STRAMA MIDTERM EXAM

IDENTIFICATION
These are short-term milestone that an organizations must achieved to attains its long-term
objectives.
annual objectives

Refers to all managerial activities toward ensuring actual results that are consistent with
planned results.
Controlling

The process wherein customer's needs and wants for the products and services are identified,
anticipated and created.
Marketing

It is called the art and science of formulating, implementing and evaluating cross- functional
decisions.
strategic management

It determines when an organization will be able to cover all its overheads and make a profit.
break-even analysis

These are factors coming from outside the organization that includes opportunities and threats
that an organization might consider.
external factors

Refers to those factors which are inside the organization such as human resources, marketing
activities and financial status.
internal factors

It includes all managerial activities that result in a structure of task and authority relationship.
organizing
Refers to the end product, customer and employee satisfaction during production
Output

Decision made to examine various method by which a firm can raise capital and to determine
what best capital structure is best suited to the firm.
financing decision

It allows generation and consideration of a range of feasible objectives and strategies.

mission statement

It is the conduct or research on the business environment within which the organization
operates
strategic analysis

Refers to the allocation and reallocation of capital and resources to different types of projects,
products and assets.
investment decision

This refers to how the long-term objectives of an organization will be achieved and can be
further divided into business level and corporate level.
Strategies

What is the descriptive title of your subject

strategic management

A matrix used as strategic analysis tool that provides a good baseline for benchmarking with
external organizations
internal factor evaluation matrix

It refers only to strategy formulation.

strategic planning
It is called the process where actual performance is measured against the goals and objectives.
strategy evaluation

This adds value to the organization by taking a more active role in advising, setting of goods
practices for the development of corporate and risk management processes.
internal audit

This states the future orientation of the organization and basically a destination statement.
vision statement

It is the process where a firm determines the cost associated with organizational activities from
purchasing raw materials to manufacturing products to marketing products.
value chain analysis

A declaration of an organization's reason for existence.

mission statement

Often called the action stage as the organization put into action all the plans that were
formulated
strategy implementation

It includes development of a vision and mission statement, identification of all the external and
internal factors and establishment of a long-term objectives.
strategy formulation

Refers to the transformation during the production.

Process

The study of human behavior in organizational settings, the interface between human behavior
and the organization, and the organization itself.
strategic management
These are the people involved in the strategic management process.
Strategists

It is the end result of the inputs ,transformation and outputs

Feedback

Refers to the analytical tool used to determine whether a firm' s value chain activities are
competitive against the rival firms.
Benchmarking

Served as a control mechanism which focuses is on the use of internal resources of the firms.
internal audit

At this stage, the organization measures its performance by comparing its goal and objectives
set with the actual performance.
strategic evaluation stage

Defined as an independent, objective assurance and consulting activity designed to add value
by the Institute of Internal Auditors.
internal auditing

It is a social process of strategy making which focuses on the way people think and act in an
organization.
strategic planning and management

It refers to what a particular organization possesses which are not possessed by its competitors.
competitive advantage

This is defined as the exact result that an organization wants to achieve in line with its mission
statement.
Objectives
These are the raw materials, components, labor, research and development used in the
production processes.
Input

It measures the extent to which a firm can meet all its short-term obligations
liquidity ratio

Any act of an individual person which is considered human behavior is reflection of his thoughts,
feelings, emotions, sentiments whether conscious or not
strategic plan

This is a discipline that is multi-disciplinary in nature.

strategic management

Refers to the decision on what new business the organization should embark on.
strategy formulation

Type of decision made to address issues on the percentage of earnings paid to the stockholders
and the stability of dividends paid over time.
dividend decision

MULTIPLE CHOICE
It measures the extent to which earnings can be decline without the firm becoming unable to
meet its annual interest cost.
Time-interest-earned ratio

Provides information for reviewing and revising existing work practices in the production
Feedback

Management audit is performing in terms of the following

I, II and III

It measures the attractiveness of firm on equity markets

Price Earnings Ratio

It involves efforts directed towards shaping human behaviors which includes leadership and
behavior modification
Motivating

It measures the earnings available to the owners of common stocks

Earnings per share

It measures the extent to which a firm can meet its short term obligations without relying on the
sale of its inventories
Liquidity ratio

Consists of all managerial activities in preparation for the future which includes forecasting and
devising of strategies
Planning

The following are examples of management audit checklists except

None of the above

The percentage of total funds provided by the creditors

Debt-to-total-assets ratio

The balance between debt and equity in a firms long term capital structure
Long-term debt-to-equity ratio

Includes all managerial activities that result in a structure of task and authority relationship
Organizing
It is conducted to better understand needs and wants of consumers including their problems
relating to goods and services
Marketing research

The percentage of total funds provided by creditors versus by owners

Debt-to-equity ratio

ENUMERATION
Processes of Strategic Management
strategy formulation, strategy implementation, strategy evaluation

Elements of Production
Input, process, output, feedback

Functions of Accounting and Finance

Investment decision, financing decision, dividend decision

Management process
Planning, organizing, motivating, staffing, controlling

Functional roles of the marketing department includes

The conduct of customer analysis, the planning of product snd service, product pricing
distribution, and marketing research