Control and Evaluation

Concepts

100

This is the end result of an activity.

PERFORMANCE

200

In the past, managing risk in the company was done in a fragmented manner and limited to business units. Today, there is a trend towards the adoption of a corporate-wide, integrated process for managing the uncertainties that could influence the achievement of the corporation's objectives. This is called...

ENTERPRISE RISK MANAGEMENT or INTEGRATED RISK MANAGEMENT

300

This type of control specifies what is to be accomplished by focusing on the end result of the behaviors through the use of objectives and performance targets and milestones.

OUTPUT CONTROL

400

Behavior controls specify how something is to be done through policies, rules or standard operating procedures. An example is this family of ISO standards that documents the company's impact on the environment. What is this numerical ISO standard?

ISO 14000 Standards

500

Rearrange the puzzle pieces to complete the "Control and Evaluation Process." When you're done, type "COMPLETED" on the chat screen. The prof will then check your work. If you typed "COMPLETED" without correctly finishing the puzzle, your group will get deductions.

Link: http://tinyurl.com/ba190controlprocess

Performance Measures

100

A financial measure whose formula is net income divided by total equity...

RETURN ON EQUITY (ROE)

200

A performance scoring system that combines financial measures with operational measures on Customer Satisfaction, Internal Processes, and the Company's Innovation and Improvement Activities.

BALANCED SCORECARD

300

A shareholder value measure that shows the difference between the pre-strategy and post-strategy values for the business. It is computed as the after-tax operating income minus the total annual cost of capital.

ECONOMIC VALUE ADDED (EVA)

400

This financial measure is equal to net income plus depreciation and amortization less capital expenditures and dividends. It represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

FREE CASH FLOW (FCF)

500

This type of audit is used by the Board of Directors to evaluate how management is handling various corporate activities. This can be used to assess and examine top-level activities such as corporate social responsibility, performance of international divisions, and overall functional areas performance.

MANAGEMENT AUDIT

Responsibility Centers

100

Rearrange the puzzle in this link and identify the Responsibility Center being referred to: http://tinyurl.com/ba190center1

COST CENTER

200

Rearrange the puzzle in this link and identify the Responsibility Center being referred to: http://tinyurl.com/responsibility2

PROFIT CENTER

300

Rearrange the puzzle in this link and identify the Responsibility Center being referred to: http://tinyurl.com/respocenter3

REVENUE CENTER

400

Rearrange the puzzle in this link and identify the Responsibility Center being referred to: http://tinyurl.com/ba190response4

EXPENSE CENTER

500

Rearrange the puzzle in this link and identify the concept being referred to: http://tinyurl.com/investmentcenter5

RETURN ON INVESTMENT (ROI)

Problems & Weaknesses

100

A problem with periodic performance evaluation is that managers tend to be biased against investments that might reduce near-term stock price or profitability. This orientation of considering only current tactical or operational issues and ignoring long-term strategic ones is called...

SHORT-TERM ORIENTATION

200

This term refers to being stuck in the analysis part of the Strategic Management Process. A manager suffers from this when he/she over-thinks or over-analyzes a situation so that a decision or action is never taken -- in effect paralyzing the outcome.

ANALYSIS PARALYSIS

300

A type of Goal Displacement where people substitute activities that do not lead to goal accomplishment for activities that do lead to goal accomplishment because the wrong activities are being rewarded. For example, an auto repair shop might want to increase employee productivity by giving employees commissions as a percentage of total repair bill. However, some employees might alter their behavior to fit the reward system. For instance, they might over-bill clients or charge for work that was never done -- ultimately leading to the detriment of the company.

BEHAVIOR SUBSTITUTION

400

This type of Goal Displacement refers to the phenomenon of a unit optimizing its goal accomplishment to the detriment of the organization as a whole. This happens when, for instance, despite not having the final product yet, the company's Sales Group promises shipment of that product to a customer in order to lock in the sale. Consequently, the Manufacturing Group is forced to produce the product, thereby increasing production costs. Although the Sales Group achieved its goal, the company as a whole failed to optimize the total results.

SUBOPTIMIZATION

500

Managers should be wary of this "trap" which tempts them to think that things always have to be approached linearly or sequentially. INREALITY, decision-making should involve going back and forth all steps in the process. INREALITY, there is rarely a definite start and a definite end. INREALITY, this trap claims, there is rarely a linear process in decision-making. This trap is called...

LINEARITY TRAP

Benchmarking

100

The 3 companies ranked 1st, 26th and 50th, respectively, in Fortune's 2010 List of World's Most Admired Companies are ... (identify in correct order)

APPLE (1st); STARBUCKS (26th); VOLKSWAGEN (50th)

200

Using the PSE website as source, rank the following Philippine companies from largest to smallest Market Capitalization: (1) JG Summit Holdings; (2) ABS-CBN; (3) PLDT; (4) Jollibee Foods Corp.; and (5) Meralco.

Market Capitalization, as of Jan. 28, 2011: (1) TEL - P466.891 billion; (2) MER – P306.617 billion; (3) JGS - P129.146 billion; (4) JFC - P80.935 billion; 95) ABS - P34.417 billion

300

Using Yahoo! Finance website as source, identify who among the 3 largest beverage firms -- PepsiCo. (PEP); Coca-Cola Company (KO) or Dr. Pepper Snapple Group (DPS) -- has the highest Trailing Price-to-Earnings ratio or P/E (ttm).

PEPSI CO. INC. (PEP)

400

Every year, Fortune Magazine publishes a list of the "Best Companies to Work For," based on employee surveys in various companies and industries. Google has consistently been included in the Top 5 every year during the past 5 years. Aside from Google, which other US company ranked consistently in the Top 5 from 2007 to 2011?

WEGMANS FOOD MARKET (No employee layoffs during its 95+ years of existence)

500

The local publication Business World releases an annual list of the "Top 1000 Corporations in the Philippines." In 2010, which Philippine company ranked 9th in the list?

MERCURY DRUG CORP.