MODULE 9 – QUIZ ANSWER KEY
IDENTIFICATION (Total of 5 points)
1. Strategy Evaluation
2. Balanced Scorecard
3. Contingency Plans
4. Audit
5. Return on Investment (ROI)
TRUE OR FALSE (Total of 5 points)
1. True
2. False
3. False
4. True
5. True
ENUMERATION (Total of 20 points)
1. Six key issues in evaluating its strategies. (6 points)
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Customers
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Managers/Employees
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Operations/Processes
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Community/Social Responsibility
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Business Ethics/Natural Environment
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Financial
2. Three Basic Activities on Nature of Strategy Evaluation. (3 points)
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Examining the underlying bases of a firm’s strategy.
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Comparing expected results with actual results.
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Taking corrective actions to ensure that performance conforms to plans.
3. Three Particular Challenges That All Strategists Face Today.A dramatic increase in the
environment’s complexity. (3 points)
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Deciding whether the process should be more an art or a science.
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Deciding whether strategies should be visible or hidden from stakeholders.
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Deciding whether the process should be more top-down or bottom-up in their firm.
4. Eight Key Financial Ratios that are Particularly Useful as Criteria for Strategy Evaluation. (8
points)
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Return on investment (ROI)
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Return on equity (ROE)
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Profit margin
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Market share
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Debt to equity
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Earnings per share
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Sales growth
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Asset growth
OVERALL POINTS: 30 POINTS