Reengineering How a Firm Performs a Business Process

question 65

Multiple Choice

Reengineering how a firm performs a business process:

• A) is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group that is in charge of the whole process.
• B) is the most frequently used tool of total quality management (TQM).
• C) requires that a company have many strategic partnerships and alliances with outsiders.
• D) is typically cheaper and easier than using Six Sigma techniques to achieve the same cost savings.
• E) is usually a company's most important "best practice" for achieving operating excellence.

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Definitions:

Valuation

The process of determining the present value of an asset or a company.

Comparing Firms

The analysis, often financial-based, used to compare the performance, efficiency, and health of different companies.

Abnormal Earnings

Profits that exceed or fall short of the earnings typically expected by the market for a company or industry sector.

Cost Of Equity Capital

The rate of return required by shareholders to compensate for the risk of investing in a company, influencing the company's valuation and capital structure.