Module 2

Question 1

Strategic objectives and analysis

Answer 1

An evaluation called a SWOT analysis is commonly used to perform internal investigation of an org to assess its strength and weaknesses and an appraisal of the external competitive environment looking for opportunities and threats

Question 2

4 steps of the strategic management process

Answer 2

Strategic Objectives and analysis, strategic formulation, strategic implementation, and strategic evaluation and control

Question 3

Strategic formulation

Answer 3

Goals and objectives are written based on the info obtained from the PESTLE and SWOT analysis. Helps the org know Their needs to obtain additional resources, watch for threats, or change a set of internal processes

Question 4

Strategic implementation

Answer 4

Sometimes referred to as a strategic execution, this stage is when the planning stops and action begins

Question 5

Strategic evaluation and control

Answer 5

Performance measurements will help determine if critical milestones are being met. Corrective actions are taken if the actual result varies from the strategic plan

Question 6

Porters 3 most effective strategies

Answer 6

Cost leadership, differentiation, and market segmentation

Question 7

Cost leadership

Answer 7

A firms ability to create economics of scale through extremely efficient operations that produce a large volume. High volume of goods at a low cost.

Question 8

Differentiation

Answer 8

Firms ability to create a good that is difficult to replicate

Question 9

Market segmentation

Answer 9

Cross between the two strategies. Finds specific segmentation of the market which are not tapped by large firms

Question 10

SMART goals

Answer 10

Specific, measurable(quantifiable,tangible, verifiable, results-oriented), attainable(motivating, meaning,rewarding), realistic(acceptable, agreed upon, stretching), time-bound

Question 11

Discuss the importance of alignment between mission, vision, and objectives of an org

Answer 11

Provides clear direction for the organization on what they want to achieve and what services they want to offer

Question 12

Sales budget

Answer 12

Based on sales forecast and can be adjusted at managerial discretion

Question 13

Operating budget

Answer 13

Can be made to of the sales plan, production plan, materials purchasing plan, labor hiring and training program plan and administrative and discretionary spending data.

Question 14

Production plan

Answer 14

Determine the number of sales the company to make in the next year and it should budget how many sales units need to make to meet the sales budget and inventory requirements

Question 15

Direct materials budget

Answer 15

Raw materials the firm uses in its production process.

Question 16

Direct labor budget

Answer 16

Include the labor costs Of all employees actually working on materials to convert them into finished goals

Question 17

Manufacturing overhead budget

Answer 17

Costs that must be incurred but that can’t or won’t be traced directly to specific United produced. Includes: depreciation, maintenance on machines and factory utility costs

Question 18

Cost of goods sold budget

Answer 18

Allows you to account for the actual cost of the products you have produced, it assigns a value to every unit of the product based on raw materials, direct labor, and overheads

Question 19

Cash budget

Answer 19

Required info about cash receipts and cash disbursements from all the other operating budget schedules.

Question 20

Strategic goals

Answer 20

Long term
3-5yrs
What will we do
How will we do it
How will we know succeeded

Question 21

Tactical plans

Answer 21

Short term
A year or less
What is to be done
Who is going to do it
How is it to be done

Question 22

Master budget

Answer 22

Overall budget of the organization. Management use these budgets to show how they intend to acquire and achieve the company’s long term goals. Series of budget, that operationalize strategy

Question 23

What are the two budgets that make up the master budget?

Answer 23

Operating budget and financial budget

Question 24

Administrative budget

Answer 24

The selling and administrative expense budget deals with non manufacturing costs such as freight or supplies

Question 25

Finished goods inventory

Answer 25

Necessary to complete the cost of goods sold budget and the balance sheet

Question 26

Variable cost

Answer 26

I.e. labor time, materials, electricity, wear on machines, shipping costs, and selling fees. Over head costs (not directly involved of making the product)

Question 27

Is operating income the same as net income?

Answer 27

No

Question 28

Balance sheet

Answer 28

Shows lists of assets, liabilities, and stockholder equity at a specific date

Question 29

Income statement

Answer 29

income statement reports revenues and expenses that net to a profit or loss. … They use the income statement to decide whether a business is generating a sufficient profit to pay off its liabilities.