HW2

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

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

They are formulated after strategies are known.

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

define the organization's purpose in society.

Outsourcing is simply an extension of the long-standing practice of: exporting. importing. postponement. subcontracting. e-procurement.

subcontracting

Response-based competitive advantage can be: quick response. flexible response. reliable response. all of these. none of the these.

all of these.

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

a company that always delivers at the promised time

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

action plan to achieve the mission.

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

broad product line

Which of the following does NOT represent a valid reason for globalizing operations? understand markets reduce responsiveness attract and retain global talent reduce costs improve the supply chain

reduce responsiveness

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

setting equipment utilization goals below the industry average.

Coca Cola and Nestlé are two firms that have benefited from the use of: the maquiladora system in Europe. the transnational strategy option. the global strategy option. the multidomestic strategy option. the international strategy option.

the transnational strategy option.

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 .30, .20, and .50, 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? 21.8 32.7 29.2 98.0 30.8

29.2

Which of the following is NOT an example of competing on the basis of differentiation? A car manufacturer offers the best warranty in the automobile industry. A firm advertises more than its competitors do. A movie theater distinguishes itself by offering cinema suites and dine-in options. A firm offers a much broader product line than its competitors do. A firm designs its smart phone product with unique features.

A firm advertises more than its competitors do.

Which of the following is an example of competing on the basis of differentiation? A firm's products are introduced into the market faster than its competitors' products are. A firm's distribution network routinely delivers its product on time. A firm offers a much broader product line than its competitors do. A firm manufactures its product with less raw material waste than its competitors do. A firm advertises more than its competitors do.

A firm offers a much broader product line than its competitors do.

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

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

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

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

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 -3 1 Omega 3 5 Gamma Phi Alpha Omega Beta

Alpha

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

False

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

Functional strategies are shaped by corporate strategy.

Which of the following is NOT an example of a global strategy? Gillette introduces a new customized product with less design complexity for low-income Indian customers. IKEA sells standardized, Swedish designed, self-assembly furniture products. Caterpillar provides the same earth-moving equipment in Nigeria as in Iowa. Procter & Gamble homogenizes products as much as the market allows in order to keep cost low. Apple designs its iPhone identical, regardless of region.

Gillette introduces a new customized product with less design complexity for low-income Indian customers.

Which of the following is NOT an example of a multidomestic strategy? The restaurants in Disneyland Paris feature recipes revised for local tastes and increased outdoor seating. IKEA sells standardized, Swedish designed, self-assembly furniture products. Each Hard Rock Café restaurant is designed to reflect the culture and preferences of its location. Heinz takes over Honig (Holland) that makes local traditional delicacies. McDonald's stores in India do not sell sandwiches made of beef.

IKEA sells standardized, Swedish designed, self-assembly furniture products.

Which of the following statements is most correct? KSFs are neither necessary nor sufficient for competitive advantage. KSFs are often sufficient, but not necessary for competitive advantage. KSFs are both necessary and sufficient for competitive advantage. KSFs are often necessary, but not sufficient for competitive advantage. None of these statements are correct.

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

A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 10%, 20%, 30%, and 40%, respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? ​Provider A Provider B Provider C Client reviews 2 6 10 Financial condition 8 4 2 IT capabilities 5 8 2 Government stability 3 1 2

Provider A: 0.2+1.6+1.5+1.2=4.5 Provider B: 0.6+0.8+2.4+0.4=4.2 Provider C: 1+0.4+0.6+0.8=2.8 Since 10 is the best possible number on the scale, we want the provider with the highest factor rating. Based on these factor ratings Provider A should be the one chosen.

Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service. True False

True

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

competing on differentiation.

Outsourcing manufacturing is also known as: concurrent manufacturing. hollow manufacturing. contract manufacturing. sublease manufacturing. license manufacturing.

contract manufacturing.

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

experience differentiation.

A SWOT analysis determines: external strengths and weaknesses and external opportunities and threats. internal strengths and weaknesses and internal opportunities and threats. internal strengths and weaknesses and external opportunities and threats. internal strengths and opportunities and external weaknesses and threats. external strengths and weaknesses and internal opportunities and threats.

internal strengths and weaknesses and external opportunities and threats.

Which of the international operations strategies involves low cost reductions and low local responsiveness? multidomestic strategy transnational strategy international strategy global strategy worldwide strategy

international strategy

Which of the international operations strategies uses import/export or licensing of existing products? multidomestic strategy international strategy global strategy worldwide strategy transnational strategy

international strategy

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

is an extension of product differentiation in the service sector.

Which of the international operations strategies uses the existing domestic model globally? transnational strategy global strategy worldwide strategy international strategy multidomestic strategy

multidomestic strategy

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

outsourcing

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

outsourcing core competencies

Which of the following is NOT part of value-chain analysis? product research human resources project management quality management supply chain management

project management

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? theory of offshoring theory of comparative advantage theory of competitive advantage theory of core competencies theory of outsourcing

theory of comparative advantage

Which of the international operations strategies involves high cost reductions and high local responsiveness? multidomestic strategy worldwide strategy global strategy international strategy transnational strategy

transnational strategy