Multiple Choice Questions

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Chapter 02

Implementing Strategy: The Value Chain, the Balanced Scorecard, and

the Strategy Map

Multiple Choice Questions

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

• At the firm as a potential customer.

• Inside the firm at its specific resources.

• At the firm's competition.

• At the firm's product.

• Outside the firm from a consultant's perspective.

2. In SWOT analysis, opportunities and threats are identified by:

• Consultation with middle management.

• Talking with the rank and file workers.

• Looking outside the firm.

• Brainstorming techniques.

• Reviewing our corporate strategy.

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• Which of the following does not represent a possible opportunity for a manufacturing firm as a

part of SWOT analysis?

• Demographic trends.

• Technological advances in the industry.

• A patent developed by another firm for manufacturing a product.

• Changes in regulation of the industry.

• Changes in the economic environment facing all industries.

4. The balanced scorecard:

• Is not comprehensive, since it doesn't include all the critical success factors which contribute to

competitive success.

• Helps focus managers' attention to bottom line profits.

• Is forward looking, stressing nonfinancial measures that can lead to benefits in the future.

• Fails to reflect environmental and social effects of the firm's operations.

• Is heavily weighted toward the financial critical success factors.

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

employees:

• Can see how it is put together.

• Appreciate all the effort that goes into its preparation.

• Respect management for including them in its formulation.

• Can see how their actions contribute to the success of the firm.

• Do not feel left out.

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6. The Euro is:

• A combination of European nations that cooperate on economic and trade matters.

• A version of Disney World located near Paris.

• A currency used in many European countries.

• A currency used in all European countries.

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

can:

• Justify increases in the price of the product or service.

• Increase value to the customer or reduce cost in some way.

• Outsource production to other producers.

• Improve efficiency

• 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:

• Placing greater emphasis on the value chain

• Moving to an emphasis on upstream activities in the value chain

• Moving to an emphasis on downstream activities in the value chain

• Identifying most profitable customers

• Moving to an emphasis on both the upstream and downstream activities in the value chain

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

financial measure of success?

• Cash flow.

• Growth in industry productivity.

• Sales growth.

• Earnings growth.

• Reduction in the cost of inventory.

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

expense?

• Quality.

• Dealer and distributor efficiency and effectiveness.

• Timeliness of delivery.

• Customer satisfaction.

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

• Financial Performance.

• Tax Reporting.

• Learning and Growth.

• Customer Satisfaction.

• Internal Business Processes.