MGMT 490 THEORY EXAM MARK SMITH QUESTIONS
AND VERIFIED ANSWERS
environment
resources
goals of management
social responsibility - Answers - What parts make up the formulation part of formulation
and implementation?
structure
systems
leadership - Answers - Strategy is implemented through?
formulation and implementation of strategy - Answers - Model serves as an outline of all
the theories and designed to formulate a strategy and then implement it
company level - Answers - what level does formulation and implementation of strategy
apply to?
environment, resources, goals, responsibility to society, strategy, structure, systems,
leadership - Answers - what are the 8 parts of formulation and implementation of
strategy?
One of the 8 parts have significantly changed
ex) changed law, people copying it, product kills people
Something in process needs to be addressed - Answers - when do you use formulation
and implementation of strategy?
industry rivalry
suppliers
buyers
barriers to entry and exit
substitutes - Answers - What are the parts of Porter's 5 Elemental Forces of
Competition Model?
discussion of power - Answers - what is the porter model used for?
Power: if noticeable
weak: can be replaced - Answers - when do buyers have power? why are they weak?
, Want hard to get in and easy to get out - Answers - what is the ideal barriers to entry
and exit?
introduction: lose $
price umbrella: make $
shakeout: lose $
maturity: make $ - Answers - What are the parts of the Industry Life Cycle and what
happens in each?
Contributes to the BCG model by wanting to be strong enough in price umbrella to skip
shake out and go straight to maturity
Want to sell out or make it big - Answers - how does the industry life cycle relate to the
BCG model?
current ratio
acid/quick ratio - Answers - what are the liquidity ratios?
Current Ratio = current assets / current liability
> 2 - Answers - what is the current ratio and what is the desired number?
Acid/Quick Ratio = Current Assets - Inventory / Current Liability
> 1 - Answers - what is the acid/quick ratio and what is the desired number?
Ave Days Sales in AR
Ave Day Sales in INV - Answers - what are the operating ratios?
AR/AVE
*AVE = Sales/365
< credit terms - Answers - what is the Ave Days Sales in AR? What is the desired
number?
INV/AVE
*AVE = COGS/365
> support sales
< theft, spoilage, obsolescence - Answers - what is the Ave Days Sales in INV?
Debt Ratio - Answers - What is the leverage ratio?
Total Debt / Total Assets
AND VERIFIED ANSWERS
environment
resources
goals of management
social responsibility - Answers - What parts make up the formulation part of formulation
and implementation?
structure
systems
leadership - Answers - Strategy is implemented through?
formulation and implementation of strategy - Answers - Model serves as an outline of all
the theories and designed to formulate a strategy and then implement it
company level - Answers - what level does formulation and implementation of strategy
apply to?
environment, resources, goals, responsibility to society, strategy, structure, systems,
leadership - Answers - what are the 8 parts of formulation and implementation of
strategy?
One of the 8 parts have significantly changed
ex) changed law, people copying it, product kills people
Something in process needs to be addressed - Answers - when do you use formulation
and implementation of strategy?
industry rivalry
suppliers
buyers
barriers to entry and exit
substitutes - Answers - What are the parts of Porter's 5 Elemental Forces of
Competition Model?
discussion of power - Answers - what is the porter model used for?
Power: if noticeable
weak: can be replaced - Answers - when do buyers have power? why are they weak?
, Want hard to get in and easy to get out - Answers - what is the ideal barriers to entry
and exit?
introduction: lose $
price umbrella: make $
shakeout: lose $
maturity: make $ - Answers - What are the parts of the Industry Life Cycle and what
happens in each?
Contributes to the BCG model by wanting to be strong enough in price umbrella to skip
shake out and go straight to maturity
Want to sell out or make it big - Answers - how does the industry life cycle relate to the
BCG model?
current ratio
acid/quick ratio - Answers - what are the liquidity ratios?
Current Ratio = current assets / current liability
> 2 - Answers - what is the current ratio and what is the desired number?
Acid/Quick Ratio = Current Assets - Inventory / Current Liability
> 1 - Answers - what is the acid/quick ratio and what is the desired number?
Ave Days Sales in AR
Ave Day Sales in INV - Answers - what are the operating ratios?
AR/AVE
*AVE = Sales/365
< credit terms - Answers - what is the Ave Days Sales in AR? What is the desired
number?
INV/AVE
*AVE = COGS/365
> support sales
< theft, spoilage, obsolescence - Answers - what is the Ave Days Sales in INV?
Debt Ratio - Answers - What is the leverage ratio?
Total Debt / Total Assets
