BUSI 601 Cost Accounting Chapter 2

Implementation issues related to the balanced scorecard include:

-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 -processes for assuring the accuracy and reliability of the information in the scorecard.

survey results indicate that the most common reasons that companies choose to adopt sustainability include:

-access to new markets -reduced costs -improved brand reputation p.48

The balanced scorecard

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

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

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

The perspective of the balanced scorecard include:

-financial performance -customer satisfaction -learning and growth (also internal process perspective) p. 42

Which of the following statements about the value chain is correct?

a company need not operate in all activities of the value chain.

Industries with the greatest commitment to sustainability include:

construction and automakers p. 48 (also included are: large retailers, energy and utilities, chemicals, industrial goods and consumer products)

For a differentiation firm, a competitive strategy requires:

strong coordination among functions product engineering P. 38 (box)

To effectively implement the balanced scorecard:

strong support of top management is needed. it must be understood and accepted by employees. p. 43

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

The five steps of strategic decision making for CIC manufacturing co. are done within the context of:

value-chain analysis p.40

Effective execution of strategy always requires

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

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

Balanced scorecard p.41

Opportunities and threats in Strength-Weaknesses-Opportunities-Threats (SWOT) analysis can be identified most readily by:

analyzing the industry and the organization's competitors

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. p. 42

Critical Success Factors are sometimes called _________________ ______________

value propositions

The first step in the value-chain analysis is to identify:

specific value activities firms in the industry must perform

The analysis of value chain activities can help management:

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

The analysis of value chain activities can help management:

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

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 p.48

Key indicators of the growing importance of sustainability in managing an organization include:

-worldwide safety issues -shareholder pressure on corporations -climate change p.47

Independent verification of the validity of sustainability measures is provided by:

B Lab p.49

What does it mean for the balanced scorecard to "reflect strategy"?

One should be able to infer an organization's strategy from the balanced scorecard.

Which of the following statements is false: -suppliers can be a threat for a firm. -Demographic Changes could produce significant advantages or disadvantages for a firm -technological changes can sometimes be unfavorable for a company. -opportunities and threats are most easily identified by analyzing both the industry and the firm itself.

Opportunities and threats are most easily identified by analyzing both the industry and the firm itself. (this is done by analyzing the competitors of the firm)

The key tools used by management accountants to implement strategy include:

SWOT analysis and Value Chain analysis

The term SWOT means:

Strengths, weaknesses, opportunities, threats

Environmental measures that are used in sustainability reporting are often provided by:

The World Resources Institute p.48

which of the following statements is FALSE: -A study of the firm's business process is needed to help with the development of quantitative measures of progress. -SWOT analysis guides strategic analysis by focusing on strengths, weaknesses, opportunities and threats critical to company success -the first step in SWOT analysis is to identify quantitative measures for the critical success factors that are crucial to the firm. -Critical success factors represent processes in the firm that deliver value to the customer.

The first step in SWOT analysis is to identify quantitative measures for the critical success factors that are crucial to the firm. (this is the last step) p.36

A company taking a strategic and customer-centered point of view can best address sustainability, a concern for environmental and social as well as economic performance through:

The use of sustainability perspective in the balanced scorecard.

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

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

How do Apple computer, Acer, Seagate, and Nike differ regarding Value Chain?

They operate in different phases of the value chain.

a strategy map is best described as:

cause and effect diagram

skills a firm employs especially well are called:

core competencies

the "people, planet, and profits" triple-bottom line goals for those pursuing sustainability refer to the company's performance in the following areas:

economic performance, social performance, and environmental performance.

The following strategy implementation technique can be particularly enhanced by using benchmarking, as for example, participating in the Malcolm Baldridge national Quality Program.

execution

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

false

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

financial

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

hours of environmental training. p.49

For a cost leadership firm, a competitive strategy requires:

intense supervision of labor process engineering skills tight cost control

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

operations management research and development

An important step in performing value-chain analysis is to use the value chain to identify:

opportunities to add value or reduce cost p. 38

As a supplement to the balanced scorecard, the main role of the strategy map is to:

show how the achievement of goals in each perspective affect goal achievement in other perspectives. p. 45

Step 2 of value chain analysis involves identifying the firm's :

strategic competitive advantage p.40

Match each phrase on the left with the appropriate concept on the right

strengths and weaknesses - identified by looking inside the firm opportunities and threats - identified by looking external to the organization

The triple bottom line (social, economic and environmental) is known as ____________________

sustainability p.47

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 p.41

In order to achieve effective execution of strategy:

the strategy must be aligned with action.

The __________ phase of the value chain includes product development and linkage with suppliers while the _______________ phase refers to linkages with customers.

upstream and downstream p. 39

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

value activities p.39

which of the following is an important method for implementing strategy?

value chain analysis