Question 1

Which of the international operations strategies uses the existing domestic model globally?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) transdomestic strategy

Accepted Answer

The multidomestic strategy uses the existing domestic model globally. It focuses on adapting products and services to local preferences and needs in each foreign market. This strategy allows for greater autonomy to each country or region, enabling them to tailor products and services to meet their unique demands.

Question 2

Which of the following is the best example of competing on low-cost leadership?
A) A firm produces its product with a smaller carbon footprint than its competitors.
B) A firm offers more reliable products than its competitors.
C) A firm's products are introduced into the market faster than its competitors' products.
D) A firm's research and development department generates many ideas for new products.
E) A firm advertises more than its competitors.

Accepted Answer

Competing on low-cost leadership means offering the same product or service as competitors but at a lower cost. Option A describes a firm producing its product with a smaller carbon footprint, which would likely reduce costs and could give it a price advantage over its competitors. The other options do not necessarily relate to low-cost leadership.

Question 3

Which of the following is an example of a response to the global environment?
A) Boeing's local sales and production
B) Benneton's strict limits on design, production, and distribution
C) a Chinese manufacturer, Haier, producing in China
D) Ford's partnerships with GM
E) Apple's partnership with Salesforce and the use of Siri

Accepted Answer

Apple's partnership with Salesforce and the use of Siri is an example of a response to the global environment, as it involves leveraging global technology partnerships to enhance product offerings and reach, adapting to global market demands and technological advancements.

Question 4

A firm's product is in the maturity stage of its life cycle. Which of the following OM strategies or issues should the firm be least concerned with at this time?
A) increasing capacity
B) long production runs
C) standardization
D) cost cutting
E) fewer rapid product changes

Accepted Answer

At the maturity stage of a product's life cycle, the firm would have established a stable market position, and sales growth would have slowed down. Therefore, the firm should be least concerned with increasing capacity. Instead, the focus should be on maintaining a stable production process, cost-cutting, and reducing the number of product changes to increase profitability while meeting customer needs. Long production runs and standardization are also desirable strategies for minimizing costs and maintaining quality at the maturity stage of a product's life cycle.

Question 5

When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it
A) requires minimal capital investment.
B) utilizes as much automation as possible.
C) utilizes an equal balance of labour and automation.
D) supports the overall competitive strategy of the company.
E) utilizes as little automation as possible.

Accepted Answer

The operations strategy for a new manufacturing organization should support the overall competitive strategy of the company to ensure long-term success. This involves considering factors such as cost, quality, speed, flexibility, and innovation. While capital investment and automation can play a role in achieving these goals, they should not be prioritized over the overall strategic direction of the company. An equal balance of labour and automation may be appropriate in some cases, but it should be determined based on the specific needs of the company and its competitive environment. Utilizing as little automation as possible may not be the best approach if it limits the company's ability to compete effectively.

Question 6

Which of the following is the best example of competing on low-cost leadership?
A) A firm produces its product with less chemical waste than its competitors.
B) A firm offers more reliable products than its competitors.
C) A firm's products are introduced into the market faster than its competitors' products.
D) A firm's research and development department generates many ideas for new products.
E) A firm advertises more than its competitors.

Accepted Answer

Competing on low-cost leadership means offering products or services at a lower cost than competitors. Producing products with less chemical waste than competitors allows the firm to save on waste management costs, which can be reflected in lower product prices for consumers.

Question 7

Caterpillar and Texas Instruments are two firms that have benefited from the use of
A) the multidomestic strategy option.
B) the transdomestic corporation strategy.
C) the transnational strategy option.
D) the maquiladora system in Europe.
E) the global strategy option.

Accepted Answer

Caterpillar and Texas Instruments have both adopted the global strategy option, which involves standardizing products and services across multiple markets in order to achieve economies of scale and maximize efficiency. This has allowed them to achieve global success and reap the benefits of a larger customer base and increased profitability.

Question 8

Which of these organizations is likely to have the most complex inventory decisions?
A) a marketing research firm
B) a stock brokerage firm
C) a management consulting firm
D) a computer manufacturing company
E) a high school

Accepted Answer

A computer manufacturing company is likely to have the most complex inventory decisions as they have to manage different types of components, raw materials, work-in-progress items, and finished goods. They need to keep track of the demand for each component and ensure timely availability of the same. They also need to manage the production schedule and delivery timelines for their diverse set of customers.

Question 9

Which of the international operations strategies uses import/export or licensing of existing products?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) transdomestic strategy

Accepted Answer

The international strategy is focused on using existing products or services and exporting them to other countries or licensing the rights to manufacture and sell those products in other countries. This strategy is more focused on adapting to local markets and meeting the specific needs of individual countries.

Question 10

Which of the international operations strategies involves high cost reductions and high local responsiveness?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) transdomestic strategy

Accepted Answer

The transnational strategy involves balancing high cost reductions with high local responsiveness. This strategy aims to achieve the benefits of both a global and multidomestic strategy by standardizing certain aspects globally while still allowing for adaptation to local markets.

Question 11

Which of the following is an example of globalization of operations strategy?
A) Boeing's Dreamliner has engines with higher fuel/payload efficiency.
B) Ford's new auto models have dent-resistant panels.
C) A Japanese manufacturer, Honda, now operates plants in the United States.
D) Hard Rock Café provides an "experience differentiation" at its restaurants.
E) Porter Airlines focuses on short-haul flights.

Accepted Answer

The fact that Honda, a Japanese manufacturer, now operates plants in the United States shows globalization of operations strategy. This means that the company is not limiting its operations to one country/region but is expanding globally to achieve competitive advantage. The other options do not necessarily show globalization of operations strategy.

Question 12

Which of the following statements is most correct?
A) Key success factors (KSFs) are often necessary, but not sufficient for competitive advantage.
B) Key success factors (KSFs) are often sufficient, but not necessary for competitive advantage.
C) Key success factors (KSFs) are neither necessary nor sufficient for competitive advantage.
D) Key success factors (KSFs) are both necessary and sufficient for competitive advantage.
E) None of the above statements are correct.

Accepted Answer

Key success factors (KSFs) are important to achieve competitive advantage, but they are not enough on their own. Other factors such as innovation, customer service, and quality of products and services are also important, making KSFs necessary but not sufficient.

Question 13

Which of the international operations strategies involves low cost reductions and low local responsiveness?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) transdomestic strategy

Accepted Answer

An international strategy involves exporting products and services with minimal local customization, leading to low cost reductions and low local responsiveness.

Question 14

The three steps of the operations manager's job, in order, are
A) develop the strategy, establish the organizational structure, find the right staff.
B) develop the strategy, find the right staff, establish the organizational structure.
C) find the right staff, establish the organizational structure, develop the strategy.
D) find the right staff, develop the strategy, establish the organizational structure.
E) establish the organizational structure, find the right staff, develop the strategy.

Accepted Answer

The operations manager's job typically starts with developing the strategy to guide the organization's operations. Following this, they establish the organizational structure to support the strategy's implementation. Finally, finding the right staff is crucial to execute the strategy within the established structure.

Question 15

Which of the following is an example of globalization of operations strategy?
A) Boeing's Dreamliner has engines with higher fuel/payload efficiency.
B) Ford's new auto models have dent-resistant panels.
C) A Japanese manufacturer, Toyota, now operates plants in the United States.
D) Hard Rock Café provides an "experience differentiation" at its restaurants.
E) Porter Airlines focuses on short-haul flights.

Accepted Answer

The fact that a Japanese manufacturer, Toyota, now operates plants in the United States is an example of globalization of operations strategy. Toyota is a foreign company expanding its operations to multiple countries, which is a key characteristic of globalization. The other options do not necessarily involve foreign operations or expansion to multiple countries.

Question 16

Which of the following is not an example of a transnational firm?
A) Nestlé
B) Asea Brown Boveri
C) Reuters
D) Citicorp
E) McDonald's

Accepted Answer

The answer of Which of the following is not an...

Question 17

Given the position of Amazon Alexa in the growth stage of its life cycle, which of the following OM strategies or issues should Amazon (makers of Alexa) be least concerned with at the current time?
A) forecasting
B) cost cutting
C) increasing capacity
D) product and process reliability
E) enhancing distribution

Accepted Answer

In the growth stage of the life cycle, the focus is on increasing sales and market share. Cost cutting is typically not a primary concern during this time as companies are typically investing in production capacity and marketing efforts to support growth. Therefore, Amazon (makers of Alexa) should be least concerned with cost cutting at the current time.

Question 18

The acronym MNC stands for
A) Mexican National Committee (for international trade).
B) Maquiladora Negates Competition.
C) Maytag-Nestlé Corporation.
D) Multinational Corporation.
E) Mostly-national Corporation.

Accepted Answer

MNC stands for Multinational Corporation, which refers to a company that has operations in multiple countries.

Question 19

Which of the following is least likely to result in a strategy change?
A) change in the company's financial situation
B) a company's adoption of new technology
C) change in the product life cycle
D) change in the competitive environment
E) change in job scheduling techniques

Accepted Answer

A change in job scheduling techniques is the least likely to result in a strategy change as it is a more operational change rather than a strategic change. The other options (financial situation, adoption of new technology, product life cycle, and competitive environment) all have a greater potential to impact a company's overall strategy.

Question 20

Which of the following is an example of a response to the global environment?
A) Boeing's local sales and production
B) Benneton's strict limits on design, production, and distribution
C) a Chinese manufacturer, Haier, producing in China
D) Ford's partnerships with GM
E) Honda's partnership with Gm to develop self-driving cars

Accepted Answer

Honda's partnership with GM to develop self-driving cars is an example of a response to the global environment, as it represents a strategic collaboration between two global automotive giants to innovate and compete in the rapidly evolving field of autonomous vehicles, reflecting adaptation to technological advancements and consumer demands worldwide.

Quiz 2: Operations Strategy in a Global Environment

Which of the international operations strategies uses the existing domestic model globally?

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

Which of the following is an example of a response to the global environment?

A firm's product is in the maturity stage of its life cycle. Which of the following OM strategies or issues should the firm be least concerned with at this time?

When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it

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

Caterpillar and Texas Instruments are two firms that have benefited from the use of

Which of these organizations is likely to have the most complex inventory decisions?

Which of the international operations strategies uses import/export or licensing of existing products?

Which of the international operations strategies involves high cost reductions and high local responsiveness?

Which of the following is an example of globalization of operations strategy?

Which of the following statements is most correct?

Which of the international operations strategies involves low cost reductions and low local responsiveness?

The three steps of the operations manager's job, in order, are

Which of the following is an example of globalization of operations strategy?

Which of the following is not an example of a transnational firm?

Given the position of Amazon Alexa in the growth stage of its life cycle, which of the following OM strategies or issues should Amazon (makers of Alexa) be least concerned with at the current time?

The acronym MNC stands for

Which of the following is least likely to result in a strategy change?

Which of the following is an example of a response to the global environment?