Deck 2: Operations Strategy in a Global Environment

Question 1

The World Trade Organization has helped to significantly reduce tariffs around the world.

Answer 1

True

Question 2

Operations strategies are implemented in the same way in all types of organizations.

Answer 2

False

Question 3

Errors made within the location decision area may overwhelm efficiencies in other areas.

Answer 3

True

Question 4

NAFTA seeks to phase out all trade and tariff barriers among Canada,Mexico,and the United States.

Question 5

Low-cost leadership is the ability to distinguish the offerings of the organization in any way that the customer perceives as adding value.

Question 6

Decisions that involve what is to be made and what is to be purchased fall under the heading of supply-chain management.

Question 7

Most services are tangible;this factor determines how the ten decisions of operations management are handled differently for goods than for services.

Question 8

One reason for global operations is to gain improvements in the supply chain.

Question 9

Porter Airlines' core competency is operations.

Question 10

Production processes are being dispersed to take advantage of national differences in labour costs.

Question 11

A product will always be in the same stage of its product life cycle regardless of the country.

Question 12

An organization's ability to generate unique advantages over competitors is central to a successful strategy implementation.

Question 13

One reason to globalize is to learn to improve operations.

Question 14

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation.

Question 15

The relative importance of each of the ten operations decisions depends on the ratio of goods and services in an organization.

Question 16

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

Question 17

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.

Question 18

An organization's strategy is the purpose or rationale for its existence.

Question 19

Manufacturing organizations have ten strategic OM decisions,while service organizations have only eight.

Question 20

To attract and retain global talent,and to expand a product's life cycle,are both reasons to globalize.

Question 21

Multinational organizations can shop from country to country and cut costs through

A)higher taxes and tariffs.
B)higher wage scales.
C)higher indirect costs.
D)more stringent regulations.
E)lower wages,lower indirect costs,and lower taxes and tariffs.

Question 22

Which of the following is not a reason for globalizing operations?

A)to gain improvements in the supply chain
B)to improve operations
C)to expand a product's life cycle
D)to attract and retain global talent
E)to increase profits at the expense of quality

Question 23

Which of the following does not represent a reason for globalizing operations?

A)to reduce costs
B)to improve the supply chain
C)to reduce responsiveness
D)to attract and retain global talent
E)All of the above are valid reasons for globalizing operations.

Question 24

Which of the following is an example of globalization of operations strategy?

A)Boeing's Dreamliner has engines with higher fuel/payload efficiency.
B)Ford's new auto models have dent-resistant panels.
C)A Chinese manufacturer,Haier,now operates plants in the United States.
D)Hard Rock Café provides an "experience differentiation" at its restaurants.
E)Porter Airlines focuses on short-haul flights.

Question 25

For the greatest chance of success,an organization's operations management strategy must support the company's strategy.

Question 26

Boeing's new 787 Dreamliner

A)is assembled in Washington,D.C.
B)uses engines from Japan.
C)has its fuselage sections built in Australia.
D)has increased efficiency from new engine technology.
E)results from a partnership of about a dozen companies.

Question 27

Which of the following is a reason for globalizing operations?

A)reduce costs with a reduction in effectiveness of the supply chain
B)improve the supply chain while increasing overall costs
C)understand markets
D)reduce stockholder approval ratings
E)increase costs at the risk of stockholder approval ratings

Question 28

Key success factor and core competency are synonyms.

Question 29

NAFTA seeks to

A)substitute cheap labour in Mexico for expensive labour in the United States.
B)curb illegal immigration from Mexico to the United States.
C)phase out all trade and tariff barriers between North America and South America.
D)phase out all trade and tariff barriers between the United States,Canada,and Mexico.
E)phase out trade between the United States,Canada,and Mexico.

Question 30

Cost cutting in international operations can take place because of

A)higher taxes and tariffs.
B)higher wage scales.
C)higher indirect costs.
D)more stringent regulations.
E)lower wages,lower indirect costs,and lower taxes and tariffs.

Question 31

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.

Question 32

Which of the following is true about business strategies?

A)An organization should stick with its strategy for the life of the business.
B)All firms within an industry will adopt the same strategy.
C)Well defined missions make strategy development much easier.
D)Strategies are formulated independently of SWOT analysis.
E)Organizational strategies depend on operations strategies.

Question 33

Which of the following is true of maquiladoras?

A)They discourage foreign businesses from outsourcing.
B)They assess tariffs only on the value-added work done.
C)They originated in China.
D)They are not available to Canadian companies.
E)They can be found in many countries.

Question 34

A multinational corporation has extensive international business involvements.

Question 35

The multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage.

Question 36

With reference to cultural and ethical issues,the World Trade Organization has

A)succeeded in providing equal protection of intellectual property among nations.
B)made progress in providing equal protection of intellectual property among nations.
C)phased out all trade and tariff barriers between the United States and Mexico.
D)eliminated slave labour and child labour.
E)played little role in addressing cultural and ethical issues among nations.

Question 37

The term maquiladora is synonymous with

A)free trade zones in Mexico.
B)Chinese forced labour camps.
C)home-based or cottage industry.
D)areas that do not meet U.S.standards for workplace safety and pollution.
E)taxes charged by the Mexican government.

Question 38

Key Success Factors are those activities that are necessary to achieving competitive advantage.

Question 39

Which of the following statements regarding the Dreamliner 787 is true?

A)Boeing has found no international partners.
B)The new aircraft incorporates a limited number of aerospace technologies.
C)The new aircraft uses engines from only one manufacturer.
D)Boeing will add 99% of the aircraft's value.
E)Boeing has found partners in over a dozen countries.

Question 40

Which of the following is an example of a response to the global environment?

A)Boeing's local sales and production
B)Benneton's strict limits on design,production,and distribution
C)a Chinese manufacturer,Haier,producing in China
D)Ford's partnerships with GM
E)Ford's partnerships with Volvo and Mazda

Question 41

A strategy is a(n)

A)set of opportunities in the marketplace.
B)broad statement of purpose.
C)simulation used to test various product line options.
D)plan for cost reduction.
E)action plan to achieve the mission.

Question 42

Which of the following is least likely to be a cost leadership competitive advantage?

A)low overhead
B)effective capacity use
C)inventory management
D)broad product line
E)mass production

Question 43

The fundamental purpose of an organization's mission statement is to

A)create a good human relations climate in the organization.
B)define the organization's purpose in society.
C)define the operational structure of the organization.
D)generate good public relations for the organization.
E)define the functional areas required by the organization.

Question 44

Experience differentiation

A)isolates the consumer from the delivery of a service.
B)is an extension of product differentiation in the service sector.
C)uses only the consumer's senses of vision and sound.
D)keeps consumers from becoming active participants in the service.
E)is the same as product differentiation,but applied in the service sector.

Question 45

Which of the following best describes "experience differentiation"?

A)It immerses consumers in the delivery of a service.
B)It uses people's five senses to enhance the service.
C)It complements physical elements with visual and sound elements.
D)Consumers may become active participants in the product or service.
E)All of the above are elements of experience differentiation.

Question 46

Which of the following statements best characterizes delivery reliability?

A)a company that always delivers on the same day of the week
B)a company that always delivers at the promised time
C)a company that delivers more frequently than its competitors
D)a company that delivers faster than its competitors
E)a company that has a computerized delivery scheduling system

Question 47

Which of the following statements about organizational missions is false?

A)They reflect a company's purpose.
B)They indicate what a company intends to contribute to society.
C)They are formulated after strategies are known.
D)They define a company's reason for existence.
E)They provide guidance for functional area missions.

Question 48

Which of the following is the best example of competing on low-cost leadership?

A)A firm produces its product with less raw material waste than its competitors.
B)A firm offers more reliable products than its competitors.
C)A firm's products are introduced into the market faster than its competitors' products.
D)A firm's research and development department generates many ideas for new products.
E)A firm advertises more than its competitors.

Question 49

Which of the following activities takes place most immediately once the mission has been developed?

A)The firm develops alternative or back-up missions in case the original mission fails.
B)The functional areas develop their functional area strategies.
C)The functional areas develop their supporting missions.
D)The ten OM decision areas are prioritized.
E)Operational tactics are developed.

Question 50

Which of the following strategic concepts allow firms to achieve their missions?

A)productivity,efficiency,and quality leadership
B)differentiation,cost leadership,and quick response
C)differentiation,quality leadership,and quick response
D)distinctive competency,cost leadership,and experience
E)differentiation,distinctive competency,quality leadership,and capacity

Question 51

A firm can effectively use its operations function to yield competitive advantage through all of the following except

A)customization of the product.
B)setting equipment utilization goals below the industry average.
C)speed of delivery.
D)constant innovation of new products.
E)maintaining a variety of product options.

Question 52

Which of the international operations strategies involves a focus on low cost reductions and high local responsiveness?

A)international strategy
B)global strategy
C)transnational strategy
D)multidomestic strategy
E)transdomestic strategy

Question 53

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is referred to as

A)mass production.
B)time-based competition.
C)competing on productivity.
D)competing on flexibility.
E)competing on differentiation.

Question 54

Which of the following is true?

A)Corporate mission is shaped by functional strategies.
B)Corporate strategy is shaped by functional strategies.
C)Functional strategies are shaped by corporate strategy.
D)External conditions are shaped by corporate mission.
E)Functional area missions are merged to become the organizational mission.

Question 55

Franz Colruyt,a Belgian discount food retailer,has achieved low-cost leadership through

A)lavish headquarters.
B)heavy use of voice mail.
C)state-of-the-art facilities.
D)piped-in background music.
E)cutting out all nonessentials.

Question 56

The ability of an organization to produce services that,by utilizing the consumer's five senses,have some uniqueness in their characteristics is referred to as

A)mass production.
B)time-based competition.
C)differentiation.
D)flexible response.
E)experience differentiation.

Question 57

Which of the international operations strategies involves a focus on high cost reductions and low local responsiveness?

A)international strategy
B)global strategy
C)transnational strategy
D)multidomestic strategy
E)transdomestic strategy

Question 58

Which of the following is an example of competing on the basis of differentiation?

A)A firm manufactures its product with less raw material waste than its competitors do.
B)A firm's products are introduced into the market faster than its competitors' products are.
C)A firm's distribution network routinely delivers its product on time.
D)A firm offers more reliable products than its competitors do.
E)A firm advertises more than its competitors do.

Question 59

Which of the following has progressed the furthest along its product life cycle?

A)drive-thru restaurants
B)Boeing 787
C)iPods
D)Twitter
E)Xbox 360

Question 60

What term describes how an organization expects to achieve its missions and goals?

A)conditional expectation
B)tactic
C)SWOT
D)strategy
E)competitive advantage

Question 61

Which of the following is not an operations strategic decision?

A)maintenance
B)price
C)layout design
D)quality
E)inventory

Question 62

Which of the following is an example of competing on quick response?

A)A firm produces its product with less raw material waste than its competitors.
B)A firm offers more reliable products than its competitors.
C)A firm's products are introduced into the market faster than its competitors' products.
D)A firm utilizes is capacity more effectively than its competitors.
E)A firm advertises more than its competitors.

Question 63

Compared to a firm providing a service,a firm producing a good is more likely to have many ________ quality standards,________ product,and a location ________ from customers.

A)subjective;tangible;far
B)subjective;intangible;far
C)objective;tangible;near
D)objective;tangible;far
E)objective;intangible;far

Question 64

The Belgian discount food retailer Franz Colruyt has achieved low-cost leadership through

A)effective use of voice mail.
B)plastic,not paper,shopping bags.
C)background music that subtly encourages shoppers to buy more.
D)converting factories,garages,and theatres into retail outlets.
E)exclusive use of the Euro.

Question 65

Standardization is an appropriate strategy in which stage of the product life cycle?

A)introduction
B)growth
C)maturity
D)decline
E)retirement

Question 66

Value-chain analysis is used to identify activities that represent,or can develop into,the core competencies of a business.Who introduced this concept?

A)Ford
B)Toyota
C)Porter
D)Smith
E)Taylor

Question 67

Which of the following statements concerning the operations management decision is relevant to services?

A)There are many objective quality standards.
B)The customer is not involved in most of the process.
C)The work force's technical skills are very important.
D)Labour standards vary depending on customer requirements.
E)Ability to inventory may allow the leveling of the output rates.

Question 68

Which of the following environmental factors has not been a factor in Microsoft's changing strategy?

A)Google
B)security issues
C)faster processors
D)the Internet
E)location of company headquarters

Question 69

Which of the following is not included in Porter's Five Forces Model?

A)immediate rivals
B)potential entrants
C)customers
D)suppliers
E)potential rivals

Question 70

Before establishing and implementing strategy,a resources view would ensure that which of the following resources is/are available

A)financial.
B)physical.
C)human.
D)technological.
E)all of the above.

Question 71

Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other?

A)layout design
B)goods and service design
C)supply-chain management
D)inventory
E)scheduling

Question 72

Which of these organizations is likely to have the most important inventory decisions?

A)a marketing research firm
B)a lobbying agency
C)a management consulting firm
D)an aluminum manufacturer
E)a law firm

Question 73

Which of the following will more likely to locate near their customers?

A)an automobile manufacturer
B)an aluminum manufacturer
C)an insurance company headquarters
D)a medical clinic
E)a bank headquarters.

Question 74

Which of the following influences layout design?

A)inventory requirements
B)capacity needs
C)personnel levels
D)technology decisions
E)All of the above influence layout decisions.

Question 75

Response-based competitive advantage can be

A)flexible,reliable,and quick response.
B)doable,feasible,and likeable response.
C)desirable,attainable,and quick response.
D)acceptable,achievable,and attainable response.
E)none of the above.

Question 76

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects?

A)research and development,cost,legal regulations,suppliers,customers
B)immediate rivals,potential entrants,customers,suppliers,and substitute products
C)potential entrants,customers,suppliers,legal regulations,and cost
D)immediate rivals,potential entrants,cost,substitute products,and legal regulations
E)none of the above

Question 77

Which of these companies is most likely to have quality standards that are relatively subjective?

A)Chrysler
B)Dell Computer
C)Sanyo Electronics
D)Harvard University
E)Whirlpool

Question 78

Value-chain analysis can be used to determine if a business is adding unique value in all of the following areas,except

A)product research.
B)human resources.
C)process innovation.
D)quality management.
E)location decisions.

Question 79

Which of the following is not part of value-chain analysis?

A)product research
B)quality management
C)supply-chain management
D)marketing
E)human resources

Question 80

Cost minimization is an appropriate strategy in which stage of the product life cycle?

A)introduction
B)growth
C)adolescence
D)decline
E)retirement