Test Bank Chapter 2 Internal Audit Strategic Assets Moseley - Test Bank | Health Biz Strategy 2e Moseley by George B. Moseley. DOCX document preview.
CHAPTER 02 TEST BANK
Chapter 2. Internal Audit of Strategic Assets: Resources and Competencies
- In the strategic planning and management process, what is the purpose of performing an internal audit of strategic assets? In answering that question, define the term “strategic assets”.
- An organization’s “strategic assets” are all the resources and competencies that it possesses that might be deployed in the implementation of its strategies or that might impact the choice of those strategies. The purpose of the internal audit is to determine exactly what strategic assets the organization has to work with in making its strategic plans. The most thoughtful plans take fullest advantage of those assets. A strategy is doomed to failure if it relies on assets that the organization does not currently own. However, an organization may choose to acquire assets necessary for a strategy that it believes to be important to its future.
2. List and describe briefly the fundamental three methods for viewing, analyzing, and understanding an organization’s strategic assets.
3. Explain what strategic “resources” and “competencies” are, how they are different from each other, and how they are interrelated.
4. If you wish to understand an organization’s financial capabilities for strategic initiatives, what are five financial metrics that you would look at? Explain how each is calculated and what it tells you about the organization.
5. List and explain non-financial metrics that could be used to assess the success of operations and strategies in a physician group practice or in a biotechnology startup.
6. Briefly describe each of the characteristics of a competence that might serve as the basis for a “sustainable competitive advantage”.
7. Describe four ways in which an organization can “manage” its resources and competencies in order to assure that they are well matched to the strategies that are planned.
8. Explain the concept of the “internal value chain” as though you were talking to someone with no background in management or strategy.
9. Describe in detail how an organization can use sophisticated knowledge of its internal value chain to guide its strategic decisions.
10. Discuss the difference between performing an activity better in the existing way and performing it in an entirely different way. Which approach is most effective in gaining competitive advantage and why?