Deck 1: Supply Chain Management and Competitive Strategy

Question 1

_________theory regarding strategic thinking focuses on building organizational skills and processes that enable a company to deliver distinctive products and services.

A) Contingency
B) Business model
C) Industrial organization
D) Resource-based

Answer 1

Resource-based

Question 2

A major weakness of historical supply chain strategies is________.

A) the operating costs are seldom budgeted
B) the lack of consideration of supplier geographic location
C) that interdependencies of the supply chain members are not realized
D) that they frequently do not require use contract manufacturers

Answer 2

that interdependencies of the supply chain members are realized

Question 3

Managers must consider each of the following areas in developing effective supply chain strategies to satisfy its customers except ________.

A) core competencies
B) environment
C) feedback
D) resources

Answer 3

core competencies

Question 4

Before SC processes can be managed effectively up and down the supply chain, they must be ________.

A) documented as a value chain process
B) supported adequately with supply chain expert staffing
C) managed well within the focal firm
D) evaluated for efficiency and effectiveness

Question 5

Major components of a well-performing supply chain feedback system include all of the following except________.

A) good information systems
B) information archival capability
C) consistent performance measurement
D) frequent information sharing

Question 6

One definition of supply chain management is managing the flow of _________and _________ from the suppliers' supplier to the customers' customer.

A) raw materials, labor
B) orders, inventory
C) information, materials
D) suppliers, customers

Question 7

_________ theory regarding strategic thinking conceptualizes the relationship between a changing environment, managerial decision-making, and performance.

A) Contingency
B) Industrial organization
C) Resource-based
D) Business model

Question 8

All of the following are major problems cited in the text regarding supply chain management in actual practice except ________.

A) they do not effectively work together to reduce inventory levels and costs up and down the chain
B) excessive management focus on the external supply chain while minimal attention on the internal chain
C) companies are actually members of the supply chain, they manage as separate distinct entities
D) most company efforts at collaboration target only the first tier customers and suppliers

Question 9

The theoretical ideal supply chain process collaboration is __________.

A) internal process integration
B) forward and backward integration from the supplier's supplier to the customer's customer
C) backward process integration with valued first-tier suppliers
D) forward process integration with valued first-tier customers

Question 10

Major objectives of a supply chain manager include all of the following except ________.

A) reduce product or service costs
B) create value for the end customer
C) improve service to operations and the customer
D) transform inputs acquired from suppliers into more highly valued products

Question 11

Typical members of an internal value chain of a business include all of the following except:

A) Finance
B) Logistics
C) Supply Chain Management
D) 2^nd tier supplier

Question 12

Questions that a supply chain strategist must ask in the development of supply chain strategy are?

A) How does the company uniquely help the chain deliver on its value proposition?
B) What valued capabilities do other members of the chain possess?
C) What is the overall supply chain's value proposition?
D) How can we do the job better than anyone else?

Question 13

Assuming you are the manufacturer of a product, from your perspective a Distributor is an example of a ________ member of the value chain.

A) downstream
B) upstream
C) not a member of the value stream
D) internal

Question 14

__________theory regarding strategic thinking claims that market forces should drive decision-making.

A) Contingency
B) Industrial organization
C) Resource-based
D) Business model

Question 15

_________ is a phenomenon that occurs when demand variations are exaggerated as decisions are made up the chain.

A) CPFR
B) SCM
C) The Bullwhip effect
D) Contingency theory

Question 16

The operations function of logistics is typically to ________.

A) move and store materials so they are available when and where they are needed
B) manage the upstream and downstream business processes
C) provide business management with customer and supplier information systems
D) manage distribution centers

Question 17

A "value chain" defined by Michael Porter in the text refers to ________.

A) external products of suppliers that add value to a process
B) the business's financial return on investment
C) only the manufacturing transformation of raw materials to customer products
D) the interconnectivity of internal business functions whose decisions create value to a product or process

Question 18

The terms 1^st tier, 2^nd tier, 3^rd tier, in the context of a supply chain refers to the ________.

A) levels of supplier certification
B) sequence of suppliers or customers that are in the chain but distant from the base/focal company
C) value categories of procured commodities
D) number of suppliers for a procured commodity

Question 19

Supply chain members experience the "bullwhip effect" ________.

A) as a direct result of inadequate communications up and down the supply chain
B) when members of the supply chain initiate a collaborative forecast
C) when demand forecasts are stable, quantified and communicated throughout the chain
D) typically during a new product introduction when the rate of increase in demand occurs

Question 20

One definition of supply chain management is the design and management of seamless value-added _________ across organizational boundaries to meet the real needs of the __________.

A) products, producer
B) processes, end customer
C) information systems, supply chain
D) services, supplier

Question 21

A major SC management cause of why inventories of a business could become excessive is all of the following except ________.

A) SC management viewed itself as an independent distinct entity removed from the other chain members
B) SC management failed to share information with other members of the chain
C) SC management does not routinely challenge product forecast accuracy
D) SC management actions resulted in a lack of speed in flow of product through the chain

Question 22

Several of the major questions an executive addresses when developing supply chain strategy are: (1) What is the overall supply chain's value proposition? (2) How does the company uniquely help the chain deliver on its value proposition? (3) What valued capabilities do other members of the chain possess?

Question 23

The term "outsource" is used frequently in the text. Outsourcing is defined as________.

A) Disqualifying a supplier for a procured product or service
B) A decision to have certain components in the value chain provided outside of one's business
C) Relying on the customer to add-value to the product or service
D) Reducing the number of suppliers of a product or service to only one source

Question 24

There are four distinct decision areas that must be addressed in any effective strategy. They are Environment, Resources, Objectives and Feedback.

Question 25

The term internal "value chain" describes the interconnected nature of a business's internal functions such as R&D, Operations, and Marketing that add value to a process.

Question 26

Winning supply chain strategies should help a company do more than just beat the competition; they should help the company meet the real needs of their customers.

Question 27

Strategy's role is to guide managerial decision making to develop a winning business model.

Question 28

The theoretical ideal supply chain collaboration is "backward process integration with valued first-tier suppliers".

Question 29

Industrial organization theory suggests that supplier and technology forces should drive corporate strategic decision-making.

Question 30

Before processes can be managed effectively up and down the supply chain, they must be managed well inside the focal firm.

Question 31

Supply chain management is the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the manufacturer/service provider.

Question 32

Supply chain management is often defined as managing the flow of information and materials from the "suppliers' supplier to the customers' customer.

Question 33

Three basic theories guide modern strategy formulation and execution: contingency theory, industrial collaboration theory and resource-based theory.

Question 34

Supply Chain Management requires management to evaluate how the resources of the entire chain can be used to better meet the needs of the customer.

Question 35

Resources, in the context of a business, refer only to the tangible assets of a company.

Question 36

Purchased goods and services flow from downstream suppliers to the focal firm.

Question 37

Supply chain information typically flows both upstream and downstream from the focal firm.

Question 38

The most important role of a business's strategy is to define a company's business model.

Question 39

A supply chain phenomenon "The Bullwhip Effect" occurs as the result of a well planned, well communicated coordinated management effort throughout the supply chain membership.

Question 40

The strategic development decision area, "Feedback", helps managers adapt the organization's strategy to meet the demands of a changing requirements world.

Question 41

Fill in the Blank(s)
theory in strategic management focuses on building organizational skills and processes that enable a company to deliver distinctive products and services.

Question 42

Explain in sufficient depth the supply chain perspective for each of the following areas of strategy for your new manufacturing business: Environment, Resources, Objectives and Feedback. Choose one of the following businesses to support your response.
a. Poker tables, chairs, accessories.
b. Men's and women's athletic shoes
c. Backpack manufacturer

Question 43

A business objective is a theoretical goal that unifies decision-making throughout a company.

Question 44

A supply chain is made up of a series of linked company-level value chains that provide only products (never services) to their customers.

Question 45

A possible step to minimize the impact of "The Bullwhip Effect" is to encourage retailers to communicate with distributors and manufacturers to develop a collaborative forecast.

Question 46

Explain the differences, strengths and weaknesses of "competitive" versus "winning" business strategies.

Question 47

A "first-tier supplier" refers to a supplier in the chain that provides products or services immediately preceding the focal business.

Question 48

Explain in a clear, concise paragraph what is the "value chain" and examples of operational functions that would add value to the chain.

Question 49

"Supply" chain and "Value" chain are unrelated and independent of each other

Question 50

Describe the similarities and the differences of the "internal value chain" and the "external value chain.

Question 51

When developing strategies and when the focus is on the decision area "Environments", consideration of the internal environments might include corporate culture, functional relationships and/or reward systems.

Question 52

Describe in detail the supply chain phenomenon "the bullwhip effect" and at least three recommendations to minimize the effect.
c.

Question 53

Fill in the Blank(s)
Business strategies that effectively use resources to satisfy customers better than rivals are based on the consideration of four decision areas. They are Environment, Resources, and Feedback.

Question 54

Fill in the Blank(s)
Supply chain management is often described as managing the flow of and materials from the sub-tier suppliers to the final customers.

Question 55

Fill in the Blank(s)
Name three typical organizational members of a business's internal value chain. .

Question 56

Strategic planning helps managers use resources effectively in a changing marketplace to create value for the company.

Question 57

Fill in the Blank(s)
Supply chain management is the design and management of seamless, value-added processes across boundaries to meet the real needs of the end customer.

Question 58

Fill in the Blank(s)
Modern strategic thinking emerged when theory conceptualized the relationship between a changing environment, managerial decision-making, and performance.

Question 59

Fill in the Blank(s)
Regarding strategic thinking, theory suggests that market forces should drive decision-making.

Question 60

Define at least 3 benefits a business will experience with an effective/efficient SC function.
$\bullet$ Improved customer satisfaction
$\bullet$ Lower operating costs
$\bullet$ Speed/flexibility of the chain

Question 61

Fill in the Blank(s)
Better processes and more competitive products result when managers in the various business functions understand customer , company strategy, and work well together.

Question 62

Fill in the Blank(s)
management as a functional member of an internal value chain, coordinates the upstream supply base, finding the right suppliers and building partnerships with them.

Question 63

Fill in the Blank(s)
Outsourcing is defined as a decision to have certain components or commodities in the value chain provided by outside of one's business.

Question 64

Fill in the Blank(s)
A focal firm's supply chain includes both upstream suppliers and customers.

Question 65

Fill in the Blank(s)
Strategic planning helps managers use resources effectively in a changing marketplace to create value for the .

Question 66

Fill in the Blank(s)
The Bullwhip Effect experienced in the supply chain is often the result of a failure in upstream and downstream within the supply chain.

Question 67

Fill in the Blank(s)
Leading supply chain companies us an iterative 4-step process to develop a supply chain enabled business model. The steps include assessment, , execution, and learning.

Question 68

Fill in the Blank(s)
There are typically two types of businesses discussed that supply chains support, manufacturing and companies.

Question 69

Fill in the Blank(s)
When designing a supply chain strategy, there are four key factors to consider for a successful implementation. Relationship alignment, , performance measurement, and people empowerment.

Question 70

Fill in the Blank(s)
Before supply chain processes can be managed effectively up and down the external supply chain, they must be within the focal firm.

Question 71

Fill in the Blank(s)
Strategy's role is to guide managerial decision making to develop a winning model.