Question 1

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

Accepted Answer

A) True 
 B)False

Question 2

The experience curve refers to the

Accepted Answer

A) learning by doing technique. 
B) company's overall experience in a particular industry. 
C) systematic lowering of the cost structure and unit cost reductions. 
D) diseconomies of scale caused by inexperienced workers. 
E) increases in unit costs experienced over time. 
A) learning by doing technique. 
B) company's overall experience in a particular industry. 
C) systematic lowering of the cost structure and unit cost reductions. 
D) diseconomies of scale caused by inexperienced workers. 
E) increases in unit costs experienced over time.

Question 3

A computer manufacturer allows scientists and engineers a certain amount of company time to work on independent research projects.This company is trying to

Accepted Answer

A) achieve superior innovation. 
B) achieve superior quality. 
C) achieve superior efficiency. 
D) achieve superior customer responsiveness. 
E) minimize the time to market. 
A) achieve superior innovation. 
B) achieve superior quality. 
C) achieve superior efficiency. 
D) achieve superior customer responsiveness. 
E) minimize the time to market.

Question 4

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 choices. 
E) none of these choices 
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 choices. 
E) none of these choices

Question 5

The 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 6

Learning effects

Accepted Answer

A) result in unit manufacturing costs declining by a certain amount each time output is doubled. 
B) result in unit manufacturing costs declining by a certain amount each time accumulated output is reduced. 
C) are more significant when simple steps in an assembly process are repeated. 
D) are more significant when a technologically complex task is repeated. 
E) lead to economies of scale. 
A) result in unit manufacturing costs declining by a certain amount each time output is doubled. 
B) result in unit manufacturing costs declining by a certain amount each time accumulated output is reduced. 
C) are more significant when simple steps in an assembly process are repeated. 
D) are more significant when a technologically complex task is repeated. 
E) lead to economies of scale.

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

Quality can best be thought of as

Accepted Answer

A) product usefulness. 
B) quality as reliability and quality as excellence. 
C) product innovation. 
D) a matter for a company's managers to decide for themselves without external input. 
E) a matter for the marketing function of a company to decide. 
A) product usefulness. 
B) quality as reliability and quality as excellence. 
C) product innovation. 
D) a matter for a company's managers to decide for themselves without external input. 
E) a matter for the marketing function of a company to decide.

Question 12

Harvard Business School found no differences in learning effects among hospitals performing a new cardiac procedure.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about customer focus is false?

Accepted Answer

A) It must start at the top of the organization. 
B) It is a central part of TQM. 
C) It can be facilitated by soliciting feedback from the customer. 
D) It requires that all employees see the customer as the focus of their activity. 
E) It can be achieved by mass customization. 
A) It must start at the top of the organization. 
B) It is a central part of TQM. 
C) It can be facilitated by soliciting feedback from the customer. 
D) It requires that all employees see the customer as the focus of their activity. 
E) It can be achieved by mass customization.

Question 14

Identify the two dimensions of quality and describe how companies can achieve them.

Accepted Answer

Quality can be thought of in terms of re

Question 15

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

Question 16

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 17

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 18

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.

Question 19

Which of the following is one of the important skills required for effective project management?

Accepted Answer

A) Ability to generate as many good ideas as possible 
B) Ability to select among competing projects at an early stage of development so that the most promising receive funding and potential costly failures are killed off 
C) Ability to minimize time to market 
D) All of these choices 
E) None of these choices 
A) Ability to generate as many good ideas as possible 
B) Ability to select among competing projects at an early stage of development so that the most promising receive funding and potential costly failures are killed off 
C) Ability to minimize time to market 
D) All of these choices 
E) None of these choices

Question 20

Instead of completing one task before starting another,Perry's team begins each task as soon as possible,allowing tasks to overlap where possible.Perry's team is using

Accepted Answer

A) a self-managing team. 
B) a sequential process. 
C) TQM. 
D) customization. 
E) a partly parallel process. 
A) a self-managing team. 
B) a sequential process. 
C) TQM. 
D) customization. 
E) a partly parallel process.

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

The experience curve refers to the

A computer manufacturer allows scientists and engineers a certain amount of company time to work on independent research projects.This company is trying to

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

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

Learning effects

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

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

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

Traditional manufacturing

Quality can best be thought of as

Harvard Business School found no differences in learning effects among hospitals performing a new cardiac procedure.

Which of the following statements about customer focus is false?

Identify the two dimensions of quality and describe how companies can achieve them.

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

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

The experience curve concept

Learning effects are a result of

Which of the following is one of the important skills required for effective project management?

Instead of completing one task before starting another,Perry's team begins each task as soon as possible,allowing tasks to overlap where possible.Perry's team is using

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

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

The experience curve refers to the

A computer manufacturer allows scientists and engineers a certain amount of company time to work on independent research projects.This company is trying to

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

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

Learning effects

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

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

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

Traditional manufacturing

Quality can best be thought of as

Harvard Business School found no differences in learning effects among hospitals performing a new cardiac procedure.

Which of the following statements about customer focus is false?

Identify the two dimensions of quality and describe how companies can achieve them.

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

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

The experience curve concept

Learning effects are a result of

Which of the following is one of the important skills required for effective project management?

Instead of completing one task before starting another,Perry's team begins each task as soon as possible,allowing tasks to overlap where possible.Perry's team is using

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