Question 1

Which of the following efforts would most likely yield the greatest re-engineering benefits?

Accepted Answer

Focusing on entire processes and elimination of unnecessary activities and tasks, also known as process re-engineering, is likely to yield the greatest benefits as it involves a comprehensive analysis and redesign of existing processes. This can lead to significant improvements in efficiency, cost savings, and customer satisfaction. The other options may not necessarily result in significant improvements or may even have negative consequences.

Question 2

The fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance,such as cost,quality,service,speed,and customer satisfaction is ________.

Accepted Answer

Redesigning and rethinking business processes to achieve improvements in critical measures of performance is called reengineering. It involves a complete overhaul of the existing processes, rather than simply making incremental improvements. Directing and controlling refer to management functions, while structuring is too broad and vague to be the correct answer.

Question 3

Successful re-engineering efforts generally involve changing the roles and responsibilities of employees.

Accepted Answer

Successful re-engineering efforts often involve restructuring job positions and responsibilities to better align with the revised processes and goals of the organization.

Question 4

Which of the following is a measure of the balanced scorecard's internal process perspective?

Accepted Answer

Service response time is a measure of the internal process perspective as it focuses on the efficiency and effectiveness of the company's operations and processes. Customer satisfaction and gross profit percentage are both measures of the customer and financial perspectives, respectively, and cost reduction is a measure of the learning and growth perspective.

Question 5

Companies which strive to achieve cost leadership should never try to implement business process re-engineering measures.

Accepted Answer

Companies which strive to achieve cost leadership can always look at business process reengineering measures to reduce process costs.

Question 6

Feedback on how a company is doing from the perspectives of financial,customer,internal business processes,and learning and growth.

Accepted Answer

The balanced scorecard is a strategic performance management tool that takes into account four perspectives: financial, customer, internal business processes, and learning and growth. It provides a comprehensive view of how a company is doing in all aspects of its operations, allowing for better decision-making and continuous improvement. The other options, such as the master budget, product differentiation, and differential report, are important in their own ways but do not provide a holistic view of a company's performance like the balanced scorecard does.

Question 7

________ is a measure of the balanced scorecard's internal-business-process perspective.

Accepted Answer

Manufacturing downtime is a measure that falls under the internal-business-process perspective of the balanced scorecard. This perspective focuses on improving key internal processes such as manufacturing efficiency, quality control, and inventory management. Monitoring and reducing manufacturing downtime is important in improving efficiency and productivity in the manufacturing process. Market share, return on investment, and number of customer complaints belong to other perspectives of the balanced scorecard.

Question 8

Which of the strategic perspectives of the balanced scorecard focuses on a company's own operations that create value for customers that,in turn,help achieve financial objectives?

Accepted Answer

The internal-business-process perspective of the balanced scorecard focuses on the company's own operations that create value for customers, which in turn helps the company achieve financial objectives. This perspective measures the efficiency and effectiveness of the company's internal processes in delivering value to customers, such as the speed of delivery, quality of products or services, and customer satisfaction. It is a critical perspective for companies as it helps in improving their operations and delivering better value to customers.

Question 9

The first step to successful balanced scorecard implementation is clarifying the ________.

Accepted Answer

Clarifying the organization's vision and strategy is the first and most important step in successful balanced scorecard implementation as it lays the foundation for determining the objectives and metrics for each of the four perspectives of the scorecard.

Question 10

Which of the following could be a measure of the balanced scorecard's financial perspective?

Accepted Answer

Operating income is a financial measure that reflects the revenue generated and expenses incurred by an organization. It is an important metric for evaluating the financial performance of a business and is a commonly used measure in the financial perspective of the balanced scorecard. Service response time, number of new patents, and defect rates are measures that typically fall under other perspectives of the balanced scorecard, such as customer, innovation and learning, and internal processes, respectively.

Question 11

Which of the following statements best relates to the balanced scorecard's financial perspective?

Accepted Answer

The financial perspective of the balanced scorecard focuses on achieving business objectives that will increase shareholder value, not just maximizing profits for the current year. This includes strategies for cost reduction, revenue growth, and strengthening the financial health of the organization.

Question 12

In an effective balanced scorecard,________.

Accepted Answer

In an effective balanced scorecard, customer satisfaction serves as one of the leading indicators for the hard-to-measure long-run financial performance such as the likelihood of higher sales and income. The sales budget may serve as a leading indicator for the short-run financial performance, but it does not necessarily capture nonfinancial aspects of performance. Net income alone does not provide a comprehensive view of operational performance.

Question 13

Which of the following statements best relates to the balanced scorecard's learning and growth perspective?

Accepted Answer

The learning and growth perspective of the balanced scorecard is focused on identifying strategies that will improve the skills, knowledge, and capabilities of employees. Empowering employees is a key factor in achieving this objective. Lowering costs, increasing value to customers, and obtaining greater profits are more related to the financial and customer perspectives of the scorecard.

Question 14

re-engineering benefits are most significant when they focus on one business function rather than crossing functional lines of the business process.

Accepted Answer

Reengineering benefits are most significant when they cut across functional lines to focus on the entire business process.

Question 15

Which of the following statements is true of the internal-business-process perspective of a balanced scorecard?

Accepted Answer

The internal-business-process perspective focuses on improving processes within the organization to achieve strategic objectives. Improvement targets are often determined by benchmarking against competitors' standards. The perspective typically includes processes related to operations, post-sales service, and learning and growth, but not necessarily innovation. The evaluation of profitability and creation of shareholder value is typically part of the financial perspective of a balanced scorecard. Therefore, options A, B, and D are incorrect.

Question 16

Which of the following is a measure of the balanced scorecard's customer perspective?

Accepted Answer

The number of client complaints is a measure of customer satisfaction and therefore falls under the customer perspective of the balanced scorecard. Defect rates and number of process improvements would fall under the internal business perspective, while revenue growth is a measure of financial performance.

Question 17

What is re-engineering.Can you contrast a re-engineering approach to change with a kaizen approach to change?

Accepted Answer

The answer of What is re-engineering.Can you contrast a re-engineering...

Question 18

Which of the following is not correct about the balanced scorecard?

Accepted Answer

The correct statement about the balanced scorecard is that it includes both financial and nonfinancial performance indicators across multiple perspectives, including customer satisfaction, internal processes, and learning and growth. However, it does not necessarily increase management's emphasis on short-term results. In fact, the balanced scorecard is designed to provide a more comprehensive and balanced view of organizational performance that takes into account both short-term and long-term goals.

Question 19

Which of the following statements is true of a balanced scorecard?

Accepted Answer

The balanced scorecard is a performance measurement tool that takes a broader view of a company's performance beyond just financial measures. It includes nonfinancial metrics such as customer satisfaction, internal business processes, and employee learning and growth. However, it does not reduce managers' emphasis on financial performance altogether. Rather, it seeks to balance financial measures with nonfinancial ones, reducing the overemphasis on short-run financial performance and encouraging a focus on long-term success. Therefore, option B is the correct answer.

Question 20

Which of the following questions best relates to the balanced scorecard's internal business processes perspective?

Accepted Answer

The internal business processes perspective of the balanced scorecard focuses on the processes and procedures that an organization uses to create value for its customers. Option A is more aligned with the financial perspective, Option B is focused on the learning and growth perspective, and Option C is more aligned with the customer perspective. Option D is the only choice that directly relates to the internal business processes perspective.

Quiz 12: Strategy,balanced Scorecard,and Strategic Profitability Analysis