Chapter 2 QM3345
b) Double each of the weights used in part (a) (to 0.20, 1.20, 0.40, and 0.20, respectively). If each weight is doubled, Claudia Pragram should choose
either one as the best country for outsourcing.
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as A. five forces analysis. B. value-chain analysis. C. competitive advantage. D. resources view.
D
The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each. Support your choices. Choose the correct example of cost leadership and its explanation below. A. Disney Magic Kingdom, as it provides the best free and low dash cost attractions and places to visit. B. Wal-Mart, as it provides fast product delivery to the customers. C. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience. D. Wal-Mart, as it has low overhead and huge buying power to pressure its suppliers into concessions.
D
The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each. Support your choices. Choose the correct example of differentiation and its explanation below. A. Hunter Fan, as it guarantees delivery in 3 days. B. Johnson Electric, as it specializes in industrial and commercial electrical construction projects. C. Johnson Electric, as it competes on speed dash speed in design comma production comma and delivery. D. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.
D
Which of the following is NOT one of the three strategic approaches to competitive advantage? A. response B. differentiation C. cost leadership D. innovation
D
Which of the following statement is incorrect about the mission? A. The mission statement provides boundaries and focus for organizations. B. The mission states the rationale for the organization's existence. C. The mission statement provides the concept around which the firm can rally. D. Each functional area within the firm may develop its own strategy, but not its own supporting mission.
D
Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table below, where 1 is a lower risk and 4 is a higher risk. Assume that the executives have determined four criteria weightings: Price, with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2; and History, with 0.1. a) Using the weighted factor-rating method, which country would you select? In the following table, compute the total weighted score for each candidate (enter your responses rounded to one decimal place). Selection Criterion Criteria Weight England Canada Price of service 0.10 4 2 Nearness of facilities 0.60 2 2 Level of technology 0.20 3 4 successful outsourcing 0.10 4 4 Total Weighted Score: _____ _____
2.6; 2.6 Based on a comparison of weighted risk scores, Claudia Pragram should choose either one as the best country for outsourcing
In the following table, compute the total weighted score for each candidate (enter each response as a decimal rounded to one place). Criterion Weight Mexico Panama Costa Rica Peru Trust 0.40 4 1 3 2 quality 0.20 7 10 9 10 Religious 0.10 3 3 3 5 attitudes . 0.10 5 2 4 8 Time 0.10 4 6 7 3 Uncertain 0.10 3 2 4 2 Weighted Score: ____ ____ ____ ____
4.5, 3.7, 4.8, 4.6 Panama has the lowest total weighted risk score and should be the choice for outsourcing.
Fernando Garza's firm wishes to use factor rating to help select an outsourcing provider of logistics services. a) With weights from 1 minus 5 (5 being the highest) and ratings from 1 minus 100 (100 being the highest), use the following table to help Garza make his decision. In the following table, compute the weighted average score for each of the three companies (enter your responses rounded to one decimal place). Criterion Weight (W) Overnight Worldwide Freight Quality 5 86 85 80 Delivery 3 67 84 71 Cost 2 66 77 98 Weighted Average ____ ____ ____
76.3, 83.1, 80.9 The best outsource provider is Worldwide Delivery
A strategy is A. an action plan to achieve a mission. B. the purpose for which an organization is established. C. a functional area of the firm. D. established prior to establishing a mission.
A
Competing on cost is A. achieving maximum value as perceived by the customer. B. concerned with uniqueness. C. concerned with reliability of scheduling. D. based upon flexibility.
A
The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each. Support your choices. Choose the correct example of response and its explanation below. A. Johnson Electric, as it competes on speed-speed in design, production, and delivery. B. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience. C. Johnson Electric, as it specializes in industrial and commercial electrical construction projects. D. Disney Magic Kingdom, as it provides the best free and low-cost attractions and places to visit.
A
What effect does doubling the weights have on your answer? A. The conclusion does not change since the weighted averages do not change at all. B. The conclusion does not change but the weighted averages change. C. The conclusion changes but the weighted averages do not change at all. D. The conclusion changes since the weighted averages change.
A
Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business? A. multidomestic B. global C. transnational D. international
A
e) Select all of the correct impacts legislation moving health insurance from a pretax benefit to taxable income might have on OM strategy below. (Check all that apply.) A. Decrease in the take-home pay of employees by the amount of taxes. B. Increase in the take-home pay of employees by the amount of taxes. C. Operations managers get pressure to increase wages of employees in the lower pay classifications. D. Change in the income of employees in the lower pay classifications.
A,C,D
c) Select all of the correct impacts changes in laptop computer design that builds in wireless technology might have on OM strategy below. (Check all that apply.) A. Capital investment is added for new equipment or processes. B. Design compromises are instituted. C. Product changes decrease. D. Optimum capacity may be achieved. E. New human resources skills. F. Product design needs to be revised.
A,E,F Quality standards need to be revised Inventory needs to be revised Maintenance procedures need to be revised Purchasing needs to be revised
Assume the following table includes the corruption perception index developed by Transparency International. Based on the table provided, rank the following countries from most corrupt to least: Mexico, Sweden, New Zealand, the U.S., Switzerland, and Chile.
A.Mexico 37, Chile 71, the U.S. 73, Switzerland 83, New Zealand 89, and Sweden 90.
Boeing is discussed in the Company Profile of Chapter 2. Does Boeing practice a multinational operations strategy, a global operations strategy, or a transnational operations strategy? Support your choice with specific references to Boeing's operations and the characteristics of each type of organization. A. Transnational. Its material, people, and ideas transgress national boundaries. It combines the benefits of global-scale efficiencies with the benefits of local responsiveness. It is not global because the core competence does not reside in just the "home" country but can exist anywhere in the organization. B. Global. Its level of integration goes beyond multinational. The collection of parts and subassemblies coming from other countries is carefully orchestrated. It is not transnational because its "home" is clearly the U.S., and there is little sense of "local responsiveness." C. Multinational. Its level of integration is not enough to be global. Also it buys resources, creates goods and services, and sell goods and services in a variety of countries.
B
Competing on differentiation is A. based upon flexibility. B. concerned with uniqueness. C. based upon low-cost leadership. D. concerned with the reliability of scheduling.
B
The creation of a unique advantage over competitors is referred as A. experience differentiation. B. competitive advantage. C. response. D. differentiation.
B
Which of the following countries is NOT a member of the EU? A. Spain B. Uruguay C. Portugal D. France
B
Which of the following does not represent competing on response? A. concerned with reliability of scheduling B. based on providing uniqueness C. based on flexibility D. based on quickness
B
Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A. improve products B. attract and retain local talent C. improve operations D. improve the supply chain
B
Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? A. shift towards product focus B. reduce capacity C. forecasting critical D. enhance distribution
B
Which of the following is the core competence for Honda? A. advertising B. gas-powered engines C. sustainable design D. product flexibility
B
Identify how changes in the external environment affect the OM strategy for a company. For instance, discuss what impact the following external factors might have on OM strategy: a) Major increases in oil prices. b) Water- and air-quality legislation. c) Fewer young prospective employees entering the labor market. d) Inflation versus stable prices. e) Legislation moving health insurance from a pretax benefit to taxable income. a) Select all of the correct impacts that major increases in oil prices might have on OM strategy below. (Check all that apply.) A. For the energy inefficient company, change in the cost structure, result in higher selling prices. B. For the energy inefficient company, change in the competitive position. C. For a producer with high energy costs, change in the cost structure, result in higher selling prices. D. For a producer with high energy costs, change in the competitive position.
B,C
b) Select all of the correct impacts that water- and air-quality legislation might have on OM strategy below. (Check all that apply.) A. Difficulty in predicting both the cost of production and the market demand. B. Closing of numerous plants including paper mills and steel mills. C. Increasing production cost. D. Difficulty in using the specific technologies.
B,C,D
dentify how changes within an organization affect the OM strategy for a company. For instance, discuss what impact the following internal factors might have on OM strategy: a) Maturing of a product. b) Technology innovation in the manufacturing process. c) Changes in laptop computer design that builds in wireless technology. a) Select all of the correct impacts the maturing of a product might have on OM strategy below. (Check all that apply.) A. New human resources skills. B. Product changes decrease. C. Labor skills decrease. D. Inventory needs to be revised. E. Quality standards need to be revised. F. Manufacturing process stabilizes.
B,C,F Cost cutting is instituted. Product changes decrease. Design compromises are instituted. Labor Skills decrease Optimum capacity may be achieved Manufacturing process stabilizes Longer Production Runs are used
A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as A. experience differentiation. B. differentiation. C. core competencies. D. key success factors (KSFs).
C
An international business is a firm that A. is not from the United States. B. produces a wide range of products. C. engages in international trade or investment. D. hires non-U.S. citizens.
C
Choose the correct example of cost leadership and its explanation below. A. Family style restaurants, as they have a playground or seating area for children. B. Institutional food services, such as Sodexho, as they offer food delivery to college campuses. C. Institutional food services, such as Sodexho, as they get their contracts by being low bidder to provide service. D. Family style restaurants comma as food is often served on platters and the diners serve themselves.
C
Choose the correct example of response and its explanation below. A. Family style restaurants, as they have a playground or seating area for children. B. Family style restaurants, as food is often served on platters and the diners serve themselves. C. Catering firms, as customers pick the menu, time and date. D. Catering firms, as they have the best cheap meals.
C
SWOT analysis refers to A. support, opponents, weaknesses, and threats. B. strengths, opponents, weaknesses, and threats. C. strengths, opportunities, weaknesses, and threats. D. support, opportunities, weaknesses, and threats.
C
The stated purposed of NAFTA is to A. gain membership in the WTO. B. increase product innovation in the wireless communication sector. C. phase out all trade and tariff barriers among Canada, Mexico, and the U.S. D. reduce the outsourcing of jobs to foreign countries.
C
What is a graphical link of competitive advantage, KSFs, and supporting activities? A. key success factor network B. competitive success grid C. activity map D. product life cycle
C
What is the difference between a multinational corporation (MNC) and an international business? A. The international business has sites in a larger number of countries. B. The international business has been in existence longer than the multi-national firm. C. For the multinational firm, the business done outside the country is especially significant. D. There is no difference.
C
Which of the following international operations strategies involves a high degree of centralization? A. transnational B. multidomestic C. global D. international
C
Which of the following is NOT an OM strategy/issue during the introduction stage of the product life cycle? A. high production costs B. frequent product and process design changes C. long production runs D. limited models
C
Which of the following is NOT one of the 10 strategic OM decisions listed in the text? A. location B. layout C. finance/accounting D. quality
C
Which of the following is the purpose or rationale for an organization's existence? A. charter B. strategy C. mission D. articles of incorporation
C
c) Select all of the correct impacts that fewer young prospective employees entering the labor market might have on OM strategy below. (Check all that apply.) A. Change in the income of employees in the lower pay classifications. B. High unemployment rates. C. Tighter job market. D. Added capital investment for new equipment or processes.
C
Select all of the correct impacts technology innovation in the manufacturing process might have on OM strategy below. (Check all that apply.) A. Product changes decrease. B. Longer production runs are used. C. Capital investment is added for new equipment or processes. D. Optimum capacity may be achieved. E. New human resources skills. F. Purchasing needs to be revised.
C,E,F Maintenance procedures need to be revised. Capital investment is added for new equipment or processes. Quality standards need to be revised. Purchasing needs to be revised New human resource skills Product design needs to be revised Inventory needs to be revised
Assume the following table includes the competitiveness ranking developed by the Global Competitiveness Index. Based on the table provided, rank the following countries from most competitive to least: Mexico, Singapore, the U.S., and China.
C.Singapore 1, the U.S. 6, China 32, and Mexico 60.
Which one of the following statements is incorrect regarding globalization and globalization strategies? A. Globalization means customers, talent, and suppliers are worldwide. B. Globalization strategies could add value to products and services. C. Globalization strategies could contribute to efficiency. D. Globalization strategies could simplify the operations manager's job
D
Within the food service industry (restaurants that serve meals to customers, but not just fast food), find examples of firms that have sustained competitive advantage by competing on the basis of (1) cost leadership, (2) response, and (3) differentiation. Cite one example in each category; provide a sentence or two in support of each choice. (Hint: A "99cents menu" is very easily copied and is not a good source of sustained advantage.) Choose the correct example of differentiation and its explanation below. A. Institutional food services, such as Sodexho, as they offer food delivery to college campuses. B. Fine dining restaurants, as they have almost the same menu and service. C. Institutional food services, such as Sodexho, as they get their contracts by being low bidder to provide service. D. Fine dining restaurants, as they are full service restaurants with specific dedicated meal courses.
D
d) Select all of the correct impacts that inflation versus stable prices might have on OM strategy below. (Check all that apply.) A. Change in the income of employees in the lower pay classifications. B. The manufacturing process stabilizes. C. The OM function focuses on more standardization. D. Difficulty in predicting both the cost of production and the market demand.
D
c) If Overnight Shipping's ratings for each of the factors increase by 10%, what are the new results? If Overnight Shipping's ratings for each of the factors increase by 10%, the best outsource provider is _____________, with a weighted average score of ________.
Overnight Shipping, 83.9
Match the product with the proper parent company and country in the table below: Arrow Shirts
Parent Company: Bidderman International Country: France
Match the product with the proper parent company and country in the table below: Firestone Tires
Parent Company: Bridgestone Country: Japan
Match the product with the proper parent company and country in the table below: Godiva Chocolate
Parent Company: Campbell Soup Country: US
Match the product with the proper parent company and country in the table below: MGM Movies
Parent Company: Credit Lyonnais Country:France
Match the product with the proper parent company and country in the table below: Volvo Autos
Parent Company: Geely Country: China
Match the product with the proper parent company and country in the table below: Goodrich Tires
Parent Company: Michelin Country: France
Match the product with the proper parent company and country in the table below: Alpo Pet Foods
Parent Company: Nestle Country: Switzerland
Match the product with the proper parent company and country in the table below: Haagen-Dazs Ice Cream
Parent Company: Nestle Country: Switzerland
Match the product with the proper parent company and country in the table below: Braun Household Appliances
Parent Company: Procter and Gamble Country: US
Match the product with the proper parent company and country in the table below: Jaguar Autos
Parent Company: Tata Country: India
Match the product with the proper parent company and country in the table below: Lamborghini Autos
Parent Company: Volkswagen Country: Germany
In the following table, the weighted score is computed for each candidate. Weighted Score of Selection Criterion Weight A B C D Labor w 3w 4w 5w 4w Quality 30 120 90 150 180 Logist 5 25 15 15 25 Price 25 125 100 100 75 Trust 5 20 10 15 25 Tech 15 75 60 60 60 Manage 15 75 45 30 60 Total 440 320 370 425
When w = 0, the highest score is achieved by A When w = 10, the highest score is achieved by A 440+3*10=470 When w = 20, the highest score is achieved by D 425+4*20=505 When w = 30, the highest score is achieved by D 424+4*30=545
b) Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. If each weight is doubled, the best outsource provider is ______________ . How does this change your conclusions? A. The conclusion does not change but the weighted averages change. B. The conclusion changes but the weighted averages do not change at all. C. The conclusion does not change since the weighted averages do not change at all. D. The conclusion changes since the weighted averages change.
Worldwide Delivery, C
