Deck 2: Operations Strategy in a Global Environment

Question 1

Boeing's new 787 Dreamliner:

A)is assembled in Washington,D.C.
B)uses engines from Japan.
C)has its fuselage sections built in Australia.
D)has increased efficiency from new engine technology.
E)results from a partnership of about a dozen companies.

Answer 1

D

Question 2

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.

Answer 2

False

Question 3

Which of the following is true of maquiladoras?

A)They discourage foreign businesses from outsourcing.
B)They assess tariffs only on the value-added work done.
C)They originated in China.
D)None of the above
E)All of the above

Answer 3

B

Question 4

Which of the following statements regarding the Dreamliner 787 is true?

A)Boeing has found partners in over a dozen countries.
B)The new aircraft incorporates a wide range of aerospace technologies.
C)The new aircraft uses engines from not one,but two manufacturers.
D)Boeing will add only 20 to 30 percent of the aircraft's value.
E)All of the above are true.

Question 5

Multinational organizations can shop from country to country and cut costs through:

A)lower wage scales.
B)lower indirect costs.
C)less stringent regulations.
D)lower taxes and tariffs.
E)all of the above.

Question 6

To attract and retain global talent,and to expand a product's life cycle,are both reasons to globalize.

Question 7

The World Trade Organization has helped to significantly reduce tariffs around the world.

Question 8

Which of the following does NOT represent a valid reason for globalizing operations?

A)reduce costs
B)improve the supply chain
C)reduce responsiveness
D)attract and retain global talent
E)understand markets

Question 9

NAFTA seeks to phase out all trade and tariff barriers among Canada,Mexico,and the United States.

Question 10

A product will always be in the same stage of its product life cycle regardless of the country.

Question 11

Which of the following did the authors NOT suggest as a reason for globalizing operations?

A)reduce costs
B)improve the supply chain
C)pursue stockholder approval ratings
D)understand markets
E)attract and retain global talent

Question 12

One reason to globalize is to learn to improve operations.

Question 13

Cost cutting in international operations can take place because of:

A)lower taxes and tariffs.
B)lower wage scales.
C)lower indirect costs.
D)less stringent regulations.
E)all of the above.

Question 14

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation.

Question 15

The term maquiladora is most synonymous with:

A)free trade zones in Mexico.
B)Chinese forced labor camps.
C)home-based or cottage industry.
D)areas that do not meet U.S.standards for workplace safety and pollution.
E)tax breaks provided by some South American countries to other South American countries.

Question 16

The purpose of NAFTA is to:

A)substitute cheap labor in Mexico for expensive labor in the United States.
B)curb illegal immigration from Mexico to the United States.
C)phase out all trade and tariff barriers between North America and South America.
D)phase out all trade and tariff barriers between the United States,Canada,and Mexico.
E)provide fair and equitable tariff rates for trade between the United States,Canada,and Mexico.

Question 17

Which of the following represents a reason for globalizing operations?

A)to improve the supply chain
B)to improve operations
C)to expand a product's life cycle
D)to attract and retain global talent
E)all of the above

Question 18

One reason for global operations is to gain improvements in the supply chain.

Question 19

Production processes are being dispersed to take advantage of national differences in labor costs.

Question 20

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

Question 21

Identify four trade agreements that are facilitating the growth of world.

Question 22

Which of the following statements about organizational missions is FALSE?

A)They reflect a company's purpose.
B)They indicate what a company intends to contribute to society.
C)They are formulated after strategies are known.
D)They define a company's reason for existence.
E)They provide guidance for functional area missions.

Question 23

Which of the following statements is true?

A)Corporate mission is shaped by functional strategies.
B)Corporate strategy is shaped by functional strategies.
C)Functional strategies are shaped by corporate strategy.
D)External conditions are shaped by corporate mission.
E)Functional area missions are merged to become the organizational mission.

Question 24

An organization that has worked to achieve global uniformity in cultural and ethical issues such as bribery,child labor,and environmental regulations is ________.

Question 25

The ________ is how an organization expects to achieve its missions and goals.

Question 26

State two examples of cultural and ethical issues that face operations managers in a global environment.

Question 27

A strategy is a(n):

A)set of opportunities in the marketplace.
B)broad statement of purpose.
C)simulation used to test various product line options.
D)plan for cost reduction.
E)action plan to achieve the mission.

Question 28

How do global operations attract new markets?

Question 29

An organization's strategy is the purpose or rationale for its existence.

Question 30

________ are areas located along the United States-Mexico border in which factories receive preferential
tariff treatment.

Question 31

Which of the following activities takes place most immediately once the mission has been developed?

A)The firm develops alternative or back-up missions in case the original mission fails.
B)The functional areas develop their functional area strategies.
C)The functional areas develop their supporting missions.
D)The ten OM decision areas are prioritized.
E)Operational tactics are developed.

Question 32

________ is a free trade agreement among Canada,Mexico,and the United States.

Question 33

With reference to cultural and ethical issues,the World Trade Organization has:

A)eliminated bribery.
B)made progress in providing equal protection of intellectual property among nations.
C)phased out all trade and tariff barriers between the United States and Mexico.
D)eliminated slave labor and child labor.
E)played little role in addressing cultural and ethical issues among nations.

Question 34

________ and ________ are two issues where significant cultural differences are large,yet progress toward global uniformity is slowly being accepted.

Question 35

What is the difference between a firm's mission and its strategy?

Question 36

The fundamental purpose of an organization's mission statement is to:

A)create a good human relations climate in the organization.
B)define the organization's purpose in society.
C)define the operational structure of the organization.
D)generate good public relations for the organization.
E)define the functional areas required by the organization.

Question 37

Since the early 1990s,residents in a number of developing countries have overcome culture,religious,ethnic,and political productivity barriers.These disappearing barriers coupled with simultaneous advances in technology,reliable shipping,and cheap communication have all led to the growth of what three things?

Question 38

Identify five countries from which Boeing's 787 Dreamliner has suppliers.

Question 39

According to the authors,which of the following strategic concepts allow firms to achieve their missions?

A)productivity,efficiency,and quality leadership
B)differentiation,cost leadership,and response
C)differentiation,quality leadership,and response
D)distinctive competency,cost leadership,and experience
E)differentiation,distinctive competency,quality leadership,and capacity

Question 40

How can global operations improve the supply chain?

Question 41

Which of the following is LEAST likely to be a low-cost leadership competitive advantage?

A)low overhead
B)effective capacity use
C)inventory management
D)broad product line
E)mass production

Question 42

Which of the following statements best characterizes delivery reliability?

A)a company that always delivers on the same day of the week
B)a company that always delivers at the promised time
C)a company that delivers more frequently than its competitors
D)a company that delivers faster than its competitors
E)a company that has a computerized delivery scheduling system

Question 43

The creation of a unique advantage over competitors is called a(n)________.

Question 44

Which of the following is an example of competing on quick response?

A)A firm produces its product with less raw material waste than its competitors do.
B)A firm offers more reliable products than its competitors do.
C)A firm's products are introduced into the market faster than its competitors' products.
D)A firm utilizes its capacity more effectively than its competitors do.
E)A firm advertises more than its competitors do.

Question 45

Which of the following best describes experience differentiation?

A)immerses consumers in the delivery of a service
B)uses people's five senses to enhance the service
C)complements physical elements with visual and sound elements
D)consumers may become active participants in the product or service
E)All of the above are elements of experience differentiation.

Question 46

The ability of an organization to produce services that,by utilizing the consumer's five senses,have some uniqueness in their characteristics is:

A)sensory response.
B)time-based competition.
C)differentiation.
D)flexible response.
E)experience differentiation.

Question 47

Competitive advantage through operations can be achieved by ________,________,and/or ________.

Question 48

Which of the following is an example of competing on the basis of differentiation?

A)A firm manufactures its product with less raw material waste than its competitors do.
B)A firm's products are introduced into the market faster than its competitors' products are.
C)A firm's distribution network routinely delivers its product on time.
D)A firm offers more reliable products than its competitors do.
E)A firm advertises more than its competitors do.

Question 49

Experience differentiation is an extension of product differentiation,accomplished by using people's five senses to create an experience rather than simply providing a service.

Question 50

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects?

A)research and development,cost,legal regulations,suppliers,customers
B)immediate rivals,potential entrants,customers,suppliers,and substitute products
C)potential entrants,customers,suppliers,legal regulations,and cost
D)immediate rivals,potential entrants,cost,substitute products,and legal regulations
E)cost,legal regulations,advertising effectiveness,potential entrants,and immediate rivals

Question 51

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is:

A)mass production.
B)time-based competition.
C)competing on productivity.
D)competing on quality.
E)competing on differentiation.

Question 52

Before establishing and implementing strategy,a resources view would ensure that which of the following resources are available?

A)financial
B)physical
C)human
D)technological
E)all of the above

Question 53

Response-based competitive advantage can be:

A)flexible response.
B)reliable response.
C)quick response.
D)all of the above.
E)none of the above.

Question 54

Experience differentiation:

A)isolates the consumer from the delivery of a service.
B)is an extension of product differentiation in the service sector.
C)uses only the consumer's senses of vision and sound.
D)keeps consumers from becoming active participants in the service.
E)attempts to make the service experience different for every single customer.

Question 55

Franz Colruyt has achieved low-cost leadership through:

A)effective use of voice mail.
B)plastic,not paper,shopping bags.
C)background music that subtly encourages shoppers to buy more.
D)converting factories,garages,and theaters into retail outlets.
E)exclusive use of the Euro.

Question 56

Service organizations can immerse the consumer in the service,or have the consumer become a participant in the service,as they practice ________.

Question 57

A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT:

A)customization of the product.
B)setting equipment utilization goals below the industry average.
C)speed of delivery.
D)constant innovation of new products.
E)maintaining a variety of product options.

Question 58

Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.

Question 59

Which of the following is the best example of competing on low-cost leadership?

A)A firm produces its product with less raw material waste than its competitors do.
B)A firm offers more reliable products than its competitors do.
C)A firm's products are introduced into the market faster than its competitors' products are.
D)A firm's research and development department generates many ideas for new products.
E)A firm advertises more than its competitors do.

Question 60

Provide an example of an organization that achieves competitive advantage through experience differentiation.Explain.

Question 61

Standardization is an appropriate strategy in which stage of the product life cycle?

A)introduction
B)growth
C)maturity
D)decline
E)retirement

Question 62

Which of the following environmental factors has not contributed to Microsoft's changing strategy?

A)Google
B)security issues
C)faster processors
D)the Internet
E)global warming

Question 63

Key success factors and core competencies are synonyms.

Question 64

Which of the following is NOT part of value-chain analysis?

A)product research
B)quality management
C)supply chain management
D)project management
E)human resources

Question 65

Porter's Five Forces Model contains which of the following?

A)immediate rivals
B)potential entrants
C)customers
D)suppliers
E)all of the above

Question 66

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.

Question 67

________ is the stage in product life cycle at which it is a poor time to change quality.

Question 68

An SWOT analysis determines:

A)internal strengths and weaknesses and internal opportunities and threats.
B)internal strengths and weaknesses and external opportunities and threats.
C)external strengths and weaknesses and internal opportunities and threats.
D)external strengths and weaknesses and external opportunities and threats.
E)internal strengths and opportunities and external weaknesses and threats.

Question 69

What is SWOT analysis? List its four elements and describe its purpose.

Question 70

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas?

A)product research
B)human resources
C)process innovation
D)quality management
E)all of the above

Question 71

Key success factors are those activities that are key to achieving competitive advantage.

Question 72

Which of the following statements is most correct?

A)KSFs are often necessary,but not sufficient for competitive advantage.
B)KSFs are often sufficient,but not necessary for competitive advantage.
C)KSFs are neither necessary nor sufficient for competitive advantage.
D)KSFs are both necessary and sufficient for competitive advantage.
E)None of the above statements is correct.

Question 73

Which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time?

A)increase capacity
B)long production runs
C)standardization
D)cost cutting
E)fewer rapid product changes

Question 74

Which of the following has made the LEAST progress along its product life cycle?

A)Video physical rentals
B)Boeing 787
C)Apple SmartWatch
D)3-D game players
E)Xbox 360

Question 75

Define core competencies.

Question 76

Cost minimization is an appropriate strategy in which stage of the product life cycle?

A)introduction
B)growth
C)adolescence
D)decline
E)retirement

Question 77

Starbucks is one of the best known coffeehouse chains in the world.Each store sells a variety of innovative products to complement the array of coffee choices available.However,over half of the current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions).Starbucks has begun initiatives to sell its specialty coffee beans for home use,presenting a chance for a large increase in revenue and diversification.However,Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behavior changes,given its reputation rides on a singular product.Perform an SWOT analysis for Starbucks.

Question 78

Who introduced the concept of value-chain analysis?

A)Ford
B)Toyota
C)Porter
D)Smith
E)Gates

Question 79

Which of the following has progressed the FURTHEST along its product life cycle?

A)Video physical rentals
B)Boeing 787
C)Apple SmartWatch
D)3-D game players
E)Xbox 360

Question 80

Given the position of the 3D printer in the growth stage of its life cycle,which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time?

A)forecasting
B)cost cutting
C)increasing capacity
D)product and process reliability
E)enhancing distribution