In Which of the Following Organizations Will Strategic Controls Work
In which of the following organizations will strategic controls work the best?
A) in a company designing the user interface of mobile phones, where every month the technology improves and new competitors enter the market
B) in an iron and steel industry whose business prospects depend largely on the ups and downs of the construction industry
C) in a company that provides counseling services to corporate clients and has infrequent performance audits
D) in a hotel chain where customer satisfaction and volatile money market determines the number and type of clientele
Tactical control focuses on ________.
A) implementing strategy
B) regulating activities
C) managing methods
D) planning policies
Department A shows an annual after-tax profit of $400,000 from invested assets of $12 million.Department B shows an annual after-tax profit of $400,000 from invested assets of $8 million.Which unit had the best financial performance?
A) Department A performed the best.
B) Department B performed the best.
C) Both departments had the same financial performance.
D) Performance cannot be determined from these statistics.
The ratio of return on investment (ROI)measures the profitability of a business unit by comparing ________ to ________.
A) activity; sales
B) liquidity; liability
C) inventory cost; inventory turnover
D) net profit before taxes; total assets invested