Question 1

Roweil Company is a manufacturer of agricultural chemicals located in Eastern North Carolina. Roweil sells its products directly to farmers in the Atlantic states the company is known for the quality of the product, its packaging, delivery and customer service. The production process at Roweil involves several steps, one of which involves the cleaning of each vat before a batch of a new chemical is added. This is done so there is no contamination of chemicals. Currently the cleansing of the batch is time-consuming, requiring a good bit of water and additional chemicals, to ensure that the vat is appropriately cleaned. The waste of the cleaning process is itself treated carefully, as many of the chemicals Roweil produces can be harmful to plants and animals if not properly handled. Roweil is considering an investment in new equipment that would speed up the cleaning process and would require less water and fewer additional chemicals. The new process would involve the application of heat and high air flow. The new cleaning equipment would however be quite expensive.
Required:
(a) Comment on the strategic issues facing Roweil concerning the potential investment in the cleaning equipment.
(b) What are the ethical questions, if any, that should be addressed in the above decision?

Accepted Answer

The answer of Roweil Company is a manufacturer of agricultural...

Question 2

Patagonia, maker of clothing and gear for outdoor enthusiasts, is very conscious of sustainability issues.The company chose not to produce a product because:

Accepted Answer

Patagonia is known for its sustainable practices and commitment to reducing its environmental impact. Therefore, it is likely that the company chose not to produce a product because the environmental impact of producing the product in terms of carbon emissions and energy consumption was deemed unacceptable.

Question 3

A measure of research and development on the balanced scorecard could include:

Accepted Answer

Number of new products is the best choice as it specifically relates to research and development efforts. Market share, sales growth, and cash flows could be influenced by various factors, not just R&D.

Question 4

Which of the following is not a reason why global companies choose to report on corporate responsibility?

Accepted Answer

Reporting on corporate responsibility is a time-consuming process that requires resources to collect and analyze data. Therefore, "saves time" is not a reason why global companies choose to report on corporate responsibility.

Question 5

Which of the following is not an environmental performance indicator?

Accepted Answer

All of the options listed (fossil fuel use, carbon emissions, pollutants production) are environmental performance indicators. None of them stand out as being not an environmental performance indicator. Therefore, option D is the correct answer.

Question 6

Some of the indicators of a growing concern for sustainability include:

Accepted Answer

The increased concern about climate change is a clear indicator of growing concern for sustainability. Climate change poses significant risks to the environment, economy, and society, and addressing it requires a paradigm shift towards a more sustainable way of living and doing business. The other options (A, B, C, and E) are not directly related to sustainability, although they may indirectly impact it.

Question 7

The decline of the U.S.dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to:

Accepted Answer

When the U.S. dollar declines, it becomes more expensive for foreign companies to export to the U.S. By locating plants in the U.S., companies like BMW and Volkswagen can reduce costs associated with currency fluctuations and tariffs, making their products more competitive in the U.S. market.

Question 8

Which of the following is not a term used for a phase of the value chain?

Accepted Answer

Operations, upstream, and downstream are all commonly used terms to describe different phases of the value chain. Marketing, while an important aspect of the overall process, is generally not considered to be a specific phase of the value chain.

Question 9

Which of the following is not a critical success factor?

Accepted Answer

The answer of Which of the following is not a...

Question 10

A final step in the SWOT analysis is to identify quantitative measures for the:

Accepted Answer

The answer of A final step in the SWOT analysis...

Question 11

Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate target in a strategy map for a public company?

Accepted Answer

Public companies are typically focused on generating profits and creating value for their shareholders, which is reflected in the financial perspective of the Balanced Scorecard. While other perspectives such as customer service, internal processes, and learning and innovation may be important for achieving financial success, financial performance is typically the ultimate target for a public company.

Question 12

The Global Reporting Initiative is an independent group that partners with other groups to address the measurement of sustainability, including a partnership with:

Accepted Answer

The Global Reporting Initiative (GRI) has a partnership with the United Nations and aligns its reporting standards with the UN's Sustainable Development Goals (SDGs). The GRI also collaborates with a range of other organizations, including businesses, governments, and NGOs, to promote sustainability reporting and transparency. While the GRI may have some interactions with the U.S. government and European Commission, they are not formal partnerships as far as we know. The U.S. Department of Defense is also unlikely to be a partner of the GRI, given that its focus is primarily on military defense, rather than sustainability reporting.

Question 13

All of the following are required resources for cost leadership except:

Accepted Answer

Cost leadership strategy does not require unique skills compared to industry standards. Instead, it focuses on streamlining production processes, reducing overhead costs, and maximizing efficiency.

Question 14

All of the following are required resources for differentiation except:

Accepted Answer

Intense supervision of labor is not a required resource for differentiation. While it may be a factor in achieving high quality, it is not a unique resource that sets a company apart from its competitors. Product engineering, corporate reputation for quality, and strong marketing capability are all important resources for differentiation as they contribute to a company's ability to offer something unique and valuable to customers.

Question 15

The differentiation strategy requires all of the following resources, except:

Accepted Answer

The differentiation strategy requires strong marketing capability, a long tradition in the industry or unique skills, product engineering, corporate reputation for quality or technology leadership. However, it does not necessarily require products designed for ease of manufacture. In fact, some differentiated products may require complex manufacturing processes in order to achieve their unique features or characteristics.

Question 16

The five steps of strategic decision making include all of the following steps except:

Accepted Answer

The five steps of strategic decision making are to obtain information and conduct analyses, identify alternative actions, continue an on-going evaluation of the problem, choose and implement the desired action, and then determine the organization's strategy. Therefore, determining the organization's strategy is not one of the initial five steps.

Question 17

NAFTA and WTO refer to

Accepted Answer

NAFTA (North American Free Trade Agreement) is a trade agreement between Canada, Mexico, and the United States, while the WTO (World Trade Organization) is an international organization that supervises and regulates international trade between member countries. Therefore, both refer to laws and organizations that regulate international trade.

Question 18

Effective execution of the cost leadership strategy requires all of the following except:

Accepted Answer

The effective execution of the cost leadership strategy requires strong coordination among functions, including research, product development, manufacturing, and marketing, as stated in option E. Therefore, option E should be included to execute the cost leadership strategy effectively. Whereas, options A, B, C, and D are essential factors that enable an organization to achieve and maintain cost leadership. Hence, except for option E, all other options are necessary for effective execution of the cost leadership strategy.

Question 19

Which of the following subjects would be found on the financial perspective section of a balanced scorecard?

Accepted Answer

Liquidity is a financial metric that measures a company's ability to pay off its short-term debts and obligations. It falls under the financial perspective section of a balanced scorecard, which focuses on financial goals and measures. Sales penetration (B) and efficiency of manufacturing (C) are more likely to be found on the customer and internal business processes perspectives, respectively. Price (D) could fall under the customer perspective, but it is not a typical metric included in a balanced scorecard.

Question 20

Michael Porter's five competitive forces include which one of the following:

Accepted Answer

Michael Porter's five competitive forces are: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and intensity of rivalry among competitors. Option D, intensity of rivalry among competitors, is one of these five competitive forces.

Quiz 2: Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map