Question 1

_____ is the fundamental rethinking and radical redesign of business procedures to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Accepted Answer

A)  Product reengineering 
B)  Product research 
C)  Process reengineering 
D)  Flexible manufacturing 
E)  Efficiency monitoring

Question 2

Which of the following is true of the impact of high-quality products?

Accepted Answer

A)  High product quality results in high operating costs. 
B)  High product quality results in high employee productivity. 
C)  High product quality lowers efficiency. 
D)  High product quality reduces profits. 
E)  High product quality lowers customer retention.

Question 3

A tire company's products are more expensive than those offered by its competitors, but are still sought after by customers since they are more durable and perform better under harsh conditions. The tire company, in this case, has achieved competitive advantage through _____.

Accepted Answer

A)  marketing strategies 
B)  superior quality 
C)  quantum product innovation 
D)  pricing strategies 
E)  promotional strategies

Question 4

The development of a set of functional-level strategies that support a company's business-level strategy and strengthen its competitive advantage is known as:

Accepted Answer

A)  total quality management. 
B)  human resource management. 
C)  value chain management. 
D)  materials management. 
E)  marketing management.

Question 5

Which of the following functions can help increase customer perceptions of the utility of a company's product through brand positioning and advertising?

Accepted Answer

A)  Design 
B)  Materials management 
C)  Production 
D)  Marketing 
E)  Customer service

Question 6

Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Accepted Answer

A) True 
 B)False

Question 7

An organization which increases its quality can improve its profits by _____ the prices of its products due to increased reliability and _____ its operating costs due to increased productivity.

Accepted Answer

A)  decreasing; reducing 
B)  reducing; increasing 
C)  increasing; increasing 
D)  increasing; reducing 
E)  discounting; increasing

Question 8

Successful innovation gives an organization something unique about its products that can strengthen its competitive advantage.

Accepted Answer

A) True 
 B)False

Question 9

Six Sigma shares with TQM its focus on improving value chain processes to increase _____.

Accepted Answer

A)  productivity 
B)  quality 
C)  innovation 
D)  flexibility 
E)  employee involvement

Question 10

High quality products are characterized by low prices.

Accepted Answer

A) True 
 B)False

Question 11

What is customer relationship management? Describe the possible changes in the operation of a grocery store in a small town that recently implemented a customer relationship management system.

Accepted Answer

The answer of What is customer relationship management? Describe the...

Question 12

Which of the following is not a product attribute or quality that most customers prefer?

Accepted Answer

A)  High-quality products 
B)  Products with valuable features 
C)  Customized products 
D)  Quick after-sales service 
E)  High prices

Question 13

Total quality management is a technique that focuses on improving the quality of an organization's products and services.

Accepted Answer

A) True 
 B)False

Question 14

A(n) _____ is a coordinated series or sequence of functional activities needed to transform inputs into finished goods or services.

Accepted Answer

A)  operating system 
B)  marketing function 
C)  organizational hierarchy 
D)  value chain 
E)  customer relationship management system

Question 15

The _____ the input resources required to produce a given volume of output, the _____ will be the efficiency of the operating system.

Accepted Answer

A)  more; higher 
B)  fewer; higher 
C)  smaller; lower 
D)  fewer; lower 
E)  larger; greater

Question 16

Which of the following must managers in product development avoid to promote innovation and speed up product development?

Accepted Answer

A)  Developing a structured process for evaluating ideas 
B)  Funding too many project ideas at one time 
C)  Providing incentives for employees to come up with ideas 
D)  Allowing team members to brainstorm 
E)  Establishing a stage-gate funnel

Question 17

_____ is a technique that uses IT to develop an ongoing relationship with the purchasers or buyers of an organization's product to maximize the value an organization can deliver to them over time.

Accepted Answer

A)  Effective reliability management (ERM) 
B)  Organizational efficiency management (OEM) 
C)  Total quality management (TQM) 
D)  Continuous innovation management (CIM) 
E)  Customer relationship management (CRM)

Question 18

Illumin, a light bulb manufacturing company strives to improve the longevity and brightness of its bulbs by continuously changing designs and trying different combinations of materials and component parts while manufacturing them. This is an example of _____.

Accepted Answer

A)  quantum process innovation 
B)  quantum product innovation 
C)  incremental product innovation 
D)  incremental process innovation 
E)  process reengineering

Question 19

The _____ plan specifies all of the relevant information that managers need to decide whether to go ahead with a full-blown product development effort.

Accepted Answer

A)  product development 
B)  value chain 
C)  product positioning 
D)  process reengineering 
E)  quality control

Question 20

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers less desired product attributes for the same price.

Accepted Answer

A) True 
 B)False

Exam 9: Value Chain Management: Functional Strategies for Competitive Advantage

_____ is the fundamental rethinking and radical redesign of business procedures to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Which of the following is true of the impact of high-quality products?

A tire company's products are more expensive than those offered by its competitors, but are still sought after by customers since they are more durable and perform better under harsh conditions. The tire company, in this case, has achieved competitive advantage through _____.

The development of a set of functional-level strategies that support a company's business-level strategy and strengthen its competitive advantage is known as:

Which of the following functions can help increase customer perceptions of the utility of a company's product through brand positioning and advertising?

Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

An organization which increases its quality can improve its profits by _ the prices of its products due to increased reliability and _ its operating costs due to increased productivity.

Successful innovation gives an organization something unique about its products that can strengthen its competitive advantage.

Six Sigma shares with TQM its focus on improving value chain processes to increase _____.

High quality products are characterized by low prices.

What is customer relationship management? Describe the possible changes in the operation of a grocery store in a small town that recently implemented a customer relationship management system.

Which of the following is not a product attribute or quality that most customers prefer?

Total quality management is a technique that focuses on improving the quality of an organization's products and services.

A(n) _____ is a coordinated series or sequence of functional activities needed to transform inputs into finished goods or services.

The _ the input resources required to produce a given volume of output, the _ will be the efficiency of the operating system.

Which of the following must managers in product development avoid to promote innovation and speed up product development?

_____ is a technique that uses IT to develop an ongoing relationship with the purchasers or buyers of an organization's product to maximize the value an organization can deliver to them over time.

Illumin, a light bulb manufacturing company strives to improve the longevity and brightness of its bulbs by continuously changing designs and trying different combinations of materials and component parts while manufacturing them. This is an example of _____.

The _____ plan specifies all of the relevant information that managers need to decide whether to go ahead with a full-blown product development effort.

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers less desired product attributes for the same price.