Managerial Flashcards by Renee Crooks

What is the first step in strategic planning?
A) defining action items
B) performing SWOT analysis
C) setting the mission
D) allocating resources

C) setting the mission

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Which element defines the “boundaries of acceptable activities” for a company?
A) vision
B) Mission
C) Values
D) Objective

B) mission

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SWOT analysis focuses on analyzing:
A) only internal factors
B) only external environment
C) internal and external factors
D) customer perceptions

C) internal and external factors

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What represents a company’s long-term aspirations?
A) strategy
B) vision
C) business plan
D) tactical plan

B) vision

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In strategic planning, what comes after listing resources?
A) strategic options
B) tactical planning
C) financial planning
D) SWOT analysis

A) strategic options

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Which model is used to evaluate organizational aspects?
A) porter’s 5 forces
B) SWOT
C) BCG Matrix
D) McKinsey 7S

D) McKinsey 7S

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What is the purpose of a contingency plan in strategy?
A) improve marketing channels
B) increase brand loyalty
C) prepare for unexpected changes
D) increase short-term profits

C) prepare for unexpected changes

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Fact-based conclusions in a strategic analysis help prevent:
A) extinction by instinct
B) financial mismanagement
C) operational inefficiency
D) stakeholder dissatisfaction

A) extinction by instinct

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When adjusting strategy, managers should learn from:
A) customers and competition
B) only shareholders
C) internal reports only
D) marketing data only

A) customers and competition

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The balanced scorecard measures:
A) only financial performance
B) short- and long-term goals
C) only operational efficiency
D) only market share

B) short- and long-term goals

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In firm valuation, the P/E ratio represents:
A) Price to Equity
B) Price per share divided by Earnings per share
C) net profit divided by total assets
D) dividend yield

B) Price per share divided by Earnings per share

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A higher P/E ratio generally suggests:
A) low growth expectations
B) strong expected growth
C) low investor confidence
D) high debt levels

B) strong expected growth

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Return on investment (ROI) measures:
A) future expenses
B) Gains relative to the initial investment
C) company debt
D) total number of share

B) Gains relative to the initial investment

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Investors primarily seek:
A) brand loyalty
B) high returns with minimal risk
C) new product features
D) high initial sales volume

B) high returns with minimal risk

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If your projected EPS is 4 and your price multiplier is 10, what is your projected stock price?
A) 4
B) 10
C) 40
D) 400

C) 40

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A higher projected stock price leads to:
A) more shares needing to be sold
B) fewer shares needing to be sold
C) higher operating costs
D) lower profitability

B) fewer shares needing to be sold

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Venture capitalists will typically cut financial projections:
A) by 10%
B) in half
C) by 90%
D) by 5%

B) in half

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A key way to improve investor risk assessment is:
A) having optimistic statements
B) ignoring threats
C) providing a good assessment of current conditions
D) promising 10x returns

C) providing a good assessment of current conditions

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What is the real-world equivalent of a quarter in the simulation?
A) 1 month
B) 3 months
C) 6 months
D) 1 year

D) 1 year

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A simple method for estimating ROI includes starting with:
A) dividends
B) projected earnings per share (EPS)
C) gross profit
D) operating cash flow

B) projected earnings per share (EPS)

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In Q1, companies are expected to:
A) launch three brands
B) name their company and open sale outlet
C) acquire another company
D) pay dividends

B) name their company and open sale outlet

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What is the goal during the test market phase (Q2)?
A) maximize profits
B) maximize learning
C) launch a national campaign
D) increase shareholder dividends

B) maximize learning

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Managing cash during early quarters is critical because:
A) cash flow will always be positive
B) you must survive early uncertainty
C) debt will be easily available
D) investors fund negative balances automatically

B) you must survive early uncertainty

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Stockouts can cause:
A) increased customer loyalty
B) customer ill-will
C) higher production costs
D) reduced marketing effectiveness

B) customer ill-will

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What does a price response function measure? A) stock price volatility B) competitor marketing budgets C) customer marketing budgets D) factory output

C) customer marketing budgets

Which of the following is NOT a goal of competitive benchmarking? A) emulating good decisions B) predicting future competitor moves C) ignoring competitor strategies D) identifying threats

C) ignoring competitor strategies

In the early quarters, most companies should expect: A) immediate profitability B) net losses and negative cash flow C) large market share D) steady dividend payments

B) net losses and negative cash flow

Projecting pro forma cash flows involves preparing: A) optimistic scenarios only B) worst-case and pessimistic scenarios C) only breakeven analysis D) only sales projections

B) worst-case and pessimistic scenarios

Managing human resources effectively includes: A) providing no benefits to save costs B) balancing compensation and productivity C) hiring only temporary workers D) ignoring job satisfaction

B) balancing compensation and productivity

A just-in-time production system minimizes: A) production errors B) inventory and storage needs C) brand diversification D) marketing costs

B) inventory and storage needs

High production levels result in: A) higher per-unit production costs B) lower per-unit production costs C) lower production risks D) higher storage requirements

B) lower per-unit production costs

Low production levels can lead to: A) lower unit costs B) stockouts and lost sales C) higher employee morale D) lower customer demand

B) stockouts and lost sales

Fast Eddy in financial planning is used to: A) predict competitor actions B) speed up financial decisions C) lower advertising costs D) reduce employee turnover

B) speed up financial decisions

Ending cash position should be at least how much in a pessimistic scenario? A) 50,000 B) 100,000 C) 200,000 D) 500,000

B) 100,000

Ending cash position should be at least how much in a worst-case scenario? A) 25,000 B) 75,000 C) 100,000 D) 500,000

C) 100,000

Pro Forma Financial Statements are based on: A) Historical data B) Budget assumptions C) marketing survey results D) competitor price reports

B) Budget assumptions

A balanced cash strategy requires: A) aggressive borrowing B) large product inventories C) careful cash flow control D) high executive compensation

C) careful cash flow control

The goal of cash management is to: A) increase operating losses B) avoid insolvency C) cut marketing budgets D) increase employee bonuses

B) avoid insolvency

Over-producing can lead to: A) Stockouts B) excess capacity C) lower production costs D) higher customer satisfaction

B) excess capacity

Under-producing can lead to: A) lower unit costs B) stockouts and customer dissatisfaction C) reduced marketing need D) excess cash

B) stockouts and customer dissatisfaction

Customer value can be described as: A) the features of a product B) the cost to produce a product C) the benefits received minus the price paid D) the number of units sold

C) the benefits received minus the price paid

An example of customer value is: A) low advertising costs B) A car's smooth handling and safety C) executive salaries D) factory efficiency

B) A car's smooth handling and safety

Value is built into a product through: A) employee incentives B) advertising campaigns C) attributes and features D) stockholder investment

C) attributes and features

What is the net difference customers consider? A) brand image and price B) price and production cost C) payment term and taxes D) price paid and benefits received

D) price paid and benefits received

Which interview method helped understand customer value? A) quantitative survey B) focus group C) in-dept individual interview D) financial audit

C) in-dept individual interview

A customer satisfaction score of 70 indicates: A) unacceptable product B) a very strong brand rating C) a bad sales process D) critical production errors

B) a very strong brand rating

Why should companies monitor customer satisfaction? A) to track internal profitability B) to benchmark against competitors C) to reduce production costs D) to cut labor costs

B) to benchmark against competitors

How does differential advantage affect price elasticity? A) decreases price sensitivity B) increases marketing budget C) raise unit production costs D) lower customer loyalty

A) decreases price sensitivity

What reduces price sensitivity? A) higher executive bonuses B) differential advantage C) employee bonuses D) stockholder dividends

B) differential advantage

The ultimate value of a product is linked to: A) its number of features B) its market share C) the real benefit delivered to the customer D) its factory location

C) the real benefit delivered to the customer

Skillful adjustment involves: A) reducing production only B) following competitors blindly C) responding to customer feedback D) increasing salaries only

C) responding to customer feedback

Strategic analysis must consider: A) internal financial projections only B) only customer complaints C) internal and external factors D) only competition pricing

C) internal and external factors

What must you reverse engineer in competitive benchmarking? A) financial statements B) management decisions C) competitor strategies D) production processes

C) competitor strategies

What is the goal of financial management within the firm? A) only marketing growth B) maximizing short-term revenues only C) identifying strengths and weaknesses D) minimizing brand launches

C) identifying strengths and weaknesses

Why is measuring brand profitability important? A) to determine executive pay B) to cut marketing staff C) to allocate resources wisely D) to avoid selling products

C) to allocate resources wisely

Competitive benchmarking allows you to: A) hide weaknesses B) copy financial reports C) predict competitor moves D) focus only on internal goals

C) predict competitor moves

Production operations should align with: A) advertising team wishes B) financial and marketing goals C) employee bonus plans D) vendor recommendations

B) financial and marketing goals

Competitor strategy prediction helps in: A) increasing factory output only B) preemptive strategic action C) boosting production costs D) avoiding international markets

B) preemptive strategic action

Customer feedback directly impacts: A) internal cash flow B) production floor staffing C) future marketing decisions D) sales outlet leases

C) future marketing decisions

Key strategic lesson from Dwight Eisenhower: A) planning is everything B) speed is more important than accuracy C) ignore competitor moves D) focus only on short-term

A) planning is everything

What is the key reason plans fail? A) Poor implementation B) wrong initial assumptions C) high costs D) fast decision-making

A) Poor implementation

Emergent strategy means: A) planning strictly by budgets B) reacting flexibility to real events C) ignoring competitor feedback D) spending heavily on marketing

B) reacting flexibility to real events

Fast response to changes indicates: A) lack of planning B) poor strategic direction C) good management D) slow market adjustment

C) good management

Planning vs Plans concept suggests: A) plans are useless; planning is crucial B) plans should never change C) planning and plans are identical D) focus on perfect plans only

A) plans are useless; planning is crucial

Napoleon's advice was to check if you are: A) rich B) lucky C) smart D) educated

B) lucky

Strategic acid-tests involve checking: A) objectives, resource allocation, advantage B) production plans only C) marketing budgets only D) employee satisfaction only

A) objectives, resource allocation, advantage

Good long-term strategy includes: A) ignoring short-term needs B) strong short-term financial position C) spending all cash reserves D) focusing only on market share

B) strong short-term financial position

A weak short-term financial position can: A) strengthen marketing results B) endanger long-term survival C) increase brand loyalty D) decrease customer satisfaction

B) endanger long-term survival

Financial validation ensures: A) good employee moral B) accurate financial projections C) increased advertising costs D) reduced competition

B) accurate financial projections

Strategic thrusts must be: A) vague and broad B) aligned to chosen strategy C) focused on maximum expansion only D) centered on employee turnover

B) aligned to chosen strategy

Market makers must: A) create demand actively B) wait for market orders C) focus only on manufacturing D) ignore advertising needs

A) create demand actively

Salespeople's productivity depends on: A) Their education B) compensation packages and job satisfaction C0 how many brands the firm offers D) advertising expenditure only

B) compensation packages and job satisfaction

How often should advertising be placed? A) randomly B) as often as possible without strategy C) based on market response and competitor actions D) only once a year

C) based on market response and competitor actions

Price elasticity is impacted by: A) financial liquidity B) differential advantage C) factory production capacity D) number of advertisements

B) differential advantage

A good ad campaign must be: A) long and complicated B) focused and targeted C) expensive and flashy D) without customer research

B) focused and targeted

Differential advantage shifts: A) customer awareness B) demand curve upwards C) employee loyalty D) company profit margin

B) demand curve upwards

Market response is: A) static B) dynamic and changing C) always favorable D) always negative

B) dynamic and changing

High compensation packages improve: A) employee turnover B) customer service C) executive profit sharing D) advertising ROI

B) customer service

Under compensating employees can result in: A) higher production output B) low morale and productivity C) stronger brand image D) increased sales

B) low morale and productivity

Sales outlet location is critical because: A) it determines brand colors B) it affects customer access and sales volume C) it reduces advertising need D) it cuts manufacturing costs

B) it affects customer access and sales volume

Manufacturing productivity is linked to: A) advertising reach B) efficient use of resources C) increasing salaries D) higher market share only

B) efficient use of resources

The balanced scorecard helps in: A) measuring only profitability B) measuring financial and non-financial success C) reducing staff turnover D) increasing production costs

B) measuring financial and non-financial success

Human Resources reports provide: A) employee engagement insights B) competitor brand information C) factory maintenance reports D) only marketing expense data

A) employee engagement insights

Activity-Based Costing(ABC) analyzes: A) direct labor costs only B) cost drivers across activities C) Marketing ROI D) shareholder dividends

B) cost drivers across activities

Industry benchmarks help asses: A) internal weaknesses only B) executive salaries C) company performance D) annual depreciation

C) company performance

Razor's edge production management focuses on: A) balancing production with cash availability B) maximizing factory size C) reducing human resources needs D) increasing product prices

A) balancing production with cash availability

Pessimistic scenarios simulate: A) best market conditions B) 50% decrease in demand C) double market growth D) high employee turnover

B) 50% decrease in demand

When should you rerun factory simulations? A) after every marketing decision B) after every major operational decision change C) only before opening a second sales output D) at the start of each fiscal year

B) after every major operational decision change

Pro Forma Cash Flow should always be checked for: A) product margins B) ending cash sufficiency C) advertisements expense D) brand loyalty

B) ending cash sufficiency

Worst-case scenarios assume: A) maximum cash inflows B) 100% brand loyalty C) severe demand drop D) no competitor movement

C) severe demand drop

Strategy crafting differs from: A) emergency planning B) strategy formulation C) financial auditing D) production scheduling

B) strategy formulation

Strategic Planning relies on: A) random guesses B) distilled and analyzed information C) aggressive marketing only D) copying industry leaders

B) distilled and analyzed information

A "touch of class" in presentations improves: A) executive bonuses B) investor confidence C) brand production D) employee satisfaction

B) investor confidence

Weaknesses identified in SWOT analysis should be: A) ignored B) addressed with action plans C) hidden from investors D) outsourced to consultants

B) addressed with action plans

Business continues during: A) strategy restructuring B) market shutdowns C) competitor takeovers D) factory renovations only

A) strategy restructuring

Strategic options arise from: A) competitive advertising B) SWOT conclusions C) new shareholder elections D) factory audits

B) SWOT conclusions

Investing in the future requires: A) buying new inventory B) investment in learning and innovation C) cutting all non-essential staff D) spending all available cash

B) investment in learning and innovation

Financial risk must be balanced against: A) strategic goals B) executive bonuses C) factory overhead costs D) competitor advertisements

A) strategic goals

Good strategic management involves: A) monitoring objectives vs results B) outsourcing financial functions C) ignoring customer loyalty D) avoiding all debt

A) monitoring objectives vs results

Marketplace success requires mastering: A) single department operations B) integrated and operational management C) only production processes D) external brands sponsorships

B) integrated and operational management

Managerial Flashcards

(100 cards)