Strategy Module Quiz - Week 1

<p>A 'cost center' refers to responsibility centers that only consider revenue. (A)</p> Signup and view all the answers

<p>Using information to achieve set objectives. (C)</p> Signup and view all the answers

<p>Assessing the financial costs reported in the income statement. (C)</p> Signup and view all the answers

<p>Contribution equals the sum of a product's selling price and variable cost. (B)</p> Signup and view all the answers

<p>The total value of assets equals the total value of equity and liabilities. (A)</p> Signup and view all the answers

<p>Changing behavior of people in the organization (A)</p> Signup and view all the answers

<p>Maximizing the value created from bottleneck resources in an organization (B)</p> Signup and view all the answers

<p>A medium-term operational financial plan (B)</p> Signup and view all the answers

<p>Share of fixed cost (B)</p> Signup and view all the answers

<p>Ranking products for prioritization (B)</p> Signup and view all the answers

<p>What customers want and what a firm needs to do to survive competition (C)</p> Signup and view all the answers

<p>The firm is embedded in an ecosystem it needs to adapt to (B)</p> Signup and view all the answers

<p>Designing products to ease production and reduce costs (D)</p> Signup and view all the answers

<p>Customers are well-informed about products and production conditions (A)</p> Signup and view all the answers

<p>It provides coherent guidance for decision-making (D)</p> Signup and view all the answers

<p>Sales may stagnate and fail to grow (C)</p> Signup and view all the answers

<p>Maintaining the lowest costs in the industry (A)</p> Signup and view all the answers

<p>Having a unique feature in your product offering (C)</p> Signup and view all the answers

<p>Foresee competitors' strategies, decisions, and reactions (C)</p> Signup and view all the answers

<p>Accessing at least one unique capability (D)</p> Signup and view all the answers

<p>How to grow a business (A)</p> Signup and view all the answers

<p>Excess production capacity (C)</p> Signup and view all the answers

<p>The alignment of business environment and the firm’s resources (D)</p> Signup and view all the answers

<p>The macro-environment for a business (C)</p> Signup and view all the answers

<p>A group of companies pursuing strategies along the same central dimensions (D)</p> Signup and view all the answers

<p>Culture (B)</p> Signup and view all the answers

<p>Group identity (B)</p> Signup and view all the answers

<p>Simple hierarchy (B)</p> Signup and view all the answers

<p>Use different lenses to analyze the problem. (C)</p> Signup and view all the answers

<p>To provide oversight on managers (D)</p> Signup and view all the answers

<p>The professional bureaucracy (C)</p> Signup and view all the answers

<p>A large operating core with few managerial layers (A)</p> Signup and view all the answers

<p>Conflicting goals and objectives (B)</p> Signup and view all the answers

<p>It is a good base for competitive advantage. (A)</p> Signup and view all the answers

<p>Top management needs to align all interests in the enterprise. (B)</p> Signup and view all the answers

<p>To analyze value-creating activities in the organization. (B)</p> Signup and view all the answers

<p>Increases both productivity and morale. (B)</p> Signup and view all the answers

<p>As competitive environments full of conflict. (D)</p> Signup and view all the answers

<p>Through a process of negotiation and bargaining. (C)</p> Signup and view all the answers

<p>It is based on social relationships and interpersonal skills. (C)</p> Signup and view all the answers

<p>Understanding the organization as a dynamic stage design. (A)</p> Signup and view all the answers

The crucial factors that determine a company's competitive advantage and market success.

The concept of viewing a company as part of an interconnected ecosystem. It emphasizes broader returns (not just profits) and a company's impact on the environment and society.

Designing products to streamline production and minimize costs.

The influence customers have on lowering prices in an industry.

A strategy provides a clear direction and framework for decision-making.

A weak market position when a company lacks a clear competitive advantage, neither dominating the low-cost nor high-end markets.

Achieving a low-cost position consistently to create a long-term advantage, not a temporary one.

Competitiveness achieved by consistently offering the lowest prices in the market.

A successful differentiation strategy requires unique product features and clear signaling of new models, combined with effective market reach,not just market leadership.

Analyzing competitors' resources and strategies enables anticipating their actions and decisions, leading to a more informed strategic response.

A sustainable advantage stems from unique capabilities, not just various resources or capabilities alone

Corporate strategy defines the industries a company competes in, focusing on growth and strategic positioning within different markets.

Excess production capacity, not a lack of it, within an industry, will reduce the profitability of established businesses

Strategic fit aligns business resources, capabilities, and strategies with the competitive environment and market to attain competitive advantage.

The PEST analysis is used to understand the broader external factors influencing a company’s performance, such as political, economic, social, and technological forces..

Strategic group analysis identifies companies following similar strategic approaches in a market.

The ability to easily create copies or variations of a resource or capability.

High replicability can be either a good or bad base for creating competitive advantage, depending on how unique and valuable the resource is.

A view of the business as a coalition of different groups (owners, employees, customers, etc.) with varying interests.

A framework for understanding how a company creates value through its activities, from raw materials to final customer delivery.

Involving employees in decision-making processes to increase morale and productivity.

A perspective that views organizations as arenas of power struggles and competing interests.

A view of organizational structure as a stage, with symbolic elements creating an impression and desired image.

Leaders champion employee ideas and growth, creating a supportive and empowering work environment.

Analyzing and improving the performance of the slowest part of a workflow to maximize output and efficiency.

Adjusting plans and actions to align with budget targets when actual results deviate.

Cash flow directly reflects the movement of money in and out of an organization's bank account.

Maximizing the value created from the resources that limit production output in an organization.

A financial roadmap outlining an organization's financial plans and targets for a specific period.

Culture refers to the shared values, beliefs, assumptions, and practices that characterize an organization. It's the unique way an organization operates.

Stories within organizations often carry history, values, and group identity. They shape the organization's past, present, and future.

The 'Dual authority' team structure is commonly used in the White House. It allows the president to focus on mission and external relations while the chief of staff handles operational details.

When facing a difficult problem, Bolman and Deal suggest using different 'lenses'—frameworks or perspectives—to analyze the situation and develop innovative solutions.

Jensen and Meckling emphasize that stock analysts primarily provide oversight to hold managers accountable to shareholders' interests.

The 'professional bureaucracy' is known for its slow response to external change due to its rigid structure and reliance on standardized procedures.

A simple structure consists of a strategic apex (top management) and an operating level (workers). Decisions are centralized, with few managerial layers.

Bolman and Deal identify four key organizational challenges that managers face: complexity, change, conflict, and ambiguity.

The sum of fixed and variable costs equals the total sales revenue at the break-even point.

Within a relevant range, variable cost per unit remains constant regardless of changes in production volume.

Within a relevant range, fixed costs remain unchanged even with changes in the production volume.

Fixed costs divided by the number of units produced determines the fixed cost per unit, which changes with production volume.

Accounting serves three primary functions: scorekeeping, attention directing, and problem solving. Financing is not a core function of accounting.

The key difference between financial and management accounting lies in the stakeholders they address. Financial accounting focuses on external users, while management accounting provides internal information for decision-making.

Responsibility centers are used to monitor the financial performance and control the actions of individuals or departments.

Control in accounting refers to the use of information to achieve set goals by influencing behavior and decision-making.