Exam 15: Strategy Formation, Strategic Control and the Balanced Scorecard

________ is the ratio of the quantity of output produced to the costs of all inputs used,where the inputs are combined on the basis of current period prices.

Answer the following questions using the information below: Mitsufugi Company makes a kitchen appliance with model number KA450.The goal for 2018 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 KA450 units that can be produced.The industry market size for appliances increased 5% from 2017 to 2018.The following additional data are available for 2017 and 2018: 2017 2018 Units of KA450 produced and sold 10000 10300 Selling price \ 150 \ 145 Direct materials (square metres) 30000 29000 Direct material costs per square metre \ 12 \ 13 Manufacturing capacity for KA450 (units) 12500 12000 Total conversion costs \ 250000 \ 240000 Conversion costs per unit of capacity \ 20 \ 20 -Overall,was Mitsufugi's strategy successful in 2018?

It is relatively easy to identify unused capacity for discretionary costs.

Downsizing can often mean eliminating jobs,which can have an adverse effect on employee morale.

Cabramurra Tools Company has been unhappy with the financial accounting variances that its cost accounting system has been producing because its managers believe that there is more to evaluating an operation than just examining accounting numbers.Therefore,it has started gathering data to assist in the examination of non-financial results of operations.The following information relates to the manufacture of remote control units for televisions,radios and stereo components: 2017 2018 Remote control units produced and sold 80000 100000 Direct manufacture labour-hours 12000 13200 Direct materials used (sets) 80600 100500 Direct manufacture cost per hour \ 18 \ 20 Direct materials cost per set \ 31 \ 32 Required: a.What is the partial productivity of direct materials for each year? b.What is the partial productivity of direct manufacturing labour for each year? c.Did each area improve between 2017 and 2018? Explain. d.What will be the projected direct material and labour needs for 2019 if remote control units increase by 12 000 units,assuming Cabramurra Tools Company applies the constant returns to scale technology? _____________________________________________________________________________________________ _____________________________________________________________________________________________

________ describes how an organisation matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

What are the four key perspectives in the balanced scorecard? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Answer the following questions using the information below: Barrier Reef Corporation manufactures jet skis.It plans to grow by producing high-quality jet skis at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar jet skis.Barrier Reef believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy. -Barrier Reef's strategy is:

The internal business processes perspective of the balanced scorecard comprises three sub-processes that address all of the following EXCEPT:

The number of complaints about a product is an example of a balanced-scorecard measure of the:

Which of the following statements about productivity measures is FALSE?

Answer the following questions using the information below: Following a strategy of product differentiation,Platypus Company makes a high-end appliance,AP15.Platypus Company presents the following data for the years 2017 and 2018: 2017 2018 Units of AP15 produced and sold 20000 21000 Selling price \ 200 \ 220 Direct materials (square metres) 60000 61500 Direct materials costs per square metre \ 20 \ 22 Manufacturing capacity in urits of AP15 25000 25000 Total conversion costs \ 1000000 \ 1110000 Conversion costs per unit of capacity \ 40 \ 44 Selling and customer-service capacity (customers) 60 58 Total selling and customer-service costs \ 360000 \ 362500 Selling and customer-service capacity cost per customer \ 6000 \ 6250 Platypus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Platypus Company has 46 customers in 2017 and 50 customers in 2018.The industry market size for high-end appliances increased 5% from 2017 to 2018. -What is the cost effect of the price-recovery component?

Interactive control systems force busy managers to step back from the actions needed to manage the business today and to shift their focus forward to positioning the organisation for the opportunities and threats of tomorrow.

Managers interested in measuring environmental and social performance incorporate these factors into their balanced scorecards to set priorities for initiatives,guide decisions and actions,and fuel discussions about strategies and business models to improve performance.

The purpose of the balanced scorecard is BEST described as helping an organisation:

Conversion costs are an example of:

For each of the following measures,identify which perspective of the balanced scorecard it represents: financial,customer,internal-business-process or learning-and-growth. 1.service response time 2.market share 3.gross margin percentage 4.defect rates 5.customer satisfaction 6.information system availability 7.new-product development time 8.economic value added 9.employee education 10.manufacturing downtime _____________________________________________________________________________________________ _____________________________________________________________________________________________

In contrast to a focal point,a trigger point is a strategic objective out of which many ties spur,resulting in the achievement of many strategic objectives.

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. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Explain the product differentiation and the cost leadership strategies. _____________________________________________________________________________________________ _____________________________________________________________________________________________