Chapter 2 Operations Strategy in a Global Environment

C) internal strengths and weaknesses and external opportunities and threats.

5) An SWOT analysis determines: A) external strengths and weaknesses and external opportunities and threats. B) internal strengths and opportunities and external weaknesses and threats. C) internal strengths and weaknesses and external opportunities and threats. D) internal strengths and weaknesses and internal opportunities and threats. E) external strengths and weaknesses and internal opportunities and threats.

C) Approximately half of all outsourcing agreements fail.

50) Which of the following statements is most accurate? A) Nearly all outsourcing relationships do not last beyond two years. B) Nearly all U.S. firms that outsourced processes to India have backsourced them. C) Approximately half of all outsourcing agreements fail. D) Outsourcing is a relatively risk-free activity. E) More than 90% of outsourcing agreements succeed.

D) outsourcing core competencies

51) Which of the following is not an advantage of outsourcing? A) cost savings B) gaining outside expertise C) improving operations and service D) outsourcing core competencies E) accessing outside technology

A) international strategy

57) Which of the international operations strategies uses import/export or licensing of existing products? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

D) multidomestic strategy

58) Which of the international operations strategies uses the existing domestic model globally? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

E) all of the above.

1) Cost cutting in international operations can take place because of: A) lower wage scales. B) lower taxes and tariffs. C) lower indirect costs. D) less stringent regulations. E) all of the above.

D) KSFs are often necessary, but not sufficient for competitive advantage.

10) Which of the following statements is most correct? A) KSFs are often sufficient, but not necessary for competitive advantage. B) KSFs are neither necessary nor sufficient for competitive advantage. C) KSFs are both necessary and sufficient for competitive advantage. D) KSFs are often necessary, but not sufficient for competitive advantage. E) None of the above statements is correct.

C) The functional areas develop their supporting missions.

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

C) They are formulated after strategies are known.

13) Which of the following statements about organizational missions is FALSE? A) They reflect a company's purpose. B) They indicate what a company intends to contribute to society. C) They are formulated after strategies are known. D) They define a company's reason for existence. E) They provide guidance for functional area missions.

C) Functional strategies are shaped by corporate strategy.

15) Which of the following statements is true? A) Corporate mission is shaped by functional strategies. B) Corporate strategy is shaped by functional strategies. C) Functional strategies are shaped by corporate strategy. D) External conditions are shaped by corporate mission. E) Functional area missions are merged to become the organizational mission.

D) broad product line

18) Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A) low overhead B) effective capacity use C) inventory management D) broad product line E) mass production

B) setting equipment utilization goals below the industry average.

19) A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT: A) customization of the product. B) setting equipment utilization goals below the industry average. C) speed of delivery. D) constant innovation of new products. E) maintaining a variety of product options.

D) define the organization's purpose in society.

2) The fundamental purpose of an organization's mission statement is to: A) create a good human relations climate in the organization. B) define the functional areas required by the organization. C) generate good public relations for the organization. D) define the organization's purpose in society. E) define the operational structure of the organization.

E) competing on differentiation.

20) The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. E) competing on differentiation.

B) a company that always delivers at the promised time

21) Which of the following statements best characterizes delivery reliability? A) a company that always delivers on the same day of the week B) a company that always delivers at the promised time C) a company that delivers more frequently than its competitors D) a company that delivers faster than its competitors E) a company that has a computerized delivery scheduling system

D) A firm offers more reliable products than its competitors do.

22) Which of the following is an example of competing on the basis of differentiation? A) A firm manufactures its product with less raw material waste than its competitors do. B) A firm's products are introduced into the market faster than its competitors' products are. C) A firm's distribution network routinely delivers its product on time. D) A firm offers more reliable products than its competitors do. E) A firm advertises more than its competitors do.

E) experience differentiation.

23) The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is: A) sensory response. B) time-based competition. C) differentiation. D) flexible response. E) experience differentiation.

E) All of the above are elements of experience differentiation.

24) Which of the following best describes experience differentiation? A) immerses consumers in the delivery of a service B) uses people's five senses to enhance the service C) complements physical elements with visual and sound elements D) consumers may become active participants in the product or service E) All of the above are elements of experience differentiation.

B) is an extension of product differentiation in the service sector.

25) Experience differentiation: A) isolates the consumer from the delivery of a service. B) is an extension of product differentiation in the service sector. C) uses only the consumer's senses of vision and sound. D) keeps consumers from becoming active participants in the service. E) attempts to make the service experience different for every single customer.

C) subcontracting.

6) Outsourcing is simply an extension of the long-standing practice of: A) postponement. B) exporting. C) subcontracting. D) importing. E) e-procurement.

A) A firm produces its product with less raw material waste than its competitors do.

26) Which of the following is the best example of competing on low-cost leadership? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products are. D) A firm's research and development department generates many ideas for new products. E) A firm advertises more than its competitors do.

C) A firm's products are introduced into the market faster than its competitors' products.

28) Which of the following is an example of competing on quick response? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes its capacity more effectively than its competitors do. E) A firm advertises more than its competitors do.

D) all of the above.

29) Response-based competitive advantage can be: A) flexible response. B) reliable response. C) quick response. D) all of the above. E) none of the above.

C) differentiation, cost leadership, and response

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

E) all of the above

30) Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available? A) financial B) physical C) human D) technological E) all of the above

E) all of the above

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

C) maturity

37) Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement

D) decline

38) Cost minimization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) adolescence D) decline E) retirement

A) increase capacity

39) Which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time? A) increase capacity B) long production runs C) standardization D) cost cutting E) fewer rapid product changes

B) cost cutting

40) Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time? A) forecasting B) cost cutting C) increasing capacity D) product and process reliability E) enhancing distribution

A) drive-through restaurants

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

D) 3-D game players

42) Which of the following has made the LEAST progress along its product life cycle? A) drive-through restaurants B) Boeing 787 C) iPods D) 3-D game players E) Xbox 360

D) outsourcing

45) What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? A) nearshoring B) farshoring C) offshoring D) outsourcing E) backsourcing

E) contract manufacturing.

47) Outsourcing manufacturing is also known as: A) license manufacturing. B) sublease manufacturing. C) concurrent manufacturing. D) hollow manufacturing. E) contract manufacturing.

E) potential creation of future competition.

52) Advantages of outsourcing do NOT include: A) cost savings. B) gaining outside expertise. C) maintaining a focus on core competencies. D) accessing outside technology. E) potential creation of future competition.

E) 30.8

53) 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? A) 98.0 B) 32.7 C) 21.8 D) 29.2 E) 30.8

D) Phi

54) 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 A) Alpha B) Beta C) Gamma D) Phi E) Omega

C) transnational strategy

55) Which of the international operations strategies involves high cost reductions and high local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

A) international strategy

56) Which of the international operations strategies involves low cost reductions and low local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

E) the global strategy option.

60) Caterpillar and Texas Instruments are two firms that have benefited from the use of: A) the multidomestic strategy option. B) the international strategy option. C) the transnational strategy option. D) the maquiladora system in Europe. E) the global strategy option.

E) theory of comparative advantage

7) What theory 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? A) theory of outsourcing B) theory of competitive advantage C) theory of core competencies D) theory of offshoring E) theory of comparative advantage

E) all of the above

8) Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above

E) action plan to achieve the mission.

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

C) reduce responsiveness

9) Which of the following does NOT represent a valid reason for globalizing operations? A) reduce costs B) improve the supply chain C) reduce responsiveness D) attract and retain global talent E) understand markets