Chapter 2 concepts
An international business is a firm that A. engages in international trade or investment. . B. is not from the United States. C. hires non-U.S. citizens. D. produces a wide range of products.
a
Competing on differentiation is A. concerned with uniqueness. B. based upon low-cost leadership. C. concerned with reliability of scheduling. D. based upon flexibility.
a
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A. competing on differentiation. B. competing on productivity. C. competing on quality. D. time-based competition. E. mass production
a
Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? A. reduce capacity B. shift towards product focus C. forecasting critical D. enhance distribution
a
Which of the following is NOT one of the 10 strategic OM decisions listed in the text? A. finance/accounting B. layout C. location D. quality
a
Which of the following is the purpose or rationale for an organization's existence? A. mission B. charter C. strategy D. articles of incorporation
a
Which of the following statement is incorrect about the mission? A. Each functional area within the firm may develop its own strategy, but not its own supporting mission. B. The mission statement provides boundaries and focus for organizations. C. The mission statement provides the concept around which the firm can rally. D. The mission states the rationale for the organization's existence.
a
According to the authors, which of the following strategic concepts allow firms to achieve their missions? A. distinctive competency, cost leadership, and experience B. differentiation, distinctive competency, quality leadership, and capacity C. differentiation, quality leadership, and response D. productivity, efficiency, and quality leadership E. differentiation, cost leadership, and response
e
What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? A. farshoring B. nearshoring C. offshoring D. backsourcing E. outsourcing
e
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A. mass production. B. competing on differentiation. C. competing on productivity. D. competing on quality. E. time-based competition
B
Cost cutting in international operations can take place because of: A. lower taxes and tariffs. B. less stringent regulations. C. lower indirect costs. D. lower wage scales. E. All of the above.
E
Which of the following statements best characterizes delivery reliability? A. a company that always delivers at the promised time B. a company that delivers faster than its competitors C. a company that has a computerized delivery scheduling system D. a company that always delivers on the same day of the week E. a company that delivers more frequently than its competitors
a
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as A. value-chain analysis. B. resources view. C. five forces analysis. D. competitive advantage.
b
A strategy is A. established prior to establishing a mission. B. an action plan to achieve a mission. C. a functional area of the firm. D. the purpose for which an organization is established.
b
The term maquiladora is most synonymous with: A. North Korean forced labor camps. B. free trade zones in Mexico. . C. tax breaks provided by some South American countries to other South American countries. D. home-based or cottage industry. E. areas that do not meet U.S. standards for workplace safety and pollution.
b
What is the difference between a multinational corporation (MNC) and an international business? A. There is no difference. B. For the multinational firm, the business done outside the country is extensive. C. The international business has been in existence longer than the multinational firm. D. The international business has sites in a larger number of countries.
b
Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business? A. global B. multidomestic C. transnational D. international
b
Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A. improve operations B. attract and retain local talent C. improve products D. improve the supply chain
b
Which of the following is NOT one of the three strategic approaches to competitive advantage? A. response B. innovation C. cost leadership D. differentiation
b
Which of the following is not an advantage of outsourcing? A. improving operations and service B. outsourcing core competencies . C. accessing outside technology D. gaining outside expertise E. cost savings
b
Which of these is NOT an advantage of outsourcing? A. cost savings B. potential creation of future competition C. gaining outside expertise D. accessing outside technology
b
A SWOT analysis determines: A. external strengths and weaknesses and external opportunities and threats. B. internal strengths and weaknesses and internal opportunities and threats. C. internal strengths and weaknesses and external opportunities and threats. D. internal strengths and opportunities and external weaknesses and threats. E. external strengths and weaknesses and internal opportunities and threats.
c
A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as A. key success factors (KSFs). B. differentiation. C. core competencies. D. experience differentiation.
c
Competing on cost is A. concerned with reliability of scheduling. B. based upon flexibility. C. achieving maximum value as perceived by the customer. D. concerned with uniqueness.
c
Standardization is an appropriate strategy in which stage of the product life cycle? A. growth B. decline C. maturity D. retirement E. introduction
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. competitive success grid B. key success factor network C. activity map D. product life cycle
c
Which of the following countries is NOT a memebr of the EU? A. Portugal B. Spain C. Uruguay D. France
c
Which of the following does not represent competing on response? A. based on quickness B. concerned with reliability of scheduling C. based on providing uniqueness D. based on flexibility
c
Which of the following international operations strategies involves a high degree of centralization? A. multidomestic B. transnational C. global D. international
c
Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business? A. global B. transnational C. multidomestic D. international
c
Which of the following is TRUE of maquiladoras? A. They discourage foreign businesses from outsourcing. B. They originated in China. C. They assess tariffs only on the value-added work done. D. All of the above. E. None of the above.
c
Which of the following has progressed the FURTHEST along its product life cycle? A. autonomous vehicles B. virtual reality C. Boeing 787 D. video physical rentals . E. Xbox One
d
Which of the following is NOT an OM strategy/issue during the introduction stage of the product life cycle? A. frequent product and process design changes B. high production costs C. limited models D. long production runs
d
Which of the following is an example of competing on quick response? A. A firm offers more reliable products than its competitors do. B. A firm utilizes its capacity more effectively than its competitors do. C. A firm advertises more than its competitors do. D. A firm's products are introduced into the market faster than its competitors' products. E. A firm produces its product with less raw material waste than its competitors do.
d
Which of the following is the core competence for Honda? A. product flexibility B. sustainable design C. advertising D. gas-powered engines
d
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 contribute to efficiency. C. Globalization strategies could add value to products and services. D. Globalization strategies could simplify the operations manager's job
d
Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? A. immediate rivals, potential entrants, cost, substitute products, and legal regulations B. research and development, cost, legal regulations, suppliers, customers C. cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals D. immediate rivals, potential entrants, customers, suppliers, and substitute products E. potential entrants, customers, suppliers, legal regulations, and cost
d