MSC Strategic Business Analysis Exam

Republic of the Philippines
MARINDUQUE STATE COLLEGE

SCHOOL OF BUSINESS & MANAGEMENT
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: sucpresident.msc@gmail.com
Website: www.marinduquestatecollege.edu.ph
AE24- STRATEGIC BUSINESS ANALYSIS

FINAL EXAMINATION
December 28, 2022
Part I: PROBLEM SOLVING (INTERNAL AUDIT)
A. The following information pertains to Maradel’s Company for the year ended December 31,
2020. Assume that all balance sheet amounts represent both average and ending balance
figures and all sales were made on credit.
STATEMENT OF FINANCIAL POSITION

For the year ended December 31, 2020
Assets
Cash and short-term investments P 40,000.00
Accounts receivable, net of bad debts (c/o Mama) 25,000.00
Inventory 20,000.00
Property, Plant and Equipment 210,000.00
Total Assets 295,000.00
Liabilities and Stockholder’s Equity
Current Liabilities 60,000.00
Long-term Liabilities 85,000.00
Stockholder's Equity Common 150,000.00
Total liabilities and Shareholders Equity 295,000.00
Vision: MSC – is a research - driven higher education institution pursuing excellence and innovation by 2025.
Mission: MSC – is committed to pursue progressive and innovative lifelong education founded on
humanistic, professional and technologically communities by establishing centers of excellence and development
and research – driven outreach programs..
”Serving Beyond Excellence”
INCOME STATEMENT
For the year ended December 31, 2020
Sales P 85,000.00
Cost of Goods Sold 45,000.00
Gross Margin 40,000.00
Operating Expenses 20,000.00
Net Income 20,000.00
Number of shares of common stock 6,000.00

Market price of common stock P 20.00
Dividends per share P 0.90
1. What is the
Cash Provided by operations P 30,000.00 current
ratio for this company?
2. What is the receivable turnover for this company?
3. What is the inventory turnover ratio for this company?
4. What is the return on assets for this company?
5. What is the profit margin for this company?
6. What is the return on common stockholders’ equity for this company?
7. What is the price earnings ratio for this company?
B. Stockholder’s Equity Section has the following balance both beginning and ending:
Preferred Stock, P100 par, 8% P 100,000.00

Common Stock, 20 par 60,000.00
Additional Paid in Capital, Common 150,000.00
Retained Earnings 30,000.00
During the year, Joy reported interest expense of P4,000, earned net income after taxes at
the rate of 30% and had an average total assets of P400,000.00.
8. The return on total assets during the year is _______________.
9. The return on common stockholders’ equity is ____________.
10. The earnings per share is __________________.
Part II. IDENTIFICATION
1. This theory states that one can move abroad to escape stagnation in their own country,
some may need to do so to keep up with competition, some need to follow their customers
which move abroad or others do so out of cost-cutting motivations.
2. It refers to policies that require employees to report any unethical violations they discover
or see in the firm.
3. The _________________________ holds the idea that a firm can enter several foreign markets at the
same time.
4. The study of appropriate business policies and practice regarding potentially controversial
subjects including corporate governance, insider trading, bribery, discrimination, corporate
social responsibility and fiduciary responsibilities.
5. It includes developing international strategy in the direction of achieving strategic-fit
between the organization's competence & resources and the global environment under
which it tends to operate.
6. It pertains to offering, giving, receiving, or soliciting of any item of value to influence the
actions of an official or other person in discharge of a public or legal duty.
7. ____________________ is the spread of products, technology, information, and jobs across
national borders and cultures.
8. Firms use this strategy to balance the desire for efficiency with the need to adjust to local
preferences within various countries.
9. It is a self-regulating business model that helps a company be socially accountable—to
itself, its stakeholders, and the public.
10. ____________________is an intimate relationship between two truly consenting employees, as
opposed to sexual harassment, which defines broadly as unwelcome sexual advances,
requests for sexual favors, and other verbal or physical conduct of a sexual nature.
Entry Mode Theories Corporate social responsibility (CSR) Globalization
Workplace romance Whistle-blowing Business Ethics
Transnational Strategy Born Global Concept
International Strategic Planning Bribery
Part III. MODIFIED TRUE OR FALSE

Write “T” if the statement is True and write the correct word if the statement is false. (2pts each)
1. Structures refer to both financial and non-financial resources that (a) are available to the
organization and (b) are lacking but required for strategy implementation.
2. A culture of being responsible and accountable for one’s actions, with corresponding
incentives and sanctions for good and poor performance, will also create an atmosphere
where everyone will feel more motivated to contribute to the implementation of strategies.
3. Strategy implementation tackles the “what” and “why” of the activities of the organization
4. The organizational culture must be clear-cut, with the lines of authority and responsibility
defined and underlined in the hierarchy or “chain of command”.
5. The nature and role of marketing, finance and accounting, R&D, and MIS activities, coupled
with the management activities largely determine organizational success.
6. Market segmentation can be defined as the subdividing of a market into distinct subsets of
customers according to needs and buying habits.
7. The concerns about determine an appropriate dividend payout ratio and establish a certain
percentage discount on accounts within a specified period of time were considered as
Marketing Issues of the company
8. Ensuring an open and clear communication network will facilitate the implementation
process.
Part IV. Enumeration

1. Enumerate Rumelt’s Criteria for Evaluating Strategies (4pts)
2. Strategy-formulation techniques can be integrated into a three-stage decision enumerate
those. (3 pts)
Part V. Multiple Choice
1. Which of the following statements is true about competitive advantage?

a. It is unaffected by the strategies taken by the company
b. It is considered to be sustained when it lasts for three months
c. It exists only when the company’s profitability is greater than the average profitability
and profit goals of its rivals
d. It is seldom affected by the business model of the company.
2. The first component of strategic management process is:
a. Deciding on a fit between the organization’s strength and weaknesses and the
environment’s opportunities and threats.
b. Crafting the organization’s mission statement
c. Analyzing the macroenvironment

d. Analyzing the internal controls of the business
3. A - Workplace romance is always a question of whether to allow the practice, and or even
how to prevent it.
B - Companies shall not consider whistle blowing because this is unethical.
a. A is true and B is false
b. A is false and B is true
c. Both are true
d. Both are false
4. Which of the following is a limitation of SWOT (Strengths, Weaknesses, Opportunities, and

Threats) analysis?
a. Organizational strengths may not lead to competitive advantage.
b. The SWOT focus on internal environment is too broad and integrative.
c. SWOT gives a multi-shot view of a moving target.
d. SWOT overemphasizes a multiple dimensions of strategy.
5. According to Porter’s Five Forces Analysis, Rivalry among competitors is intense when:
a. Existing companies can do little to retaliate
b. Low customer loyalty.
c. Products are nearly identical;
d. Economies of scale can be easily achieved.
6. The following scenarios result in a strong bargaining power of the consumers except;
a. Switching costs to other supplier are low;

b. They threaten to forward integrate;
c. Buying in large quantities or control many access points to the final customer;
d. Buyers are price sensitive
7. The matching stage techniques shall include:
i. Competitive Profile Matrix (CPM)

ii. SPACE Matrix
iii. IFE Matrix
iv. EFE Matrix
a. I and II only
b. III and IV only
c. II only
d. I, II, III, IV
_ End of Examination –
WORKSHEET GUIDE
Name: Mae Kristine L. Montaron

Section: BSAIS
Contact No:
E-mail Address: montaronkristine@gmail.com
AE3 - REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

FINAL EXAMINATION WORKSHEET
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Republic of the Philippines

MARINDUQUE STATE COLLEGE

AE24- STRATEGIC BUSINESS ANALYSIS

Part I: PROBLEM SOLVING (INTERNAL AUDIT)

STATEMENT OF FINANCIAL POSITION

Cash and short-term investments P 40,000.00

Accounts receivable, net of bad debts (c/o Mama) 25,000.00

Property, Plant and Equipment 210,000.00

Total Assets 295,000.00

Liabilities and Stockholder’s Equity

Current Liabilities 60,000.00

Long-term Liabilities 85,000.00

Stockholder's Equity Common 150,000.00

Total liabilities and Shareholders Equity 295,000.00

Number of shares of common stock 6,000.00

Preferred Stock, P100 par, 8% P 100,000.00

Part II. IDENTIFICATION

Entry Mode Theories Corporate social responsibility (CSR) Globalization

Workplace romance Whistle-blowing Business Ethics

Transnational Strategy Born Global Concept

International Strategic Planning Bribery

Part III. MODIFIED TRUE OR FALSE

Part IV. Enumeration

Part V. Multiple Choice

1. Which of the following statements is true about competitive advantage?

c. Analyzing the macroenvironment

4. Which of the following is a limitation of SWOT (Strengths, Weaknesses, Opportunities, and

a. Switching costs to other supplier are low;

7. The matching stage techniques shall include:

i. Competitive Profile Matrix (CPM)

Name: Mae Kristine L. Montaron

AE3 - REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

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