28. A balanced scorecard that includes both strategic and financial performance targets is a…
A balanced scorecard
that includes both strategic and financial performance targets is a
conceptually strong approach for judging a company’s overall performance
financial performance measures are lagging indicators that
reflect the results of past decisions and organizational activities whereas
strategic performance measures are leading indicators of a company’s future
it entails putting equal
emphasis on good strategy execution and good business model execution.
a balanced scorecard approach pushes managers to avoid setting
objectives that reflect the results of past decisions and organizational
activities and, instead, to set objectives that will serve as leading
indicators of a company’s future financial performance.
it assists managers in putting roughly equal emphasis on
short-term and long-term performance targets.
it more or less forces managers to put equal emphasis on financial and strategic objectives.
Why should long-run
objectives take precedence over short-run objectives?
Focus is placed on improving performance in the near term.
Long-run objectives are necessary for achieving long-term
performance and stand as a barrier to undue focus on short-term results.
This will satisfy shareholder expectations for progress.
This will force the company to deliver performance improvement
in the current period.
None of these.
are needed only on a companywide basis related to a company’s
short-term and long-term profitability.
need to be broken down into performance targets for each of
its separate businesses, product lines, functional departments, and
individual work units.
play the important role of establishing the direction in which
it needs to be headed.
are important because they help guide managers in deciding
what the company’s strategy map should look like.
should be set in a manner that does not conflict with the
performance targets of lower-level organizational units.
A company needs
performance targets or objectives
for its operations as a whole and also for each of its
separate businesses, product lines, functional departments, and individual
because they provide parameters for the company’s strategy
in order to unify the company’s strategic vision and business
to help guide managers in deciding what strategic path to take
in the event that a strategic inflection point is encountered.
in order to prevent lower-level organizational units from
establishing their own objectives.
The task of stitching
together a strategy
entails addressing a series of hows: how to grow the business, how to please customers, how to
outcompete rivals, how to respond to changing market conditions, and how to
achieve strategic and financial objectives.
is primarily an exercise in deciding which of several freshly
emerging market opportunities to pursue.
is mainly an exercise that should be dictated by what is comfortable
to management from a risk perspective and what is acceptable in terms of
requires trying to copy the strategies of industry leaders as
closely as possible.
is mainly an exercise in good planning.
a collaborative effort that includes managers in various
position at various organizational levels.
executive management involvement only.
participation by all employees.?
a collaborative effort between the CEO and board members only.
All of these.
is primarily concerned with strengthening a company’s market
position and building competitive advantage.
is subject to being changed much less frequently than either a
company’s objectives or its mission statement.
should be based on a flexible strategic vision and mission.
ensures consistency in strategic approach among businesses of
a diversified, multibusiness corporation.
determines balanced scorecard financial and strategic
strengthening the company’s market position and building
ensuring consistency in strategic approach among the
businesses of a diversified company.
selecting a business model to use in pursuing business
selecting a set of financial and strategic objectives for a
particular line of business.
choosing appropriate internal business processes for a specific
line of business.
In a single-business
company, the strategy-making hierarchy consists of
business strategy, divisional strategies, and departmental
business strategy, functional strategies, and operating strategies.
business strategy and operating strategy.
managerial strategy, business strategy, and divisional
corporate strategy, divisional strategies, and departmental