Question 1

Four common approaches to determine R&D budget allocations are: 1)finance as many project proposals as possible;2)use a percentage-of-sales method;3)budget for R&D about what competitors spend;or 4)decide how many successful new products are needed and work backwards to estimate the required R&D investment.

Accepted Answer

These are indeed four common approaches to determine R&D budget allocations.

Question 2

Which is NOT one of the four common approaches to determine R&D budget allocations?

Accepted Answer

The answer of Which is NOT one of the four...

Question 3

Technology ties all business functions together and provides the basis for all managerial decisions.

Accepted Answer

The answer of Technology ties all business functions together and...

Question 4

Research and Development (R&D)Management is focused on managing inputs,transformations,and outputs that vary across industries and markets.

Accepted Answer

The answer of Research and Development (R&D)Management is focused on...

Question 5

Which of the following is the first step in developing an IFE Matrix?

Accepted Answer

The first step in developing an Internal Factor Evaluation (IFE) matrix is to list down the key internal strengths and weaknesses of the organization. This involves an internal analysis of the organization's resources, capabilities, and competencies. Once these factors are identified, they are rated and weighted to develop an IFE matrix, which helps in determining the organization's strategic position. Therefore, listing key internal strengths and weaknesses is the correct first step.

Question 6

According to Roger Schroeder,there are five basic functions or decision areas in production.Describe these five functions.

Accepted Answer

The answer of According to Roger Schroeder,there are five basic...

Question 7

Although a useful step in the strategic management process,value chain analysis does little to help a firm monitor whether its prices and costs are competitive.

Accepted Answer

Value chain analysis can help a firm identify areas where costs can be reduced or where value can be added, which can ultimately contribute to competitive pricing. Additionally, analyzing the value chain of competitors can help a firm benchmark its own performance and identify areas where it may need to improve.

Question 8

Benchmarking is an analytical tool used to determine whether a firm's value chain activities are competitive compared to rivals.

Accepted Answer

Benchmarking is a tool used to compare a firm's value chain activities to those of its competitors in order to measure their competitiveness.

Question 9

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

Accepted Answer

Value Chain Analysis is a process through which a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products. It involves analyzing each step (or link) in the firm's value chain and identifying the inputs, processes, and outputs involved at each stage. This analysis helps a firm to better understand its cost structure and identify areas where it can reduce costs or increase efficiency. The other choices (A, C, D, and E) are not relevant to the process of cost determination in organizational activities.

Question 10

For many firms a key decision with great bearing on Research and Development (R&D)spending is whether to be a "first mover" or a

Accepted Answer

The answer of For many firms a key decision with...

Question 11

A recent study reported that the stock price appreciation of technology companies in the lowest third of R&D spending have consistently outperformed companies in the highest third over 1-,3-,5-,and 10-year periods since 1977.

Accepted Answer

The answer of A recent study reported that the stock...

Question 12

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time.

Accepted Answer

Value chain analysis helps a firm to understand its entire value creation process and identify areas for improvement. By comparing their own analysis to competitors' analyses and tracking their own data over time, firms can gain valuable insights into their strengths and weaknesses.

Question 13

Constructing an Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit.

Accepted Answer

Constructing an Internal Factor Evaluation Matrix (IFE Matrix) is an important step in conducting an internal strategic-management audit. It is a tool used to evaluate and summarize the strengths and weaknesses of a company's internal factors, such as resources, capabilities, and culture. The IFE Matrix helps managers to identify areas that require improvement and prioritize strategic actions to achieve the company's objectives.

Question 14

The IFE Matrix should be ________ in multidivisional firms.

Accepted Answer

The IFE Matrix (Internal Factor Evaluation) should be constructed for each autonomous division in multidivisional firms to assess the internal factors that affect the performance of each division. This allows the management to identify the strengths and weaknesses of each division and develop appropriate strategies to exploit opportunities and mitigate threats. The IFE Matrix is a tool for internal analysis, and therefore, it must be specific to each division to provide relevant and accurate information.

Question 15

The heart of an information system is a database containing the kinds of records and data important to managers.

Accepted Answer

The database serves as the central source of data for an information system, which is essential for managers to make informed decisions.

Question 16

The initial step to implementing value chain analysis is

Accepted Answer

The initial step to implementing value chain analysis is to divide a firm's operations into specific activities or business processes. This allows for the identification and evaluation of the individual components of the business that contribute to the overall value created for the customer. Once the activities are identified, then costs can be attached and analyzed for competitive strengths and weaknesses.

Question 17

In analyzing big data,there is a shift from focusing largely on outliers to also focusing on aggregates.

Accepted Answer

The answer of In analyzing big data,there is a shift...

Question 18

An effective information management system ________ information in such a way that it answers important operating and strategic questions.

Accepted Answer

An effective information management system should collect, code, store, and synthesize information in order to provide answers to important operating and strategic questions. Collecting information is important because it helps to ensure that all relevant data is gathered. Coding information allows for easier retrieval and analysis. Storing information safely and securely is essential for ensuring that it can be accessed when needed. Synthesizing information involves analyzing and summarizing data to provide meaningful insights and answers to key questions. Overall, an effective information management system must incorporate all of these elements to be successful.

Question 19

________ ties all business functions together and provides the basis for all managerial decisions.

Accepted Answer

Information is the key component that ties all business functions together and provides the basis for all managerial decisions. Information technology is used to gather, analyze, and distribute information throughout the organization, enabling managers to make informed decisions about the company's operations, finances, marketing, and human resources. Without accurate and timely information, it is difficult for managers to make sound decisions about the company's future direction and strategic goals.

Question 20

Four basic approaches exist to determine R&D budget allocations.What are these approaches?

Accepted Answer

The answer of Four basic approaches exist to determine R&D...

Quiz 6: The Internal Audit