Question 1

When a company successfully implements Six Sigma quality,how many units will be defective?

Accepted Answer

A)  17% (one-sixth of the units) 
B)  6% 
C)  0.6% 
D)  Three per million 
E)  Three per 10 million 
A)  17% (one-sixth of the units) 
B)  6% 
C)  0.6% 
D)  Three per million 
E)  Three per 10 million

Question 2

Which of the following is a tactical step for getting down the experience curve ahead of competitors?

Accepted Answer

A)  Premium pricing to create an image of uniqueness in consumers' minds 
B)  Pursuing a distinctive competence in focused marketing 
C)  Constructing a manufacturing plant of less than minimum efficient scale 
D)  Using aggressive pricing and promotions to expand sales volume as rapidly as possible 
E)  Making the assembly of the product as complex as possible because this results in greater learning effects 
A)  Premium pricing to create an image of uniqueness in consumers' minds 
B)  Pursuing a distinctive competence in focused marketing 
C)  Constructing a manufacturing plant of less than minimum efficient scale 
D)  Using aggressive pricing and promotions to expand sales volume as rapidly as possible 
E)  Making the assembly of the product as complex as possible because this results in greater learning effects

Question 3

Which of the following statements concerning customer defection rates is incorrect?

Accepted Answer

A)  Defection rates are determined by customer loyalty. 
B)  The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales and the lower is the average cost of each sale. 
C)  Lowering customer defection rates allows a company to achieve a lower cost structure. 
D)  Research and development should address the issue of customer loyalty in product development. 
E)  There is a positive relationship between the length of time that a customer stays with the company and profit per customer. 
A)  Defection rates are determined by customer loyalty. 
B)  The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales and the lower is the average cost of each sale. 
C)  Lowering customer defection rates allows a company to achieve a lower cost structure. 
D)  Research and development should address the issue of customer loyalty in product development. 
E)  There is a positive relationship between the length of time that a customer stays with the company and profit per customer.

Question 4

Research and development (R&D)can help a company improve quality by

Accepted Answer

A)  designing products that are easy to manufacture. 
B)  pursuing economies of scale. 
C)  developing new products. 
D)  integrating R&D with marketing. 
E)  integrating R&D with materials management. 
A)  designing products that are easy to manufacture. 
B)  pursuing economies of scale. 
C)  developing new products. 
D)  integrating R&D with marketing. 
E)  integrating R&D with materials management.

Question 5

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 6

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

Accepted Answer

A)  neither learning effects nor 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 can be made obsolete by the development of new technologies. 
D)  all of these. 
E)  none of these. 
A)  neither learning effects nor 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 can be made obsolete by the development of new technologies. 
D)  all of these. 
E)  none of these.

Question 7

Just-in-time inventory systems

Accepted Answer

A)  are used only by manufacturing firms. 
B)  are implemented primarily by the manufacturing function. 
C)  have components arrive at a manufacturing plant just in time to enter the production process. 
D)  are valuable when there is a labor dispute with a key supplier. 
E)  always keep extra inventory on hand for emergencies. 
A)  are used only by manufacturing firms. 
B)  are implemented primarily by the manufacturing function. 
C)  have components arrive at a manufacturing plant just in time to enter the production process. 
D)  are valuable when there is a labor dispute with a key supplier. 
E)  always keep extra inventory on hand for emergencies.

Question 8

The resources and capabilities that lead to the formation of distinctive competencies are mostly created at which level of the organization?

Accepted Answer

A)  Business 
B)  Functional 
C)  Corporate 
D)  Global 
E)  Industry 
A)  Business 
B)  Functional 
C)  Corporate 
D)  Global 
E)  Industry

Question 9

While Information Systems (IS)have greatly improved externally focused decision making,they have had little impact on lowering costs.

Accepted Answer

A) True 
 B)False

Question 10

The law of economies of scale suggests that unit costs continue to fall indefinitely as output volume increases.

Accepted Answer

A) True 
 B)False

Question 11

You can put your own message on and select the colors of your own M&Ms candies,making the candies relevant to any occasion in your life.This is an example of

Accepted Answer

A)  a positioning strategy. 
B)  just-in-time inventory. 
C)  a marketing strategy. 
D)  mass customization. 
E)  a flexible production technology. 
A)  a positioning strategy. 
B)  just-in-time inventory. 
C)  a marketing strategy. 
D)  mass customization. 
E)  a flexible production technology.

Question 12

A vital source of information about the causes of poor quality are the firm's own employees.

Accepted Answer

A) True 
 B)False

Question 13

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)  Creating a separate quality department within the firm 
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)  Creating a separate quality department within the firm

Question 14

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 15

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 16

Although important,unfortunately,innovation plays a minor role in achieving competitive advantage.

Accepted Answer

A) True 
 B)False

Question 17

Flexible production technology is sometimes referred to as

Accepted Answer

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

Question 18

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 19

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

Students' answers should point out that

Question 20

____ refers to unit cost increases associated with a large scale of output.

Accepted Answer

A)  Economies of scale 
B)  Learning effects 
C)  Diseconomies of scale 
D)  Flexible manufacturing 
E)  Mass customization 
A)  Economies of scale 
B)  Learning effects 
C)  Diseconomies of scale 
D)  Flexible manufacturing 
E)  Mass customization

When a company successfully implements Six Sigma quality,how many units will be defective?

Which of the following is a tactical step for getting down the experience curve ahead of competitors?

Which of the following statements concerning customer defection rates is incorrect?

Research and development (R&D)can help a company improve quality by

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.

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

Just-in-time inventory systems

The resources and capabilities that lead to the formation of distinctive competencies are mostly created at which level of the organization?

While Information Systems (IS)have greatly improved externally focused decision making,they have had little impact on lowering costs.

The law of economies of scale suggests that unit costs continue to fall indefinitely as output volume increases.

You can put your own message on and select the colors of your own M&Ms candies,making the candies relevant to any occasion in your life.This is an example of

A vital source of information about the causes of poor quality are the firm's own employees.

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

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?

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

Although important,unfortunately,innovation plays a minor role in achieving competitive advantage.

Flexible production technology is sometimes referred to as

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.

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.

____ refers to unit cost increases associated with a large scale of output.

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

When a company successfully implements Six Sigma quality,how many units will be defective?

Which of the following is a tactical step for getting down the experience curve ahead of competitors?

Which of the following statements concerning customer defection rates is incorrect?

Research and development (R&D)can help a company improve quality by

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.

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

Just-in-time inventory systems

The resources and capabilities that lead to the formation of distinctive competencies are mostly created at which level of the organization?

While Information Systems (IS)have greatly improved externally focused decision making,they have had little impact on lowering costs.

The law of economies of scale suggests that unit costs continue to fall indefinitely as output volume increases.

You can put your own message on and select the colors of your own M&Ms candies,making the candies relevant to any occasion in your life.This is an example of

A vital source of information about the causes of poor quality are the firm's own employees.

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

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?

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

Although important,unfortunately,innovation plays a minor role in achieving competitive advantage.

Flexible production technology is sometimes referred to as

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.

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.

____ refers to unit cost increases associated with a large scale of output.

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