.

Question 11

The Euro is:

Accepted Answer

A) A combination of European nations that cooperate on economic and trade matters. 
B) A version of Disney World located near Paris. 
C) A currency used in many European countries. 
D) A currency used in all European countries.

Question 12

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:

Accepted Answer

A) Make profit for any extended period. 
B) Increase sales above previous year(s). 
C) Develop policies to enhance customer profitability. 
D) Improve productivity in selected product areas. 
E) Monitor progress toward achieving strategic goals.

Question 13

Which of the following is not a critical success factor?

Accepted Answer

A) Financial factor. 
B) Learning and growth. 
C) Governmental relations. 
D) Brand recognition.

Question 14

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.

Question 15

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

Accepted Answer

A) The liquidity crisis and sub-prime loan scandals. 
B) The global economic recession. 
C) The increased use of value chain analysis. 
D) The increased concern about climate change. 
E) The increased use of the balanced scorecard.

Question 16

The balanced scorecard can be made more effective by developing it at a detail level so that employees:

Accepted Answer

A)  Can see how it is put together. 
B)  Appreciate all the effort that goes into its preparation. 
C)  Respect management for including them in its formulation. 
D)  Can see how their actions contribute to the success of the firm. 
E)  Do not feel left out.

Question 17

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.

Question 18

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.

Question 19

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.

Question 20

All of the following are required resources for differentiation except:

Accepted Answer

A) Product engineering. 
B) Corporate reputation for quality. 
C) Intense supervision of labor. 
D) Strong marketing capability.

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