Question : Answer the following questions using the information below: Meale Company makes : 1216958

 

Answer the following questions using the information below:

 

Meale Company makes a household appliance with model number X500. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:

 

20112012

Units of X500 produced and sold10,00011,000

Selling price$100$95

Direct materials (square feet)30,00029,000

Direct material costs per square foot$10$11

Manufacturing capacity for X500 (units)12,50012,000

Total conversion costs$250,000$240,000

Conversion costs per unit of capacity$20$20

 

11) Which strategy is Meale’s Corporation pursuing?

A) Product differentiation, because the units produced and sold increased.

B) Product differentiation, because total conversion costs decreased.

C) Cost leadership, because direct material costs per square foot increased.

D) Cost leadership, because the selling price decreased.

 

12) Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

 

13) One of the five forces of industry analysis is understanding the bargaining power of your input suppliers.

14) Product differentiation is an organization’’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

 

15) Product differentiation is an organization’’s ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors.

 

16) The cost leadership strategy is for products and services that are similar to competitor’s products and services.

 

17) The product differentiation strategy is probably best for a company if the engineering staff is more skilled at making process improvements than at creatively designing new products.

18) In general, profit potential increases with greater competition, stronger potential entrants, products that are similar, and tougher customers and suppliers.

 

19) Bosely Corporation is reviewing its business strategy.  The first step for Bosely is to perform an industry analysis. You have been hired to help the company go through the strategy formulation process.

 

Required:

To perform the industry analysis, what areas should Bosely focus on and give at least one example of how Bosely can effectively deal with each area.

 

20) Explain the product differentiation and the cost leadership strategies.

Objective 13.2

 

1) ________ is 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.

A) Strategy

B) Customer perspective

C) Learning and growth perspective

D) Reengineering

 

2) Successful reengineering involves:

A) cutting across functional lines to focus on the entire business process

B) redefining the roles and responsibilities of employees

C) using information technology

D) All of these answers are correct.

 

3) The balanced scorecard measures an organization’s performance from all of the following perspectives EXCEPT:

A) financial

B) government

C) customer

D) learning and growth

 

4) Reengineering is 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.

5) Reengineering benefits are most significant when they focus on one business function rather than crossing functional lines of the business process.

 

6) Successful reengineering efforts generally involve changing the roles and responsibilities of employees.

 

7) What is reengineering. Can you contrast a reengineering approach to change with a kaizen approach to change?

 

Objective 13.3

 

1) ________ translates an organization’s mission and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy.

A) Productivity component

B) Product differentiation

C) Cost leadership

D) The balanced scorecard

2) The purpose of the balanced scorecard is best described as helping an organization:

A) develop customer relations

B) mobilize employee skills for continuous improvements in processing capabilities, quality, and response times

C) introduce innovative products and services desired by target customers

D) translate an organization’s mission and strategy into a set of performance measures that help to implement the strategy

 

3) The first step to successful balanced scorecard implementation is clarifying the:

A) organization’s vision and strategy

B) elements that pertain to value-added aspects of the business

C) owner’s expectations about return on investment

D) objectives of all four balanced scorecard measurement perspectives

 

4) The balanced scorecard is said to be “balanced” because it measures:

A) short-term and long-term objectives

B) financial and nonfinancial objectives

C) internal and external objectives

D) All of these answers are correct.

 

5) Balanced scorecard objectives are in balance when:

A) debits equal credits

B) financial performance measurements are less than the majority of measurements

C) the measurements are fair

D) the measurements reflect an improvement over the previous year

6) The internal business processes perspective of the balanced scorecard comprises three subprocesses that address all of the following EXCEPT:

A) innovative processes used to create new products, services, and processes

B) motivating current employees

C) providing service and support to the customer after the sale

D) delivering existing products and services to best meet the needs of customers

 

7) Identify the best description of the balanced scorecard’s financial perspective. To achieve our firm’s vision and strategy:

A) how can we obtain greater profits for the current year?

B) how can we increase shareholder value?

C) how will we obtain continuous improvements?

D) how can we secure greater customer satisfaction?

 

8) Identify the best description of the balanced scorecard’s internal business processes perspective. To achieve our firm’s vision and strategy:

A) how do we lower costs?

B) how do we motivate employees?

C) how can we obtain greater profits?

D) what processes will increase value to customers?

9) All of the following relate to the balanced scorecard’s learning and growth perspective EXCEPT:

A) How do we achieve greater employee satisfaction?

B) What new products do we create?

C) How do we provide information systems with updated technology?

D) How will we motivate and empower our employees?

 

10) Measures of the balanced scorecard’s financial perspective include:

A) information system availability

B) number of new patents

C) revenue growth

D) defect rates

 

11) Measures of the balanced scorecard’s financial perspective include all of the following EXCEPT:

A) operating income

B) customer satisfaction

C) gross profit percentage

D) cost reductions

 

12) Measures of the balanced scorecard’s customer perspective include:

A) market share

B) number of on-time deliveries

C) number of process improvements

D) revenue growth

13) Measures of the balanced scorecard’s customer perspective include all of the following EXCEPT:

A) market share

B) customer satisfaction

C) number of new customers

D) customer training on new products

 

14) Measures of the balanced scorecard’s internal-business-process perspective include:

A) market share

B) new product development time

C) employee education

D) return on investment

 

15) Measures of the balanced scorecard’s internal-business-process perspective include all of the following EXCEPT:

A) operating capabilities

B) number of new products

C) employee turnover rates

D) defect rates

 

16) Measures of the balanced scorecard’s learning-and-growth perspective include:

A) employee satisfaction ratings

B) economic value added

C) time taken to deliver product to customers

D) customer-retention percentage

17) Measures of the balanced scorecard’s learning-and-growth perspective include all of the following EXCEPT:

A) employee education and skill level

B) percentage of processes with advanced controls

C) employee-satisfaction ratings

D) time taken to replace defective products

 

18) Which of the following is NOT true of a good balanced scorecard?

A) It tells the story of a company’s strategy by articulating a sequence of cause-and-effect relationships.

B) It helps to communicate corporate strategy to all members of the organization.

C) It identifies all measures, whether significant or small, that help to implement strategy.

D) It uses nonfinancial measures to serve as leading indicators of future financial performance.

 

19) Which of the following is NOT true of the balanced scorecard?

A) Different strategies call for different scorecards.

B) Successful implementation requires commitment and leadership from top management.

C) Only objective measures should be used and subjective measures should be avoided.

D) Cause-and-effect linkages may not be precise and should evolve over time.

20) The return-on-investment ratio is an example of a balanced-scorecard measure of the:

A) internal business process perspective

B) customer perspective

C) learning and growth perspective

D) financial perspective