Question 1

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 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 ofless 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 ofless 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

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 strategies on how to market products. 
D) upgrading employee skill levels. 
E) creating teams whose members coordinate their own activities. 
A) designing products that are easy to manufacture. 
B) pursuing economies of scale. 
C) developing strategies on how to market products. 
D) upgrading employee skill levels. 
E) creating teams whose members coordinate their own activities.

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

Which of the following is not a benefit of tight cross-functional integration among research and development (R&D), production, and marketing?

Accepted Answer

A) New products are designed for ease of manufacture. 
B) Development costs are kept in check. 
C) Product development projects are driven by company innovations. 
D) Time to market is minimized. 
E) Customer needs are considered in the product development process. 
A) New products are designed for ease of manufacture. 
B) Development costs are kept in check. 
C) Product development projects are driven by company innovations. 
D) Time to market is minimized. 
E) Customer needs are considered in the product development process.

Question 6

One of the primary roles of human resources in achieving superior efficiency is:

Accepted Answer

A) facilitating cooperation among various value creation functions. 
B) adopting aggressive marketing to ride down the experience curve. 
C) designing products for ease of manufacture. 
D) using information systems to automate processes. 
E) implementing self-managing teams. 
A) facilitating cooperation among various value creation functions. 
B) adopting aggressive marketing to ride down the experience curve. 
C) designing products for ease of manufacture. 
D) using information systems to automate processes. 
E) implementing self-managing teams.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

While Information Systems have greatly improved productivity, they have had little impact on lowering costs.

Accepted Answer

A) True 
 B)False

Question 10

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 11

In spite of defmite 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 12

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 13

Distinctive competencies shape the strategies that a company can pursue.

Accepted Answer

A) business-level 
B) functional-level 
C) corporate-level 
D) global-level 
E) industry-level 
A) business-level 
B) functional-level 
C) corporate-level 
D) global-level 
E) industry-level

Question 14

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 15

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 16

With regard to customer defection, which of the following statements 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. 
C) Lowering customer defection rates allows a company to achieve a lower cost structure. 
D) The longer a company retains a customer the higher the average unit cost of each sale. 
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. 
C) Lowering customer defection rates allows a company to achieve a lower cost structure. 
D) The longer a company retains a customer the higher the average unit cost of each sale. 
E) There is a positive relationship between the length of time that a customer stays with the company and profit per customer.

Question 17

The failure rate of innovative products is:

Accepted Answer

A) high. 
B) low. 
C) nil. 
D) moderate. 
E) too difficult to assess. 
A) high. 
B) low. 
C) nil. 
D) moderate. 
E) too difficult to assess.

Question 18

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 19

Mass customization:

Accepted Answer

A) limits a company's ability to customize products. 
B) reduces the use of individual machines and hinders quality control at all stages of the manufacturing process. 
C) increases the setup times for complex equipment. 
D) is the use of technology to produce large quantities of a standardized output. 
E) is a company's ability to reconcile low cost and differentiation that were once thought incompatible. 
A) limits a company's ability to customize products. 
B) reduces the use of individual machines and hinders quality control at all stages of the manufacturing process. 
C) increases the setup times for complex equipment. 
D) is the use of technology to produce large quantities of a standardized output. 
E) is a company's ability to reconcile low cost and differentiation that were once thought incompatible.

Question 20

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

The experience curve refers to the:

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

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

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 is not a benefit of tight cross-functional integration among research and development (R&D), production, and marketing?

One of the primary roles of human resources in achieving superior efficiency is:

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

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?

While Information Systems have greatly improved productivity, they have had little impact on lowering costs.

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:

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

Economies of scale are:

Distinctive competencies shape the strategies that a company can pursue.

Learning effects:

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

With regard to customer defection, which of the following statements is incorrect?

The failure rate of innovative products is:

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:

Mass customization:

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

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

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 experience curve refers to the:

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

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

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 is not a benefit of tight cross-functional integration among research and development (R&D), production, and marketing?

One of the primary roles of human resources in achieving superior efficiency is:

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

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?

While Information Systems have greatly improved productivity, they have had little impact on lowering costs.

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:

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

Economies of scale are:

Distinctive competencies shape the strategies that a company can pursue.

Learning effects:

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

With regard to customer defection, which of the following statements is incorrect?

The failure rate of innovative products is:

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:

Mass customization:

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

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

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