BUS309 Ch 2

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. True False

False

Which of the following activities takes place most immediately once the mission has been developed? The functional areas develop their supporting missions. The functional areas develop their functional area strategies. Operational tactics are developed. The firm develops alternative or back-up missions in case the original mission fails. The ten OM decision areas are prioritized.

The functional areas develop their supporting missions.

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation. True False

True

One reason for global operations is to gain improvements in the supply chain. True False

True

The World Trade Organization has helped to significantly reduce tariffs around the world. True False

True

An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on three factors: A, B, and C, with weights of .50, .20, and .30, respectively. She has scored one potential outsourcer, Ling Services, on each of the factors using a scale of 10-50. Ling Services received a score of 30 for factor A, 46 for factor B, and 22 for factor C. What is the factor-rating score for Ling Services? 98.0 29.2 21.8 32.7 30.8

30.8

The theory of ________ implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

Comparative Advantage

Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value. True False

False

A product will always be in the same stage of its product life cycle regardless of the country. True False

False

An organization's strategy is the purpose or rationale for its existence. True False

False

Key success factors and core competencies are synonyms. True False

False

Which of the following statements is true? Corporate strategy is shaped by functional strategies. Functional strategies are shaped by corporate strategy. Corporate mission is shaped by functional strategies. Functional area missions are merged to become the organizational mission. External conditions are shaped by corporate mission.

Functional strategies are shaped by corporate strategy.

An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider. He is focusing on two factors: A and B, using a weight of 75% for factor A and 25% for factor B. He has scored five different potential providers on both factors, using a scale of 1-5, with 1 representing the BEST score. Based on the scores provided in the table below, which provider should be chosen? Provider Factor A Factor B Alpha 1 5 Beta 3 3 Gamma 4 1 Phi 2 1 Omega 3 5

Phi

A strategy is a(n): set of opportunities in the marketplace. simulation used to test various product line options. plan for cost reduction. action plan to achieve the mission. broad statement of purpose.

action plan to achieve the mission.

Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available? technological physical all of the above human financial

all of the above

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas? process innovation human resources quality management product research all of the above

all of the above

Cost cutting in international operations can take place because of: all of the above. lower wage scales. lower taxes and tariffs. lower indirect costs. less stringent regulations.

all of the above.

According to the authors, which of the following strategic concepts allow firms to achieve their missions? differentiation, distinctive competency, quality leadership, and capacity productivity, efficiency, and quality leadership differentiation, cost leadership, and response differentiation, quality leadership, and response distinctive competency, cost leadership, and experience

differentiation, cost leadership, and response

Which of the following has progressed the FURTHEST along its product life cycle? drive-through restaurants iPods 3-D game players Boeing 787 Xbox 360

drive-through restaurants

The term maquiladora is most synonymous with: areas that do not meet U.S. standards for workplace safety and pollution. Chinese forced labor camps. tax breaks provided by some South American countries to other South American countries. home-based or cottage industry. free trade zones in Mexico.

free trade zones in Mexico.

With reference to cultural and ethical issues, the World Trade Organization has: eliminated bribery. eliminated slave labor and child labor. played little role in addressing cultural and ethical issues among nations. made progress in providing equal protection of intellectual property among nations. phased out all trade and tariff barriers between the United States and Mexico.

made progress in providing equal protection of intellectual property among nations.

What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? nearshoring farshoring backsourcing outsourcing offshoring

outsourcing

Which of the following is not an advantage of outsourcing? outsourcing core competencies improving operations and service accessing outside technology gaining outside expertise cost savings

outsourcing core competencies

Which of the following did the authors NOT suggest as a reason for globalizing operations? improve the supply chain pursue stockholder approval ratings understand markets attract and retain global talent reduce costs

pursue stockholder approval ratings