Question 1

The philosophy underlying TQM includes which of the following?

Accepted Answer

A)  Improved quality results in cost decreases. 
B)  Better quality leads to higher market share. 
C)  Better quality increases a company's profitability. 
D)  Management should create an environment in which employees do not fear expressing themselves. 
E)  All of these 
A)  Improved quality results in cost decreases. 
B)  Better quality leads to higher market share. 
C)  Better quality increases a company's profitability. 
D)  Management should create an environment in which employees do not fear expressing themselves. 
E)  All of these E

Question 2

A benefit of long-time customer loyalty is the free advertising that customers provide for a company through referrals.

Accepted Answer

A) True 
 B)False  True

Question 3

Learning effects are a result of

Accepted Answer

A)  automation. 
B)  learning by doing. 
C)  sound product planning tactics. 
D)  diseconomies of scale. 
E)  product standardization. 
A)  automation. 
B)  learning by doing. 
C)  sound product planning tactics. 
D)  diseconomies of scale. 
E)  product standardization. B

Question 4

When Amber first started working at a Ford Motor plant assembling car doors,she was slower at the task than her co-workers.As time passed,her speed at assembling the doors increased and she even taught others how to perform the task more quickly.As a result of increased employee productivity,this particular Ford plant experienced cost savings.These cost savings can be attributed to learning effects.

Accepted Answer

A) True 
 B)False

Question 5

Quality improvement efforts should focus on the

Accepted Answer

A)  product. 
B)  external environment. 
C)  customer. 
D)  material costs. 
E)  internal operations. 
A)  product. 
B)  external environment. 
C)  customer. 
D)  material costs. 
E)  internal operations.

Question 6

The experience curve concept

Accepted Answer

A)  is a result of a combination of learning effects and economies of scale. 
B)  is a result of a combination of learning effects and economies of scale and suggests that unit manufacturing costs decline by a certain amount each time output is doubled. 
C)  suggests that achieving low costs allows a firm to charge a premium price. 
D)  is most important for specialized or customized production. 
E)  suggests that unit manufacturing costs decline by a certain amount each time output is doubled. 
A)  is a result of a combination of learning effects and economies of scale. 
B)  is a result of a combination of learning effects and economies of scale and suggests that unit manufacturing costs decline by a certain amount each time output is doubled. 
C)  suggests that achieving low costs allows a firm to charge a premium price. 
D)  is most important for specialized or customized production. 
E)  suggests that unit manufacturing costs decline by a certain amount each time output is doubled.

Question 7

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

Accepted Answer

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

Question 8

Traditional manufacturing

Accepted Answer

A)  is no longer used. 
B)  requires a tradeoff between unit costs and product variety. 
C)  has higher unit costs than does flexible manufacturing. 
D)  produces a variety of products in high volume. 
E)  has higher unit costs than does flexible manufacturing and requires a tradeoff between unit costs and product variety. 
A)  is no longer used. 
B)  requires a tradeoff between unit costs and product variety. 
C)  has higher unit costs than does flexible manufacturing. 
D)  produces a variety of products in high volume. 
E)  has higher unit costs than does flexible manufacturing and requires a tradeoff between unit costs and product variety.

Question 9

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)  None of these. 
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)  None of these.

Question 10

Which of the following is not a product attribute?

Accepted Answer

A)  Form 
B)  Features 
C)  Style 
D)  Price 
E)  Reliability 
A)  Form 
B)  Features 
C)  Style 
D)  Price 
E)  Reliability

Question 11

The failure rate of innovative products is

Accepted Answer

A)  high. 
B)  low. 
C)  consistent with failure rates in other areas of a company's operations. 
D)  moderate. 
E)  too difficult to assess. 
A)  high. 
B)  low. 
C)  consistent with failure rates in other areas of a company's operations. 
D)  moderate. 
E)  too difficult to assess.

Question 12

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 greater task specialization by members of the team. 
E)  tend to increase productivity. 
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 greater task specialization by members of the team. 
E)  tend to increase productivity.

Question 13

Close integration between research and development (R&D),production and marketing can help a company avoid innovation failures.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Employee productivity is

Accepted Answer

A)  a function of employee socialization. 
B)  one of the key determinants of a company's efficiency, cost structure, and profitability. 
C)  not subject to measurement. 
D)  typically not sustainable in the long run. 
E)  none of these. 
A)  a function of employee socialization. 
B)  one of the key determinants of a company's efficiency, cost structure, and profitability. 
C)  not subject to measurement. 
D)  typically not sustainable in the long run. 
E)  none of these.

Question 16

Pay for performance tends to

Accepted Answer

A)  increase per-unit costs. 
B)  decrease employee output. 
C)  increase employee output. 
D)  have little effect on employee output. 
E)  be used only for individual workers, not for teams. 
A)  increase per-unit costs. 
B)  decrease employee output. 
C)  increase employee output. 
D)  have little effect on employee output. 
E)  be used only for individual workers, not for teams.

Question 17

Flexible manufacturing technologies allow companies to

Accepted Answer

A)  mass-produce a standardized output at a low delivered cost. 
B)  avoid plant-level diseconomies of scale. 
C)  produce small batches of high-quality customized products at a high cost. 
D)  ride down the experience curve more rapidly than competitors. 
E)  produce small batches of customized products at a relatively low cost. 
A)  mass-produce a standardized output at a low delivered cost. 
B)  avoid plant-level diseconomies of scale. 
C)  produce small batches of high-quality customized products at a high cost. 
D)  ride down the experience curve more rapidly than competitors. 
E)  produce small batches of customized products at a relatively low cost.

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Flexible manufacturing technologies enable companies to produce small batches of high-quality customized products at a cost that,at one time,could be achieved only through mass production.

Accepted Answer

A) True 
 B)False

The philosophy underlying TQM includes which of the following?

A benefit of long-time customer loyalty is the free advertising that customers provide for a company through referrals.

Learning effects are a result of

Quality improvement efforts should focus on the

The experience curve concept

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

Traditional manufacturing

A company's hiring strategy

Which of the following is not a product attribute?

The failure rate of innovative products is

Self-managing work teams

Close integration between research and development (R&D),production and marketing can help a company avoid innovation failures.

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

Employee productivity is

Pay for performance tends to

Flexible manufacturing technologies allow companies to

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.

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

Flexible manufacturing technologies enable companies to produce small batches of high-quality customized products at a cost that,at one time,could be achieved only through mass production.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 4: Building Competitive Advantage Through Functional-Level Strategy

The philosophy underlying TQM includes which of the following?

A benefit of long-time customer loyalty is the free advertising that customers provide for a company through referrals.

Learning effects are a result of

Quality improvement efforts should focus on the

The experience curve concept

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

Traditional manufacturing

A company's hiring strategy

Which of the following is not a product attribute?

The failure rate of innovative products is

Self-managing work teams

Close integration between research and development (R&D),production and marketing can help a company avoid innovation failures.

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

Employee productivity is

Pay for performance tends to

Flexible manufacturing technologies allow companies to

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.

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

Flexible manufacturing technologies enable companies to produce small batches of high-quality customized products at a cost that,at one time,could be achieved only through mass production.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters