Deck 2: Operations and Supply Chain Strategies

Question 1

15)Companies that do not include environmental costs into the cost of production

A)Have an advantage over those companies that do so
B)May face serious problems in the long run
C)Are conscientious corporate citizens
D)Are likely to have high production costs

Answer 1

B

Question 2

11)Which of the following statements is true about where some countries are with regard to sustainable supply chains?

A)U.S.companies are ahead of companies in Europe.
B)Firms in India and China have caught up with European countries.
C)both A and B
D)neither A nor B

Answer 2

D

Question 3

3)Corporate strategy is formulated by ______.

A)the organization's top managers
B)the entire organization
C)third-party consultants
D)people in charge of marketing and manufacturing

Answer 3

C

Question 4

4)Corporate strategy asks,______.

A)Which industries should we enter?
B)What products should we offer?
C)At what price should we sell these products?
D)In which markets should we advertise?

Question 5

1)A firm's strategy on how to compete results from decisions made at ______.

A)the corporate level
B)the functional level
C)the business level
D)the divisional level

Question 6

13)Sustainability in the context of creating environmental value refers to ______.

A)ensuring a steady and long-term stream of revenues
B)ensuring a steady and long-term stream of profits
C)ensuring that current operations do not deplete resources now and for the future
D)ensuring a steady and long-term stream of sales

Question 7

7)The allocation of resources between different strategic business units of the corporations is guided by ______.

A)corporate strategy
B)business strategy
C)departmental strategy
D)divisional strategy

Question 8

14)A company that creates economic value but exploits the environment and natural resources may ______.

A)run out of raw materials required for its operations
B)overprice its products
C)be forced to offer products of poor quality
D)have high production costs

Question 9

2)A functional strategy is ______.

A)at a higher level than the department-level strategy
B)at a lower level than the department-level strategy
C)the same as the department level strategy
D)often referred to as a tactic

Question 10

5)Among the different strategies,corporate strategy______.

A)is broadest in scope
B)has the shortest time horizon
C)guides the operations in a given function
D)all of these

Question 11

20)Multinational companies that contract with factories in countries such as Sudan and Pakistan should ensure that ______.

A)children are not employed in these factories
B)cost of production is maintained at low levels using whatever means necessary
C)children do not work more than 70 hours per week
D)children employed in these factories have appropriate safety equipment

Question 12

16)The carbon footprint of a supply chain refers to ______.

A)the amount of greenhouse gases produced
B)the use of energy-efficient lighting
C)the use of recycled materials
D)all of these

Question 13

6)Corporate strategy guides decisions about ______.

A)what businesses to acquire
B)how to compete in a business
C)what products to offer
D)how to design a given product

Question 14

10)Which of the following is NOT one of the performance objectives included in the "triple bottom line"?

A)the economic value the company creates
B)the environmental value the company creates
C)the philosophical value the company creates
D)the social value the company creates

Question 15

18)In 2001,Nike admitted that it used child labor to produce its expensive sportswear products,while paying the children just pennies a day.This is an example of ______.

A)creating economic value in the short run
B)being a conscientious corporate citizen
C)being socially responsible
D)following a sustainable manufacturing practice

Question 16

8)The hierarchy of strategies implies that a higher level strategy ______.

A)guides the strategy below it
B)is guided by the internal environment
C)guides tactical decisions in different businesses
D)is responsible for product design

Question 17

9)The SCOR model ______.

A)has 42 key indicators
B)uses metrics organized in a hierarchical structure
C)was developed during World War II
D)was originally used by Henry Ford

Question 18

12)The triple bottom line is a way to ______.

A)ensure a minimum level of returns for the company's stockholders
B)ensure that society is compensated for any harm (e.g.,pollution)imposed on it
C)both A and B
D)neither A nor B

Question 19

19)In 2001,Nike admitted that it used child labor to produce its expensive sportswear products while paying the children just pennies a day.In doing so,Nike ______.

A)deprived some children of the opportunity to have a childhood as in developed economies
B)provided society with opportunities to have a more educated population
C)created new consumers with the ability to purchase products and services
D)showed it was being socially responsible

Question 20

17)In evaluating environmental performance,life cycle assessment (LCA)refers to ______.

A)the environmental impact a product has over the lifetime of the customer
B)the environmental impact a product has over the product's life cycle
C)both A and B
D)neither A nor B

Question 21

31)Companies today have to compete across multiple attributes for a firm's core competencies,as a consequence of ______.

A)fewer customer expectations
B)increasing globalization
C)increasing government regulation
D)greater employee expectations

Question 22

36)The manufacturing mission depends to a great deal on ______.

A)product factors
B)corporate strategy
C)the board of directors
D)government regulations

Question 23

32)A firm can improve its operational capabilities by ______.

A)leveraging only its own current resources
B)leveraging the resources of its supply chain partners
C)by focusing only on economic value
D)by focusing only on both social and economic value

Question 24

21)Social sustainability practices of companies ______.

A)are hard to quantify in terms of costs
B)are the same across the globe
C)are usually followed by all companies in different countries
D)are consistently monitored by local governments

Question 25

24)Core competencies ______.

A)are also known as competitive strengths within a business unit
B)refer to the skills a business needs to acquire
C)are not relevant for a diversified organization
D)can be outsourced

Question 26

40)Which of the following statements best describes the ultimate goal of operations and supply chain strategies?

A)to produce and deliver products or services to satisfy customers
B)to produce and deliver products or services that delight customers
C)to make sure customers receive defect-free products
D)to make sure profits are maximized

Question 27

35)Which of the following is NOT one of the critical elements of an operations strategy?

A)customers
B)core competencies
C)critical success factors (CSFs)
D)readily available resources

Question 28

37)Which of the following terms is incorrectly paired with its description?

A)plan: recognize an opportunity for a financial investment
B)do: test the change by implementing a small-scale pilot study.
C)check: review/analyze test results and identify lessons learned
D)act: take action based on what was learned from the previous step.

Question 29

25)An SBU can achieve synergy by ______.

A)aligning its activities with its functional strategy
B)coordinating and integrating its activities with the corporate strategy of the firm
C)developing new core competencies
D)reducing the extent of outsourcing

Question 30

26)The strategy applied in areas such as marketing,operations,finance,and accounting is known as ______.

A)divisional strategy
B)synergistic strategy
C)corporate strategy
D)functional strategy

Question 31

22)For those companies that have a single business,______.

A)there is almost no distinction between a business and a divisional strategy
B)there is no need for a functional strategy
C)strategy and tactics are the same
D)there is no need for outsourcing

Question 32

23)In a corporation that has a many businesses,the corporation needs one ______.

A)corporate strategy
B)business strategy
C)functional strategy
D)divisional strategy

Question 33

29)A firm's operations strategy ______.

A)guides a firm in using its operational resources effectively to help it achieve a competitive advantage
B)provides a road map for decisions regarding business acquisitions or divestitures that the firm's operations managers make
C)Is directly influenced by a firm's corporate strategy
D)Directly influences a firm's corporate strategy

Question 34

28)McDonald's decision to offer value meals ______.

A)is a classic example of corporate strategy
B)captures the essence of business strategy
C)is an example of a research and development strategy
D)is part of its marketing strategy

Question 35

38)Computers and smartphones have very short product life cycles.This means ______.

A)they need to be replaced only at long intervals
B)for these products,new technology is introduced frequently
C)consumers usually buy only one unit in their lifetimes
D)there are few repeat customers for these products

Question 36

34)Which of the following statements is false with regard to structural decisions?

A)An example of a structural decision is deciding a plant's location.
B)Structural decisions have a long-term impact.
C)Once made,structural decisions can be easily modified.
D)A structural decision is not the concern of corporate strategy.

Question 37

39)Which of the following statements is true when we consider innovation for products in the context of the product life cycle?

A)Innovation may not be of particularly great importance for mature products.
B)It is too late to improve profitability of mature products through innovation.
C)Innovation is applicable only during the introduction stage of a product's life cycle.
D)Innovation is not required during a product's growth stage.

Question 38

27)Which of the following is NOT a characteristic of a functional strategy?

A)A functional strategy is developed and implemented at a lower level in the corporate hierarchy.
B)A functional strategy has a shorter time horizon.
C)A functional strategy is more broad and abstract when compared to higher level strategies.
D)A business strategy may have many functional strategies.

Question 39

30)Contingency planning ______.

A)is time-consuming and expensive
B)should be avoided
C)is not essential as it will not be used in most cases
D)all of the these

Question 40

33)Which of the following statements is true about the input of operations managers to strategy?

A)Till recently,operations managers had little input into a company's corporate strategy.
B)Till recently,operations managers mostly focused on the company's business strategies.
C)Operations managers are increasingly focused on the company's divisional strategies.
D)Operations managers generally ignore functional strategy.

Question 41

51)Product development cycle time is ______.

A)the time it takes to conceptualize,produce,and deliver a product or service
B)the time it takes to receive supplies from the time these are ordered
C)the time it takes to deliver a product or service
D)the time it takes to manufacture a product or service

Question 42

45)Which of the following is likely to be a core competency for a company?

A)availability of commodities
B)ability to set up an R&D unit
C)ability to innovate
D)ability to outsource

Question 43

53)ERP stands for ______.

A)enterprise resource planning
B)emergency research planning
C)enterprise resource and production
D)emergency resource planning

Question 44

52)Getting the products in the hands of the customer by the promised delivery date is the responsibility of ______.

A)the manufacturing firm and the firm's supply chain partners
B)the firm only
C)the firm's supply chain partners only
D)the retailer

Question 45

48)Which of the following is NOT a common characteristic of product quality?

A)features
B)durability
C)empathy
D)performance

Question 46

44)A company's core competencies are ______.

A)also known as competitive priorities
B)usually outsourced
C)regulated by the local government
D)required by the ISO

Question 47

42)Of the many customers a company may have,it is important that a company identifies those customers who ______.

A)pay for its products
B)advertise its products
C)are critical for the company's survival
D)are occasional users of the company's products

Question 48

46)Which of the following terms is correctly paired with its description?

A)Critical success factors (CSFs): strategic factors that a company requires to compete in a given industry
B)Core competencies: factors that identify the firm as belonging to an industry
C)Business strategy: strategy that governs mergers and acquisitions
D)Corporate strategy: strategy that governs day-to-day operations

Question 49

47)A firm can produce at a lower cost than its competitors by ______.

A)achieving economies of scale
B)increasing the cost of raw materials and labor
C)using cheap raw materials and inputs
D)cutting corners in production

Question 50

61)In the automobile industry during the late 1980s and early 1990s,the order-winning quality criterion was ______.

A)quality
B)cost
C)volume
D)materials used

Question 51

54)Product innovation is the development and introduction of a brand-new product or service or the improvement of an existing product or service achieved through ______.

A)design changes
B)increase in time to manufacture
C)increase in time to order supplies
D)increase in time to inspect quality

Question 52

58)In the context of operations management,flexibility can refer to ______.

A)a firm's ability to produce a range of different products and services
B)a firm's ability to remain unwavering in its commitment to business strategy
C)a firm's ability to remain unwavering in its commitment to functional strategy
D)a firm's ability to remain unwavering in its commitment to corporate strategy

Question 53

43)CSFs ______.

A)refers to critical success factors
B)are usually outsourced
C)are regulated by a government agency
D)do not impact the success of the firm

Question 54

55)Process innovation ______.

A)is the development and introduction of a brand-new product or service through changes in product design
B)is the development and introduction of a brand-new product or service through changes in materials and components used in the product
C)refers to the way materials are ordered and delivered to a company
D)refers to the changes in the way in which product is produced or a service is delivered within the firm or across a supply chain.

Question 55

60)Which of the following statements is true about order winners and order qualifiers?

A)Order winners are more important to a firm than order qualifiers.
B)Order qualifiers are more important to a firm than order winners.
C)Both order winners and order qualifiers are important to a firm.
D)Neither order winners nor order qualifiers are important to a firm.

Question 56

49)Which of the following statements is true with regard to the target market of a product?

A)The mileage a Honda Civic car gets is important to its target market.
B)The mileage a Ferrari car gets is important to its target market.
C)The mileage a Rolls Royce car gets is important to its target market.
D)The mileage a Lamborghini car gets is important to its target market.

Question 57

50)Which of the following statements (with regard to time)is least likely to be important as a core competency for a company?

A)the time (or duration)for which a customer uses the product
B)the time to develop a product
C)the time to deliver a product
D)the time to receive supplies

Question 58

56)eBay's transformation of e-commerce and online auctions and Amazon enabling the purchase of books online are examples of ______.

A)product innovation
B)process innovation
C)innovation in materials
D)innovation in equipment manufacture

Question 59

59)Which of the following statements correctly pairs the term with its description?

A)order winner: competitive criterion that must be present in a product for it to be a viable competitor in the marketplace
B)order qualifier: competitive criterion of a product that causes a customer to choose it instead of a competitor's product
C)order winner: competitive criterion of a product that causes a customer to choose it instead of a competitor's product
D)order winner: competitive criterion of a product that causes a customer to reject it instead of a competitor's product

Question 60

57)Which of the following is an example of an innovation in operations management to gain a competitive edge?

A)the way work is organized
B)hiring capable employees
C)arranging for new sources of finance
D)finding new ways of advertising

Question 61

64)Strategic structural decisions are ______.

A)long-term decisions about a firm's capacity and facilities
B)short-term decisions about a firm's processes and technology
C)long-term decisions about a firm's processes and technology
D)short-term decisions about product design

Question 62

79)Productivity measures include ______.

A)inventory turnover ratios
B)multi-factor productivity measures
C)acid test ratio
D)earnings before interest and tax

Question 63

74)Which of the following options presents the right sequence of activities in developing a strategic plan for services?

A)First,identify the target market for the firm's services; second,determine the firm's core competency; third,define its mission and its high-level corporate goals and objectives.
B)First,determine the firm's core competency; second,identify the target market for the firm's services; third,define its mission and its high-level corporate goals and objectives.
C)First,define its mission and its high-level corporate goals and objectives; second,determine the firm's core competency; third,identify the target market for the firm's services;
D)First,determine the firm's core competency; second,define its mission and its high-level corporate goals and objectives,third,identify the target market for the firm's service.

Question 64

80)If we use 2,000 labor hours to produce 400 units of a product,then ______.

A)using the multifactor productivity measure,we get 5 units per labor hour
B)using the single-factor productivity measure,we get 5 units per labor hour
C)using the multifactor productivity measure,we get 1 unit per 5 labor hours
D)using the single-factor productivity measure,we get 1 unit per 5 labor hours

Question 65

67)What makes one company superior to another is the extent to which ______.

A)the company's operations are guided by the firm's infrastructure
B)there is a match between the company's infrastructural and structural decisions and its core competencies
C)the choice of products the firm will manufacture is determined by its capacity to manufacture these products
D)the choice of markets the firm will serve is determined by its capacity to manufacture products for these markets

Question 66

62)Maintaining the appropriate fit among the four critical elements-customers,product factors,operational CSFs or capabilities,and core competencies-is ______.

A)part of developing and refining an operations strategy
B)a temporary process
C)an annual event
D)the function of corporate strategy

Question 67

66)The question What production planning procedures and decision rules should be in place? addresses ______.

A)process innovation
B)sales and operations planning
C)control systems
D)product innovation

Question 68

68)The performance of an operations strategy is judged by how well ______.

A)it supports the firm's corporate and business strategies
B)it supports the firm's corporate tactics
C)it influences business strategy
D)it influences corporate strategy

Question 69

73)The balanced scorecard ______.

A)provides a framework of performance measurements
B)guides planners on different sources of financing
C)guides planners on product design
D)is very useful for identifying new markets

Question 70

77)PDCA stands for ______.

A)Product Development Cycle Analysis
B)Plan,Do,Check,Act
C)Plan,Do,Check,Analyze
D)Please,Do,Check,Answer

Question 71

72)The balanced scorecard ______.

A)is focused only on financial measures
B)is useful only for manufacturing organizations
C)is used by profit,nonprofit,and governmental organizations worldwide
D)was very popular in the 1940s

Question 72

71)The drawback of the SPM is ______.

A)it is difficult to use
B)considers only operational measures
C)nonfinancial measures are not factored into the model
D)it requires 5 to 10 years of historical data

Question 73

78)Productivity is measured by ______.

A)the ratio of goods and services produced to inputs
B)the product of goods produced and inputs used
C)the ratio of inputs to goods and services produced
D)none of these

Question 74

81)When calculating multifactor productivity,we need to use ______.

A)a homogenous unit of measurement
B)a heterogeneous unit of measurement
C)a statistical unit of measurement
D)a multivariate unit of measurement

Question 75

75)Which of the following statements is true with regard to service operations?

A)It encompasses all activities and processes required for implementing the service.
B)Service operations activities that are not visible to the customer are referred to as front stage activities.
C)Service operations activities that are visible to the customer are referred to as back stage activities.
D)Service operations activities pertaining to the supply chain are referred to as downstream activities.

Question 76

65)Infrastructural decisions include decisions about ______.

A)the kind of products to offer
B)materials management and control
C)the markets in which to offer products
D)product design

Question 77

69)The strategic profit model (SPM)______.

A)is also known as the Monsanto Model
B)provides a visual representation of an organization's financial performance
C)analyzes the firm's operations
D)guides the firm's corporate strategy

Question 78

76)Which of the following is NOT a question which is intended to be answered by service operations strategy?

A)How do we truly create value desired by our customers and stakeholders?
B)What is our rationale for making strategic investments in a particular service?
C)How should service quality be defined and,given differing alternatives,which one should we emphasize to improve the quality of our service?
D)If we have multiple businesses,how do we efficiently allocate resources among them?

Question 79

63)If a firm's products are no longer properly aligned with changing market trends,the firm can ______.

A)sell its products to customers in another market who do value its products
B)make new investments to upgrade its manufacturing facilities
C)acquire new suppliers
D)reorganize its product distribution processes

Question 80

70)According to the SPM,______.

A)every task performed in every area of a firm has an impact on the firm's bottom line
B)every task performed in every area of a firm has an impact on the firm's product quality
C)every task performed in every area of a firm has an impact on the firm's production capability
D)every task performed in every area of a firm has an impact on the morale of the firm's employees