Question 1

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

Accepted Answer

A)  both learning effects and 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 are not affected by the development of new technologies.
D)  unit costs keep reducing as output increases. 
E)  the experience curve steadily rises after a certain threshold is reached indicating an increase in unit costs. B

Question 2

A video game console manufacturer hired scientists and engineers to work on ways to improve the video cards used in their game systems.The main aim of the manufacturer was to enhance the utility of the products, as perceived by the customers, above that of its rivals.This company aims to:

Accepted Answer

A)  achieve superior innovation.
B)  maintain a low cost position.
C)  increase response time.
D)  achieve a greater division oflabor. 
E)  minimize the time to market. A

Question 3

Distinctive competencies shape the functional-level strategies that a company can pursue.

Accepted Answer

A) True 
 B)False  True

Question 4

Self-managing work teams:

Accepted Answer

A)  increase per-unit costs of manufactured items.
B)  perform all workplace tasks except the making of hiring decisions.
C)  increase the cycle time of manufacturing items.
D)  require team members to learn only one task and specialize in that alone. 
E)  tend to increase productivity and product quality.

Question 5

Unlike traditional manufacturing, flexible manufacturing:

Accepted Answer

A)  decreases efficiency.
B)  lowers unit costs.
C)  limits an organization's ability to customize products.
D)  allows the production of only standardized products. 
E)  limits an organization's ability to offer greater product variety.

Question 6

The experience curve concept:

Accepted Answer

A)  helps a company realize both learning effects and diseconomies of scale.
B)  suggests that unit manufacturing costs increase by a certain amount each time output is increased.
C)  is very important in industries that mass-produce a standardized output.
D)  suggests that achieving low costs allows a firm to charge a premium price. 
E)  is least likely to bottom out as long as the company does not stop production.

Question 7

If a product is to be properly commercialized, there must be integration between:

Accepted Answer

A)  research and development and marketing.
B)  R&D and materials management.
C)  marketing and materials management.
D)  fmance and marketing. 
E)  marketing and after-sales support.

Question 8

Which of the following is the fmal result of the five-step chain reaction on which the philosophy of the TQM is based?

Accepted Answer

A)  Better use of time and materials
B)  Increase in profitability
C)  Creation of more jobs
D)  Higher market share
E)  hnprovement in productivity

Question 9

Pay for performance tends to:

Accepted Answer

A)  increase per-unit costs.
B)  decrease employee productivity.
C)  increase employee output.
D)  have little effect on employee output. 
E)  impede teamwork.

Question 10

Through efficient logistics at Grasshopper Grocers, the stock in the stores is automatically replenished once every week.Management at Grasshopper Grocers uses a just-in-time inventory system.

Accepted Answer

A) True 
 B)False

Question 11

Quality can best be thought of as:

Accepted Answer

A)  a competency in investigating and identifying needs of customers.
B)  the attributes that customers perceive as superior in a product.
C)  product development projects driven by customer needs.
D)  the quantity of inputs that it takes to produce a given output.
E)  unit cost reductions associated with a large scale of output.

Question 12

No matter how complex the task is, learning effects typically die out after a limited period of time.

Accepted Answer

A) True 
 B)False

Question 13

Learning effects are a result of:

Accepted Answer

A)  automation.
B)  knowledge acquired by doing.
C)  sound product planning tactics.
D)  diseconomies of scale. 
E)  outsourcing.

Question 14

Which of the following is not a product attribute?

Accepted Answer

A)  Form
B)  Features
C)  Style
D)  Price
E)  Reliability

Question 15

Which of the following is NOT a role played by infrastructure leadership in implementing reliability improvement methodologies?

Accepted Answer

A)  Providing leadership and commitment quality
B)  Finding ways to manage quality
C)  Setting goals and creating incentives
D)  Soliciting input from employees
E)  Lengthening production mns

Question 16

All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure.

Accepted Answer

A) True 
 B)False

Question 17

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

The answer of You are a consultant offering advice to...

Question 18

When Amber first started working at a car manufacturing plant assembling car doors, she was slower at the task than her co-workers.As time passed, her speed at assembling the doors increased and she even taught others how to perform the task more quickly.As a result of increased employee productivity, this particular plant experienced cost savings.These cost savings can be attributed to learning effects.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 4: Building Competitive Advantage Through Functional-Level Strategy

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

A video game console manufacturer hired scientists and engineers to work on ways to improve the video cards used in their game systems.The main aim of the manufacturer was to enhance the utility of the products, as perceived by the customers, above that of its rivals.This company aims to:

Distinctive competencies shape the functional-level strategies that a company can pursue.

Self-managing work teams:

Unlike traditional manufacturing, flexible manufacturing:

The experience curve concept:

If a product is to be properly commercialized, there must be integration between:

Which of the following is the fmal result of the five-step chain reaction on which the philosophy of the TQM is based?

Pay for performance tends to:

Through efficient logistics at Grasshopper Grocers, the stock in the stores is automatically replenished once every week.Management at Grasshopper Grocers uses a just-in-time inventory system.

Quality can best be thought of as:

No matter how complex the task is, learning effects typically die out after a limited period of time.

Learning effects are a result of:

Which of the following is not a product attribute?

Which of the following is NOT a role played by infrastructure leadership in implementing reliability improvement methodologies?

All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure.

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.

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

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