Operations Management Chapter 2 Quiz

The acronym MNC stands for

multinational corporation

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

they are formulated after strategies are known

Which of the international operations strategies involves high cost reductions and high local responsiveness?

transnational strategy

A strategy is a(n):

action plan to achieve the mission

Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available? financial physical human technological All of these

all of these

Cost cutting in international operations can take place because of: lower taxes and tariffs. lower wage scales. lower indirect costs. less stringent regulations. All of these.

all of these

Multinational organizations can shop from country to country and cut costs through: lower wage scales. lower indirect costs. less stringent regulations. lower taxes and tariffs. All of these.

all of these

Porter's Five Forces Model contains which of the following? immediate rivals potential entrants customers suppliers All of these

all of these

Response-based competitive advantage can be: flexible response. reliable response. quick response. All of these. None of these.

all of these

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas? product research human resources process innovation quality management All of these

all of these

Which of the following best describes experience differentiation? immerses consumers in the delivery of a service uses people's five senses to enhance the service complements physical elements with visual and sound elements consumers may become active participants in the product or service All of these are elements of experience differentiation.

all of these

Which of the following represents a reason for globalizing operations? to improve the supply chain to improve operations to expand a product's life cycle to attract and retain global talent All of these

all of these

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is:

competing on differentiation

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?

cost cutting

Cost minimization is an appropriate strategy in which stage of the product life cycle?

decline

The fundamental purpose of an organization's mission statement is to:

define the organization's purpose in society

According to the authors, which of the following strategic concepts allow firms to achieve their missions?

differentiation, cost leadership, and response

Which of the following environmental factors has not contributed to Microsoft's changing strategy? Google faster processors global warming the Internet security issues

global warming

Which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time? increase capacity cost cutting fewer rapid product changes long production runs standardization

increase capacity

An SWOT analysis determines:

internal strengths and weaknesses and external opportunities and threats.

Standardization is an appropriate strategy in which stage of the product life cycle?

maturity

Which of the international operations strategies uses the existing domestic model globally?

multi-domestic strategy

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

outsourcing

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

outsourcing core competencies

Who introduced the concept of value-chain analysis?

porter

Advantages of outsourcing do NOT include: accessing outside technology. gaining outside expertise. maintaining a focus on core competencies. potential creation of future competition. cost savings.

potential creation of future competition

Which of the following did the authors NOT suggest as a reason for globalizing operations? understand markets reduce costs attract and retain global talent pursue stockholder approval ratings improve the supply chain

pursue stockholder approval ratings

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

setting equipment utilization goals below the industry average

Outsourcing is simply an extension of the long-standing practice of:

subcontracting

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 comparative advantage