Deck 2: Corporate Strategy, Performance, and Sustainability

Question 1

Innovation and use of new technology most closely align with which combination of operations and firm strategies?

A) Process Design, Customer Service
B) Purchasing, Cost
C) Logistics, Customer Service
D) Product Design, Quality

Answer 1

D

Question 2

An organization's strategy is not primarily designed to consider which of the following?

A) How the organization intends to provide value to its customers in the future
B) How the organization makes decisions on a day-to-day basis
C) How the organization intends to compete in the future
D) How the organization provides value and competes at present

Answer 2

B

Question 3

Which of the following is least likely to be a core competency of a fast-food restaurant chain?

A) Cost reduction leading to low-cost product
B) Inventory control to ensure adequate product availability
C) Flexibility to allow customers many customized product offerings
D) Quick preparation of product

Answer 3

C

Question 4

Attempting to compete on the basis of quality will most likely result in which of the following?

A) Lower costs
B) Lower levels of customer service
C) Higher amounts of product returns/warranty claims
D) Higher costs

Question 5

A "budget," "no-frills" airline may employ all of the following except:

A) Limited aircraft models used
B) First-class seating
C) Online-only ticket reservations
D) No meal offerings

Question 6

The use of economies of scale most closely aligns with which competitive dimension?

A) Cost
B) Quality
C) Customer Service
D) Time

Question 7

Which of the following describes the capabilities and skill sets possessed by a firm that distinguish the firm from its competition?

A) Core competencies
B) Business intelligence
C) Analytical toolbox
D) Managerial levers

Question 8

Choose the incorrect matching of performance measure to performance category.

A) Current ratio $\rightarrow$ Financial
B) Net profit margin $\rightarrow$ Financial
C) Complaint resolution time $\rightarrow$ Ethics/sustainability
D) Percent of suppliers ISO 14000 certified $\rightarrow$ Ethics/sustainability

Question 9

Service recovery is:

A) The capability of a company to respond when a product or service fails
B) Hiring additional employees in anticipation of seasonal demand
C) Selling a product at discount to eliminate excess inventory
D) Retaining excess labor capacity to buffer against uncertain demand

Question 10

A strategy with a focus on high levels of customer service may lead to all of the following except:

A) Strong warranties and after-sale product support
B) Responsive distribution from decentralized facilities
C) On-time deliveries
D) Lower levels of product customization

Question 11

High-volume and automated processes most closely align with which combination of operations and firm strategies?

A) Facility Location, Customer Service
B) Purchasing, Quality
C) Process Design, Cost
D) Product Design, Quality

Question 12

Productivity is defined as a ratio of __________ over __________.

A) Inputs, outputs
B) Outputs, inputs
C) Inputs, quality
D) Quality, inputs

Question 13

A company that produces products with a wide variety of customization options would most likely be trying to compete on which competitive dimension?

A) Cost
B) Quality
C) Customer Service
D) Time

Question 14

A company estimates that it spends $1,000 in labor and material costs to produce 2,700 units of product. Calculate the company's productivity ratio (with appropriate units).

A) 2.7 $/unit
B) 0.37 $/unit
C) 2.7 units/$
D) 0.37 units/$

Question 15

A company that produces products in high volume would most likely be trying to compete on which competitive dimension?

A) Cost
B) Quality
C) Customer Service
D) Flexibility

Question 16

Core competencies are primarily used to:

A) Identify appropriate suppliers
B) Create competitive advantage
C) Select skill sets for prospective employees
D) Select appropriate material for students

Question 17

"We will be the easiest pharmacy retailer for customers to use" is an example of an organization's __________.

A) Strategy
B) Competitive priority
C) Mission statement
D) Statement of belief

Question 18

Choose the incorrect matching of performance measure to performance category.

A) Percent of waste recycled $\rightarrow$ Quality
B) Order quantity accuracy $\rightarrow$ Customer service
C) Inventory turnover $\rightarrow$ Financial
D) Average time between product failures $\rightarrow$ Quality

Question 19

Adoption of a low-cost strategy may lead to a decrease in which of the following?

A) Volume
B) Flexibility
C) Customer complaints
D) Warranty claims

Question 20

Operations aligned with a high-quality strategy may lead to all of the following except:

A) Selection of high-quality suppliers
B) Use of certifications such as ISO 9000
C) Increase in customer product returns
D) Use of process control and continuous improvement techniques

Question 21

Riley Inc. estimates that its productivity in the year 2014 was 8 t-shirts per labor hour. In 2015, Riley estimated its productivity as 9 t-shirts per labor hour. What is Riley's productivity growth rate from 2014 to 2015?

A) 1%
B) 12.5%
C) -12.5%
D) -1%

Question 22

Approximately what percentage of U.S. companies use or have used the balanced scorecard approach?

A) 10%
B) 25%
C) 50%
D) 80%

Question 23

As of 2014, approximately what percentage of marketing firms indicated that they use big data?

A) 10%
B) 45%
C) 75%
D) 90%

Question 24

Which ISO standard concerns environmental management?

A) 9000
B) 14000
C) 15000
D) 16000

Question 25

The balanced scorecard uses how many categories?

A) 1
B) 2
C) 3
D) 4

Question 26

The balanced scorecard suggests the use of approximately how many performance measures?

A) 5 to 10
B) 10 to 20
C) 20 to 30
D) More than 30

Question 27

Average number of defects per unit would be considered what type of performance measure?

A) Supply chain
B) Financial
C) Customer service
D) Quality

Question 28

Which of the following companies is widely viewed an early user of big data and big data analytics?

A) Amazon
B) K-Mart
C) Schneider National
D) American Airlines

Question 29

An increase in output will result in what type of change to productivity?

A) Increase
B) Decrease
C) Productivity will be unchanged
D) Depends on changes in input

Question 30

Brigid Boats is a manufacturer of customized sailboats. In 2013, the company produced 74 boats, in 2014 it built 77 boats, and in 2015 it built 79 boats. The company's cost of labor was $575,000 in 2013, $600,000 in 2014, and $610,000 in 2015. What direction did Brigid's productivity growth rate change from 2013 to 2014 and then from 2014 to 2015?

A) Increase and then continue to increase
B) Decrease and then increase
C) Increase and then decrease
D) Decrease and then continue to decrease

Question 31

Which of the following is not likely to be a performance measure related to quality?

A) Number of warranty claims per unit sold
B) Average number of defects per unit
C) Units sold
D) Average time between product failures

Question 32

Initiatives to increase productivity may have which of the following effects?

A) Reduced forecasting accuracy
B) Increased spending on materials
C) Reduced output
D) Increased inventory carrying cost

Question 33

London Limited estimated that its productivity in the year 2013 was 180 packages of cookies per labor hour. In 2014, London estimated its productivity as 145 packages of cookies per labor hour. What is London's productivity growth rate from 2013 to 2014?

A) -19.4%
B) 35%
C) -35%
D) 19.4%

Question 34

Which performance measure might be best suited for a services company?

A) Earnings per share
B) Number of units sold per quarter
C) Average number of complaints per customer
D) Total amount of greenhouse gas emissions

Question 35

Which of the following is not a balanced scorecard category?

A) Quality
B) Financial
C) Internal business
D) Customer

Question 36

The collection of large volumes of data in real time or near real time defines:

A) Business analytics
B) MOOCs
C) Big data
D) Spreadsheet analytics

Question 37

A company estimates that it spends $2,000 in labor costs to produce 450 units of product. Calculate the company's labor productivity ratio (with appropriate units).

A) 0.23 labor $/units
B) 4.44 labor $/units
C) 4.44 units/labor $
D) 0.23 units/labor $

Question 38

A company wishing to unify and consolidate its performance measures might consider the use of which approach?

A) Total Performance Management
B) Statistical Quality Control
C) Performance Monitoring
D) Balanced Scorecard

Question 39

Brigid Boats is a manufacturer of customized sailboats. In 2013, the company produced 74 boats, in 2014 it built 81 boats, and in 2015 it built 79 boats. The company's cost of labor was $575,000 in 2013, $600,000 in 2014, and $610,000 in 2015. What direction did Brigid's productivity growth rate change from 2013 to 2014 and then from 2014 to 2015?

A) Increase and then continue to increase
B) Decrease and then increase
C) Increase and then decrease
D) Decrease and then continue to decrease

Question 40

Web-based scorecards are referred to as:

A) Snippets
B) Dashboards
C) Sparklines
D) Visual controls

Question 41

Examples of ethical and environmental operations management drivers might include all of the following except?

A) The use of ethical and sustainable purchasing policies
B) Pursuit of the lowest cost supplier
C) Ethical hiring practices
D) Recycling and other green manufacturing initiatives

Question 42

This chapter (Chapter 2) notes sustainability initiatives from all of the following companies except?

A) Walmart
B) Unilever
C) Kroger
D) Ford

Question 43

A key aspect of big data that must be considered is which of the following?

A) Access to appropriate algorithms and methods
B) Limited availability of data
C) Time sensitivity of the data
D) Availability of qualified analysts

Question 44

An alternative term for business ethics is?

A) EDLP
B) Corporate utility theory
C) Consumerism
D) Corporate social responsibility

Question 45

Which of the following is an approach to deciding whether or not an action is ethical?

A) Existentialism
B) Rationalism
C) Parochialism
D) Utilitarianism

Question 46

The rights and duties concept refers to which of the following?

A) Ethics are of little importance as long as the action taken is useful to some
B) Some actions are simply right, without any regard to the consequences
C) An ethical act creates the greatest good for the greatest number of people
D) The utility of an action is unimportant

Question 47

Sustainability is broadly defined as:

A) Sustaining business efforts by cost cutting and profit seeking
B) Seeking out exclusively foreign suppliers
C) Doing the right social and environmental things in ways that make economic sense
D) Pursuing high quality at the expense of increasing waste

Question 48

The triple bottom line concept refers to three P's. Which of the following is not one of the P's?

A) People
B) Profit
C) Planet
D) Product

Question 49

Big data and big data analytics are likely being used in all of the following industries except:

A) Agriculture
B) Retail
C) Cloud-based services
D) There are very few industries (if any) that are not using big data and big data analytics in some way

Question 50

Which of the following is not part of the triple bottom line concept?

A) Economic
B) Educational
C) Social
D) Environmental

Question 51

Customer demand for ethical and environmental performance has been and continues to ________.

A) Decrease
B) Increase
C) Stay roughly the same
D) Be nonexistent

Question 52

Which of the following is not a benefit of the use of big data?

A) Ability to more effectively use resources
B) Ability to more accurately market to customers
C) Ability to rely less on quantitative methods
D) Ability to identify recommendations for customers

Question 53

The fair trade concept is most closely related to which operations management process?

A) Inventory management
B) Purchasing
C) Marketing
D) Logistics

Question 54

A company initiating a recall for a dangerously defective product would most likely be adhering to which business ethics concept?

A) Rights and duties
B) Utilitarianism
C) Rationalism
D) Environmentalism

Question 55

The use of big data and big data analytics is expected to ___________ in the next few years.

A) Increase
B) Decrease
C) Stay approximately the same
D) Come to an end

Question 56

A chain of coffee shops has recently initiated a purchasing initiative aimed at being more ethical. Which concept would the coffee shop chain likely consider?

A) Offshoring
B) Cost minimization
C) Fair trade
D) Use of a maquiladora

Question 57

The fair trade concept typically refers to all of the products below except?

A) Coffee
B) Tea
C) Manufactured goods
D) Cotton

Question 58

People, Profit, and Planet are associated with which concept?

A) Three P's of Marketing
B) Triple bottom line
C) 3PL
D) Balanced Scorecard

Question 59

Traditional operations management strategies have focused on all of the following except?

A) Cost
B) Customer service
C) Sustainability
D) Quality

Question 60

Utilitarianism refers to which of the following concepts?

A) Ethics are of little importance as long as the action taken is useful to some
B) Some actions are simply right, without any regard to the consequences
C) An ethical act creates the greatest good for the greatest number of people
D) The utility of an action is unimportant

Question 61

A company can be viewed by different customers as _______________.

A) Only of high quality
B) Only of low quality
C) Only as being of neither high nor low quality
D) Either high or low quality (depending on the customer)

Question 62

The combination of a firm's long-term goals, plans, and policies is referred to as?

A) Strategic outcomes
B) Strategic outsourcing
C) Strategic planning
D) Strategic knowledge

Question 63

Sustainability initiatives should lead to ______________ customer service performance.

A) Increased
B) Decreased
C) Unchanged
D) Sustainability initiatives are incompatible with customer service performance

Question 64

A mission statement can be?

A) Short/simple
B) Long/detailed
C) Either short/simple or long/detailed
D) Neither short/simple nor long/detailed

Question 65

Competing on the basis of cost likely requires all of the following except?

A) Use of automation
B) Purchasing in high volume
C) Providing many customization options to customers
D) Producing in large quantities

Question 66

Higher quality tends to lead to which of the following?

A) Dissatisfied customers
B) Higher warranty-associated costs
C) Better profit margins
D) More defects per unit

Question 67

How many competitive dimensions are typically considered?

A) 1
B) 2
C) 3
D) 4

Question 68

Which of the following is most likely to be a mismatch?

A) High cost and high quality
B) High customer service and high cost
C) Low cost and high quality
D) Low cost and low customer service

Question 69

A company answering the questions "Who are we now?" and "What do we want to be?" is likely formulating a?

A) Plan
B) Project
C) Statement
D) Strategy

Question 70

Empathy is associated with which of the three competitive priorities?

A) Cost
B) Quality
C) Customer service
D) Empathy is not associated with any of the three competitive priorities

Question 71

Which of the following types of companies would most likely rely on economies of scale to reduce cost per unit?

A) A neighborhood coffee shop
B) A manufacturer of handmade furniture
C) A beauty parlor
D) A large "big-box" retailer

Question 72

Which of the following is not an example of service recovery?

A) A discount offered during a time of low demand
B) A discount offered on a defective product
C) A meal being provided at no cost due to poor quality
D) An upgrade to first-class on a flight due to airline delays

Question 73

A high-cost product is typically aligned with which of the following?

A) Low levels of customer service
B) High levels of quality
C) Low levels of quality
D) Neither high nor low levels of customer service

Question 74

Economies of scale refers to which of the following?

A) Seeking out customers that will purchase large quantities
B) Purchasing and manufacturing product in high volume
C) Mitigating risk by insurance
D) Producing low volume product before higher volume product

Question 75

Customer service may include all of the following aspects except?

A) Flexibility
B) Delivery cost
C) Product support
D) Empathy

Question 76

Which of the following would not be considered an element of quality?

A) Product color
B) Product design
C) Product reliability
D) Product safety

Question 77

Reliability is associated with which of the three competitive priorities?

A) Cost
B) Quality
C) Customer service
D) Reliability is not associated with any of the three competitive priorities

Question 78

The Redbox video rental company employs a competitive model that relies on which combination of competitive priorities?

A) Low cost and high customer service
B) High cost and low customer service
C) Low cost and low quality
D) High quality and low customer service

Question 79

Purchasing and manufacturing in high volume to reduce cost per unit is referred to as?

A) Economies of size
B) Economies of scope
C) Economies of scale
D) Economies of setup

Question 80

Which of the following is not one of the three competitive dimensions?

A) Cost
B) Customer service
C) Quality
D) Productivity