Tutorial 10 PDF

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Tutorial Review Questions with Solution on
Topic 10: Strategy, Balanced Scorecard, and Strategic Profitability Analysis...

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Tutorial Review Questions - Solution Topic 10: Strategy, Balanced Scorecard, and Strategic Profitability Analysis Multiple Choices: 1) ________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors. A) Strategy B) Product differentiation C) Cost leadership D) The balanced scorecard 2) ________ refers to an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. A) Marketing strategy B) Product differentiation C) Cost leadership D) Competitor differentiation 3) An organization that is using the product differentiation approach would ________. A) focus on tight cost control B) use innovative research and development C) provide products that are similar to competitors D) offer products at a lower cost than competitors 4) An organization that is using the cost leadership approach would ________. A) incur costs for innovative R&D B) provide products at a higher cost than competitors C) focus on productivity through efficiency improvements D) bring products to market rapidly 5) Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition. Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy. Stewart's strategy is ________. A) product differentiation B) downsizing C) product leadership D) cost leadership 6) Terbium Corporation manufactures water toys. It plans to grow by producing high-quality water toys that are delivered in a timely manner. There are a number of other manufacturers who produce similar water toys. Terbium believes that continuously improving its manufacturing processes and reengineering processes to downsize and eliminate excess capacity are critical to implementing its strategy. Out of the two basic strategies, Terbium's strategy is ________. A) product differentiation B) product leadership C) cost differentiation D) cost leadership

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7) ________ 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. A) Strategy B) Product differentiation C) Product designing D) Reengineering 8) ________ translates an organization's mission and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy. A) Performance scoreboard B) Product differentiation C) Differential report D) Balanced scorecard 9) A ________ is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the balanced scorecard perspectives. A) value diagram B) balanced scoreboard C) strategic scorecard D) strategy map 10) Which of the following statements is true of a balanced scorecard? A) The balanced scorecard reduces managers' emphasis on long-run financial performance. B) The balanced scorecard reduces managers' emphasis on short-run financial performance. C) The primary goal of using the balanced scorecard is to sustain short-run financial performance. D) The primary goal of using the balanced scorecard is to sustain short-run nonfinancial performance. 11) Which of the following statements best relates to the balanced scorecard's financial perspective? A) How can we obtain greater profits for the current year? B) How can we increase shareholder value? C) How will we obtain continuous improvements? D) How can we secure greater customer satisfaction? 12) Which of the following statements best relates to the balanced scorecard's internal business processes perspective? A) How do we lower costs? B) How do we motivate employees? C) How can we obtain greater profits? D) How processes will increase value to customers? 13) Which of the following statements best relates to the balanced scorecard's learning and growth perspective? A) How will we empower our employees? B) How do we lower costs? C) What processes will increase value to customers? D) How can we obtain greater profits? 14) Which of the following statements is true of successfully implementing a balanced scorecard? A) External auditors should design and implement the balanced scorecard. B) Balanced scorecard should never be communicated to all employees. C) Balanced scorecard should be formed exclusively by top management. D) Management accountants should determine the balanced scorecard measures.

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15) The operating capabilities is an example of the ________ measure of a balanced-scorecard. A) internal business process perspective B) customer perspective C) learning and growth perspective D) financial perspective 16) The employee turnover rates is an example of the ________ measure of a balanced-scorecard. A) internal business process perspective B) customer perspective C) learning and growth perspective D) financial perspective

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