Deck 17: International Operations Management

Question 1

Ben works as an operations manager at Fulsom Manufacturing, an MNE with facilities in Asia and the U.S. Which of the following activities is most likely NOT an aspect of Ben's job?

A) determining where to obtain resources
B) deciding where to build sales offices
C) selecting proper accounting methods
D) choosing inventory control methods

Answer 1

C

Question 2

Which of the following is the most likely reason that Urban Outfitters poses a significant threat to Zara?

A) monitoring quality control
B) hiring regional advertisers
C) creating a centralized design center
D) reducing supply chain time and costs

Answer 2

D

Question 3

________ is the set of activities an organization uses to transform different kinds of inputs into final goods and services.

A) Global distribution
B) International marketing
C) Operations management
D) Organizational design

Answer 3

C

Question 4

What business strategy relies on creating goods that are clearly unique?

A) differentiation
B) cost leadership
C) focus
D) niche

Question 5

Supply chain management affects all of the following EXCEPT ________.

A) product cost
B) product quality
C) internal capital demands
D) global functional design

Question 6

Porsche competes on the basis of product performance and status. Its production facilities need to be located where there is a skilled labor force despite the higher costs of that labor. What business strategy is affecting operations management decisions in this case?

A) differentiation
B) cost leadership
C) focus
D) niche

Question 7

The set of processes and steps a firm uses to acquire the various resources it needs to create it products is called ________.

A) procuring
B) outsourcing
C) diversifying
D) onboarding

Question 8

What is the first step in the supply chain management process?

A) deciding how to acquire raw materials from local suppliers
B) determining the appropriate degree of vertical integration
C) deciding how to transport finished goods to buyers
D) determining the most profitable target market

Question 9

The transformation of inputs to final goods and services in an international firm is called international ________.

A) distribution
B) marketing
C) operations management
D) supply chain management

Question 10

________ is the creation of goods by transforming raw materials and component parts in combination with capital, labor, and technology.

A) Service operations management
B) Production management
C) Management of goods
D) Manufacturing

Question 11

What has the most significant impact on planning and implementing operations management activities?

A) centralization of authority
B) economies of scale
C) business strategy
D) market share

Question 12

What is the central role of operations management within an international firm?

A) creating value
B) marketing products
C) managing inventory
D) supporting vertical integration

Question 13

Sourcing and procuring refer to ________.

A) supply chain management
B) production management
C) service operations management
D) integration management

Question 14

What are operations management decisions, processes, and issues that involve the creation of intangible services called?

A) service operations management
B) production management
C) management of goods
D) manufacturing

Question 15

Ford takes thousands of component parts including sheet metal, engine parts, and upholstery and combines them to make automobiles. This is an example of ________ activities.

A) manufacturing
B) distribution
C) logistical
D) operations

Question 16

What are operations management decisions, processes, and issues that involve the creation of tangible goods called?

A) service operations management
B) production management
C) management of goods
D) manufacturing

Question 17

When managers decide on modes of transportation and methods of inventory control, what area of international operations management is involved?

A) resources
B) location
C) accounting
D) logistics

Question 18

Hong Kong's Roly International Holdings locates its factories in China where it can produce inexpensive Christmas decorations due to low wage rates. These goods are then shipped via slow, inexpensive cargo ships to discounters like Wal-Mart. Roly International Holdings follows a ________ strategy in its operations management.

A) differentiation
B) cost leadership
C) focus
D) niche

Question 19

Forest Foods is an MNE with operations in Asia, Europe, and North America. Forest Foods uses standardized production process and technologies in every market in which it conducts business. The operations systems at Forest Foods should most likely be ________.

A) regionally adapted
B) locally designed
C) nationally customized
D) globally integrated

Question 20

According to the text, which of the following has enabled Zara to surpass Benetton?

A) customizing fashion for the mass market
B) opening new franchises in European cities
C) changing product lines every few weeks
D) establishing separate design centers

Question 21

________ is the extent to which a firm either provides its own resources or obtains them from other sources.

A) Supply chain management
B) Vertical integration
C) Operations management
D) Cross-ownership

Question 22

Buying an input is most sensible when there is a(n) ________ potential for competitive advantage and a(n) ________ degree of strategic vulnerability.

A) high; moderate
B) intermediate; moderate
C) high; low
D) low; low

Question 23

Which theory suggests that countries with large, low-cost endowments of a factor of production will attract firms needing that factor of production?

A) national competitive advantage theory
B) Heckscher-Ohlin theory
C) country similarity theory
D) absolute advantage theory

Question 24

What increases the difficulty and expense for international businesses that try to enforce contracts with foreign suppliers?

A) changes in technology
B) fluctuating exchange rates
C) differences in national legal systems
D) lack of oversight from World Trade Organization

Question 25

Which of the following is not a country-related issue affecting the location decision for manufacturing facilities?

A) resource availability
B) resource costs
C) customer feedback
D) infrastructure

Question 26

Which theory explains why China's low labor costs have attracted toy, footwear, and textile manufacturers to develop manufacturing facilities in China?

A) national competitive advantage theory
B) Heckscher-Ohlin theory
C) country similarity theory
D) absolute advantage theory

Question 27

A firm should most likely make a product internally when there is a ________ potential for competitive advantage and a ________ degree of strategic vulnerability.

A) high; high
B) low; high
C) high; low
D) low; low

Question 28

Executives at Elfman Computers have decided that the firm will make the memory chips, microprocessors, power supplies, and disc drives needed to manufacture the firm's computer systems. As a result, Elfman will most likely increase its control over ________.

A) competitor reputations
B) delivery schedules
C) market demands
D) exporting fees

Question 29

Heineken NV buys grains, labels, bottles, and cartons from other suppliers prior to brewing and bottling its beer. This suggests that Heineken has little ________.

A) supply chain management
B) horizontal integration
C) vertical integration
D) cross-ownership

Question 30

________ refer(s) to the reputation a country has for products it produces.

A) Country brand image
B) National reputation
C) Country-of-origin effects
D) Ethnocentric effects

Question 31

Special ventures or contract arrangements for inputs are most appropriate when there is a (n) ________ potential for competitive advantage and a (n) ________ degree of strategic vulnerability.

A) high; high
B) intermediate; moderate
C) high; moderate
D) low; low

Question 32

________ refers to the situation when various units within the firm can be seen as suppliers to other units within the firm.

A) Supply chain management
B) Vertical integration
C) Operations management
D) Cross-ownership

Question 33

Christopher Radko, a premium holiday ornament manufacturer, is considering locating manufacturing facilities in China in order to lower costs. However, the firm fears a backlash from ornament collectors who prefer ornaments made in Eastern Europe. What location issue is Christopher Radko dealing with?

A) resource availability
B) country-of-origin effects
C) product-related issues
D) inventory management policies

Question 34

BP has several units responsible for its business. One unit explores the world for natural gas and crude oil. Another unit extracts the oil and gas. Another unit transports the oil and gas, and its refineries transform the crude oil into gasoline and other products. BP trucks transport the refined products to company-owned service stations for sale to the final consumer. BP's operations management system is based on ________.

A) horizontal integration
B) vertical integration
C) intracompany transfers
D) cross-ownership

Question 35

Firms that have little ________ are involved in very few steps in the production chain.

A) standardization
B) vertical integration
C) operations management
D) customization

Question 36

Why do most personal computer manufacturers purchase components from outside suppliers?

A) protection of intellectual property rights
B) fast rate of technological change
C) close oversight of quality ratios
D) fluctuation in currency rates

Question 37

In the Japanese keiretsu system, contract enforcement between firms and suppliers is less problematic because of ________.

A) overlapping judicial systems
B) cross-ownership of shares
C) horizontal integration
D) value chains

Question 38

What is the primary factor that influences the decision of where to locate production facilities?

A) regulatory policies
B) resource availability
C) distribution options
D) organizational structure

Question 39

The make-or-buy decision primarily relates to ________.

A) reducing production
B) acquiring components
C) forming joint ventures
D) obtaining foreign facilities

Question 40

What factor is LEAST influential on a firm's decision to make or buy inputs for manufacturing?

A) selection procedures
B) scope of operations
C) technological expertise
D) nature of product

Question 41

Which of the following is not a characteristic of services?

A) can be stored briefly
B) requires customer participation
C) bundled with other products
D) can be linked with tangible goods

Question 42

An experiment found that consumer preference for Tempomax watches fell by 74 percent when the consumers were told that Tempomax watches were produced in Pakistan instead of Germany. Which term best explains this occurrence?

A) national competitive advantage
B) country-of-origin effects
C) ethnocentric effects
D) national reputation

Question 43

A product's value-to-weight ratio primarily affects ________.

A) inventory maintenance
B) make-or-buy decisions
C) transportation costs
D) customer feedback

Question 44

How did the 2011 earthquake and tsunami in Japan affect both GM and Toyota?

A) disrupting supply chains
B) decreasing customer needs
C) shifting government resources
D) destroying quality management systems

Question 45

When Nissan chose to locate a new manufacturing facility in Jackson, Mississippi, it received $295 million in incentives. What factor was likely the most critical in the location decision?

A) infrastructure
B) government policies
C) country-of-origin effects
D) resource availability

Question 46

Larson Financial Services, an international accounting firm, provides customers with tax advice. Which characteristic of international services is most likely an issue for Larson?

A) service intangibility
B) service perishability
C) customer participation
D) product bundling and compatibility

Question 47

The Swedish appliance maker AB Electrolux manufactures vacuum cleaners and has service operations set up to repair those products for consumers who buy them. AB Electrolux is most likely attempting to ________.

A) provide intangible service options
B) improve economies of scope
C) comply with consumer laws
D) bundle sales with service

Question 48

The suppliers used by Morrison Controls deliver components directly to Morrison's manufacturing center as the inputs are needed for production to minimize Morrison's inventory costs. Morrison most likely uses ________.

A) one-stop shipping
B) just-in-time systems
C) materials management
D) customized logistics processes

Question 49

What function is LEAST likely performed in the management of international services operations?

A) capacity planning
B) distribution scheduling
C) facilities designing
D) location planning

Question 50

Patricia, a manager at Global Airways, has the responsiblity of deciding how many passengers Global Airways can serve at a given time. Patricia is most likely involved with ________.

A) operations management
B) services production planning
C) capacity planning
D) service operations management

Question 51

Which of the following is NOT a characteristic of the Tata Nano?

A) appealing aesthetics
B) low-cost assembly
C) basic luxuries
D) affordable

Question 52

The management of the flow of materials, parts, supplies, and other resources from suppliers to the firm combined with the flow of materials, parts, supplies, and other resources within and between units of the firm itself is called ________.

A) international logistics
B) materials management
C) operations management
D) customized logistics

Question 53

________ is the management of the flow of materials, parts, supplies, and other resources from suppliers to the firm; the flow of materials, parts, supplies, and other resources within and between units of the firm itself; and the flow of finished products, services, and goods from the firm to customers.

A) International logistics
B) International distribution
C) International operations management
D) Organizational design

Question 54

Multiple tables at Red Lobster were empty yesterday afternoon. Which characteristic of services is most likely a concern for the restaurant chain?

A) service intangibility
B) service perishability
C) customer participation
D) product bundling and compatibility

Question 55

________ is an economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create the outputs.

A) GNP
B) Productivity
C) Turnover ratio
D) Return on investment

Question 56

Which service typically cannot occur without customer participation?

A) personal communication
B) financial advising
C) foreign tourism
D) service calls

Question 57

Nissan stores hundreds of cars that will be sold in the southern part of North America at the Port of Houston. How does Nissan most likely benefit from this arrangement?

A) lowering costs
B) improving reliability
C) minimizing advertising needs
D) improving supply chain flexibility

Question 58

Productivity is most likely important because it ________.

A) establishes just-in-time manufacturing
B) follows changing technological innovations
C) contributes to the overall standard of living within a particular country
D) provides government facilitators with modern techniques, tools, and data

Question 59

Which of the following has enabled international firms, such as Zara and Urban Outfitters, to improve their logistical operations?

A) changes in information technology
B) shifts towards global servicing
C) increase of free trade zones
D) elimination of tariffs

Question 60

A(n) ________ is a specially designated and controlled geographical area in which imported or exported goods receive preferential tariff treatment.

A) economic union
B) customs union
C) free trade zone
D) free trade area

Question 61

In today's age of quick communication, the location of a factory has little impact on a firm's ability to respond to customer tastes and preferences.

Question 62

A(n) ________ is a methodology created by a firm to gather, assemble, and provide data in a form or forms useful to managers.

A) TQM program
B) information system
C) benchmarking plan
D) statistical process control

Question 63

Which of the following is NOT an essential component of total quality management?

A) employee involvement
B) high-quality materials
C) up-to-date technology
D) control frameworks

Question 64

Which of the following areas is not covered by ISO 9000 standards?

A) product testing
B) employee training
C) logistics
D) record keeping

Question 65

Why did some Korean firms initially face difficulties competing in Europe?

A) undocumented repair policies
B) poor reputation for quality
C) high product costs
D) weak supply chain

Question 66

Supply chain management is the process of selecting whether to make or buy the resources necessary for the manufacturing process.

Question 67

Xerox sent a team of managers to Japan to study Canon copiers there. They found the copier was of higher quality than Xerox's copiers. Xerox then attempted to imitate Canon's methods. This is an example of ________.

A) total quality management
B) statistical process control
C) benchmarking
D) competitive parity

Question 68

________ is a family of mathematically based tools for monitoring and controlling quality.

A) Total quality management
B) Statistical process control
C) Operations management
D) Just-in-time management

Question 69

________ is an integrated effort to systematically and continuously improve the quality of an organization's products and/or services.

A) ISO 9000
B) Standardization
C) Total quality management
D) Just-in-time management

Question 70

Perrier takes samples of finished products and measures their actual content to assess if the contents measure within the appropriate range. This is an example of ________.

A) total quality management
B) statistical process control
C) benchmarking
D) competitive parity

Question 71

Benson Electronics wants to increase employee involvement for the purpose of enhancing productivity. Which of the following would most likely enable Benson to accomplish this goal?

A) decrease work hours
B) provide salary increases
C) offer additional health benefits
D) implement self-managed teams

Question 72

Executives at Moxley Manufacturing want to improve the firm's productivity. Which of the following would most likely help Moxley achieve this goal?

A) decrease costly R&D investments
B) improve performance appraisals
C) increase employee involvement
D) encourage union participation

Question 73

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

A) Production
B) Quality
C) Benefit
D) Marketing

Question 74

________ is the process of legally and ethically studying how other firms do something in a high-quality way and then either imitating or improving on their methods.

A) Total quality management
B) Statistical process control
C) Benchmarking
D) Scorecarding

Question 75

The business strategy followed by the firm sets the stage for the role of operations management within an international firm.

Question 76

If the firm uses a customized approach to each market, its operations management should be globally integrated.

Question 77

For firms following a cost leadership approach, the operations management function must be able to create goods or services that are clearly different from those of the company's competitors.

Question 78

What are the guidelines that provide the basis for quality certification called?

A) WTO standards
B) ISO 1000
C) ISO 9000:2000
D) TQM standards

Question 79

When data are in a form that is valuable to a manager in making decisions and performing related tasks, it is called ________.

A) reports
B) information
C) statistics
D) analysis

Question 80

What organization has developed and refined an international set of quality guidelines?

A) American Society for Quality Control
B) World Trade Organization
C) International Standards Organization
D) International Organization for Standardization