SCM Chapter 2

Porter's Five Forces Model contains which of the following? A) immediate rivals B) potential entrants C) customers D) suppliers E) all of the above

E

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation.

True

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

True

To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.

True

Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement

C

Response-based competitive advantage can be: A) flexible response. B) reliable response. C) quick response. D) all of the above. E) none of the above.

D

Which of the following is not an advantage of outsourcing? A) cost savings B) gaining outside expertise C) improving operations and service D) outsourcing core competencies E) accessing outside technology

D

Outsourcing is simply an extension of the long-standing practice of: A) subcontracting. B) importing. C) exporting. D) postponement. E) e-procurement.

A

The term maquiladora is most synonymous with: A) free trade zones in Mexico. B) Chinese forced labor camps. C) home-based or cottage industry. D) areas that do not meet U.S. standards for workplace safety and pollution. E) tax breaks provided by some South American countries to other South American countries.

A

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? A) increase capacity B) long production runs C) standardization D) cost cutting E) fewer rapid product changes

A

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

B

According to the authors, which of the following strategic concepts allow firms to achieve their missions? A) productivity, efficiency, and quality leadership B) differentiation, cost leadership, and response C) differentiation, quality leadership, and response D) distinctive competency, cost leadership, and experience E) differentiation, distinctive competency, quality leadership, and capacity

B

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. E) attempts to make the service experience different for every single customer.

B

Who introduced the concept of value-chain analysis? A) Ford B) Toyota C) Porter D) Smith E) Gates

C

Which of the following is an example of competing on the basis of differentiation? A) A firm manufactures its product with less raw material waste than its competitors do. B) A firm's products are introduced into the market faster than its competitors' products are. C) A firm's distribution network routinely delivers its product on time. D) A firm offers more reliable products than its competitors do. E) A firm advertises more than its competitors do.

D

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

False

Which of the following has progressed the FURTHEST along its product life cycle? A) drive-through restaurants B) Boeing 787 C) iPods D) 3-D game players E) Xbox 360

A

Which of the following is the best example of competing on low-cost leadership? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products are. D) A firm's research and development department generates many ideas for new products. E) A firm advertises more than its competitors do.

A

Which of the following statements is most correct? A) KSFs are often necessary, but not sufficient for competitive advantage. B) KSFs are often sufficient, but not necessary for competitive advantage. C) KSFs are neither necessary nor sufficient for competitive advantage. D) KSFs are both necessary and sufficient for competitive advantage. E) None of the above statements is correct.

A

Which of the international operations strategies involves low cost reductions and low local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

A

Which of the international operations strategies uses import/export or licensing of existing products? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

A

An SWOT analysis determines: A) internal strengths and weaknesses and internal opportunities and threats. B) internal strengths and weaknesses and external opportunities and threats. C) external strengths and weaknesses and internal opportunities and threats. D) external strengths and weaknesses and external opportunities and threats. E) internal strengths and opportunities and external weaknesses and threats.

B

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

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? A) research and development, cost, legal regulations, suppliers, customers B) immediate rivals, potential entrants, customers, suppliers, and substitute products C) potential entrants, customers, suppliers, legal regulations, and cost D) immediate rivals, potential entrants, cost, substitute products, and legal regulations E) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals

B

The fundamental purpose of an organization's mission statement is to: A) create a good human relations climate in the organization. B) define the organization's purpose in society. C) define the operational structure of the organization. D) generate good public relations for the organization. E) define the functional areas required by the organization.

B

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 E) All of the above

B

Which of the following statements best characterizes delivery reliability? A) a company that always delivers on the same day of the week B) a company that always delivers at the promised time C) a company that delivers more frequently than its competitors D) a company that delivers faster than its competitors E) a company that has a computerized delivery scheduling system

B

With reference to cultural and ethical issues, the World Trade Organization has: A) eliminated bribery. B) made progress in providing equal protection of intellectual property among nations. C) phased out all trade and tariff barriers between the United States and Mexico. D) eliminated slave labor and child labor. E) played little role in addressing cultural and ethical issues among nations.

B

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? A) theory of competitive advantage B) theory of core competencies C) theory of comparative advantage D) theory of outsourcing E) theory of offshoring

C

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

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

C

Which of the following does NOT represent a valid reason for globalizing operations? A) reduce costs B) improve the supply chain C) reduce responsiveness D) attract and retain global talent E) understand markets

C

Which of the following is an example of competing on quick response? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes its capacity more effectively than its competitors do. E) A firm advertises more than its competitors do.

C

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

C

The acronym MNC stands for A) Mexican National Committee (for international trade) B) Maquiladora Negates Competition C) Maytag-Nestlé Corporation D) Multinational Corporation E) Maritime Navigation Company

D

Which of the following statements is most accurate? A) Nearly all outsourcing relationships do not last beyond two years. B) Nearly all U.S. firms that outsourced processes to India have backsourced them. C) Approximately half of all outsourcing agreements fail. D) Outsourcing is a relatively risk-free activity. E) More than 90% of outsourcing agreements succeed.

C

Which of the following statements is true? A) Corporate mission is shaped by functional strategies. B) Corporate strategy is shaped by functional strategies. C) Functional strategies are shaped by corporate strategy. D) External conditions are shaped by corporate mission. E) Functional area missions are merged to become the organizational mission.

C

Which of the international operations strategies involves high cost reductions and high local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

C

Boeing's new 787 Dreamliner: A) is assembled in Washington, D.C. B) uses engines from Japan. C) has its fuselage sections built in Australia. D) has increased efficiency from new engine technology. E) results from a partnership of about a dozen companies.

D

Cost minimization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) adolescence D) decline E) retirement

D

Franz Colruyt has achieved low-cost leadership through: A) effective use of voice mail. B) plastic, not paper, shopping bags. C) background music that subtly encourages shoppers to buy more. D) converting factories, garages, and theaters into retail outlets. E) exclusive use of the Euro.

D

The purpose of NAFTA is to: A) substitute cheap labor in Mexico for expensive labor in the United States. B) curb illegal immigration from Mexico to the United States. C) phase out all trade and tariff barriers between North America and South America. D) phase out all trade and tariff barriers between the United States, Canada, and Mexico. E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.

D

What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? A) nearshoring B) farshoring C) offshoring D) outsourcing E) backsourcing

D

Which of the following has made the LEAST progress along its product life cycle? A) drive-through restaurants B) Boeing 787 C) iPods D) 3-D game players E) Xbox 360

D

Which of the following is LEAST likely to be a low-cost leadership competitive advantage?

D

Which of the following is not part of value-chain analysis? A) product research B) quality management C) supply chain management D) marketing E) human resources

D

Which of the international operations strategies uses the existing domestic model globally? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) worldwide strategy

D

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

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

E

Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available? A) financial B) physical C) human D) technological E) all of the above

E

Caterpillar and Texas Instruments are two firms that have benefited from the use of: A) the multidomestic strategy option. B) the international strategy option. C) the transnational strategy option. D) the maquiladora system in Europe. E) the global strategy option.

E

Cost cutting in international operations can take place because of: A) lower taxes and tariffs. B) lower wage scales. C) lower indirect costs. D) less stringent regulations. E) all of the above.

E

Multinational organizations can shop from country to country and cut costs through: A) lower wage scales. B) lower indirect costs. C) less stringent regulations. D) lower taxes and tariffs. E) all of the above.

E

Outsourcing manufacturing is also known as: A) license manufacturing. B) sublease manufacturing. C) concurrent manufacturing. D) hollow manufacturing. E) contract manufacturing.

E

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. E) competing on differentiation.

E

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is: A) sensory response. B) time-based competition. C) differentiation. D) flexible response. E) experience differentiation.

E

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas? A) product research B) human resources C) process innovation D) quality management E) all of the above

E

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

E

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

E

Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above

E

Which of the following statements regarding the Dreamliner 787 is true? A) Boeing has found partners in over a dozen countries. B) The new aircraft incorporates a wide range of aerospace technologies. C) The new aircraft uses engines from not one, but two manufacturers. D) Boeing will add only 20 to 30 percent of the aircraft's value. E) All of the above are true.

E

A product will always be in the same stage of its product life cycle regardless of the country.

False

An organization's strategy is the purpose or rationale for its existence.

False

Core competencies are good candidates for outsourcing.

False

Firms using the global strategy can be thought of as "world companies."

False

Key success factors and core competencies are synonyms.

False

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

False

Outsourcing is the practice of moving a business process to a foreign country but retaining control of it.

False

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

False

The multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage.

False

The term renewal has been created to describe the return of business activity to the originating country.

False

The theory of competitive advantage 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.

False

A multinational corporation is a firm with extensive international business involvement.

True

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

Key success factors are those activities that are key to achieving competitive advantage.

True

NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States.

True

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

True

One reason to globalize is to learn to improve operations.

True

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

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

The theory of comparative advantage 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.

True