Chapter 8

Companies in stage _____ of a supply chain management implementation concentrate on making improvements to internal supply chain processes and external processes and relationships with suppliers and customers. A. one B. two C. three D. four

A

According to the text case, CVS's store-level consumption is monitored via Web extranets and then replenished to an agreed-upon service level.

T

According to the textbook case, a Web-based SCM allows Modern Plastics Technology to monitor its customers' needs on a real-time basis.

T

CRM systems help fulfill prospect and customer responses and requests by doing all of the following except: A. Mailing out additional marketing materials B. Providing product information C. Capturing relevant information for the CRM database D. Quickly scheduling sales contacts

A

According to the Real World case, CRM software works best when used with ___________. A. a single database B. two databases C. no databases D. one or more vertical files

A

According to the textbook case, SCM software: A. allows McKesson to monitor CVS's store level consumption and inventory B. allows CVS to monitor McKesson's store level consumption and inventory C. allows McKesson to see what items CVS is ordering from other vendors D. allows CVS to place orders with vendors other than McKesson

A

All of the following are examples of the business value of operational CRM except: A. Enables easy collaboration with customers, suppliers, and partners B. Supports customer interaction with greater convenience through a variety of channels, including phone, fax, e-mail, chat, and mobile devices C. Synchronizes customer interactions consistently across all channels D. Makes a company easier to do business with

A

Enterprise resource planning is recognized as a necessary ingredient that many companies need in order to: A. Gain the efficiency, agility, and responsiveness required to succeed in today's dynamic business environment B. Maximize their marketing dollars C. Reduce inventory levels D. Hold onto competent employees in a competitive environment

A

Giving customers what they want, when and how they want it, at the lowest cost are the Customer Value Goals of: A) supply chain management B) customer relationship management C) enterprise resource management D) marketing management

A

Nike's failed SCM implementation resulted in all the following except: A. $100 million in lost sales B. 50% of the Nike factories were closed C. Depressed stock prices D. Class action lawsuits

A

Of the typical costs associated with implementing a new ERP system, _______________ is the lowest. A. hardware B. software C. data conversions D. reengineering

A

SCM systems generally provide companies with all of the following benefits except: A. Lower marketing costs B. Quicker times to market C. Reductions in inventory levels D. Lower transaction and materials costs

A

The goal of SCM is to create a fast, efficient, and low-cost network of business relationships, or a _______________, to get a company's products from concept to market. A. supply chain B. service chain C. product chain D. relationship chain

A

When ERP systems can break down departmental and functional walls of business processes, it results in a more flexible organizational structure, managerial responsibilities, and work roles. This describes the key business benefit of: A) Enterprise agility B) Decision support C) Decreased costs D) Quality and efficiency

A

Which of the following correctly describes the supply chain life cycle supported by SCM systems? A. Commit, schedule, make, and deliver B. Buy, make, sell C. Buy, sell, schedule, deliver D. None of the choices are correct.

A

Which of the following has been a major cause of failure in ERP projects? A. Business managers and IT professionals underestimating the complexity of the planning, development, and training needed B. Trying to do too much too fast C. Insufficient training in the new work tasks required by the ERP system D. All of the choices are correct.

A

Which of the following would occur in stage 1 of a supply chain management implementation? A. Logistics B. Collaborative marketing C. Order management D. Resource allocation

A

_______________ is the technological backbone of e-business, an enterprise-wide transaction framework with links into sales order processing, inventory management and control, production and distribution planning, and finance. A. Enterprise resource planning B. Supply chain management C. Electronic data interchange D. Partner relationship management

A

According to the textbook case, Capital One's ERP system is accessible to employees and some business partners through a Web portal.

A) True

According to the textbook case, in the past at Capital One an address change required 2 HR specialists to sign off on the change.

A) True Feedback: in the past at Capital One an address change required 10 HR specialists to sign off on the change.

In a survey of senior management satisfaction with 25 management tools, CRM ranked near the top in satisfaction.

A) True Feedback: In this survey, CRM ranked near the bottom in customer satisfaction, even though 72 percent of those surveyed expected to implement CRM systems.

According to the textbook case, Telefonica TSAI tapped into the sizable market of smaller businesses by offering free EDI service.

A) True Feedback: Telefonica TSAI tapped into the sizable market of smaller businesses by offering an Internet-based EDI service.

PRM applications apply many of the same tools used in CRM systems to enhance collaboration between a company and its business partners.

B) False

According to the Real World case, _______________ CRM file(s) is/are preferable to _______________ CRM file(s). A) a single customer master; multiple customer master B) multiple customer master; a single customer master C) a customer transaction; a customer master D) a customer master; a customer transaction

A) a single customer master; multiple customer master

A typical box of breakfast cereal takes _______________ to get from factory to supermarket, struggling its way through wholesalers, distributors, brokers, and consolidators, each of which has a warehouse. A. seven days B. 30 days C. over 100 days D. six months

A?

According to the textbook case, Visa's _______________ management infrastructure was fragmented, complex, and costly to maintain. A. human resources B. financial C. marketing D. communications

B

CRM systems help a company identify, reward, and market to their most loyal and profitable customers through: A. Analytical marketing software B. Databases that include a customer data warehouse and CRM data mart C. Data mining tools D. All of the choices are correct.

B

Companies in stage _____ of a supply chain management implementation concentrate on expanding the business network of Web-enabled SCM-capable trading partners in their supply chain to increase operational efficiency and effectiveness in meeting strategic business objectives. A. one B. two C. three D. four

B

ERP systems can provide vital cross-functional information on business performance to managers in a very timely manner. This describes the key business benefit of: A. Enterprise agility B. Decision support C. Decreased costs D. Quality and efficiency

B

Enterprise resource planning software for a manufacturing company will typically process data from _______________. A. sales orders and inventory B. sales, inventory, shipping, and invoicing, as well as from forecasts for raw material and human resources C. accounts receivable and payable D. none of the choices are correct.

B

Fundamentally, _______________ helps a company get the right products to the right place at the right time, in the proper quantity, and at an acceptable cost. A. customer relationship management B. supply chain management C. electronic data interchange D. partner relationship management

B

Sharing of accurate inventory and procurement information is an outcome of the _______________ SCM function. A. supply chain design B. materials management C. collaborative fulfillment D. supply chain event management

B

Siebel Systems, Oracle, PeopleSoft, SAP AG, and Epiphany are some of the leading vendors of __________ software. A. ERP B. CRM C. PRM D. All of the choices are correct.

B

The goal of the _______________ phase of a customer relationship is to help customers perceive the value of a superior product offered by an outstanding company. A. acquire B. enhance C. retain D. all of the choices are correct.

B

Which of the following is an example of the business value of collaborative CRM? A. Provides all users with the tools and information that fit their individual roles and preferences B. Improves efficiency and integration throughout the supply chain C. Empowers all employees to respond to customer demands more quickly D. Synchronizes customer interaction with greater convenience through a variety of channels, including phone, fax, e-mail, chat, and mobile devices

B

Which of the following would occur in stage 3 of a supply chain management implementation? A. Order fulfillment B. Collaborative marketing C. Order management D. Resource allocation

B

A CRM system includes all the following phases, except: A. Acquire B. Enhance C. Balance D. Retain

C

A CRM system should support the organization in which phase of the relationship between a business and its customers? A. Acquire and enhance B. Enhance and retain C. Acquire, enhance, and retain D. Acquire and retain

C

A lack of adequate collaboration between suppliers, distributors, and ________________ departments within a company will sabotage any SCM system. A. marketing B. production C. inventory management D. All of the choices are correct.

C

According to the textbook case, Telefonica realized that many smaller businesses could not afford standard EDI services, so they offered InfoEDI which allows transmission to be entered and processed _______________. A. on data exchanges B. on intranets C. on the Internet D. on extranets

C

Although the benefits of ERP are many, the costs and risks can be considerable. Which of the following make up the bulk of the cost of implementing a new ERP system? A. Hardware B. Software C. Reengineering (developing new business processes) D. Converting data from legacy systems

C

Companies in stage _____ of a supply chain management implementation strive to optimize the development and management of their supply chains in order to meet strategic customer value and business value goals. A. one B. two C. three D. four

C

In the _______________ phase of a customer relationship, a business relies on CRM software tools and databases to proactively identify and reward its most loyal and profitable customers via targeted marketing programs. A. acquire B. enhance C. retain D. all of the choices are correct.

C

Increasingly, businesses are moving to _______________ CRM systems, to involve business partners as well as customers in collaborative customer services. A. operational B. analytical C. collaborative D. portal-based

C

Managing the full range of the customer relationship involves two related objectives: (1) providing the organization and all customer-facing employees with a single, complete view of every customer at every touch and across all channels, and (2) providing _________________________. A. suppliers with a single, complete view of the internal workings of the company B. distributors with a single, complete view of the company and its extended channels C. customers with a single, complete view of the company and its extended channels D. customers, suppliers, and investors with a complete view of the internal workings of the company

C

The interrelationships with suppliers, customers, distributors, and other businesses that are needed to design, build, and sell a product make up a network of business entities, relationships, and processes called a(n) _______________. A) extranet B) internet C) supply chain D) collaborative enterprise system

C

The major reason for the high rate of failure or dissatisfaction with CRM initiatives is: A) Reliance on software to solve an unsolvable business problem B) Unexpected costs, such as maintenance C) Lack of understanding and preparation D) Incompetent management

C

_______________ involves the electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partners (organizations and their customers and suppliers). A. Data exchange B. Intranets C. Electronic data interchange D. Data interchange

C

_______________ systems store customer account data in common databases and then make it available throughout a company via Internet, intranet, or other network links. A. Enterprise Resource Planning (ERP) B. Supply Chain Management (SCM) C. Customer Relationship Management (CRM) D. Knowledge Management (KM)

C

_______________ relationships have become a company's most valued asset. A) Supplier B) Software supplier C) Customer D) Distributo

C) Customer

A CRM system provides sales reps with the software tools and company data sources they need to _______________. A. support and manage their sales activities B. optimize cross-selling C. optimize up-selling D. All of the choices are correct.

D

A(n) _______________ CRM provides all users with the tools and information they need to fit their individual roles and preferences. A. operational B. analytical C. collaborative D. portal-based

D

According to the Real World case, customer data integration _______________. A. provides a universal view of a customer B. resolves discrepancies in names and addresses C. summarizes customer interaction data from multiple systems D. all of the choices are correct.

D

According to the Real World case, it is easier to implement CRM when: _______________. A. A company is old B. A company is young C. A company has just been purchased by another D. None of the choices are correct

D

According to the textbook case, it took Colgate U.S. anywhere from one to five days to acquire an order and another one to two days to process the order. After ERP, order acquisition and processing combined takes _______________. A. five days B. three days C. 24 hours D. four hours

D

All of the following are examples of the business value of analytical CRM except: A) Extracts in-depth customer history, preferences, and profitability information from data warehouse and other databases B) Allows you to analyze, predict, and derive customer value and behavior and forecast demand C) Lets you approach customers with relevant information and offers tailored to their needs D) Synchronizes customer interactions consistently across all channels

D

All of the following are strategic SCM objectives and outcomes except: A. Establishing policies B. Designing a network C. Establishing objectives D. Scheduling production

D

Because each supply chain process should add value to the products or services a company produces, a supply chain is frequently called a __________ chain. A. process B. service C. product D. value

D

CRM software uses information technology to create a cross-functional enterprise system that integrates and automates many of the _______________ processes with which customers interact. A. sales B. customer services C. marketing D. All of the choices are correct.

D

CRM systems help marketing professionals do all of the following except: A. Qualify leads for targeted marketing B. Schedule direct marketing mailings C. Track direct marketing mailings D. Build up-to-date marketing brochures

D

CRM systems store customer account data in common databases and then make it available throughout a company via all the following, except: Internet, intranet, or other network links. A. Internet B. Intranet C. Network links D. Catalogs

D

Committing to delivery dates in real time is an outcome of the _______________ SCM function. A) supply chain performance management B) supply chain design C) materials management D) collaborative fulfillment

D

Companies employing supply chain management systems can still face problems. Which of the following is not identified as a cause of SCM problems in the text? A. A lack of demand planning knowledge B. Inaccurate production or inventory data provided by a company's other information systems C. Inaccurate or overly-optimistic demand forecasts D. Too many solutions from which to choose

D

EDI is still a popular data-transmission format among major trading partners, primarily to automate repetitive transactions, though it is slowly being replaced by _____-based Web services. A. HTML B. Intranet C. Web-2 D. XML

D

ERP creates a framework for integrating and improving a company's internal business processes that results in significant improvements in the quality and efficiency of: A. Customer service B. Production C. Distribution D. All of the choices are correct.

D

The demands of today's competitive business environment are pushing manufacturers to use which of the following technologies to help them re-engineer their relationships with suppliers, distributors, and retailers? A. Intranets B. Extranets C. E-commerce Web portals D. All of the choices are correct.

D

What do Microsoft, Coca-Cola, Cisco, Eli Lilly, Alcoa, and Nokia have in common? A) They share a single CRM system B) They all implemented a transactional backbone called ERP C) They all manufacture high-tech products D) These companies have nothing in common.

D

Which of the following is a tactical SCM objective? A. Deploying resources to match supply to demand B. Monitoring, controlling, and adjusting production C. Changing transportation methods D. Establishing objectives and policies

D

According to the text, the three enterprise-wide operations: customer relationships, resource planning, and supply chain, all share one common goal: to increase profits.

False Feedback: According to the text, the three enterprisewide operations: customer relationships, resource planning, and supply chain all share one common goal: to get the entire organization to line up and head in the same direction.

According to the text, it is easier than ever for customers to comparison shop and, with a click of the mouse, to switch companies. As a result, customer relationships have become a company's least valued asset.

False Feedback: According to the text, it is easier than ever for customers to comparison shop and, with a click of the mouse, to switch companies. As a result, customer relationships have become a company's most valued asset.

Information for customer relationship management (CRM) is captured from all customer touch-points, such as telephone, fax, e-mail, the company's website, retail stores, and personal contact.

True