Deck 16: Analyzing and Measuring Strategic Performance

Question 1

The 'theory of business' is a similar concept to

A) A strategic review
B) A performance measurement system
C) A business model
D) An organizational structure

Answer 1

A business model

Question 2

Which of the following Key Performance Indicators is least likely to be included in the Internal perspective of the Balanced Scorecard approach?

A) Lead time
B) Quality
C) Percentage of sales from new products
D) Brand awareness

Answer 2

Brand awareness

Question 3

The Balanced Scorecard approach breaks down value generation into three parts; operational effectiveness, customer management and

A) product innovation
B) process innovation
C) people management
D) translating the vision

Answer 3

product innovation

Question 4

Can you think of any further perspectives that might complement the Balanced Scorecard approach? Justify your answer.

Question 5

Rappaport (1986) and others argue that accounting measures are limited. They suggest instead metrics around

A) growth
B) shareholder value creation
C) corporate social responsibility
D) accounting profit

Question 6

Why are accounting measures of firm performance limited?

Question 7

Outline the elements of Yip's business model.

Question 8

In what way is the Balanced Scorecard approach balanced?

Question 9

What might be typical measurements within the internal perspective of the Balanced Scorecard for a car manufacturer?

Question 10

Kaplan and Norton (1996) developed the Balanced Scorecard approach. What is it used for?

A) To monitor employee performance
B) To assess stakeholder power and interest
C) To decide which activities to outsource
D) To measure key drivers of a firm's strategy

Question 11

The Balanced Scorecard approach includes four perspectives; financial, customer, internal and

A) innovation and learning
B) stakeholder
C) sustainability
D) operational

Question 12

In the Balanced Scorecard Approach, which perspective is most likely to include a measurement of product quality?

A) The internal perspective
B) The shareholder perspective
C) The learning and innovation perspective
D) The customer perspective

Question 13

Venkatrman and Ramanujam (1986) define business performance in terms of three perspectives. These are financial measures, operational measures and

A) Shareholder value
B) Organizational effectiveness
C) Critical success factors
D) Key performance indicators

Question 14

What does the financial measure E. P.S mean?

A) Earnings per sale
B) Earnings per stock
C) Earnings per share
D) Earnings per shareholder value

Question 15

Accounting measures of performance have been criticized because

A) It is very difficult to get accurate data
B) They do not lead to improved market share value
C) They ignore physical assets
D) They only apply to large firms

Question 16

Which measure of firm performance takes into account the time value of money?

A) ROI
B) ROE
C) SVA
D) ROA

Question 17

It could be argued that Yip's (2004) conceptualization of a firm's business model is similar to

A) The value chain model
B) Porter's Five Forces model
C) Ansoff's matrix
D) the BCG matrix

Question 18

Which measure of firm performance is most appropriate for assessing the future of the firm?

A) ROI
B) EVA
C) SVA
D) ROA

Question 19

Key success factors derive from

A) Key performance indicators
B) An understanding of customer needs
C) An understanding of internal processes
D) Critical success factors

Question 20

The original Balanced Scorecard approach has evolved into

A) A strategic management system
B) A business process re-engineering system
C) A continuous improvement system
D) An activity mapping system

Question 21

The Balanced Scorecard approach of Kaplan and Norton (1996) is which kind of performance measurement system?

A) A 'value based' technique
B) An accounting technique
C) A financial technique
D) A cash flow technique

Question 22

When constructing measures for a Balanced Scorecard, which perspective would include a measure of sales growth?

A) The internal perspective
B) The innovation and learning perspective
C) The customer perspective
D) The financial perspective

Question 23

Yip's business model and Porter's value chain are both ____________ of how a business hopes to achieve competitive success

Question 24

The original version of Kaplan and Norton's balanced scorecard has evolved into a _________________ which can link long term strategic objectives with short-term actions.

Question 25

In the balanced scorecard, 'learning and growth' measures are generally more difficult to formulate than 'internal business process' measures.