Question 1

The experience curve concept:

Accepted Answer

A) helps a company realize both learning effects and diseconomies of scale. 
B) suggests that unit manufacturing costs increase by a certain amount each time output is increased. 
C) is very important in industries that mass-produce a standardized output. 
D) suggests that achieving low costs allows a firm to charge a premium price. 
E) is least likely to bottom out as long as the company does not stop production. 
A) helps a company realize both learning effects and diseconomies of scale. 
B) suggests that unit manufacturing costs increase by a certain amount each time output is increased. 
C) is very important in industries that mass-produce a standardized output. 
D) suggests that achieving low costs allows a firm to charge a premium price. 
E) is least likely to bottom out as long as the company does not stop production.

Question 2

Mass customization describes the ability of companies 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 3

Customer focus in a function of only the lower levels of an organization.

Accepted Answer

A) True 
 B)False

Question 4

Research suggests that the adoption of _____ may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Accepted Answer

A) just-in-time manufacturing 
B) quick technology 
C) flexible production technology 
D) stable production 
E) unscheduled manufacturing 
A) just-in-time manufacturing 
B) quick technology 
C) flexible production technology 
D) stable production 
E) unscheduled manufacturing

Question 5

Economies of scale are:

Accepted Answer

A) unit cost increases associated with learning effects. 
B) unit cost reductions due to inferior quality of products. 
C) realized when output is reduced to a minimum. 
D) realized when the selling price is equal to the cost price of the products. 
E) unit cost reductions associated with a large-scale output. 
A) unit cost increases associated with learning effects. 
B) unit cost reductions due to inferior quality of products. 
C) realized when output is reduced to a minimum. 
D) realized when the selling price is equal to the cost price of the products. 
E) unit cost reductions associated with a large-scale output.

Question 6

Customer defection rates are:

Accepted Answer

A) not directly related to unit cost. 
B) an indication of a company's ability to satisfy its customers. 
C) irrelevant as they are unlikely to impact advertising and marketing costs. 
D) unlikely to affect sales volumes. 
E) not affected by cost of products. 
A) not directly related to unit cost. 
B) an indication of a company's ability to satisfy its customers. 
C) irrelevant as they are unlikely to impact advertising and marketing costs. 
D) unlikely to affect sales volumes. 
E) not affected by cost of products.

Question 7

The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa.The money used for marketing and advertising can be referred to as:

Accepted Answer

A) variable costs. 
B) fixed costs. 
C) ratio costs. 
D) diseconomies of scale. 
E) economies of scale. 
A) variable costs. 
B) fixed costs. 
C) ratio costs. 
D) diseconomies of scale. 
E) economies of scale.

Question 8

One of the primary roles of research and development 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 9

Self-managing teams:

Accepted Answer

A) are limited to only very large organizations. 
B) require members to coordinate their own activities and make decisions. 
C) typically increase the need for supervisors. 
D) create a tall organizational structure. 
E) show negligible increase in productivity and substantial decrease in product quality. 
A) are limited to only very large organizations. 
B) require members to coordinate their own activities and make decisions. 
C) typically increase the need for supervisors. 
D) create a tall organizational structure. 
E) show negligible increase in productivity and substantial decrease in product quality.

Question 10

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

Accepted Answer

In addressing customer responsiveness is

Question 11

Diseconomies of scale are the unit cost increases associated with a large scale of output.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Poor commercialization occurs when there is definite customer demand for a new product,but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

Accepted Answer

A) True 
 B)False

Question 14

Explain the process by which increased production volume leads to lower costs.Give an example from a real or hypothetical firm.Can this process apply to a service organization as well as a manufacturing one? If so,give an example.If not,explain why not.

Accepted Answer

Students should describe economies of sc

Question 15

Cream Cups bakes cakes in several varieties dedicated to special occasions.It also allows its customers to personalize the cakes according to their personal preferences.This is an example of:

Accepted Answer

A) learning effects. 
B) just-in-time inventory. 
C) customer defection. 
D) mass customization. 
E) diseconomies of scale. 
A) learning effects. 
B) just-in-time inventory. 
C) customer defection. 
D) mass customization. 
E) diseconomies of scale.

The experience curve concept:

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

Customer focus in a function of only the lower levels of an organization.

Research suggests that the adoption of _____ may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Economies of scale are:

Customer defection rates are:

The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa.The money used for marketing and advertising can be referred to as:

One of the primary roles of research and development in achieving superior efficiency is:

Self-managing teams:

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

Diseconomies of scale are the unit cost increases associated with a large scale of output.

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

Poor commercialization occurs when there is definite customer demand for a new product,but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

Explain the process by which increased production volume leads to lower costs.Give an example from a real or hypothetical firm.Can this process apply to a service organization as well as a manufacturing one? If so,give an example.If not,explain why not.

Cream Cups bakes cakes in several varieties dedicated to special occasions.It also allows its customers to personalize the cakes according to their personal preferences.This is an example of:

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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

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Exam 4: Building Competitive Advantage Through Functional Level Strategies

The experience curve concept:

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

Customer focus in a function of only the lower levels of an organization.

Research suggests that the adoption of _____ may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Economies of scale are:

Customer defection rates are:

The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa.The money used for marketing and advertising can be referred to as:

One of the primary roles of research and development in achieving superior efficiency is:

Self-managing teams:

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

Diseconomies of scale are the unit cost increases associated with a large scale of output.

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

Poor commercialization occurs when there is definite customer demand for a new product,but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

Explain the process by which increased production volume leads to lower costs.Give an example from a real or hypothetical firm.Can this process apply to a service organization as well as a manufacturing one? If so,give an example.If not,explain why not.

Cream Cups bakes cakes in several varieties dedicated to special occasions.It also allows its customers to personalize the cakes according to their personal preferences.This is an example of:

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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters