Podcast
Questions and Answers
What is the primary purpose of stakeholder classification using the ICE mnemonic?
What is the primary purpose of stakeholder classification using the ICE mnemonic?
- To identify stakeholders who are able to affect the organization’s activities (correct)
- To understand the dynamics of stakeholder influence on a strategic decision
- To evaluate the suitability of a proposed strategy
- To prioritize stakeholders based on their power and interest
What is the recommended management strategy for dealing with stakeholders who have high interest but low power?
What is the recommended management strategy for dealing with stakeholders who have high interest but low power?
- Keep Informed (correct)
- Keep Satisfied
- Minimal Effort
- Treat as a Key Player
What is the definition of a stakeholder?
What is the definition of a stakeholder?
- A group or individual who is affected by or can affect the organization’s activities (correct)
- A group or individual who is affected by the organization’s activities
- A group or individual who can affect the organization’s activities only
- A group or individual who is not affected by the organization’s activities
What is an incremental budget?
What is an incremental budget?
What is the purpose of stakeholder mapping?
What is the purpose of stakeholder mapping?
Which statement about the participation of junior management in the budget setting process is NOT true?
Which statement about the participation of junior management in the budget setting process is NOT true?
What is the primary purpose of an organization's strategy?
What is the primary purpose of an organization's strategy?
What type of linkages deal with the impact of strategy implementation on strategy formulation?
What type of linkages deal with the impact of strategy implementation on strategy formulation?
What is the key characteristic of an emergent corporate strategy?
What is the key characteristic of an emergent corporate strategy?
What happens to emergent strategies over time?
What happens to emergent strategies over time?
What is the main difference between Mintzberg's intended strategy and other types of strategies?
What is the main difference between Mintzberg's intended strategy and other types of strategies?
Which of the following statements is NOT true about emergent strategies?
Which of the following statements is NOT true about emergent strategies?
What is a characteristic of the emergent approach?
What is a characteristic of the emergent approach?
What is the primary effect of barriers to entry on firms outside an industry?
What is the primary effect of barriers to entry on firms outside an industry?
What is a characteristic of a substitute in Porter's five forces model?
What is a characteristic of a substitute in Porter's five forces model?
What is a limitation of the unrealised intent and unmet objectives approach?
What is a limitation of the unrealised intent and unmet objectives approach?
What is a characteristic of deliberate strategy?
What is a characteristic of deliberate strategy?
What is an example of a barrier to entry?
What is an example of a barrier to entry?
What is a pitfall in selecting benchmarks?
What is a pitfall in selecting benchmarks?
What is a characteristic of an activity-based costing system?
What is a characteristic of an activity-based costing system?
What is the role of a cost driver in activity-based costing?
What is the role of a cost driver in activity-based costing?
What is a limitation of traditional absorption costing?
What is a limitation of traditional absorption costing?
What is a benefit of incorporating a continuous improvement mindset based on benchmarking results?
What is a benefit of incorporating a continuous improvement mindset based on benchmarking results?
What is a characteristic of a well-designed benchmarking process?
What is a characteristic of a well-designed benchmarking process?
What is an advantage of involving lower-level personnel in the budgeting process?
What is an advantage of involving lower-level personnel in the budgeting process?
What is a characteristic of the top-down approach to budgeting?
What is a characteristic of the top-down approach to budgeting?
What is a criticism of traditional budgets based on fixed annual periods?
What is a criticism of traditional budgets based on fixed annual periods?
What is the most appropriate system of budgeting when there are high levels of discretionary spending and powerful stakeholders to whom spending choices must be justified?
What is the most appropriate system of budgeting when there are high levels of discretionary spending and powerful stakeholders to whom spending choices must be justified?
What is a difference between the top-down and bottom-up approaches to budgeting?
What is a difference between the top-down and bottom-up approaches to budgeting?
What is a potential consequence of traditional budgeting techniques in a fast-moving business environment?
What is a potential consequence of traditional budgeting techniques in a fast-moving business environment?
Flashcards are hidden until you start studying
Study Notes
Unrealised Intent and Unmet Objectives
- Deliberate and unrealised strategy is when an organisation's actual strategy differs from the intended one.
Emergent Approach to Strategy
- Allows experimentation about the strategy to take place
- Organisation may be slow to respond to market changes
- Consistent with actual practice in organisations
- Managers of divisions granted significant autonomy
Barriers to Entry
- Affect the ability of firms outside an industry to enter and take advantage of profit opportunities
- Examples: relative size of existing firms in the industry, capital requirements, switching costs, product differentiation
Porter's Five Forces Model
- Substitute refers to an alternative product or service that performs the same function for the consumer
Stakeholders
- Any group or individual who is affected by or can affect the organisation's activities
- Stakeholder mapping is a technique used to understand the dynamics of stakeholder influence on a strategic decision
- Recommended management strategy for dealing with stakeholders with high interest but low power is 'Keep Informed'
Budgeting for Strategy in Action
- Incremental budget: a budget based on the previous year, adjusted for known changes
- Participation of junior management in the budget setting process can lead to more realistic budgets and increased motivation
Strategy Formulation
- Forward Linkages deal with the impact of strategy implementation on strategy formulation
- Emergent corporate strategy is a strategy whose final objective is unclear and whose elements are developed during the course of its life
- Emergent strategies generally evolve and change as needs arise
Activity-Based Costing
- Uses a number of activity cost pools, each of which is allocated to products on the basis of direct labour-hours
- A cost driver is a factor that causes a change in the cost of an activity
- Traditional absorption costing tends to under-estimate overhead costs for high volume products
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
