Question 1

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 involves identifying and evaluating a firm's activities that create value for customers and help to differentiate it from competitors. By conducting regular analyses and comparing them to those of competitors, firms can gain insights into their own strengths and weaknesses and identify areas for improvement.

Question 2

The IFE Matrix should be ________ in multidivisional firms.
A) constructed for each autonomous division
B) all-inclusive
C) constructed only for the major divisions
D) developed before the EFE Matrix
E) revised monthly

Accepted Answer

The IFE Matrix should be constructed for each autonomous division in multidivisional firms as it helps in analyzing the internal strengths and weaknesses of each division separately. This allows for a more focused and targeted approach to improve the performance of each division.

Question 3

An effective information management system ________ information in such a way that it answers important operating and strategic questions.
A) collects
B) codes
C) stores
D) synthesizes
E) all of the above

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 4

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...

Question 5

________ ties all business functions together and provides the basis for all managerial decisions.
A) Management
B) Marketing
C) Information
D) Technology
E) Workforce

Accepted Answer

Information technology is what ties all business functions together and provides the basis for all managerial decisions.

Question 6

Which is NOT one of the four common approaches to determine R&D budget allocations?
A) Finance as many project proposals as possible.
B) Budget for R&D about what competitors spend.
C) Use a percentage-of-costs method.
D) Decide how many successful new products are needed and work backwards to estimate the required R&D investment.
E) Use a percentage-of-sales method.

Accepted Answer

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

Question 7

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 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.

Question 8

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

Accepted Answer

The heart of an information system is indeed a database that contains records and data important for managers to make decisions based on accurate and timely information.

Question 9

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

Accepted Answer

Benchmarking involves comparing a firm's value chain activities with those of competitors to determine their relative competitiveness. Therefore, the statement is true.

Question 10

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
A) The Resource-Based Approach.
B) Value Chain Analysis.
C) Strategic Cost Analysis.
D) The Internal Factor Evaluation Matrix.
E) Cost-Benefit Analysis.

Accepted Answer

Value Chain Analysis is the process of examining all activities a firm performs and determining their associated costs. This analysis helps the firm identify areas where it may gain a competitive advantage by reducing costs or improving efficiency. The other choices are not directly related to this process.

Question 11

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 (IFEM) is a key step in conducting an internal strategic-management audit. The IFEM is used to evaluate a company's strengths and weaknesses based on its internal factors, such as its resources, capabilities, and core competencies. It helps the company identify areas in which it is performing well and areas where it needs improvement, so that it can develop strategies to enhance its competitiveness and achieve its goals.

Question 12

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
A) "first activator."
B) "second mover."
C) "average player."
D) "tech leader."
E) "late follower."

Accepted Answer

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

Question 13

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...

Question 14

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 involves examining a company's activities to identify areas where value can be added and costs can be minimized. By analyzing the value chain, a firm can identify opportunities for cost savings, differentiation, and competitive advantage. Thus, value chain analysis can help a firm monitor its costs and prices to ensure they are competitive.

Question 15

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...

Question 16

The initial step to implementing value chain analysis is
A) attaching a cost to each discrete activity.
B) establishing costs in terms of time.
C) establishing costs in terms of money.
D) converting the cost data into information by looking for competitive cost strengths and weaknesses.
E) dividing a firm's operations into specific activities or business processes.

Accepted Answer

The initial step to implementing value chain analysis is dividing a firm's operations into specific activities or business processes. Only after this step can the costs associated with each activity be established, and then converted into information by analyzing competitive strengths and weaknesses. Therefore, option E is the correct answer.

Question 17

Which of the following is the first step in developing an IFE Matrix?
A) Determining the organization's structure
B) Summing the weighted scores for each variable
C) Listing key internal strengths and weaknesses
D) Identifying the organization's functions of business
E) Assigning a weight to each factor

Accepted Answer

The first step in developing an IFE Matrix is to identify the key internal strengths and weaknesses of the organization, which involves conducting an internal analysis of the organization's resources, capabilities, and competencies. Only after this step can the internal factors be weighted and scored to complete the IFE Matrix.

Question 18

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 commonly used approaches to determine R&D budget allocations.

Question 19

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...

Question 20

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...

Quiz 4: The Internal Assessment

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.

The IFE Matrix should be ________ in multidivisional firms.

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

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

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

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

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.

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

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

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

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

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

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

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.

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

The initial step to implementing value chain analysis is

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

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

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