Strategic Management and Competitive Advantage

Operations Management, 10e (Heizer/Render)Chapter 2 Operations system in a orbicular Environment1) NAFTA seeks to phase out only stack and tariff barriers among Canada, Mexico, and the get together States. reaction true up Diff 2 outlet A orbiculate take up of trading operations AACSB multicultural and mutation accusatory no LO2) The human beings work Organization has helped to epochally reduce tariffs around the world. dress trustworthy Diff 2 report A orbiculate watch over of operations AACSB multicultural and mixed bag heading no LO3) Production processes argon being dispersed to take expediency of national differences in labor tolls. upshot TRUE Diff 2 issue A orbiculate view of operations AACSB multicultural and variety show objective lens no LO4) NAFTA seeks to phase out all sh ar and tariff barriers between the United States and Asia. closure preposterous Diff 2 subject field A spherical view of operations AACSB multicultural and Diversity a ccusive no LO5) One reason for world-wide operations is to gain changements in the cede chain. retort TRUE Diff 2 point A world(a) view of operations AACSB multicultural and Diversity accusive no LO6) One reason to orbicularize is to learn to improve operations. at ecstasyd to TRUE Diff 1 event A international view of operations AACSB Multicultural and Diversity im in-person no LO7) To attract and retain world(prenominal) talent, and to expand a fruits breeding cycle, are both reasons to globalize. function TRUE Diff 2 topic A global view of operations AACSB Multicultural and Diversity object glass no LO8) A product will always be in the akin stage of its product life cycle regardless of the country. resolving FALSE Diff 2 depicted object A global view of operations AACSB Multicultural and Diversity fair game no LO9) The World Trade Organization helps provide governments and industries around the world with protection from squiffylys that engage in unethical c onduct. closure TRUE Diff 2 motif A global view of operations AACSB Ethical Reasoning accusatory no LO10) Boeings ripening of the 787 Dreamliner is an example of a society obtaining a emulous advantage through product differentiation/innovation. consequence TRUE Diff 1 Topic globose company compose design no LO11) An transcriptions scheme is its termination or rationale for an governings existence. Answer FALSE Diff 1 Topic ontogeny commissions and strategies butt LO2-112) Operations strategies are implemented in the corresponding way in all types of organizations. Answer FALSE Diff 2 Topic Developing missions and strategies neutral LO2-113) Experience differentiation is an extension of product differentiation, accomplished by using peoples v senses to create an experience rather than simply providing a advantage. Answer TRUE Diff 2 Topic Achieving warring advantage through operations nonsubjective LO2-214) An organizations might to generate unique advanta ges over competitors is central to a successful dodge execution of instrument. Answer TRUE Diff 2 Topic Achieving matched advantage through operations object LO2-215) Low-cost leadership is the ability to distinguish the offerings of the organization in any way that the customer perceives as adding value. Answer FALSE Diff 2 Topic cristal strategic OM decisions Objective LO2-316) nearly returnss are tangible this factor determines how the ten decisions of operations management are handled differently for goods than for services. Answer FALSE Diff 2 Topic Ten strategic OM decisions Objective LO2-317) The relative importance of each of the ten operations decisions depends on the ratio of goods and services in an organization. Answer TRUE Diff 2 Topic Ten strategic OM decisions Objective LO2-318) Decisions that involve what is to be made and what is to be purchased fall under the heading of supply-chain management. Answer TRUE Diff 2 Topic Ten strategic OM decisions Objective LO 2-319) Manufacturing organizations have ten strategic OM decisions, composition service organizations have only eight. Answer FALSE Diff 1 Topic Ten strategic OM decisions Objective LO2-320) Errors made within the posture decision area whitethorn overwhelm efficiencies in other areas. Answer TRUE Diff 2 Topic Ten strategic OM decisions Objective LO2-321) Southwest Airlines amount of money competence is operations. Answer TRUE Diff 2 Topic Strategy growing and executing Objective LO2-422) Key success factors and core competencies are synonyms. Answer FALSE Diff 2 Topic Strategy development and implementation Objective LO2-423) SWOT analytic thinking identifies those activities that make a difference between having and not having a hawkish advantage. Answer FALSE Diff 2 Topic Strategy development and implementation Objective LO2-424) For the greatest chance of success, an organizations operations management system must support the companys schema. Answer TRUE Diff 2 Topic St rategy development and implementation Objective LO2-425) Key Success Factors are those activities that are key to achieving competitive advantage. Answer TRUE Diff 2 Topic Strategy development and implementation Objective LO2-426) A multinational corporation has extensive external agate line involvements. Answer TRUE Diff 1 Topic international operations strategy options AACSB Multicultural and Diversity Objective LO2-527) The multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage. Answer FALSE Diff 2 Topic planetary operations strategy options AACSB Multicultural and Diversity Objective LO2-528) Firms using the global strategy can be thought of as world companies. Answer FALSE Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-529) Which of the pursual statements regarding the Dreamliner 787 is true? A) Boeing has found partners in over a dozen countries. B) The new aircraft incorporates a good range of aerospace technologies. C) The new aircraft uses engines from not one, exactly two manufacturers. D) Boeing will add only 20 to 30 percent of the aircrafts value. E) All of the in a gameyer place are true. Answer E Diff 2 Topic Global company pen Objective no LO30) Boeings 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 sum upd faculty from new engine technology E) results from a partnership of about a dozen companies Answer D Diff 2 Topic Global company profile Objective no LO31) Examples of response to the global environment include A) Boeings worldwide sales and production B) Bennetons flexibility in design, production, and distribution C) a Chinese manufacturer, Haier, inception plants in the United States D) Fords partnerships with Volvo and Mazda E) all of the higher up Answer E Diff 1 Topic A global view of operations AACSB Multicultural and Diversity Objective L O2-532) Which of the hobby is an example of globalization of operations strategy? A) Boeings Dreamliner has engines with higher discharge/payload efficiency. B) Fords new auto models have dent-resistant panels. C) A Chinese manufacturer, Haier, now operates plants in the United States. D) Hard Rock Caf provides an experience differentiation at its restaurants. E) All of the above are examples. Answer C Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective LO2-533) Cost cutting in international operations can take place because of A) rase taxes and tariffs B) refuse wage scales C) lower indirect labor costs D) less stringent regulations E) all of the above Answer E Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective LO2-534) Which of the spare-time activity did the authors not suggest as a reason for globalizing operations? A) reduce costs B) improve the supply chain C) stockholder approval ratings D) attract new ma rkets E) no(prenominal) of the above were suggested. Answer C Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective LO2-535) Multinational organizations can shop from country to country and cut costs through A) lower wage scales B) lower indirect labor costs C) less stringent regulations D) lower taxes and tariffs E) all of the above Answer E Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective LO2-536) The term maquiladora is most synonymous with A) free trade zones in Mexico B) Chinese forced labor camps C) home-based or cottage industry D) areas that do not meet U.S. standards for workplace goloshty and pollution E) none of the above Answer A Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO37) Which of the pastime 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 C hina. D) none of the above E) all of the above Answer B Diff 2 Topic A global view of operations Objective no LO38) Which of the following represent reasons for globalizing operations? A) to gain improvements in the supply chain B) to improve operations C) to expand a products life cycle D) to attract and retain global talent E) all of the above Answer E Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective LO2-539) Which of the following does not represent reasons for globalizing operations? A) reduce costs B) improve supply chain C) reduce responsiveness D) attract and retain global talent E) None of the above are valid reasons for globalizing operations. Answer C Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective LO2-540) NAFTA seeks to A) replenishment cheap labor in Mexico for expensive labor in the United States B) curb illegal immigration from Mexico to the United States C) phase out all trade and tariff barrie rs between the United States and Mexico D) phase out all trade and tariff barriers between the United States, Canada, and Mexico E) All of the above are NAFTA goals. Answer D Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO41) 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 labor and child labor E) played little role in addressing cultural and ethical issues among nations Answer B Diff 3 Topic A global view of operations AACSB Ethical Reasoning Objective no LO42) 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 s ame 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. Answer C Diff 2 Topic Developing missions and strategies Objective LO2-143) Which of the following activities takes place once the mission has been developed? A) The firm develops alternative or back-up missions in case the original mission fails. B) The running(a) 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. Answer C Diff 2 Topic Developing missions and strategies Objective LO2-144) Which of the following statements about organizational missions is false? A) They reflect a companys purpose. B) They indicate what a company intends to contribute to society. C) They are formulated after strategies are known. D) They define a companys reason fo r existence. E) They provide guidance for functional area missions. Answer C Diff 2 Topic Developing missions and strategies Objective LO2-145) The impact of strategies on the general direction and elemental character of a company is A) short range B) medium range C) long range D) temporal E) minimal Answer C Diff 2 Topic Developing missions and strategies Objective LO2-146) The fundamental purpose of an organizations mission statement is to A) create a good human relations humor in the organization B) define the organizations purpose in society C) define the operational bodily structure of the organization D) generate good public relations for the organization E) define the functional areas required by the organization Answer B Diff 2 Topic Developing missions and strategies Objective LO2-147) 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 co rporate strategy. D) External conditions are shaped by corporate mission. E) Functional area missions are merged to become the organizational mission. Answer C Diff 3 Topic Developing missions and strategies Objective LO2-148) __________ and __________ are to differentiation competitive advantages as __________ and __________ are to response competitive advantages. (*See figure 2.4a in the textual matterbook) A) Human Resources, layout scheduling, alimentation B) Product, lumber hole, process C) Quality, sustentation inscription, scheduling D) Product, supply chain layout, tonicity E) Product, quality maintenance, scheduling Answer E Diff 3 Topic Achieving competitive advantage through operations Objective LO2-249) Which of the following is least likely to be a Cost Leadership competitive advantage? A) low overhead B) effective mental ability use C) strain management D) broad product line E) mass production Answer D Diff 2 Topic Achieving competitive advantage through operati ons Objective LO2-250) According to the authors, which of the following strategic concepts allow firms to contact 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 Answer B Diff 2 Topic Achieving competitive advantage through operations Objective LO2-251) 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 employ goals below the industry average C) speed of delivery D) constant innovation of new products E) maintaining a variety of product options Answer B Diff 2 Topic Achieving competitive advantage through operations Objective LO2-252) Which of the following has progressed the furthest along its pr oduct life cycle? A) drive-thru restaurants B) Boeing 787 C) iPods D) Twitter E) Xbox 360 Answer A Diff 2 Topic Issues in operations strategy Objective no LO53) The ability of an organization to produce goods or services that have to a greater extent or less uniqueness in their characteristics is A) mass production B) time-based competition C) competing on productivity D) competing on flexibility E) competing on differentiation Answer E Diff 2 Topic Achieving competitive advantage through operations Objective LO2-254) Which of the following has made the least progress along its product life cycle? A) drive-thru restaurants B) Boeing 787 C) iPods D) Twitter E) Xbox 360 Answer D Diff 2 Topic Issues in operations strategy Objective no LO55) A strategy is a(n) A) set of opportunities in the marketplace B) broad statement of purpose C) trick utilise to test various product line options D) plan for cost reduction E) action plan to achieve the mission Answer E Diff 2 Topic Achieving com petitive advantage through operations Objective LO2-256) Which of the following statements stovepipe 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 agile than its competitors E) a company that has a computerized delivery scheduling system Answer B Diff 3 Topic Achieving competitive advantage through operations Objective LO2-257) 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 firms products are introduced into the market faster than its competitors products are. C) A firms distribution network routinely delivers its product on time. D) A firm offers more current products than its competitors do. E) A firm advertises more than its competitors do. Answer D Diff 2 Topic Achieving competitive advantage through operations Objective LO2-258) The ability of an organization to produce services that, by utilizing the consumers five senses, have some uniqueness in their characteristics is A) mass production B) time-based competition C) differentiation D) flexible response E) experience differentiation Answer E Diff 2 Topic Achieving competitive advantage through operations Objective LO2-259) Which of the following best describes experience differentiation? A) immerses consumers in the delivery of a service B) uses peoples five senses to enhance the service C) 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. Answer E Diff 1 Topic Achieving competitive advantage through operations Objective LO2-260) Experience Differentiation A) isolates the consumer from the delivery of a service B) is an extension of pr oduct differentiation in the service sector C) uses only the consumers 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 Answer B Diff 1 Topic Achieving competitive advantage through operations Objective LO2-261) Which of the following is the best example of competing on affordable 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 firms products are introduced into the market faster than its competitors products. D) A firms research and development department generates many an(prenominal) ideas for new products. E) A firm advertises more than its competitors. Answer A Diff 3 Topic Achieving competitive advantage through operations Objective LO2-262) Franz Colruyt has achieved low-priced leadership through A) Spartan headquarters B) absence of voice s end off C) low-cost facilities D) no background music E) all of the above Answer E Diff 1 Topic Achieving competitive advantage through operations Objective LO2-263) 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 theaters into retail outlets E) use of the Euro, not the currency of each European country Answer D Diff 1 Topic Achieving competitive advantage through operations Objective LO2-264) 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 firms products are introduced into the market faster than its competitors products. D) A firms research and development department generates many ideas for new products. E) A firm advertises more than its competitors. Answer C Diff 3 Topic Achieving competitive advantage through operations Objective LO2-265) Costs, quality, and human resource decisions interact strongly with the __________ decision. A) layout design B) process and capacity design C) supply chain management D) goods and service design E) All of the above are correct. Answer D Diff 2 Topic Ten strategic OM decisions Objective LO2-366) 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. Answer E Diff 2 Topic Ten strategic OM decisions Objective LO2-367) Response-based competitive advantage can be A) flexible response B) reliable response C) quick response D) all of the above E) none of the above Answer D Diff 2 Topic Ten strategic OM decisions Objective LO2-368) Which of the following is not an operations strategic decision? A) maintenance B) price C) layout design D) quality E) inventory Answer B Diff 2 Topic Ten strategic OM decisions Objective LO2-369) 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 Answer A Diff 2 Topic Ten strategic OM decisions Objective LO2-370) Which of these companies is most apt to have quality standards that are relatively subjective? A) Chrysler B) Dell Computer C) Sanyo Electronics D) Harvard University E) Whirlpool Answer D Diff 2 Topic Ten strategic OM decisions Objective LO2-371) Which of the following will more likely locate near their customers? A) an automobile manufacturer B) an atomic number 13 manufacturer C) an insurance company headquarters D) a medical clinic E) All of the above will tend to locate near their customers. Answer D Diff 2 Topic Ten strategic OM decisions Objective LO2-372) Which of the following statements concerning the operations m anagement 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 forces technical skills are very outstanding. D) Labor standards vary depending on customer requirements. E) Ability to inventory may allow the leveling of the output rates. Answer D Diff 2 Topic Ten strategic OM decisions Objective LO2-373) 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 Answer D Diff 2 Topic Ten strategic OM decisions Objective LO2-374) Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available A) pecuniary B) physical C) human D) technological E) all of the above Answer E Diff 2 Topic Issues in operations strategy Objective LO2-475) Porters Five Forces computer simulation 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 Answer B Diff 2 Topic Issues in operations strategy Objective LO2-476) Porters Five Forces simulate contains which of the following? A) immediate rivals B) potential entrants C) customers D) suppliers E) all of the Above Answer E Diff 2 Topic Issues in operations strategy Objective LO2-477) 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) None of the above Answer C Diff 2 Topic Issues in operations strategy Objective LO2-478) Value-chain analysi s can be used to determine if a business is adding unique value in which of the following areas? A) product research B) human resources C) process innovation D) quality management E) all of the above Answer E Diff 2 Topic Issues in operations strategy Objective LO2-479) 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 Answer D Diff 2 Topic Issues in operations strategy Objective LO2-480) Which of the following environmental factors has not been a factor in Microsofts changing strategy? A) Google B) security issues C) faster processors D) the Internet E) none of the above Answer E Diff 2 Topic Issues in operations strategy Objective LO2-481) Standardization is an suppress strategy in which stage of the product life cycle? A) introduction B) issue C) maturity D) decline E) retirement Answer C Diff 2 Topic Issues in operations strategy Objective LO2-482) Cost minimization i s an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement Answer D Diff 2 Topic Issues in operations strategy Objective LO2-483) The stage in the product life cycle at which it is a suffering time to change quality is A) introduction B) growth C) maturity D) decline E) incubation Answer C Diff 2 Topic Issues in operations strategy Objective LO2-484) Which of the following changes does not result in strategy changes? A) change in the companys financial situation B) a companys adoption of new technology C) change in the product life cycle D) change in the competitive environment E) change in descent scheduling techniques Answer E Diff 2 Topic Issues in operations strategy Objective LO2-4 1985) Which of the following statements is most correct? A) KSFs are oftentimes necessary, but not sufficient for competitive advantage. B) KSFs are often sufficient, but not necessary for competitive advantage. C) KSFs are ne ither necessary nor sufficient for competitive advantage. D) KSFs are both necessary and sufficient for competitive advantage. E) None of the above statements is correct. Answer A Diff 3 Topic Strategy development and implementation Objective LO2-486) Given the position of the iPod in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of iPods be least concerned with at the current time? A) prodigy B) cost cutting C) increasing capacity D) product and process reliability E) enhancing distribution Answer B Diff 2 Topic Issues in operations strategy Objective LO2-487) Which of these organizations is likely to have the most complex inventory decisions? A) a marketing research firm B) a stock brokerage firm C) a management consulting firm D) a computer manufacturing company E) a high school Answer D Diff 2 Topic Strategy development and implementation Objective LO2-488) The three steps of the operations managers job, in order, are A) develop the strategy, establish the organizational structure, find the mature staff B) develop the strategy, find the right staff, establish the organizational structure C) find the right staff, establish the organizational structure, develop the strategy D) find the right staff, develop the strategy, establish the organizational structure E) establish the organizational structure, find the right staff, develop the strategy Answer A Diff 2 Topic Strategy development and implementation Objective LO2-489) When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it A) requires minimal gravid investment B) utilizes as much automation as manageable C) utilizes an equal balance of labor and automation D) supports the overall competitive strategy of the company E) none of the above Answer D Diff 2 Topic Strategy development and implementation Objective LO2-490) Which of the international operations strategies involves high c ost reductions and high local responsiveness? A) international strategy B) global strategy C) international strategy D) multidomestic strategy E) none of the above Answer C Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-591) Which of the international operations strategies involves low cost reductions and low local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) none of the above Answer A Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-592) Which of the international operations strategies uses import/export or licensing of animate products? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) none of the above Answer A Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-593) Which of the international operations strategies uses t he existing domestic model globally? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) none of the above Answer D Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-594) The acronym MNC stands for A) Mexican National Committee (for international trade) B) Maquiladora Negates Competition C) Maytag-Nestl Corporation D) Multinational Corporation E) none of the above Answer D Diff 1 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-595) Caterpillar and Texas Instruments are two firms that have benefited from the use of A) the multidomestic strategy option. B) the multinational corporation strategy. C) the transnational strategy option. D) the maquiladora system in Europe. E) the global strategy option. Answer E Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-596) Which of the following are examples of transn ational firms? A) Nestl B) Asea Brown Boveri C) Reuters D) Citicorp E) All of the above are transnationals. Answer E Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-597) Boeing found its Dreamliner 787 partners in __________ countries. Answer over a dozen Diff 1 Topic Global company profile AACSB Multicultural and Diversity Objective no LO98) __________ are areas located along the U.S.-Mexico border in which factories receive preferential tariff treatment. Answer Maquiladoras Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO99) __________ is a free trade agreement among Canada, Mexico, and the United States. Answer NAFTANorth American assuage Trade Agreement Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO100) __________ and __________ are two issues where significant cultural differences are spacious and progress toward global uniformity has been slow . Answer Bribery, protection of intellectual property Diff 1 Topic Global company profile AACSB Ethical Reasoning Objective no LO101) An organization that has worked to achieve global uniformity in cultural and ethical issues such as bribery, child labor, and environmental regulations is __________. Answer the World Trade Organization Diff 1 Topic Global company profile AACSB Ethical Reasoning Objective no LO102) In goods-producing organizations, __________,__________, and __________ may be inventoried. Answer raw materials, work-in-process, finished goods Diff 2 Topic Ten strategic OM decisions Objective LO2-3103) Strategy is not static, but dynamic because of changes in the __________ and __________. Answer organization, environment Diff 2 Topic Issues in operations strategy Objective LO2-1104) __________ is the stage in product life cycle at which it is a poor time to change quality. Answer Maturity Diff 2 Topic Issues in operations strategy Objective LO2-4105) The __________ is how an organization expects to achieve its missions and goals. Answer strategy Diff 2 Topic Developing missions and strategies Objective LO2-1106) The creation of a unique advantage over competitors is called a __________. Answer competitive advantage Diff 2 Topic Achieving competitive advantage through operations Objective LO2-2107) Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice __________. Answer experience differentiation Diff 2 Topic Achieving competitive advantage through operations Objective LO2-2108) Competitive advantage in operations can be achieved by __________, __________, and/or __________. Answer differentiation, low cost, response Diff 2 Topic Achieving competitive advantage through operations Objective LO2-2109) A(n) __________ is a firm that has extensive involvement in international business, owning or controlling facilities in more than one country. Answer MNCmultinational c orporation Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-5110) The __________ strategy utilizes a standardized product across countries. Answer global Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-5 24111) The __________ strategy uses exports and licenses to penetrate globally. Answer international Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-5112) The __________ strategy uses subsidiaries, franchises, or joint ventures with substantial independence. Answer multidomestic Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-5113) The __________ strategy describes a condition in which material, people, and ideas cross or transgress national boundaries. Answer transnational Diff 2 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-5114) Identify five countri es from which Boeings 787 Dreamliner has suppliers. Answer France, Germany, UK, Italy, Japan, China, South Korea, Sweden, U.S. Diff 1 Topic Global company profile AACSB Multicultural and Diversity Objective no LO115) Identify five parts which Boeings 787 Dreamliner gets from global suppliers match each part with the country that supplies it. Answer Francelanding gear, Germanyinterior lighting, UKfuel pumps or electronics, Italypart of fuselage or horizontal stabilizer, Japanwing box or hydraulic actuators, Chinarudder or general parts, South Koreawingtips, Swedencargo and get to doors, U.S.GE engines Diff 2 Topic Global company profile AACSB Multicultural and Diversity Objective no LO116) How can global operations improve the supply chain? Answer The supply chain can often be improved by locating facilities in countries where unique resources exist. Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO117) How do global operations attract new ma rkets? Answer Since international operations require local interaction with customers, suppliers, and other competitive businesses, international firms inevitably learn about unique opportunities for new products and services. Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO118) State two examples of cultural and ethical issues that face operations managers in a global environment. Answer Student responses will vary, but there are s ever soal issues on which there are wide differences from country to country, culture to culture. Among those listed in the text are bribery, child labor, slave labor, and intellectual property rights. Students may bring forward from an earlier chapter issues such as environmental regulation or safe work environment, and may raise issues such as product safety. Diff 2 Topic A global view of operations AACSB Ethical Reasoning Objective no LO119) What is the difference between a firms mission and its strategy? Answ er A firms mission is its purpose or rationale for an organizations existence, whereas a firms strategy is how it expects to achieve its mission and goals. Diff 2 Topic Developing missions and strategies Objective LO2-1120) Since the early 1990s, residents in a number of developing countries have overcome culture, religious, ethnic, and political productivity barriers. These fade barriers coupled with simultaneous advances in technology, reliable shipping, and cheap communication have all led to the growth of what three things? Answer 1. World trade. 2. Global capital markets. 3. International movement of people. Diff 2 Topic A global view of operations AACSB Multicultural and Diversity Objective no LO121) Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain. Answer Answers will vary, but Disney and Hard Rock Caf are illustrated in the text. Competing on experience differentiation implies providing uniqueness to your service offering through immersion of the consumer into the service, with visual or sound elements to turn the service into an experience. Diff 2 Topic Achieving competitive advantage through operations Objective LO2-2122) With regard to the scheduling decision, how are goods-producing organizations different from service companies? Discuss. Answer Goods-producing companies the ability to inventory may allow leveling the output rates service companies primarily concerned with meeting the customers immediate schedule. Diff 3 Topic Ten strategic OM decisions Objective LO2-3123) How do goods and services differ with regard to handling the quality decision? Answer There are many objective quality standards for goods, whereas there are many subjective quality standards for services. Diff 2 Topic Ten strategic OM decisions Objective LO2-3124) What is the difference between goods and services in terms of their location selection? Answer Manufacturers of goods may need to be located reason out to raw materials, or labor force. Services, on the other hand, typically are located close to the customer. Diff 2 Topic Ten strategic OM decisions Objective LO2-3125) How has Franz Colruyt achieved low-cost leadership? List three specific examples and describe each briefly. Answer Several methods are listed in the text. Among these are no shopping bags, dim lighting, no voice mail, conversion of older buildings, Spartan offices. Diff 2 Topic Achieving competitive advantage through operations Objective LO2-2126) Define core competencies. Answer A set of skills, talents, and activities that a firm does particularly well. Diff 2 Topic Strategy development and implementation Objective LO2-4127) For what type of organization might the location decision area be the least important of its ten decision areas? For what type of organization might the location decision be the most important of the ten decision areas? Discuss augment your response with examples. Answer The relationship be tween the organization and its suppliers or its customers is key. If that relationship is very weak (as in no dose costs, or customers can reach the firm from any location), location diminishes in importance. If that relationship is strong (uniqueness of site, high transportation costs, customers will not travel far) location increases in importance. Least examples Telemarketing firm, tax help-line, Internet sales. Most examples gold mine, oil well, ski resort. Diff 3 Topic Ten strategic OM decisions AACSB Reflective cerebration Objective LO2-3128) What is SWOT analysis? List its four elements and describe its purpose. Answer The four elements of SWOT are strengths, weaknesses, opportunities, and threats. Its purpose is to maximize opportunities and minimize threats in the environment, while maximizing the advantages of the organizations strengths and minimizing the weaknesses. Diff 2 Topic Strategy development and implementation Objective LO2-1129) Are strategies static or dynami c? What are the forces that lead to this result? Answer Strategies should be dynamic because of changes within the organization and changes in the environment. Diff 2 Topic Strategy development and implementation Objective LO2-1130) Identify and explain the four basic global operations strategies. Give an example of each strategy. Answer The multidomestic strategy decentralizes operating decisions to each country to enhance local responsiveness. The primary example from the standard is McDonalds. The global strategy centralizes operating decisions, with headquarters coordinating the standardization and learning between facilities. The textbook names Texas Instruments and Caterpillar. The international strategy uses exports and licenses to penetrate the global markets. Students may cite Pier One, World Market, or any wine shop class. The transnational strategy exploits the economies of scale and learning, as well as pressure for responsiveness, by recognizing that core competence d oes not reside in just the home country, but can exist anywhere in the organization. Examples from the textbook include Bertelsmann, Reuters and Nestl. Diff 3 Topic Global operations strategy options AACSB Multicultural and Diversity Objective LO2-5131) Nike is the worlds largest athletic brand. Its innovative and broad product line helps drive sales, however a large majority of those sales are in the footwear business. Most of Nikes goods are produced overseas in low-cost factories and then imported to the final market. Nike currently has many of the top U.S. athletes under contract (Michael Jordon, Tiger Woods, Dwayne Wade) but international sales are still small in emerging markets. However, many competitors have essay to copy Nikes business model (high-value branded products manufactured at low-cost), including Adidas and Reebok, while many retailers have attempted to pass on the low-cost pressure of retail consumers. Perform a SWOT analysis for Nike. Answer Strengths- Innovati ve products, athletes under contract Weakness- Much of revenue is from footwear, eroding market share could cost Nike its gainfulness Opportunities- Sales can be increased in emerging markets using well-known athletes, broad product line can be expanded into high profit sectors (jewelry, sunglasses, golf, etc) Threats- International business makes Nike vulnerable to currency changes, low-cost pressure from retailers can decrease profit per item, competition could erode existing market share. Athletes personal lives could weaken Nikes reputation. Diff 2 Topic Strategy development and implementation Objective LO2-4132) Starbucks is one of the best known javahouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available. However, 75% of current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions). Recentl y Starbucks has begun initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behavior changes, given its reputation rides on a singular product. Perform a SWOT analysis for Starbucks. Answer Strengths- heights profit specialty coffee, well known brand image Weakness- Most stores located in U.S., most profits come from coffee (both are lack of diversification) Opportunities- Emerging market in coffee beans for home use, chance for global expansion Threats- Intense competition, consumer behavior changes (less spending during a recession on its luxury coffee, change in beverage preferences) Diff 2 Topic Strategy development and implementation Objective LO2-4133) Perform a SWOT analysis of Boeings 787 Dreamliner using the entropy presented within the text. Answer Strengths- Technological adva nces (8% increase in fuel efficiency, electronic maintenance monitoring) Weaknesses- Diverse suppliers and assembly locations leave Boeing vulnerable to currency exchange rates and make quality control difficult Opportunities- one of fastest-selling commercial jets ever gives Boeing a chance to increase market share, Boeing can parlay its use of diverse supplier locations into diversifying customer base Threats- competition from Airbus, divestment of the manufacture process risk of infections losing company trade secrets (competitive advantage) Diff 2 Topic Strategy development and implementation Objective LO2-4134) Perform a SWOT analysis of Hard Rock Caf, using the information presented within Chapters 1 and 2 of the text. Answer Strengths- Hard Rocks unique coupling of an experience with its menu gives it a competitive advantage, diverse portfolio of stores in 40 countries lowers risk Weaknesses-Hard Rock is known exclusively for its experience, this one-dimensional competitive advantage presents high risk Opportunities- New experience types at restaurants (Blues, Hip-Hop, etc themes), addition of new stores to the existing 120+ stores Threats- Hard Rocks exclusive Rock n Roll theme leaves it vulnerable to changes in consumer music preferences, competition in the restaurant business is very knockout Diff 2 Topic Strategy development and implementation Objective LO2-4135) Perform a SWOT analysis for Franz Colruyt, using the information presented within the text. Answer Strengths- High profit margin of 6.5% from its extreme low-cost competitive advantage Weaknesses- Lack of bagging, in-store music, dim lighting, and lack of aesthetic in-store appeal all limit potential customer base. Opportunities- Franz Colruyt only operates 160 stores so there is opportunity for global expansion Threats- High profit margin might encourage competition to copy Franz Colruyts low-cost competitive advantage, eroding it. Changes in consumer behavior (increased prosperity) migh t decrease customers interested in only a low-cost alternative. Diff 2 Topic Strategy development and implementation Objective LO2-4