Accounting 202 Exam 2

Front 1

An organization's intangible assets include:

Back 1

-loyal and profitable customer relationships
-High-quality processes
-Innovative products and services
-Employee skills and motivation
-Databases and information systems

Front 2

Provides a system for measuring and managing all aspects of a company's performance

Back 2

The Balanced Scorecard (BSC)

Front 3

Balances traditional financial measures of success, such as profits and return on capital, with non-financial measures of the drivers of future financial performance

Back 3

The Balanced Scorecard (BSC)

Front 4

Measures organizational performance across different perspectives

Back 4

The Balanced Scorecard (BSC)

Front 5

Four different but linked perspectives:

Back 5

-Financial
-Customer
-Internal
-Learning and Growth

Front 6

Financial

Back 6

How is success measured by shareholders?

Front 7

Customer

Back 7

How do we create value for customers?

Front 8

Internal

Back 8

At what internal processes must we excel to pacify customers and shareholdlers?

Front 9

Learning and Growth

Back 9

What employee capabilities, information systems, and organizational climate do we need in order to continually improve internal processes and customer relationships?

Front 10

Provides a visual representation of the linkages in the four perspectives of the BSC

Back 10

Strategy map

Front 11

Learning and Growth Perspective

Back 11

Employees' Process Improvement Skills

Front 12

Internal Perspective

Back 12

Process Qualit; Cycle Time

On-Time Delivery

Front 13

Customer Perspective

Back 13

Customer Loyalty

Front 14

Financial Perspective

Back 14

Return on Investment

Front 15

A widely recognized measure of financial success; repeated and expanded sales from existing customers, the result of a high degree of loyalth among existing customers, could be one driver of this financial measure

Back 15

Return on investment (ROI)

Front 16

Short cycle times and high-quality production processes are two processes of?

Back 16

On-Time Delivery

Front 17

It identifies and makes explicit the hypotheses about the cause and effect relationships between:

Back 17

The Balanced Scorecard (BSC); outcome measures in the Financial and Customer perspectives; and the performance drivers oft hose outcomes that are measured int he Internal and Learning and Growth perspectives

Front 18

Increase revenues through expanded sales to existing customers

Back 18

Financial perspective

Front 19

Become service oriented

Back 19

Customer perspective

Front 20

Achieve excellence in order fulfillment through continuous process improvements

Back 20

Internal perspective

Front 21

Align employee incentives and rewards with the strategy

Back 21

Learning and Growth perspective

Front 22

Establish the level of performance or rate of improvement required for a measure; should be set to represent excellent performance

Back 22

Targets

Front 23

The short-term programs and action plans that will help achieve the stretch targets established for its measures

Back 23

Initiatives

Front 24

Vision =

Back 24

External POV

Front 25

Mission Statement =

Back 25

Internal POV

Front 26

Mission + vision =

Back 26

Strategy

Front 27

Selecting the set of activities in which an organization will excel to create a sustainable difference in the marketplace

Back 27

Strategy

Front 28

Sustainable difference may be to:

Back 28

-Deliver greater value to customers than competitors
-Provide comparable value at a lower price than competitors

Front 29

Indicate whether the company's strategy, implementation, and execution are contributing to bottom-line improvement

Back 29

Financial performance measures

Front 30

A company's financial performance can be improved in two ways:

Back 30

Revenue growth and increased productivity

Front 31

Companies generate revenue growth by:

Back 31

-Selling new products
-Selling to new customers
-Selling in new markets

Front 32

Increased productivity occurs by:

Back 32

Lowering direct and incirect expenses; Utilizing their financial and physical assets more efficiently

Front 33

Managers identify the targeted customer segments in which the business unit competes and the measures of the business unit's performance in these targeted segments

Back 33

Customer Perspective

Front 34

A unique mix of product, price, service, relationship, and image offered to the targeted customers

Back 34

Defines the comany's strategy; Should communicate what the company expects to do for its customers better or differently from its competitors

Front 35

The basic, day-to-day process by which companies produce their existing products and services and deliver them to customers

Back 35

Operating Processes

Front 36

Process by which companies expand and depend on relationships with targeted customers

Back 36

Customer management process

Front 37

Process by which companies develop new products, processes, and services, often enabling the company to penetrate new markets and customer segments

Back 37

Innovation Process

Front 38

Process by which companies ensure that they meet or exceed regulations on business practices

Back 38

Regulatory and Social Processes

Front 39

Identifies how executives mobilize their intangible assets (human, information, and organization) to drive improvement in the internal processes most important for implementing their strategy

Back 39

The Learning and Growth Perspective

Front 40

BSC developed from

Back 40

A performance measurement system to a new strategic management system

Front 41

5 Principles for Becoming Strategy-Focused

Back 41

1. Translate the Strategy to Operational Terms
2. Allign the Organization to the Strategy
3. Make Strategy Everyone's Job
4. Make Strategy a Continual Process
5. Mobilize Leadership for Change