Question 1

Which of the following trends has led to the fragmentation of many consumer markets?

Accepted Answer

A)  Self-managing teams 
B)  Project management 
C)  TQM 
D)  Customization 
E)  Increased response time 
A)  Self-managing teams 
B)  Project management 
C)  TQM 
D)  Customization 
E)  Increased response time

Question 2

When credit card companies such as Visa and Mastercard allow an individual to put one of their own photos on their account credit card, they are utilizing:

Accepted Answer

A)  mass customization. 
B)  a flexible manufacturing system. 
C)  quality as reliability mantra. 
D)  supply-chain management. 
E)  a just-in-time inventory system. 
A)  mass customization. 
B)  a flexible manufacturing system. 
C)  quality as reliability mantra. 
D)  supply-chain management. 
E)  a just-in-time inventory system.

Question 3

If a product is to be properly commercialized, there must be integration between:

Accepted Answer

A)  research and development and marketing. 
B)  R&D and materials management. 
C)  marketing and materials management. 
D)  finance and marketing. 
E)  marketing and after-sales support. 
A)  research and development and marketing. 
B)  R&D and materials management. 
C)  marketing and materials management. 
D)  finance and marketing. 
E)  marketing and after-sales support.

Question 4

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 is likely to 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 is likely to 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.

Question 5

Learning effects:

Accepted Answer

A)  result in unit manufacturing costs increasing by a certain amount each time output is increased. 
B)  suggest that production costs increase because of increasing labor productivity. 
C)  are more significant when simple steps in an assembly process are performed over and over again. 
D)  are more significant when a technologically complex task is repeated. 
E)  lead to diseconomies of scale. 
A)  result in unit manufacturing costs increasing by a certain amount each time output is increased. 
B)  suggest that production costs increase because of increasing labor productivity. 
C)  are more significant when simple steps in an assembly process are performed over and over again. 
D)  are more significant when a technologically complex task is repeated. 
E)  lead to diseconomies of scale.

Question 6

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 7

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 8

The marketing strategy that a company adopts:

Accepted Answer

A)  has little impact on the company's efficiency and cost structure. 
B)  aims at attaining superior efficiency of the company's operations. 
C)  should not take into account the impact the strategy has on the company's cost structure. 
D)  aims at automating much of the work in the production process. 
E)  refers to the position that the company takes with regard to a product's pricing and distribution. 
A)  has little impact on the company's efficiency and cost structure. 
B)  aims at attaining superior efficiency of the company's operations. 
C)  should not take into account the impact the strategy has on the company's cost structure. 
D)  aims at automating much of the work in the production process. 
E)  refers to the position that the company takes with regard to a product's pricing and distribution.

Question 9

Sherree works at Dustcloud Manufacturing where she is part of a seven member team. Her team coordinates its own activities as well as makes its own hiring, training, work, and reward decisions. This type of team is referred to as a virtual team.

Accepted Answer

A) True 
 B)False

Question 10

The primary challenge for a company's human resource function is to find ways to lower wage and benefits costs.

Accepted Answer

A) True 
 B)False

Question 11

Functional strategies play only a small role in organizational success because they occur at a low level in the firm.

Accepted Answer

A) True 
 B)False

Question 12

In spite of definite customer demand, new products often fail due to:

Accepted Answer

A)  faster cycle time. 
B)  low customer defection rate. 
C)  poor commercialization. 
D)  increased response time. 
E)  scramble to gain first-mover advantage. 
A)  faster cycle time. 
B)  low customer defection rate. 
C)  poor commercialization. 
D)  increased response time. 
E)  scramble to gain first-mover advantage.

Question 13

Six Sigma is a quality and efficiency program derived from the concept of Total Quality Management, and was widely used in Japan before acceptance in the U.S.

Accepted Answer

A) True 
 B)False

Question 14

A video game console manufacturer hired scientists and engineers to work on ways to improve the video cards used in their game systems. The main aim of the manufacturer was to enhance the utility of the products, as perceived by the customers, above that of its rivals. This company aims to:

Accepted Answer

A)  achieve superior innovation. 
B)  maintain a low cost position. 
C)  increase response time. 
D)  achieve a greater division of labor. 
E)  minimize the time to market. 
A)  achieve superior innovation. 
B)  maintain a low cost position. 
C)  increase response time. 
D)  achieve a greater division of labor. 
E)  minimize the time to market.

Question 15

Self-managing work teams:

Accepted Answer

A)  increase per-unit costs of manufactured items. 
B)  perform all workplace tasks except the making of hiring decisions. 
C)  increase the cycle time of manufacturing items. 
D)  require team members to learn only one task and specialize in that alone. 
E)  tend to increase productivity and product quality. 
A)  increase per-unit costs of manufactured items. 
B)  perform all workplace tasks except the making of hiring decisions. 
C)  increase the cycle time of manufacturing items. 
D)  require team members to learn only one task and specialize in that alone. 
E)  tend to increase productivity and product quality.

Question 16

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 17

The "sigma" in the Six Sigma name refers to the Greek letter meaning standard deviation from the mean.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Which of the following does the philosophy underlying 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 20

Which of the following is not one of the principles commonly found in companies that have successfully embraced the TQM philosophy?

Accepted Answer

A)  Building an organizational commitment to quality 
B)  Finding ways to measure quality 
C)  Giving more time for supervisors to work with employees 
D)  Training new employees 
E)  Defining work standards only in terms of numbers or quotas 
A)  Building an organizational commitment to quality 
B)  Finding ways to measure quality 
C)  Giving more time for supervisors to work with employees 
D)  Training new employees 
E)  Defining work standards only in terms of numbers or quotas

Which of the following trends has led to the fragmentation of many consumer markets?

When credit card companies such as Visa and Mastercard allow an individual to put one of their own photos on their account credit card, they are utilizing:

If a product is to be properly commercialized, there must be integration between:

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

Learning effects:

Economies of scale are:

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.

The marketing strategy that a company adopts:

Sherree works at Dustcloud Manufacturing where she is part of a seven member team. Her team coordinates its own activities as well as makes its own hiring, training, work, and reward decisions. This type of team is referred to as a virtual team.

The primary challenge for a company's human resource function is to find ways to lower wage and benefits costs.

Functional strategies play only a small role in organizational success because they occur at a low level in the firm.

In spite of definite customer demand, new products often fail due to:

Six Sigma is a quality and efficiency program derived from the concept of Total Quality Management, and was widely used in Japan before acceptance in the U.S.

A video game console manufacturer hired scientists and engineers to work on ways to improve the video cards used in their game systems. The main aim of the manufacturer was to enhance the utility of the products, as perceived by the customers, above that of its rivals. This company aims to:

Self-managing work teams:

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?

The "sigma" in the Six Sigma name refers to the Greek letter meaning standard deviation from the mean.

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.

Which of the following does the philosophy underlying TQM include?

Which of the following is not one of the principles commonly found in companies that have successfully embraced the TQM philosophy?

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

Exam 4: Building Competitive Advantage Through Functional-Level Strategies

Which of the following trends has led to the fragmentation of many consumer markets?

When credit card companies such as Visa and Mastercard allow an individual to put one of their own photos on their account credit card, they are utilizing:

If a product is to be properly commercialized, there must be integration between:

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

Learning effects:

Economies of scale are:

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.

The marketing strategy that a company adopts:

Sherree works at Dustcloud Manufacturing where she is part of a seven member team. Her team coordinates its own activities as well as makes its own hiring, training, work, and reward decisions. This type of team is referred to as a virtual team.

The primary challenge for a company's human resource function is to find ways to lower wage and benefits costs.

Functional strategies play only a small role in organizational success because they occur at a low level in the firm.

In spite of definite customer demand, new products often fail due to:

Six Sigma is a quality and efficiency program derived from the concept of Total Quality Management, and was widely used in Japan before acceptance in the U.S.

A video game console manufacturer hired scientists and engineers to work on ways to improve the video cards used in their game systems. The main aim of the manufacturer was to enhance the utility of the products, as perceived by the customers, above that of its rivals. This company aims to:

Self-managing work teams:

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?

The "sigma" in the Six Sigma name refers to the Greek letter meaning standard deviation from the mean.

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.

Which of the following does the philosophy underlying TQM include?

Which of the following is not one of the principles commonly found in companies that have successfully embraced the TQM philosophy?

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