Question 1

Managers should not become complacent about efficiency-based cost advantages because:

Accepted Answer

A)  both learning effects and economics of scale go on forever. 
B)  the experience curve will bottom out at some point. 
C)  cost advantages gained from experience effects are not affected by the development of new technologies. 
D)  unit costs keep reducing as output increases. 
E)  the experience curve steadily rises after a certain threshold is reached, indicating an increase in unit costs. 
A)  both learning effects and economics of scale go on forever. 
B)  the experience curve will bottom out at some point. 
C)  cost advantages gained from experience effects are not affected by the development of new technologies. 
D)  unit costs keep reducing as output increases. 
E)  the experience curve steadily rises after a certain threshold is reached, indicating an increase in unit costs. B

Question 2

Pay for performance based on individual accomplishment of goals tends to:

Accepted Answer

A)  increase per-unit costs. 
B)  decrease employee productivity. 
C)  increase employee productivity. 
D)  have little effect on employee productivity. 
E)  facilitate teamwork. 
A)  increase per-unit costs. 
B)  decrease employee productivity. 
C)  increase employee productivity. 
D)  have little effect on employee productivity. 
E)  facilitate teamwork. C

Question 3

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in innovation. What suggestions would you offer? Be specific and detailed in your answer.

Accepted Answer

In many ways, innovation is the most important source of competitive advantage. This is because innovation can result in new products that better satisfy customer needs, can improve the quality (attributes) of existing products, or can reduce the costs of making products that customers want. The ability to innovate new products or processes gives a company a major competitive advantage that allows it to: (1) differentiate its products and charge a premium price, and/or (2) lower its cost structure below that of its rivals. However, the failure rate of new-product introductions is high because of factors such as uncertainty, poor commercialization, poor positioning strategy, slow cycle time, and technological shortsightedness.
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To achieve superior innovation, a company must build skills in basic and applied research; design good processes for managing development projects; and achieve close integration between the different functions of the company, primarily through the adoption of cross-functional product development teams and partly parallel development processes.

Question 4

Which of the following correctly pairs the function with its role in defining product excellence?

Accepted Answer

A)  Human Resources: Manufactures to continually upgrade the quality of the attributes that are designed into the company's product offerings. 
B)  Marketing: Collects marketing information in order to determine which attributes are important to customers and helps create the perception of high quality. 
C)  Research and Development: Creates and innovates to meet the continuous product improvements made by competitors. 
D)  Production: Trains personnel so that the appropriate attributes are emphasized during design creation. 
E)  Infrastructure (leadership): Tailors the message so that it creates a consistent image in the minds of customers. 
A)  Human Resources: Manufactures to continually upgrade the quality of the attributes that are designed into the company's product offerings. 
B)  Marketing: Collects marketing information in order to determine which attributes are important to customers and helps create the perception of high quality. 
C)  Research and Development: Creates and innovates to meet the continuous product improvements made by competitors. 
D)  Production: Trains personnel so that the appropriate attributes are emphasized during design creation. 
E)  Infrastructure (leadership): Tailors the message so that it creates a consistent image in the minds of customers.

Question 5

Mass customization describes a company's ability to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Accepted Answer

A) True 
 B)False

Question 6

Distinctive competencies shape the functional-level strategies that a company can pursue.

Accepted Answer

A) True 
 B)False

Question 7

Choose three of the value creation functions. (Infrastructure (leadership), Production, Marketing, Materials management, R&D, Information systems, Human resources). Compare the role each function plays in achieving superior efficiency, superior quality, superior innovation and superior customer responsiveness.

Accepted Answer

The answer of Choose three of the value creation functions....

Question 8

To achieve superior responsiveness to customers, firms must first routinely seek better ways to satisfy customer needs and then develop a competency in listening to its customers, focusing on its customers, and investigating and identifying their needs.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT a benefit of rapid response time?

Accepted Answer

A) 
It can help gain competitive advantage over rival companies. 
B) It strengthens brand loyalty. 
C) It decreases the amount the company can charge for products. 
D) It allows for differentiation of product offerings. 
E) It gives the opportunity for a company to charge a premium price. 
A) 
It can help gain competitive advantage over rival companies. 
B) It strengthens brand loyalty. 
C) It decreases the amount the company can charge for products. 
D) It allows for differentiation of product offerings. 
E) It gives the opportunity for a company to charge a premium price.

Question 10

Discuss why superior efficiency is important and the many ways that different parts of the organization can help achieve it.

Accepted Answer

Superior efficiency can be an important

Question 11

Six Sigma is a quality and efficiency program derived from the concept of total quality management (TQM) which was widely used in Japan before acceptance in the United States.

Accepted Answer

A) True 
 B)False

Question 12

One of the primary roles of research and development (R&D) in achieving superior efficiency is:

Accepted Answer

A)  facilitating cooperation among functions. 
B)  limiting customer defection rates by building brand loyalty. 
C)  designing products for ease of manufacture. 
D)  instituting training programs to build skills. 
E)  implementing pay for performance. 
A)  facilitating cooperation among functions. 
B)  limiting customer defection rates by building brand loyalty. 
C)  designing products for ease of manufacture. 
D)  instituting training programs to build skills. 
E)  implementing pay for performance.

Question 13

Which of the following does the philosophy underlying total quality management (TQM) include?

Accepted Answer

A)  Greater quantity results in cost decreases. 
B)  Better quality leads to higher market share. 
C)  Greater quantity increases a company's profitability. 
D)  Opinions of employees are irrelevant in manufacturing products. 
E)  Work standards should only be defined as numbers or quotas. 
A)  Greater quantity results in cost decreases. 
B)  Better quality leads to higher market share. 
C)  Greater quantity increases a company's profitability. 
D)  Opinions of employees are irrelevant in manufacturing products. 
E)  Work standards should only be defined as numbers or quotas.

Question 14

Flexible production technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

Accepted Answer

A) True 
 B)False

Question 15

When cost parity is achieved between rival companies, the only way to achieve sustained competitive advantage is to continue to use the technology available to minimize production costs.

Accepted Answer

A) True 
 B)False

Question 16

Six Sigma encompasses the activities necessary to get inputs and components to a production facility, through the production process, and out through a distribution system to the end-user.

Accepted Answer

A) True 
 B)False

Question 17

A company's hiring strategy:

Accepted Answer

A)  directly affects employee productivity. 
B)  has little effect on employee productivity. 
C)  does not relate to profitability. 
D)  is not part of the company's overall human resource strategy. 
E)  upgrades an employee's skill level. 
A)  directly affects employee productivity. 
B)  has little effect on employee productivity. 
C)  does not relate to profitability. 
D)  is not part of the company's overall human resource strategy. 
E)  upgrades an employee's skill level.

Question 18

Cool Looks, Inc. is a local fashion design company that actively solicits comments from its customers about the quality of its clothing and the kind of merchandise they want it to supply. Which of the following mechanisms for focusing on the customer is Cool Looks utilizing?

Accepted Answer

A)  Managing materials 
B)  Improving response time 
C)  Demonstrating leadership 
D)  Shaping employee attitudes 
E)  Knowing customer needs 
A)  Managing materials 
B)  Improving response time 
C)  Demonstrating leadership 
D)  Shaping employee attitudes 
E)  Knowing customer needs

Question 19

Functional strategies lead to differentiation and lower costs which aids in the creation of value and allows a firm to achieve superior profitability.

Accepted Answer

A) True 
 B)False

Question 20

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Accepted Answer

A) True 
 B)False

Managers should not become complacent about efficiency-based cost advantages because:

Pay for performance based on individual accomplishment of goals tends to:

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in innovation. What suggestions would you offer? Be specific and detailed in your answer.

Which of the following correctly pairs the function with its role in defining product excellence?

Mass customization describes a company's ability to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Distinctive competencies shape the functional-level strategies that a company can pursue.

To achieve superior responsiveness to customers, firms must first routinely seek better ways to satisfy customer needs and then develop a competency in listening to its customers, focusing on its customers, and investigating and identifying their needs.

Which of the following is NOT a benefit of rapid response time?

Discuss why superior efficiency is important and the many ways that different parts of the organization can help achieve it.

Six Sigma is a quality and efficiency program derived from the concept of total quality management (TQM) which was widely used in Japan before acceptance in the United States.

One of the primary roles of research and development (R&D) in achieving superior efficiency is:

Which of the following does the philosophy underlying total quality management (TQM) include?

Flexible production technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

When cost parity is achieved between rival companies, the only way to achieve sustained competitive advantage is to continue to use the technology available to minimize production costs.

Six Sigma encompasses the activities necessary to get inputs and components to a production facility, through the production process, and out through a distribution system to the end-user.

A company's hiring strategy:

Cool Looks, Inc. is a local fashion design company that actively solicits comments from its customers about the quality of its clothing and the kind of merchandise they want it to supply. Which of the following mechanisms for focusing on the customer is Cool Looks utilizing?

Functional strategies lead to differentiation and lower costs which aids in the creation of value and allows a firm to achieve superior profitability.

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

Filters

Exam 4: Competitive Advantage Through Functional-Level Strategies

Managers should not become complacent about efficiency-based cost advantages because:

Pay for performance based on individual accomplishment of goals tends to:

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in innovation. What suggestions would you offer? Be specific and detailed in your answer.

Which of the following correctly pairs the function with its role in defining product excellence?

Mass customization describes a company's ability to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Distinctive competencies shape the functional-level strategies that a company can pursue.

To achieve superior responsiveness to customers, firms must first routinely seek better ways to satisfy customer needs and then develop a competency in listening to its customers, focusing on its customers, and investigating and identifying their needs.

Which of the following is NOT a benefit of rapid response time?

Discuss why superior efficiency is important and the many ways that different parts of the organization can help achieve it.

Six Sigma is a quality and efficiency program derived from the concept of total quality management (TQM) which was widely used in Japan before acceptance in the United States.

One of the primary roles of research and development (R&D) in achieving superior efficiency is:

Which of the following does the philosophy underlying total quality management (TQM) include?

Flexible production technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

When cost parity is achieved between rival companies, the only way to achieve sustained competitive advantage is to continue to use the technology available to minimize production costs.

Six Sigma encompasses the activities necessary to get inputs and components to a production facility, through the production process, and out through a distribution system to the end-user.

A company's hiring strategy:

Cool Looks, Inc. is a local fashion design company that actively solicits comments from its customers about the quality of its clothing and the kind of merchandise they want it to supply. Which of the following mechanisms for focusing on the customer is Cool Looks utilizing?

Functional strategies lead to differentiation and lower costs which aids in the creation of value and allows a firm to achieve superior profitability.

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

Filters