Accounting Ch 2- Learnsmart

Effective execution of strategy always requires ______.

-a concise, clearly communicated strategy statement -strong management participation -a business approach to management

A strategic tool that can be used to better understand the firm's competitive advantage and linkages with suppliers, customers and other firms is ______ analysis.

value-chain

Which of the following statements are true? -Some BSC measures have a cause-and-effect relationship with other measures. -The BSC is a single document that is presented on a given weekly or monthly cycle -The insights gained from understanding BSC relationships are captured in the strategy map.

-Some BSC measures have a cause-and-effect relationship with other measures. -The insights gained from understanding BSC relationships are captured in the strategy map.

Which of the following statements are correct? -Sustainability may be integrated as a separate perspective in a balanced scorecard. -Economic performance measures change when companies consider sustainability issues. -Many companies now issue sustainability reports to shareholders.

-Sustainability may be integrated as a separate perspective in a balanced scorecard. -Many companies now issue sustainability reports to shareholders.

Fossil fuel use, toxic waste, and ambient air pollution concentrations are all part of the ________ component of sustainability indicators (ESGs). (Enter only one word per blank.)

operational

Which of the following motivates teamwork and enables managers to see how activities contribute to the success of others?

Balanced scorecard

The value chain approach ______.

is for all type of firms

Critical success factors are sometimes called

value propositions

Which of the following is NOT a sustainability social performance indicator?

Hours of environmental training

Worker safety measures, employee volunteering, and contributions to charitable organizations are all part of the _________ component of sustainability indicators (ESGs).

social

The triple bottom line is ________, economic and _________.

social and environmental

The triple bottom line has come to be known as

sustainability

Environmental performance indicators that are the critical success factors in a sustainability perspective include ______.

-operational indicators of stresses to the environment -environmental condition indicators such as ambient air quality

Implementation issues related to the balanced scorecard include ______.

-processes for assuring the accuracy and reliability of the information in the scorecard -a process to ensure that it accurately reflects the organization's strategy -a process for review and modification of the scorecard as the organization's goals and operations change

Potential benefits of the balanced scorecard include ______.

-providing a basis to use in determining manager compensation and advancement -providing a framework to achieve desired organizational strategy change

The balanced scorecard ______.

-rewards managers for achieving critical success factors -assists a firm in achieving a strategy-centered performance measurement system

To effectively implement the balanced scorecard ______.

-strong support of top management is needed -it must be understood and accepted by employees

The analysis of value chain activities can help management ______.

-understand the firm's strategic competitive advantage -identify parts of the value chain for which the firm is not competitive -identify activities where the firm can add value to customers

Which of the following statements is FALSE?

Opportunities and threats are most easily identified by analyzing both the industry and the firm itself.

Which of the following statements is true? -All balanced scorecard measures should be presented on a set time frame (daily, weekly or monthly). -The various balanced scorecard measures should be updated on each one's appropriate time line.

The various balanced scorecard measures should be updated on each one's appropriate time line.

How do Apple Computer, Acer, Seagate, and Nike differ regarding the value chain?

They operate in different phases of the value chain.

As the demand for sustainability reporting has grown, so has the need for sustainability _________, the ability to add verification and credibility to the sustainability reports.

assurance

Key tools in the implementation of strategy include the strategy map and the ________ ________ which provides a comprehensive measurement tool that reflects critical measures for the success of the firm's strategy.

balanced scorecard

Examples of areas where an organization might have opportunities or threats include ______.

barriers to entry bargaining power of customers or suppliers rivalry among competitors

A strategy map is best described as a ______.

cause and effect diagram

Step 2 of value-chain analysis involves developing the firm's ______.

competitive advantage

The "people, planet, and profits" triple-bottom line goals for those pursuing sustainability refer to the company's performance in ______.

economic, social, and environmental performance

The Sustainability Accounting Standards Board provides industry-specific guidance on preparing sustainability reports on _________ , ________ and governance factors.

environmental, social

True or false: In most cases, the development of a strategy is followed directly by success.

false

For most firms, the target of the strategy map is the ______ perspective of the balanced scorecard.

financial

The perspectives of the balanced scorecard include ______.

financial performance customer satisfaction learning and growth

Companies are self-reporting their progress on sustainability by using the framework of the _______ Initiative.

global reporting

The first step in value-chain analysis is to ______.

identify specific value activities firms in the industry must perform

Survey results indicate that many CEO's feel sustainability should be a "top 3" priority for their firms to ______.

improve the company's reputation reduce costs align strategy, missions, and goals

Strengths and weaknesses are most easily identified by looking ______ the firm.

inside

For a cost leadership firm, a competitive strategy requires ______.

intense supervision of labor process engineering skills tight cost control

SWOT analysis identifies a firm's Blank______.

internal strengths and weaknesses and external opportunities and threats

Examples of areas where an organization might have a strength or weakness include ______.

operations research and development management

An important step in performing a value-chain analysis is to use the value chain to identify ______.

opportunities to add value or to reduce cost

For a differentiation firm, a competitive strategy requires ______.

product engineering strong coordination among functions

The balanced scorecard should both help implement and reflect an organization's

strategy

A comprehensive performance measurement tool that reflects the measures critical to the success of the firm's strategy and provides a means for aligning performance measures to the strategy is ______.

the balanced scorecard

Recent surveys show that ______ chief executives see sustainability as playing a key role in their corporate strategy.

the majority of

In order to achieve effective execution of strategy ______.

the strategy must be aligned with action

True or false: Because it is designed to help implement strategy, the balanced scorecard should also reflect strategy.

true

True or false: What some managers view as a strength, other managers may view as a weakness.

true

Product development and linkage with suppliers is part of the ________ phase of the value chain, while the _________ phase refers to linkages with customers

upstream and downstream

The three main phases of the value chain, in sequence, are

upstream, operations and downstream

The actions that firms in an industry must perform in the process of designing, manufacturing, and providing customer service are called

value activities