Sb450 Ch. 9 Discussion Questions

Ch. 9 Discussion Questions

1. The accounting switch from GAAP to IFRS in the United States is going to cost businesses millions of dollars in fees and upgraded software systems and training. U.S. CPAs need to study global accounting principles intensely, and business schools should go ahead and begin teaching students the new accounting standards. All companies have the option to use IFRS procedures in 2011 and are going to be required to use IFRS in 2014. Movement from IFRS from GAAP encompasses a company's entire operations, including auditing, oversight, cash management, taxes, technology, software, investing, acquiring, merging, etc. Some suggest that the switch will help U.S> companies raise capital abroad and do business with firms abroad.

2. It is important to provide continuous evaluations instead of period is desired. However, it is important to recognize that too much emphasis on evaluating strategies may be expensive and counterproductive. The more managers attempt to evaluate the behavior of others, the less control they have. Yet too little or no evaluation can create even worse problems. Also, if periodic evaluation occurs, there can be dysfunctional behavior to achieve goals set. Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored.

3. Strategy-evaluation allows an organization to capitalize on internal strengths as they develop, to exploit external opportunities as they emerge, to recognize and defend against threats, and to mitigate internal weaknesses before they become detrimental. Strategy organization allows an organization to shape its own future rather than allowing it to be constantly shaped by remote forces that have little or no vested interest in the well-being of enterprise.

4. Corrective actions would not be needed for a firm that's actions and results comply with preconceived or planned achievements.

5. The balanced Scorecard is an important strategy-evaluation tool that allows firms to evaluate strategies from four perspectives: financial performance, customer knowledge, internal business processes, and learning and growth. The Balanced Scorecard approach to strategy aims to balance long-term with short-term concerns, to balance financial with nonfinancial concerns, and to balance internal with external factors.

6. I agree that strategic management is more of a science than an art. This prospective contends that firms need to systematically assess their external and internal environments, conduct research, carefully evaluate the pros and cons of various alternatives, perform analysis and then decide upon a particular course of action.