Strategic and Profitability Analysis

Strategic and Profitability Analysis - STRATEGY BALANCED...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS TRUE/FALSE 1. Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : strategy 2. A product differentiation strategy includes offering unique and superior products for increased prices. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : product differentiation 3. The cost leadership strategy is for products and services that are similar to competitor’s products and services. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : cost leadership 4. The product differentiation strategy is probably best for a company if the engineering staff is more skilled at making process improvements than at creatively designing new products. Answer : False Difficulty : 2 Objective : 1 Terms to Learn : product differentiation The cost leadership strategy is probably best for a company if the engineering staff is more skilled at making process improvements than at creatively designing new products. 5. In general, profit potential increases with greater competition, stronger potential entrants, products that are similar, and tougher customers and suppliers. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : five force industry analysis In general, profit potential decreases with greater competition, stronger potential entrants, products that are similar, and tougher customers and suppliers. 13-1 6. Reengineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost, quality, service, speed, and customer satisfaction. Answer : True Difficulty : 1 Objective : 2 Terms to Learn : reengineering 7. Reengineering benefits are most significant when they focus on one business function rather than crossing functional lines of the business process. Answer : False Difficulty : 2 Objective : 2 Terms to Learn : reengineering Reengineering benefits are most significant when they cut across functional lines to focus on the entire business process. 8. Successful reengineering efforts generally involve changing the roles and responsibilities of employees. Answer : True Difficulty : 2 Objective : 2 Terms to Learn : reengineering 9. The primary purpose of the balanced scorecard is to obtain increased operating profits for the current year. Answer : False Difficulty : 2 Objective : 3 Terms to Learn : balanced scorecard The primary purpose of the balanced scorecard is to implement both short-run and long-run strategies. 10. To achieve success, it is important to set nonfinancial objectives as well as financial objectives....
View Full Document

This note was uploaded on 06/03/2010 for the course ACCT Acct7107 taught by Professor Dralastair during the Three '10 term at Griffith.

Page1 / 44

Strategic and Profitability Analysis - STRATEGY BALANCED...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online