Name and describe the three requirements for effective strategic planning.
What will be an ideal response?
CONTINUAL PROCESS. Strategic planning should be an ongoing process because the environment is continually changing and the firm's resources and capabilities are continually evolving.
CREATIVITY. Sound planning is based on creativity. Existing assumptions about the firm and the environment should be challenged, and new rules of the game should be established. Developing unique and visionary strategies that defy conventional wisdom also prevents managers from locking into static and predictable options.
MANAGEMENT COMMITMENT. Perhaps the most critical element of successful strategic planning is top management's support and participation. Without the involvement of top management, no strategic plan can be effectively implemented.
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Most commonly, companies issue a(n) ________ dividend.
A. quarterly B. semiannual C. annual D. monthly
The Fellowes Company has developed standards for direct labor. During June, 75 units were scheduled and 100 were produced. Data related to direct labor are: Standard hours allowed 3hours per unit Standard wages allowed$4.00per hour Actual direct labor 310hours (total cost $1,209) What is the direct labor rate variance for June?
A. $31 unfavorable. B. $31 favorable. C. $30 favorable. D. $30 unfavorable.
When costs of doing research outweigh the value of the information generated by the research, research should not be performed
Indicate whether the statement is true or false
A company may prefer to use residual income over return on investment for performance evaluation because ________.
A) residual income is a ratio but return on investment is an absolute figure B) residual income is more likely to lead to goal congruence than return on investment C) residual income is easier to calculate than return on investment D) residual income considers three elements but return on investment considers only two elements