Deck 3: Strategy and Value: Competing Through Operations

Question 1

B2C and B2B customers often value products and services differently.

Answer 1

True

Question 2

Service-oriented supply chains often consume materials.

Answer 2

True

Question 3

It is not possible for two head-to-head competitors to share customers and suppliers as well.

Answer 3

False

Question 4

Customer's perception of value depends on the types of business outputs being produced and on the type of customer buying them.

Question 5

Convenience, along with price, is likely to be an important value attribute for many busy college students.

Question 6

Businesses routinely seek to attract customers that place a high priority on certain attributes.

Question 7

Environmental forces can have a strong influence on a businesses strategy.

Question 8

Costs are always the most important of the components of value.

Question 9

A company's strategy is not necessarily what it publicly says it is.

Question 10

The focus strategy often seeks a small portion of the broad market.

Question 11

The capacity of the service or manufacturing can dictate the degree of integration and the emphasis placed on developing business partners.

Question 12

For any facility, whether it be a factory or a service business, cost per unit is at its lowest when the production or service rate matches the design capacity.

Question 13

Processes can be viewed as the components of capabilities, just as small parts are the components of finished products.

Question 14

Order qualifiers are necessary and sufficient to win a customer.

Question 15

For many desk-top computer products, service-oriented attributes have become order winners.

Question 16

Which of the following is not a component of the supply chain network?

A) Converters
B) Fabricators
C) Assemblers
D) Marketers
E) Customers

Question 17

Which of the following statements is not true about supply chains today?

A) A more global economy has led to outsourcing of components and products to reduce costs and add focus.
B) Firms are much more prone to outsourcing material and service needs, resulting in a supply chain that . involves many different businesses and many more relationships,
C) Supply chains are always vertical arrangements of buyers and suppliers that start at the basic producer . level and ultimately ended at the consumer.
D) It is possible for two head-to-head competitors to share suppliers and customers as well.
E) Firms no longer have an overall goal of owning the entire supply chain,

Question 18

Which of the following IS NOT a reason why some firms outsource?

A) To enhance value
B) To help focus on core capabilities
C) To maintain tighter control of their processes
D) Because outsourcing can be cheaper than producing in house.

Question 19

Which of the following is not likely to be a value attribute for a business customer?

A) Cost
B) Personalization
C) Quality
D) Dependability of delivery

Question 20

In a "make or buy" decision, businesses must recognize that:

A) The buy decision will be more expensive because the supplier will include profit in the price.
B) Price is the only component of value that will matter
C) Costs associated with gearing up to produce a product or service in house might make it more financially attractive to outsource.
D) No financial return should be expected from money spent on in-house production

Question 21

Which of the following IS NOT associated with consumer customers' perception of value?

A) Cost
B) Convenience
C) Technology
D) Personalization
E) All of the above

Question 22

Style and fashion, a value attribute of consumer customers, is prevalent in:

A) The apparel industry
B) The sporting goods industry
C) The stereo and sound equipment industry
D) All of the above

Question 23

The value attribute for business customers that tends to be more service-related, even if what they are buying is a product, is:

A) Product reliability
B) Dependability of delivery
C) Quality
D) Personalization

Question 24

Which of the following statements is true about value attributes?

A) If every alternative product or service possesses the same value attribute, that attribute is no longer an . important part of the purchase decision process.
B) Value attributes associated with services are completely separate from the value attributes associated with products.
C) Value attributes for business customers are the same as those for consumer customers.
D) "Value conscious" customers care more about value than other customers.

Question 25

A strategy that provides a link between what each business function does and what the business is supposed to do is referred to as a:

A) Corporate Strategy
B) Business Strategy
C) Functional Strategy
D) Focus Strategy

Question 26

A business's strengths are often called its

A) Order winners
B) Core competencies
C) Order qualifiers
D) Strategy
E) None of the above

Question 27

Porter's three strategy categories include:

A) Cost leader
B) Differentiation
C) Quality
D) A and B
E) A, B, and C

Question 28

Which of the following statements is true about a business strategy?

A) The success or failure of a business strategy cannot be judged by the ability of the business to attract the customers it targeted.
B) The business strategy seeks to identify the general basis on which the business will compete.
C) A successful business strategy must evolve from learning about the market and capabilities and finding . a small match that no one else has.
D) None of the above.

Question 29

Which of the following statements is not true about operations strategy?

A) For an operations strategy to be effective, the strategy must prioritize value attributes.
B) Effective operations strategy can provide a substantial boost to all measures of profitability.
C) The competitive power of effective operations strategy has been recognized since the 1980s.
D)Operations strategy attempts to identify which customers to target and how to best appeal to them . through resource decisions that provide the necessary support.

Question 30

Which of the following would probably not be decisions that are part of a supply chain strategy?

A) Supply chain services outsourcing decisions
B) Make or buy decisions
C) Logistics network decisions
D) Core competency decisions
E) None of the above

Question 31

The process of maintaining vigilance for new threats and opportunities for the business is known as

A) Logistic network design
B) Identifying core competencies
C) Environmental scanning
D) Globalization of the firm
E) None of the above

Question 32

Structural decisions:

A) Relate to such tangibles as buildings, equipment and how the business links to other businesses.
B) Do not include "brick and mortar" issues.
C) Relate to systems used to enhance the utilization of structural resources.
D) All of the above

Question 33

Which of the following statements is not true about capacity?

A) Capacity decisions determine output capabilities
B) Capacity is generally defined in terms of an output rate
C) All five competitive priorities can be linked to capacity
D) For any facility, cost per unit is at its lowest when the production or service rate exceeds the design capacity

Question 34

Which of the following statement is true about protective capacity?

A) Protective capacity is a layer of capacity above that which is absolutely required to meet known demand
B) Protective capacity provides the firm with the ability to compete with a focus strategy.
C) Protective capacity does not result in idle resources
D) Protective capacity is essential for all businesses due to uncertain demand patterns

Question 35

The competitive priority that is affected most substantially by performance/reward system decisions is:

A) Flexibility
B) Cost
C) Dependability of delivery
D) Response time

Question 36

The competitive priority that is affected most by strategic organization systems decisions is:

A) Flexibility
B) Response time
C) Quality
D) Both A and B
E) Both B and C

Question 37

Value attributes that result in a particular customer making a purchase decision are referred to as:

A) Order qualifiers
B) Order winners
C) Order snatchers
D) Order retainers
E) Order takers

Question 38

In a mature market, price is often an:

A) Order qualifier
B) Order winner
C) Order snatcher
D) Order retainer
E) Order taker

Question 39

A statement of what a business does, what its values are, who its market is, and why is known as

A) A business strategy
B) A functional strategy
C) A mission statement
D) A values statement

Question 40

The creation of product value begins with _______ _________ and ends with the ______ of a consumer product.

Question 41

All product-oriented supply chains require _____ _______. All service-oriented supply chains ______ _______.

Question 42

Traditionally, supply chains were considered _______ arrangements of buyers and suppliers that started at the basic producer level and ultimately ended at the consumer.

Question 43

At Archer Daniels Midland, _____ is defined by the ________, the ultimate judge.

Question 44

The ______ that performs no value-adding function and merely links customers to suppliers is becoming _______.

Question 45

While the value attributes are what the _________desires, the components of value are what the ________ uses to create them.

Question 46

A _______ is the pattern of decisions an organization adopts in order to link resource decisions to goals.

Question 47

Porter's three strategy categories include _________, ________, and ________.

Question 48

The focus strategy seeks a ______ portion of a ______ market segment.

Question 49

For any facility, cost per unit is at its _____ when the production or service rate matches the design capacity.

Question 50

_______ capacity provides the firm the ability to handle occasional problems that come up and also gives them the ability to handle a special request.

Question 51

In today's economy, services have become a very viable ______ _______ for many product purchasing decisions.

Question 52

Match these items.

-Converter

A) A layer of capacity above what is required.
B) The second state of product value creation.
C) A strategy that establishes the link between functional decisions and business strategy.
D) The capacity a facility is designed to accommodate ongoingly
E) A characteristic product or service characteristic that is most important.
F) The path of value creation, from basic producer to consumer.

Question 53

Match these items.

-Functional strategy

A) A layer of capacity above what is required.
B) The second state of product value creation.
C) A strategy that establishes the link between functional decisions and business strategy.
D) The capacity a facility is designed to accommodate ongoingly
E) A characteristic product or service characteristic that is most important.
F) The path of value creation, from basic producer to consumer.

Question 54

Match these items.

-Order winner

A) A layer of capacity above what is required.
B) The second state of product value creation.
C) A strategy that establishes the link between functional decisions and business strategy.
D) The capacity a facility is designed to accommodate ongoingly
E) A characteristic product or service characteristic that is most important.
F) The path of value creation, from basic producer to consumer.

Question 55

Match these items.

-Design capacity

A) A layer of capacity above what is required.
B) The second state of product value creation.
C) A strategy that establishes the link between functional decisions and business strategy.
D) The capacity a facility is designed to accommodate ongoingly
E) A characteristic product or service characteristic that is most important.
F) The path of value creation, from basic producer to consumer.

Question 56

Match these items.

-Supply chain

A) A layer of capacity above what is required.
B) The second state of product value creation.
C) A strategy that establishes the link between functional decisions and business strategy.
D) The capacity a facility is designed to accommodate ongoingly
E) A characteristic product or service characteristic that is most important.
F) The path of value creation, from basic producer to consumer.

Question 57

Match these items.

-Protective capacity

A) A layer of capacity above what is required.
B) The second state of product value creation.
C) A strategy that establishes the link between functional decisions and business strategy.
D) The capacity a facility is designed to accommodate ongoingly
E) A characteristic product or service characteristic that is most important.
F) The path of value creation, from basic producer to consumer.

Question 58

Why is it necessary for businesses in the same competitive environment to differentiate themselves on the basis of the value attributes they provide? Provide specific examples of two competitive services that use different value attributes to differentiate themselves from each other. How do the consumer customers view these value attributes?

Question 59

Identify two service businesses that your frequently visit. One of these businesses uses Internet technology extensively while the other does not. Is there a difference in value attributes offered by these two businesses? Are the attributes you deem very important offered by both these businesses?