Strategic Management Quiz 9 Exam 1

_____ is best described as a process in which a group of people voluntarily performs tasks that were traditionally completed by a firm's employees. a. Crowdsourcing b. Bootstrapping c. Outsourcing d. Amalgamating

a. Crowdsourcing

Which of the following statements is true of the balanced scorecard? a. It attempts to provide a holistic perspective on firm performance. b. It is one of the traditional approaches of measuring firm performance. c. Its primary focus is to base a firm's strategic goals entirely on external performance dimensions. d. It is a more or less a one-dimensional metric of measuring competitive advantages of a firm.

a. It attempts to provide a holistic perspective on firm performance.

Which of the following frameworks used to measure competitive advantage relies on both an internal and an external view of a firm? a. The balanced scorecard model b. The accounting profitability model c. The shareholder value creation model d. The economic value creation model

a. The balanced scorecard model

Which of the following is an advantage of a triple-bottom line approach? a. The approach is more of a quantitative performance metric rather than a mere conceptual framework. b. The approach takes an integrative and holistic view in assessing a company's performance. c. The approach does not rely on an external view of a firm to assess its performance.

b. The approach takes an integrative and holistic view in assessing a company's performance.

The tenet behind the triple bottom line is that: a. a firm's primary objective should be increasing the total returns to its shareholders. b. a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy. c. a firm should solely focus on increasing the economic value created to/for its customers. d. a firm's return on revenue can be broken down into three ratios: COGS/Revenue, R&D/Revenue, and SG&A/Revenue.

b. a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy.

Janet is a 23-year-old employee at DR Products Inc. As a millennial, she will tend to: a. view superior financial performance as the sole objective of her firm. b. expect her company to be socially responsible. c. be much more like Generation Xers than Baby Boomers. d. work for companies with values that are contradictory to her own values.

b. expect her company to be socially responsible.

A defining characteristic of the subscription-based business model is that the: a. basic features of a product or service are provided free of charge, but the user must pay for premium services such as advanced features or add-ons. b. user pays for access to a product or service whether he or she uses it during the payment term or not. c. user pays for only the services he or she consumes. d. initial product is often sold at a loss or given away for free in order to drive demand for complementary goods.

b. user pays for access to a product or service whether he or she uses it during the payment term or not.

When using the balanced scorecard approach to assess a firm's performance, which of the following is NOT a key question that managers need to answer? a. How do customers view us? b. What core competencies do we need? c. How do shareholders view us? d. How do we reduce the economic value created?

d. How do we reduce the economic value created?

Which of the following is NOT an advantage of the balanced scorecard approach to assess firm performance? a. It provides a concise report that tracks chosen metrics and measures and compares them to target values. b. It allows managers to communicate and link the strategic vision to responsible parties within an organization. c. It helps managers to implement feedback and organizational learning in order to modify and adapt strategic goals when indicated. d. It is a tool which can be effectively used by managers for both strategic implementation and strategic formulation.

d. It is a tool which can be effectively used by managers for both strategic implementation and strategic formulation.

Which of the following statements is true of the triple bottom line? a. According to this approach, achieving positive results in any one of the dimensions, economic, social, and ecological, can lead to a sustainable strategy. b. Its primary focus is to base a firm's strategic goals entirely on external performance dimensions. c. It is more or less a one-dimensional metric of measuring competitive advantage of a firm. d. Three dimensions, economic, social, and ecological, make up the triple bottom line.

d. Three dimensions, economic, social, and ecological, make up the triple bottom line.