Deck 9: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Question 1

In order to achieve maximum benefit from an enterprise software package, a business

A) customizes the software to match all of its business processes.
B) uses only the processes in the software that match its own processes.
C) changes the way it works to match the software's business processes.
D) selects only the software that best matches its existing business processes.
E) retains legacy systems that best work with the software.

Answer 1

C

Question 2

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with

A) configuration tables.
B) Web services.
C) data dictionaries.
D) middleware.
E) customized plug-ins.

Answer 2

A

Question 3

Enterprise software is built around thousands of predefined business processes that reflect

A) the firm's organization.
B) industry goals.
C) best practices.
D) cutting edge workflow analyses.
E) the firm's culture.

Answer 3

C

Question 4

________ systems are based on a suite of software models used to support business activities across the firm.

A) Global
B) Organizational
C) Supply chain
D) Product differentiation
E) Enterprise

Question 5

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a

A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.
E) information system.

Question 6

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?

A) Rewrite the software to support the way the company's business processes work.
B) Select the business processes you wish to automate.
C) Map the company's business processes to the software's business processes.
D) Map the software's business processes to the company's business processes.
E) Select the functions of the system you wish to use.

Question 7

A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes

A) process management software.
B) ERP systems.
C) groupware.
D) application software.
E) supply chain management systems.

Question 8

Identify at least four benefits and four challenges of enterprise systems.

Question 9

Identify and describe three major enterprise applications.

Question 10

From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve which of the following business objectives?

A) customer and supplier intimacy
B) operational excellence
C) survival
D) improved decision making
E) new products and services

Question 11

Which of the following is not true about enterprise systems?

A) Enterprise systems help firms respond rapidly to customer requests for information or products.
B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
C) Enterprise software is expressly built to allow companies to mimic their unique business practices.
D) Enterprise software includes analytical tools to evaluate overall organizational performance.
E) Enterprise systems provide firmwide information to help managers make better decisions.

Question 12

A company's organizations and processes for distributing and delivering products to the final customers is the

A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
E) onstream portion of the supply chain.

Question 13

Why is overstocking warehouses not an effective solution for a problem of low availability?

A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases inventory costs.
E) It lowers fill rate.

Question 14

You have been hired by Santori, Inc., a small company that imports and distributes an Italian sparkling water. The company is interested in what benefits an enterprise system would bring. Would an enterprise system be appropriate for this company?
What steps would you take in determining this?

Question 15

Components or parts of finished products are referred to as

A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.
E) mid-chain products.

Question 16

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the

A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
E) onstream portion of the supply chain.

Question 17

An enterprise system helps reduce redundant business processes.

Question 18

Supply chain complexity and scale increases when firms

A) move to globalization.
B) manage the procurement, manufacturing, and distribution functions themselves.
C) outsource more labor.
D) modify their existing workflows to comply with supply-chain management systems.
E) develop products and services that coordinate with many firms and suppliers.

Question 19

If manufacturers had perfect information, they could implement a

A) hyper-efficient strategy.
B) frictionless strategy.
C) streamlined strategy.
D) bullwhip strategy.
E) just-in-time strategy.

Question 20

Enterprise systems include analytical tools.

Question 21

A build-to-order supply-chain model is also called a ________ model.

A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based
E) market-driven

Question 22

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.

A) push; pull
B) demand; continual
C) upstream; downstream
D) planning; execution
E) maintenance; development

Question 23

Concurrent supply chains are made possible by which technology?

A) ERP systems
B) the Internet
C) supply-chain management systems
D) just-in-time supply-chain technologies
E) extranets

Question 24

A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ system.

A) execution
B) planning
C) optimization
D) management
E) touch point

Question 25

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

A) safety stock
B) continuous replenishment
C) just-in-time strategies
D) demand planning
E) perfect information

Question 26

From your reading of the Scott's Miracle-Gro case study, the company implemented SAP and JDA enterprise and supply chain planning systems to solve what problems?

A) lack of brand recognition
B) lack of coordination among production facilities
C) poor supply chain visibility for management
D) shoddy record-keeping
E) coordination issues caused by the merger of Scott's and MiracleGro

Question 27

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.

A) just-in-time
B) frictionless
C) bullwhip
D) safety-stock
E) streamlined

Question 28

Supply chain planning systems perform all of the following functions except

A) establish inventory levels for raw materials and finished goods.
B) identify the transportation mode to use for product delivery.
C) determine where to store finished goods.
D) determine how much product to manufacture in a given time period.
E) track the physical status of goods.

Question 29

Capabilities of supply chain execution systems would not include

A) identifying the optimal transportation mode.
B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.
E) managing the financial information involving all parties.

Question 30

Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.

A) demand
B) delivery
C) planning
D) execution
E) optimization

Question 31

A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.

A) network
B) bullwhip
C) ripple
D) whirlpool
E) diffraction

Question 32

The bullwhip effect is countered by

A) globalization.
B) disintermediation.
C) implementing an SCM.
D) reducing information uncertainty.
E) product differentiation.

Question 33

Which supply chain planning function determines how much product is needed to satisfy all customer demands?

A) distribution management
B) replenishment planning
C) demand planning
D) order planning
E) customer planning

Question 34

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems.

A) demand
B) delivery
C) optimization
D) execution
E) planning

Question 35

The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.

Question 36

A supply chain driven by actual customer orders or purchases follows a ________ model.

A) pull-based
B) build-to-stock
C) push-based
D) replenishment-driven
E) optimized

Question 37

The business value of an effective supply chain management system includes all of the following except

A) faster time to market.
B) cost reduction.
C) supply matched to demand.
D) improved delivery service.
E) increased inventory levels.

Question 38

The total time it takes to complete a business process, from start to finish, is called its ________ time.

A) development
B) cycle
C) fulfillment
D) service
E) actualization

Question 39

Supply chain management systems are a type of enterprise system.

Question 40

As they move through the supply chain, ________ are transformed into finished products and shipped to retailers and customers.

A) raw materials
B) intermediate products
C) basic products
D) natural resources
E) nascent products

Question 41

In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.

Question 42

Inefficiencies in a supply chain are primarily caused by inaccurate information.

Question 43

Safety stock acts as a buffer for the lack of flexibility in the supply chain.

Question 44

Identify two classifications for supply chain software. For each classification, identify five capabilities.

Question 45

Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.

Question 46

Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

Question 47

The bullwhip effect describes consistency and continuity in demand for a product as it passes from one entity to the next across the supply chain.

Question 48

Walmart is an example of a push-based model.

Question 49

What additional complexities are faced in global supply chains?
How does the Internet help in managing global supply chains?

Question 50

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.

A) SCM
B) SFA
C) ERM
D) DRM
E) PRM

Question 51

Which of the following would not be considered a contact point?

A) e-mail
B) Web site
C) intranet
D) retail store
E) Facebook

Question 52

________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.

A) SCM
B) SFA
C) ERM
D) DRM
E) PRM

Question 53

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

Question 54

In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.

Question 55

Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have hundreds of smaller nurseries based around the country that grow the plant stock. The majority of their business is conducted online. Consumers purchase typically small quantities of products online and Plant Away coordinates the shipping from the most appropriate nursery. What unique problems might you anticipate they have in their supply chain?
What might remedy these problems?

Question 56

Customer relationship management systems typically provide software and online tools for sales, customer service, and

A) marketing.
B) account management.
C) advertising.
D) public relations.
E) human resources.

Question 57

Before the Internet, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.

Question 58

Identify two supply chain models. Which is better?

Question 59

SFA modules in CRM systems would provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
E) employee performance management.

Question 60

A ________ is a method of interaction with a customer, such as telephone or customer service desk.

A) point of presence
B) touch point
C) sales point
D) client channel
E) point of service

Question 61

Marketing modules in CRM systems would provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
E) increasing efficiency of call centers.

Question 62

Which of the following is an important capability for sales processes that is found in most major CRM software products?

A) returns management
B) lead management
C) channel promotions management
D) events management
E) customer satisfaction management

Question 63

Selling a customer with a checking account a home improvement loan is an example of

A) operational CRM.
B) direct marketing.
C) sales force automation.
D) cross-channel promotions.
E) cross-selling.

Question 64

Which of the following is not one of the four types of customers described in the case study on Graybar?

A) core customers
B) opportunistic customers
C) marginal customers
D) service-drain customers
E) niche customers

Question 65

Customer service modules in CRM systems provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
E) organizing effective marketing campaigns.

Question 66

________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.

A) Customer
B) SOA
C) Marketing
D) Complex
E) SFA

Question 67

Major CRM application software vendors include Oracle, SAP, and Salesforce.com.

Question 68

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?

A) churn rate
B) customer lifetime value
C) cost per lead
D) cost per sale
E) customer average value

Question 69

All of the following service capabilities would be found in major CRM products except

A) customer satisfaction management.
B) returns management.
C) call center & help desk.
D) service analytics.
E) order management.

Question 70

The measurement of the number of customers who stop using or purchasing products or services from a company is called

A) switching costs.
B) churn rate.
C) CLTV.
D) switch rate.
E) turnover percentage.

Question 71

Analytical CRM uses tools to analyze customer data collected from the firm's customer touch points and from other sources.

Question 72

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

A) operational CRM
B) analytical CRM
C) operational SCM
D) analytical SFA
E) operational SFA

Question 73

Analyzing customer buying patterns is an example of

A) CLTV.
B) analytical CRM.
C) operational CRM.
D) demand planning.
E) cross-selling.

Question 74

CRM software can help organizations identify high-value customers for preferential treatments.

Question 75

________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.

A) Analytical
B) Employee
C) Operational
D) Partner
E) Next-generation

Question 76

All CRM packages contain modules for PRM and ERM.

Question 77

Cross-selling is the marketing of complementary products to customers.

Question 78

Operational CRM applications include tools for

A) identifying buying patterns.
B) calculating CLTV.
C) salesforce automation.
D) pinpointing unprofitable customers.
E) creating segments for targeted marketing.

Question 79

CRM systems help businesses obtain which business objective?

A) survival
B) operational excellence
C) new products and services
D) improved decision making
E) customer and supplier intimacy

Question 80

Walmart's continuous replenishment system is an example of a ________ model.

A) push-based
B) pull-based
C) enterprise-based
D) supply chain optimization
E) forecast-based