Reference no: EM132093400
1. A company's strategy is unlikely to succeed unless...
the company has competencies and capabilities to efficiently sustain its competitive differentiation.
includes a permanent, unchangeable mission statement and vision statement.
the company's competitive advantage grows out of the entire system of activities working together.
both answers 1 and 3 occur.
2. Many smaller companies have such limited resources that they struggle to develop a meaningful competitive strategy. According to reading 7, how would the adoption of a balanced scorecard make strategic planning more realistic for such companies?
Creating a balanced scorecard replaces the need for traditional financial measures and therefore focuses management on strategic planning.
Having a balanced scorecard reveals new sources of investment capital.
Creating a balanced scorecard sets targets for the most important goals and initiatives thereby ensuring that their budget supports their strategy.
A balanced scorecard provides a company with milestones against which a budget can be created.
3. The "green" market is still relatively small with less than 1/3 of American's purchasing green products.
True
False
4. Reading 7 introduces the balanced scorecard, which reports current performance measures, but is even more valuable because it:
Forces agreement to financial objectives.
Describes a company's long-term objectives.
Can be used to predict the future financial performance of the company.
Enhances traditional financial metrics with long-term strategies
5. The reason many companies today are involved in social responsibility is because they are willing to sacrifice profits in order to do what's best for society.
True
False
6. The reason Apple is reluctant to increase shareholder dividends is:
spoiling shareholders who will expect ever higher dividends
management wants to retain cash to pay higher salaries and bonuses reflecting the success their team has enjoyed
management wants to retain cash for potential emergencies in the future
management believes that cash will be needed for strategic opportunities that may come along in the future
7. What is the "high class" problem which Apple must address?
Ideation confusion (too many ideas from which to develop new products)
Generating too much cash (more profits than they can re-invest)
Image vulnerability (fame and deep pockets leave them targets for class-action lawsuits)
Rapid growth (growing faster than they can manage consistent quality)
8. A growing number consumers are willing to choose green products over products not as environmentally friendly because they believe protecting the environment is more important than the product features. (Reading 9)
True
False
9. According to reading 9, the following would be an example of green marketing for a health insurance company:
Rewards and incentives to choose a healthier lifestyle
Reducing cost by offering products online, as an alternative to agent and broker channels
Promoting lower costs achieved by improved administrative efficiencies
All of the above
10. A balanced scorecard helps a company understand why it is missing its sales goals. According to reading 7, poor sales performance may signal an incompetent sales staff, uncompetitive products or...
poor leadership, if the company's employees and sales staff have successfully executed the other elements of the scorecard.
inappropriate strategy assumptions, if the company's employees and sales staff have successfully executed the other elements of the scorecard
the effects of underlying, historic problems that are brought to life by the scorecard.
none of the above.
11. International Paper's land management practice was primarily motivated by:
New sources of revenue and increased profits.
Customer demand and sustained profits.
Desire to be a social responsible company.
Pressure from green interest groups and advocates.
12. According to Virtual Lecture 7, which of these regulatory approaches has the most influence in sustaining a company's success?
Government regulation
Watchdogs and advocates
Self-regulation
Social responsibility
13. Traditionally, International Paper allowed free hunting, fishing and camping on its recreational timberlands because:
By law, they could not profit from these activities on private property
Doing so helped to maintain its reputation and good standing in nearby communities
IP must match competitors who were allowing free recreational activities on their land
All of the above
14. From reading 7, most of today's companies have learned to track actual versus planned performance, and consequently they are adept at recognizing sunk costs rather than pouring good money after bad.
True
False
15. If Acme Car Wash compares its new, more environmentally-friendly chemicals to its rivals' harsher chemicals in its advertising, Ginsberg and Bloom say it is participating in:
Lean Green Marketing
Defensive Green Marketing
Shaded Green Marketing
Extreme Green Marketing
16. Apple's global operations generated considerable cash outside the U.S. and was not taxable in the U.S. Apple management argued that their offshore cash holdings should not be taxed because:
Apple is already the largest tax payer in the U.S.
Offshore cash is not resident in the U.S.
Apple believes in dramatic simplification of the U.S. corporate tax code to provide a tax neutral way for all cash to be taxed in the U.S.
all of the above.
17. International Paper decided to charge hunters for access to their properties because they needed to act like a profit and loss business.
True
False
18. From reading 9, which of the following questions is not relevant for companies considering green marketing:
Can our brand differentiate on the green dimension?
Do investors support a green marketing approach?
Can we increase our revenues by improving on perceived greenness?
Are key competitors playing in the green space?
19. It is easier to communicate the balanced scorecard and gain understanding and support throughout the company when the scorecard is created only by the top level of management because senior management must be aligned in order to achieve corporate-wide alignment (reading 7).
True
False
20. The idea of corporate social responsibility is irrelevant when private profits are aligned to public interests.
True
False