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66.
Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a
complete guide to study companies.
67.
Leverage ratios provide measures of the capacity of a firm to meet its long-term financial obligations.
68.
Historical comparisons are most appropriate during periods of recession or economic boom.
69.
When using industry norms as a standard of comparison, managers must be sure that the firms used in
the comparisons are representative of all sizes and strategies within the industry.
70.
The current ratio is used to measure long-term solvency.
71.
The price-earnings ratio is used to measure profitability.
72.
The total debt ratio is used to measure profitability.
73.
Inventory turnover is a measure of asset utilization.
74.
The profit margin ratio is used to measure long-term solvency.
75.
The return on assets ratio is used to measure short-term solvency of the firm.
76.
A meaningful ratio analysis need only include how ratios change over time.
77.
When using industry norms as a standard of comparison, managers must be sure that the firms used in
the comparisons are representative of all sizes and strategies within the industry.
78.
When evaluating the financial performance of a firm, it is important to compare the results with industry
norms.
79.
A primary benefit of the balanced scorecard is that it complements financial indicators with operational
measures of customer satisfaction, internal processes, and the innovation and improvement activities of
the organization.
80.
The balanced scorecard enables managers to evaluate their business from only two perspectives:
customer and financial.
81.
An important implication of the balanced scorecard is that managers need not look at their job as
primarily balancing stakeholder demands.
82.
A strength of the balanced scorecard is that it is very easy to implement and that there is little need for
executive sponsorship.
83.
In considering the business from the innovation and learning perspective using the balanced scorecard,
the ability of the firm to do well is more dependent on its intangible and tangible assets.
84.
In considering the business from the customer perspective using the balanced scorecard, company
performance is essential.
85.
In considering the business from the internal business perspective using the balanced scorecard,
customer-based measures must be translated into indicators of what the firm must do internally to meet
customer expectations.
86.
In considering the business from the internal business perspective using the balanced scorecard, periodic
financial statements are used to indicate the consequences of improved quality, response time,
productivity, and innovative products. These consequences include improved sales.
87.
For the balanced scorecard to work, managers must articulate goals for five categories of customer
concerns: time, quality, performance and service, cost, and design.
88.
Excellent customer performance results from processes, decisions, and actions that occur only in the
marketing efforts of the firm.
89.
To survive and prosper, managers must not make frequent changes to existing products and services,
because it will confuse the customer.
90.
The ability of a firm to do well from an innovation and learning perspective is most dependent on its
tangible assets.
91.
For the balanced scorecard implementation to be effective, a set of rules for employees that address
continuous process improvement and the personal improvement of individual employees needs to be
established so that employees buy-in to the change.
Multiple Choice Questions
92.
Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunities, and
Threats) analysis?
93.
Which of the following is a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats)
analysis?
94.
A key __________ of SWOT is that it is primarily a static assessment.
95.
Strategists who rely on traditional definitions of their industry and competitive environment often focus
their sights too ___________ on current customers, technologies, and competitors.
96.
Company __________, no matter how unique or impressive, may not enable it to achieve a competitive
advantage in the marketplace.
97.
Sometimes firms become preoccupied with _________ or a key feature of the product or service they
are offering and ignore other factors needed for competitive success.
98.
__________ among organizations is played out over time.
99.
Focusing too narrowly on current customers, technologies, and competitors can lead to a failure to
notice important changes on the periphery of their environment that may trigger the need to redefine
industry boundaries and identify a whole new set of competitive relationships. This is a result of relying
100.
Toyota, the giant automaker, paid a heavy price for its ___________ emphasis on cost control. The
resulting problems with quality and the negative publicity led to severe financial losses and an erosion
of its reputation in many markets.
101.
Competition among organizations is played out over time. As circumstances, capabilities, and strategies
change, _________ techniques do not reveal the dynamics of the competitive environment.
102.
A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain
over time.
103.
Inbound logistics include
104.
In assessing its primary activities, an airline would examine
105.
Advertising is a __________ activity. Supply of replacement parts is a __________ activity.
106.
Which of the following examples demonstrates how successful organizations manage their primary
activities?
107.
Which of the following is not an advantage of Just-In-Time inventory systems?
108.
XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing
idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system.
109.
___________ is/are associated with collecting, storing, and distributing the product or service to buyers.
They consist of warehousing, material handling, delivery operation, order processing, and scheduling.
110.
Customer service includes
111.
Which of the following is a support activity?
112.
Which of the following lists consists of support activities?
113.
Human resource management consists of activities involved in the recruiting, hiring, training,
development, and compensation of all types of personnel. It supports
Topic: Value-Chain Analysis
114.
According to value-chain analysis, which of the following would be considered part of the general
administration in a firm?
115.
A marketing department that promises delivery faster than the ability of the production department to
produce is an example of a lack of understanding of the
116.
In a retail service industry, which of the following is not a primary value-chain activity?
117.
In terms of value chain analysis, a telephone operating company would find that negotiating and
maintaining ongoing relations with regulatory bodies are important activities for achieving
118.
General administration is sometimes viewed as only _______ but can be a powerful source of
competitive advantage.
119.
German truck and trailer manufacturer, Schmitz Cargobull, mainly serves customers that are operators
of truck or trailer fleets. What sets the company apart is its expertise in telematics (the integrated
application of telecommunications data) to monitor the current state of any Schmitz Cargobull-produced
trailer. This is an example of using ________ to enhance customer value and increase _______
position.
120.
In an interview with Lise Saari, former director of global workforce research at IBM, she notes that HR
must be a true partner of the business, with a deep and up-to-date understanding of business realities and
objectives, and must ensure HR initiatives fully support them at all points of the value chain. This is an
example of
121.
Regarding the value-chain concept, the most important interrelationship is between the organization and
its
122.
In contrast to __________ interactions, which allow the firm to gain insights on the needs of a particular
customer, ___________ offers the opportunity to leverage the wisdom of a larger crowd.
123.
In using crowdsourcing as a means to integrate the customer into the value chain, there are some perils
to consider. Which of the following is not related to crowdsourcing perils?
124.
Accounting is a sort of transformation process that converts daily records of individual transactions into
monthly financial reports. The __________ are the inputs, accounting is the operation that adds value,
and ___________ are the outputs.
125.
A travel agent adds value by creating an itinerary that includes transportation, accommodations, and
activities that are customized to your budget and travel dates. In terms of the value chain analysis, this is
an example of a ____________ organization.
