OM CH 2 Operations Strategy in a Global Environment

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia

False

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

False

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

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

True

Production processes are being dispersed to take advantage of national differences in labor costs.

True

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

True

Which of the following is true of maquiladoras? A) They discourage foreign businesses from outsourcing. B) They assess tariffs only on the value-added work done. C) They originated in China. D) None of the above

B. They assess tariffs only on the value-added work done.

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

B. cost cutting

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.

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

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. The functional areas develop their supporting missions.

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

D. broad product line

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

E. action plan to achieve the mission.

Key success factors and core competencies are synonyms.

False

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

False