Deck 5: Measuring strategic organisation performance

Question 1

The stakeholder approach recognises the long-term interest of not only shareholders but:

A) management, employees, suppliers, customers, debt holders
B) management, employees, customers, suppliers, trade unions
C) competitors, employees, suppliers, customers, bankers
D) government, employees, buyers, suppliers, debt holders

Answer 1

A

Question 2

In the environment area,the main measures that are emerging include:

A) CO2 emissions, greenhouse gas emissions, water use, customer satisfaction
B) CO2 emissions, greenhouse gas emissions, water use, biodiversity reduction
C) greenhouse gas emissions, water use, customer satisfaction, biodiversity reduction
D) greenhouse gas emissions, water use, cost savings, biodiversity reduction

Answer 2

B

Question 3

The set of measures in the 'triple bottom line' is:

A) financial, legal, social
B) political, environmental, technological
C) economic, political, social
D) economic, environmental, external social

Answer 3

D

Question 4

The common factors that all the 'success' studies did NOT include were:

A) all exhibit financial success
B) internal process and strategy implementation are crucial
C) a focus on people, products and performance
D) a focus on a clear strategy that is consistent over time

Question 5

The performance measures for 'not-for-profit' organisations include:

A) net cash flow, break-even, efficiency, customer satisfaction
B) debt cost, quality, break-even, efficiency, capital charge
C) quality, break-even, efficiency, customer satisfaction
D) capital charge, quality, break-even, customer satisfaction

Question 6

Criteria for an organisation to be chosen for the Collins and Porras study did NOT include that it:

A) had to be the premier institution in its industry
B) be widely admired by knowledgeable business people
C) had made an 'indelible imprint' on the world
D) had the same CEO

Question 7

Issues in Hubbard et al.'s critique of 'shareholder value' in measuring strategic success do NOT include:

A) unlisted companies
B) organisations that do not have shareholders
C) reliability of shareholder dividend reinvestment
D) measures of shareholder return to use

Question 8

The 'winning wheel' framework of Hubbard et al.does NOT include:

A) effective execution
B) perfect alignment of systems and procedures
C) looking out, not just looking in
D) managing the upside

Question 9

The set of models for measuring strategic performance reviewed by Hubbard et al.comprises:

A) shareholder returns, stakeholder value, world's best practice, triple bottom line
B) shareholder value, stakeholder value, world's best practice, balanced scorecard
C) shareholder value, stakeholder value, total quality management, triple bottom line
D) shareholder value, stakeholder value, triple bottom line

Question 10

The set of dimensions of the 'performance cube' is:

A) power of buyers, power of suppliers, barriers to exit
B) industry recipe, organisation type, organisation position
C) industry recipe, organisation posture, organisation position
D) inbound logistics, marketing, financial strength

Question 11

The set of four 'perspectives' of the 'balanced scorecard' is:

A) political, environmental, social, technological
B) supplier, customer, internal business, innovation and learning
C) financial, customer, internal business, innovation and learning
D) financial, operational, logistical, research and development

Question 12

Criticisms of In search of excellence by Peters and Waterman did not include that it was:
a. Lacking in objectivity
b. Lacking in clear criteria
c. Biased in its industry coverage
d. Based on sound methodology

Question 13

Organisational performance can be measured against:
A) best country practice, world's best practice, industry ROI, past performance and internal targets

A) sectoral best practice, industry average, past performance and financial targets
B) world's best practice, industry average, past marketing performance and market share
C) best industry practice, world's best practice, industry average, past performance and internal targets

Question 14

The key 'customer measures' of strategic performance include:

A) market share, customer satisfaction, customer loyalty, customer acquisition
B) customer retention, customer satisfaction, customer profitability, customer equity
C) customer retention, customer satisfaction, customer profitability, customer acquisition
D) market share, customer retention, customer satisfaction, customer profitability, customer acquisition

Question 15

Total shareholder return is calculated as the ___ in the share price plus the ___ divided by the ___:

A) change in share price, dividends paid, closing share price
B) increase in total equity, retained earnings, opening share price
C) increase in dividends, taxation paid, return on equity
D) increase in share price, dividends paid, initial share price

Question 16

Peters and Waterman defined 'excellent' companies as:

A) large and continuously innovative
B) specialised and medium sized
C) large US multi-national in services sector
D) large, diversified manufacturing

Question 17

The normal view of 'long terms' now implies:

A) three to five years
B) five to ten years
C) three years
D) more than ten years

Question 18

The best use of performance measurement systems with several variables would be obtained by the development of ___ ___ ___ ___ of relationships between variables:

A) analysis of variance models
B) variance and analysis models
C) cause and effect models
D) sensitivity and polarity models

Question 19

KPI is an acronym for:

A) Kaplan Production Indices
B) Key Performance Indicators
C) Kaplan Performance Indicators
D) Key Production Indicators

Question 20

One aspect of conventional accounting measures which is NOT believed to pose problems for measuring strategic performance is that:

A) accounting measures are historical
B) accrual-based accounting and cash flow modelling are too easily reconciled
C) not all assets are depreciated
D) debt and leasing/outsourcing policies vary

Question 21

Explain the differences between the 'shareholder and stakeholder value approaches' to measuring strategic performance.

Question 22

The studies of 'successful' organisations conclude that financial success is essential for successful organisations.

Question 23

The triple bottom line process involves the measurement of profits,costs and environment.

Question 24

The balanced scorecard has emerged as the most effective and easily applied tool of performance assessment.

Question 25

Market share,innovation and growth are examples of long-term development measures.

Question 26

Since intangibles such as customer satisfaction cannot be measured,they are not important in assessing performance.

Question 27

The 'performance measurement cube' was initially developed by Nolan Nortan of KPMG management consultants.

Question 28

'The balanced scorecard as a business tool for performance assessment is often difficult to implement in organisations.' Comment.

Question 29

The 'performance measurement cube' extends the balanced scorecard approach.

Question 30

The shareholder value approach sees the question of investing as a capital budgeting decision.

Question 31

The 'total shareholder return' approach is more stable in an absolute sense on an annual basis.

Question 32

What conditions limit performance comparisons with the world's best practice? Explain.

Question 33

The balanced scorecard approach rejects the importance of the shareholder value approach.