ch13tif - CHAPTER 13: STRATEGY, BALANCED SCORECARD, AND...

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Unformatted text preview: CHAPTER 13: STRATEGY, BALANCED SCORECARD, AND STRATEGY 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 2. A product differentiation strategy includes offering unique and superior products for increased prices. Answer : True Difficulty : 1 Objective : 1 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 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 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 In general, profit potential decreases with greater competition, stronger potential entrants, products that are similar, and tougher customers and suppliers. 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 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 Reengineering benefits are most significant when they cut across functional lines to focus on the entire business process. Chapter 13 Page 1 8. Successful reengineering efforts generally involve changing the roles and responsibilities of employees. Answer : True Difficulty : 2 Objective : 2 9. The primary purpose of the balanced scorecard is to obtain increased operating profits for the current year. Answer : False Difficulty : 2 Objective : 3 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. Answer : True Difficulty : 2 Objective : 3 11. One valuable measure of the customer perspective of the balanced scorecard is market share. Answer : True Difficulty : 2 Objective : 3 12. The learning and growth perspective of the balanced scorecard evaluates the profitability of the strategy....
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This note was uploaded on 04/29/2011 for the course ACCT 3001 taught by Professor Erickson during the Spring '10 term at University of Minnesota Duluth.

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ch13tif - CHAPTER 13: STRATEGY, BALANCED SCORECARD, AND...

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