Question 1

Explain Professor Hill's strategy development framework. What are the key elements of operations strategy within this framework?

Accepted Answer

A useful framework for strategy development that ties corporate and marketing strategy to operations strategy was proposed by Professor Terry Hill at Templeton College, Oxford University. It was originally designed for goods-producing organizations; however, it can also be applied to service-providing firms. This framework defines the essential elements of an effective operations strategy in the last two columns—operations design choices and building the right infrastructure. Operations design choices are the decisions management must make as to what type of process structure is best suited to produce goods or create services. Infrastructure focuses on the nonprocess features and capabilities of the organization and includes the workforce, operating plans and control systems, quality control, organizational structure, compensation systems, learning and innovation systems, and support services.

Question 2

_____ are any aspects of a good or a service that a customer must believe in but cannot personally evaluate even after purchase and consumption.

Accepted Answer

A)  Search attributes 
B)  Experience attributes 
C)  Credence attributes 
D)  Variant attributes 
A)  Search attributes 
B)  Experience attributes 
C)  Credence attributes 
D)  Variant attributes C

Question 3

A creative workforce and a strong supply chain can be considered as an organization's core competency.

Accepted Answer

A) True 
 B)False  True

Question 4

With regard to the three types of attributes customers use in evaluating the quality of goods and services, a vacation would best be classified as high in _____.

Accepted Answer

A)  search attributes 
B)  experience attributes 
C)  credence attributes 
D)  competitive advantage attributes 
A)  search attributes 
B)  experience attributes 
C)  credence attributes 
D)  competitive advantage attributes

Question 5

Which of the following statements in the Lawn Care Company (LCC) case study is TRUE?

Accepted Answer

A)  The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment. 
B)  The gross margin on grass seed and fertilizer were higher than on the lawn application service. 
C)  Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case. 
D)  Social sustainability is an important issue for this business in today's market. 
A)  The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment. 
B)  The gross margin on grass seed and fertilizer were higher than on the lawn application service. 
C)  Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case. 
D)  Social sustainability is an important issue for this business in today's market.

Question 6

The color and size of an iPod would be considered credence attributes.

Accepted Answer

A) True 
 B)False

Question 7

Operating decisions must be aligned with achieving the desired competitive priorities.

Accepted Answer

A) True 
 B)False

Question 8

Explain the concepts of search, experience, and credence attributes.

Accepted Answer

Search attributes are those that a custo

Question 9

Basic customer expectations are considered the minimum performance level required to stay in business and are often called _____.

Accepted Answer

A)  order qualifiers 
B)  order satisfiers 
C)  order exciters 
D)  order winners 
A)  order qualifiers 
B)  order satisfiers 
C)  order exciters 
D)  order winners

Question 10

Which of the following statements best represents McDonald's vision?

Accepted Answer

A)  To be the world's best quick-service restaurant experience 
B)  To be the most innovate organization in the world 
C)  To develop and maintain a diverse workforce 
D)  To be the most efficient process-oriented organization in the world 
A)  To be the world's best quick-service restaurant experience 
B)  To be the most innovate organization in the world 
C)  To develop and maintain a diverse workforce 
D)  To be the most efficient process-oriented organization in the world

Question 11

The _____ of a firm are the strengths that are unique to that organization.

Accepted Answer

A)  strategy developments 
B)  strategic missions 
C)  vision statements 
D)  core competencies 
A)  strategy developments 
B)  strategic missions 
C)  vision statements 
D)  core competencies

Question 12

Which one of the following statements in the Lawn Care Company (LCC) case study is TRUE?

Accepted Answer

A)  The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment. 
B)  The gross margin on grass seed and fertilizer were higher than on the lawn application service. 
C)  Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case. 
D)  The order winner for the current strategy at LCC is the high quality of physical goods. 
A)  The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment. 
B)  The gross margin on grass seed and fertilizer were higher than on the lawn application service. 
C)  Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case. 
D)  The order winner for the current strategy at LCC is the high quality of physical goods.

Question 13

Goods and service features and performance characteristics that differentiate one customer benefit package from another and win a customer's business are called _____.

Accepted Answer

A)  order qualifiers 
B)  order satisfiers 
C)  order exciters 
D)  order winners 
A)  order qualifiers 
B)  order satisfiers 
C)  order exciters 
D)  order winners

Question 14

A firm's ability to achieve market and financial superiority over competitors is called strategic planning.

Accepted Answer

A) True 
 B)False

Question 15

What are competitive priorities? Provide some examples of how OM influences the five major types of competitive priorities.

Accepted Answer

Competitive priorities represent differe

Question 16

Operations design choices include all of the following EXCEPT _____.

Accepted Answer

A)  operating plans and controls 
B)  type of processes 
C)  value chain integration and outsourcing 
D)  inventory and service capacity 
A)  operating plans and controls 
B)  type of processes 
C)  value chain integration and outsourcing 
D)  inventory and service capacity

Question 17

Which one of the following statements is TRUE with respect to McDonald's operations and strategy?

Accepted Answer

A)  McDonald's #1 competitive priority is demand flexibility. 
B)  Professor Terry Hill's strategy framework cannot be applied to a company such as McDonald's. 
C)  There is only one standardized way (process) to make french fries in 32,000 stores worldwide. 
D)  McDonald's vision is to produce the world's best hamburger. 
A)  McDonald's #1 competitive priority is demand flexibility. 
B)  Professor Terry Hill's strategy framework cannot be applied to a company such as McDonald's. 
C)  There is only one standardized way (process) to make french fries in 32,000 stores worldwide. 
D)  McDonald's vision is to produce the world's best hamburger.

Question 18

Identify a TRUE statement about the Lawn Care Company (LCC) case study.

Accepted Answer

A)  The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment. 
B)  The gross margin on grass seed and fertilizer was higher than on the lawn application service. 
C)  Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case. 
D)  The application service for parks and golf courses provided by a competitor of Lawn Care can be considered the competitor's competitive advantage. 
A)  The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment. 
B)  The gross margin on grass seed and fertilizer was higher than on the lawn application service. 
C)  Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case. 
D)  The application service for parks and golf courses provided by a competitor of Lawn Care can be considered the competitor's competitive advantage.

Question 19

Order qualifiers are goods and service features and performance characteristics that differentiate one customer benefit package from another and win a customer's business.

Accepted Answer

A) True 
 B)False

Question 20

Sustainability is best described as _____.

Accepted Answer

A)  design flexibility 
B)  mass customization 
C)  an organizational strategy 
D)  a competitive priority 
A)  design flexibility 
B)  mass customization 
C)  an organizational strategy 
D)  a competitive priority

Exam 4: Operations Strategy

Explain Professor Hill's strategy development framework. What are the key elements of operations strategy within this framework?

_____ are any aspects of a good or a service that a customer must believe in but cannot personally evaluate even after purchase and consumption.

A creative workforce and a strong supply chain can be considered as an organization's core competency.

With regard to the three types of attributes customers use in evaluating the quality of goods and services, a vacation would best be classified as high in _____.

Which of the following statements in the Lawn Care Company (LCC) case study is TRUE?

The color and size of an iPod would be considered credence attributes.

Operating decisions must be aligned with achieving the desired competitive priorities.

Explain the concepts of search, experience, and credence attributes.

Basic customer expectations are considered the minimum performance level required to stay in business and are often called _____.

Which of the following statements best represents McDonald's vision?

The _____ of a firm are the strengths that are unique to that organization.

Which one of the following statements in the Lawn Care Company (LCC) case study is TRUE?

Goods and service features and performance characteristics that differentiate one customer benefit package from another and win a customer's business are called _____.

A firm's ability to achieve market and financial superiority over competitors is called strategic planning.

What are competitive priorities? Provide some examples of how OM influences the five major types of competitive priorities.

Operations design choices include all of the following EXCEPT _____.

Which one of the following statements is TRUE with respect to McDonald's operations and strategy?

Identify a TRUE statement about the Lawn Care Company (LCC) case study.

Order qualifiers are goods and service features and performance characteristics that differentiate one customer benefit package from another and win a customer's business.

Sustainability is best described as _____.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters