SCM CH2 SB

Identify the true statements about competitive priorities.

-Competitive priorities, on establishment, form the basis for performance measurement. -Competitive priorities address both product-related outcomes and process-related capabilities.

Identify the true statements about fit.

-If strategic planning processes are neglected, the change in market trends can destroy the fit. -Developing effective strategic planning processes that maintain fit is imperative for a firm's survival over time.

Which of the following areas help develop capabilities that contribute to the supply chain operations for a firm?

-Innovation -Sustainability -Flexibility

A competitive priority placed on cost usually treats certain dimensions of quality and timeliness as givens and focuses on reducing cost. Which of the following factors are considered when focusing on the reduction of a product cost on the whole?

-Operation -Maintenance/repair -Purchase -Acquisition

Which of the following categories can the product-specific traits be classified into?

-Order winners -Order qualifiers -Order losers

Identify the true statements about order winners, order losers, and order qualifiers.

-Order winners and order qualifiers form the basis for customers' expectations. - Order losers represent the gap between what the firm delivers and what customers expect. -An order winner to one customer may be an order qualifier to another.

_____ a dimension for product-related outcome, is associated to the degree to which a product is delivered or available when the customer wants it.

timeliness

Who determines a product's quality standard when it is considered a competitive priority?

Customers

Identify an advantage of having strategic plans made by a firm at all levels.

It takes into account the business environment, economic conditions, market opportunities, and competitor actions.

Technology

Proprietary usage of hardware and software that enables a firm to do things differently or better than the competitors

people and culture

Skills, training, behaviors, and internal culture that produce better motivation and performance

Processes

Specialized routines, procedures, performance measurement systems that guide operation activities

Purchase cost/price

This is important for consumer goods in general when concerned about the durability and life of a product.

Disposal costs

This is important when we take into consideration the durability goods (cars, washing machines) due to environmental concerns.

Maintenance and operating cost

This is more important for customers buying long-life items such as industrial machinery.

When a product offered by a firm is always in stock, this firm's value to the customer is based on the competitive priority of _____.

Timeliness

Identify the three product-related competitive priorities.

Timeliness, Cost, Quality

A(n) _____ communicates the overall mission of the firm and identifies the types of businesses that a firm wants to be in.

corporate strategy

A(n) _____ is a collection of product and service features that are both attractive to customers and different from what the competitors offer.

value proposition

_____ can be defined as the extent to which there is alignment between a firm's operational capabilities, its value proposition, and desires of its critical customers.

Fit

_____ is generally defined as an operation's ability to respond efficiently to changes in products, processes (including supply chain relationships), and competitive environments.

Flexibility

______ refers to both radical and incremental changes in processes and products.

Innovation

The amount of time that passes between the beginning and ending of a set of activities is called _____.

lead time

Which of the following are advantages of a firm having flexible operations?

-The firm can command premium prices when its operations can be tailored to meet specific needs. -The firm has many opportunities to create value for its customers in unique ways.

Which of the following are considered to be external factors that affect a firm's success?

-The new markets that are opening up for business -The changes in the technology available that could hamper the growth of the firm -The obstacles that the firm is facing

Which of the following are the advantages of corporate strategic planning when compared with business unit planning and functional planning?

-This type of planning has the least number of constraints. -This type of planning has the broadest scope.

Which of the following are true of functional strategic planning when compared with business unit planning and corporate planning?

-This type of planning has the most number of constraints. -This type of planning has a narrow scope and is very detailed.

Identify the three areas in which the choices are made as the main part of an operations strategy.

-Value propositions -Critical customers -Capabilities

Which of the following hierarchical levels does Strategic planning consist of?

1. Corporate planning 2. Strategic business unit (SBU) planning 3. Functional planning

Identify the characteristics of a well-designed value proposition.

1. offers combo of product features that customers find attractive and are willing to pay for 2. differentiates the firm from its competition in a way that is difficult to intimidate. 3. satisfies the financial and strategic objectives of the business 4. can be reliably delivered given the operational capabilities of the business and its supporting supply chain 5. consistent with the firms social and core values.

_______ _______are skills, processes, and systems that are unique to a firm and that enable it to deliver products that are both valued by the customer and difficult for competitors to imitate.

Core capabilities

____ is defined as the expenses incurred in acquiring and using a product.

Cost

Planning systems

access and development of sources of information, and use of proprietary decision support systems and processes

The three primary areas or elements of an operations strategy, work in a setting called the _____.

environment

A _____ determines how an action taken by a particular unit of the firm will support the overall business unit strategy.

functional strategy

A product's _______ is defined as its fitness for consumption in terms of meeting the customers' needs and desires.

quality