1. In SWOT analysis, strengths and weaknesses
are most easily identified by looking:
A.
At the firm as a potential customer.
B.
Inside the firm at its
specific resources.
C.
At the firm’s
competition.
D.
At the firm’s product.
E.
Outside the firm from a
consultant’s perspective.
2. In SWOT analysis, opportunities and threats
are identified by:
A.
Consultation with middle management.
B.
Talking with the rank
and file workers.
C.
Looking outside the
firm.
D.
Brainstorming
techniques.
E.
Reviewing our corporate
strategy.
3. Which of the following does not
represent a possible opportunity for a manufacturing firm as a part of SWOT
analysis?
A.
Demographic trends.
B.
Technological advances
in the industry.
C.
An efficient process
developed by our firm for manufacturing a product.
D.
Changes in regulation of
the industry.
E.
Changes in the economic
environment facing all industries.
4. The balanced scorecard:
A.
Is not comprehensive, since it doesn’t
include all the CSFs which contribute to competitive success.
B.
Helps focus managers’
attention to bottom line profits.
C.
Is forward looking,
stressing nonfinancial measures that can lead to benefits in the future.
D.
Fails to reflect
environmental and social effects of the firm’s operations.
E.
Is heavily weighted
toward the financial critical success factors (CSFs).
5. The balanced scorecard can be made more
effective by developing it at a detail level so that employees:
A.
Can see how it is put together.
B.
Appreciate all the
effort that goes into its preparation.
C.
Respect management for
including them in its formulation.
D.
Can see how their
actions contribute to the success of the firm.
E.
Do not feel left out.
6. The Euro is:
A.
A combination of European nations that
cooperate on economic and trade matters.
B.
A version of Disney
World located near Paris.
C.
A currency used in many
European countries.
D.
A currency used in all
European countries.
7. The main objective of value chain analysis is
to identify stages of the value chain where the firm can:
A.
Justify increases in the price of the
product or service.
B.
Increase value to the
customer or reduce cost in some way.
C.
Outsource production to
other producers.
D.
Improve efficiency.
8.
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:
A.
Placing greater emphasis on the value
chain.
B.
Moving to an emphasis on
upstream activities in the value chain.
C.
Moving to an emphasis on
downstream activities in the value chain.
D.
Identifying most
profitable customers.
E.
Finding low-cost
manufacturing locations.
9. With regard to critical success factors,
which one of the following would not be considered a financial measure of
success?
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A. Cash
flow.
B.
Growth in industry
productivity.
C.
Sales growth.
D.
Earnings growth.
E.
Reduction in the cost of
inventory.
10.
Which one of the following critical success customer factors is best measured
by warranty expense?
A.
Quality.
B.
Dealer and distributor
efficiency and effectiveness.
C.
Timeliness of delivery.
D.
Customer satisfaction.
11.
Which one of the following is not usually included as a perspective of
the balanced scorecard?
A.
Financial Performance.
B.
Financial Reporting.
C.
Learning and Growth.
D.
Customer Satisfaction.
E.
Internal Business
Processes.
12.
Which of the following
best describes the type of information that cost management must provide that
is important for the success of the organization?
A.
Information of a record keeping nature.
B.
Reported financial
information.
C.
Reported nonfinancial
information.
D.
Information that
addresses the strategic objectives of the organization.
E.
Long-term planning
information.
13.
After critical success
factors (CSFs) have been identified, the next step in developing a competitive
strategy is to develop relevant and reliable measures for these CSFs. These
measures are important to help the organization:
A.
Make profit for any extended period.
B.
Increase sales above
previous year(s).
C.
Develop policies to
enhance customer profitability.
D.
Improve productivity in
selected product areas.
E.
Monitor progress toward
achieving strategic goals.
14.
A firm has decided to
use the balanced scorecard. Which of the following is not an advantage
the company will gain by using the balanced scorecard?
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A. It
links the firm’s CSFs to its strategy.
B.
It helps the firm
monitor progress to achievement of its strategic goals.
C.
It can provide a basis
for implementing strategic changes desired by the firm.
D.
It provides a
comprehensive financial overview of the firm.
E.
It helps to coordinate
activities in the firm.
15.
During which step of value chain analysis will the company discover whether or
not it has a cost advantage, and why?
A. During
the first step, when the value-chain activities are identified.
B.
During the first step,
when the cost driver(s) are identified.
C.
During the second step,
when the firm develops a competitive advantage by either reducing cost or
adding value.
D.
The entire purpose of
value chain analysis is to determine if the company has a cost advantage;
therefore, it occurs in all steps.
E.
In the third step, when
the company adopts and implements the balanced scorecard.
16.
A local pharmaceutical firm has just
announced its discovery of a revolutionary new drug for dieting. However, due
to its deteriorating relationship with its union, the unionized portions of the
company’s employees have threatened to strike. In addition, the company’s stock
has started to drop due to the firm’s difficulty in paying off some of its
debt. In this example, what was the firm’s core competency(ies)?
A. Its research and development. B. Its
human resources abilities. C. Its financing activities.
D.
Its operating activities.
17.
During the strengths and weaknesses portion of a firm’s SWOT analysis, which of
the following would not be discovered?
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A.
The firm’s method of product distribution was not very efficient.
B.
Through continued research and development, the firm’s products were
state-of-the-art.
C.
Due to a lack of barriers to entry into the industry, several new competitors
were beginning to enter the market. D. The production process needed to be
reengineered to reduce unnecessary scrap.
E.
The firm’s employees are trained in new manufacturing methods each month.
18.
When a firm is determining its opportunities and threats, which of the
following would not be mentioned?
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A.
An intense rivalry with a local competitor was beginning to start a price war.
B. The firm just received a patent on its main product.
C.
The success of the firm’s latest marketing campaign.
D.
In spite of its patent, there are several substitute products consumers could
use. E. Increased efficiency in the manufacturing process.
19.
The declining value of the U.S. dollar relative to other currencies in recent
years means that:
A.
U.S. exporters will face a greater challenge in exporting U.S.-made products.
B. U.S. firms will be eager to buy foreign products.
C.
U.S. firms will be less profitable.
D.
U.S. exporters will have a temporary advantage over other countries in foreign
trade. 20. The cause and effect relationships among critical success factors
are best captured in:
A.
The balanced scorecard B. Business intelligence C. The value chain
D.
The strategy map E. SWOT analysis