BUSN 448 - TEST 3 STUDY GUIDE WITH COMPLETE SOLUTION BASED ON FINAL EXAM!!

BUSN 448 - TEST 3 STUDY GUIDE WITH
COMPLETE SOLUTION BASED ON FINAL EXAM!!
What are the three basic activities of strategy evaluation?

answers: examine the underlying bases of a firm's strategy

compare expected results with actual results

take corrective actions to ensure that performance conforms to plans



What are the steps of the strategy evaluation?

answers: 1. review of underlying bases of strategy

2. measuring organizational performance

3. take corrective actions



What is the balanced scorecard?

answers: a strategy evaluation and control technique



What is the balanced scorecard based off of?

answers: the need to "balance" financial measures with non-financial ones

What are the 4 areas of the balanced scorecard?



answers: finance, clients, internal, and improvement & innovation

What does the financial ratios tell us?



answers: performance over different time periods

, performance to competitors'

performance to the industry average

What is governance?



answers: the act of oversight and direction

Who keeps score for the balance scorecard?



answers: the group of individuals (board of directors) at the top of an organization
with oversight and guidance over management and who look out for shareholders'
interest

What does the board of directors do?



answers: 1. control and oversight over management

2. adherence to legal prescriptions

3. considerations of stakeholders' interests

4. advancement of stakeholders' rights

What are some challenges to the strategy evaluation?



answers: - domestic and world economies are today more interrelated

•Product life cycles are shorter

•Technological advancements are faster

•Change occurs rapidly

•Competitors abound globally