Strategic Management & Performance Flashcards

A company uses a Balanced Scorecard. Which perspective focuses on employee training and organizational culture?

Answer: Learning and Growth

The Learning and Growth perspective addresses human capital, information capital, and organizational capital needed to support strategy.

In Porter's Five Forces model, which force is most directly affected when a company's switching costs are very low?

Answer: Bargaining power of buyers

Low switching costs increase buyer bargaining power because customers can easily move to competing products or suppliers.

Which performance measurement concept involves comparing a company's processes and metrics to best practices in the industry?

Answer: Benchmarking

Benchmarking compares a company's performance metrics and practices against industry leaders or best-in-class competitors.

A firm pursues a cost leadership strategy. Which activity is most critical to sustaining this strategy?

Answer: Continuous process improvement to reduce unit costs

Cost leadership requires ongoing efficiency improvements and process optimization to maintain the lowest-cost position in the industry.

Under the Balanced Scorecard framework, a lag indicator in the financial perspective would most likely be:

Answer: Return on equity

Return on equity is a financial outcome (lag indicator) that reflects past performance rather than predicting future results.

Which strategic planning tool uses a 2x2 matrix to classify business units by market growth rate and relative market share?

Answer: BCG Growth-Share Matrix

The BCG (Boston Consulting Group) Growth-Share Matrix plots business units as Stars, Cash Cows, Question Marks, or Dogs based on growth and share.

When a company identifies a core competency, which characteristic is NOT typically associated with it?

Answer: Easily outsourced to reduce costs

Core competencies are strategically important internal capabilities that should not be outsourced because doing so would erode competitive advantage.