Question 1

The purpose of benchmarking is to achieve the minimum acceptable performance for releasing a product into the marketplace.

Accepted Answer

Benchmarking is aimed at improving a company's performance by comparing its processes, products, and services against those of leading companies to identify areas for improvement, not just to achieve minimum acceptable performance.

Question 2

Benchmarking is the method of measuring quality by comparing performance against industry leaders.

Accepted Answer

Benchmarking involves measuring performance against industry leaders to identify areas for improvement and best practices.

Question 3

The ISO 9001:2008 standards were developed in Asia to assist businesses in selecting suppliers that have met certain specifications for quality.

Accepted Answer

ISO 9001:2008 is part of the ISO 9000 family of quality management systems standards developed by the International Organization for Standardization (ISO), which is an international body composed of representatives from various national standards organizations, not specifically developed in Asia. It provides guidelines for companies to ensure they meet customer and other stakeholder needs within statutory and regulatory requirements related to a product or service.

Question 4

The three main activities in benchmarking are identifying processes that need improvement, comparing internal processes against similar activities of industry leaders, and implementing changes to improve quality.

Accepted Answer

Benchmarking involves identifying processes that need improvement, comparing those processes against the best practices of industry leaders or competitors, and then implementing changes based on those comparisons to enhance quality and efficiency.

Question 5

A company limits its growth potential when it concentrates on a single product, even though the company may have started that way.

Accepted Answer

When a company focuses solely on a single product, it limits the potential for diversification and expansion into new markets. This can restrict long-term growth and success. It is important for a company to continuously evolve and add new products or services to their offerings in order to stay competitive and maximize growth opportunities.

Question 6

Business buyers do not expect a firm that manufactures one product to make related products as well.

Accepted Answer

Business buyers often expect a firm that manufactures one product to have expertise and capabilities in making related products, as this can lead to synergies, cost savings, and more comprehensive solutions for their needs.

Question 7

The service encounter is the point at which the consumer interacts with the service provider.

Accepted Answer

The service encounter is indeed the moment when the consumer (or customer) directly interacts with the service provider, which can significantly influence the customer's perception of the service quality and overall satisfaction.

Question 8

The majority of firms today market only one product.

Accepted Answer

Most firms market a range of products to diversify their offerings, cater to different customer needs, and mitigate risks associated with relying on a single product.

Question 9

Managers are responsible for communicating the goals of total quality management to all staff members.

Accepted Answer

Managers play a crucial role in communicating the goals of total quality management to all members of the organization and ensuring that they are understood and implemented consistently throughout the organization. Effective communication is essential for the successful implementation of TQM.

Question 10

Excellence Canada defines international criteria for quality management and quality assurance.

Accepted Answer

Excellence Canada (formerly known as the National Quality Institute) is a non-profit Canadian organization that specializes in the development and implementation of quality, healthy workplace, and performance excellence standards within Canada. International criteria for quality management and quality assurance are primarily defined by the International Organization for Standardization (ISO), particularly through ISO 9000 family standards.

Question 11

Extending a product line allows a firm to maximize sales opportunities without being limited by its resources.

Accepted Answer

Extending a product line can indeed open up new sales opportunities, but it also requires additional resources such as research and development, marketing, and possibly new production capabilities, which can stretch a firm's resources.

Question 12

A company that decides to offer several complete product lines is most likely interested in growth and enhancing the company's position in the market.

Accepted Answer

Offering several complete product lines allows a company to cater to different customer segments, increase its market share, and strengthen its competitive position, indicating an interest in growth and market enhancement.

Question 13

Benchmarking requires two types of analyses: strategic and tactical.

Accepted Answer

The answer of Benchmarking requires two types of analyses: strategic...

Question 14

The expected and perceived quality of a service offering has little effect on the competitiveness of a company.

Accepted Answer

The expected and perceived quality of a service offering significantly affects a company's competitiveness by influencing customer satisfaction, loyalty, and word-of-mouth recommendations, which are crucial for maintaining and enhancing market position.

Question 15

Benchmarking seeks to identify how business leaders recognize superior marketing performance in their industries and develop a system for continuously comparing and measuring performance against outstanding performers.

Accepted Answer

Benchmarking is a process where companies compare their performance with that of the best in their industry or another industry to identify best practices and find ways to improve their own performance. It involves recognizing superior performance and developing a system for continuous comparison and measurement.

Question 16

Total Quality Management (TQM) improves quality primarily by using end-of-the-line inspections to identify products that don't meet specifications.

Accepted Answer

TQM focuses on continuous improvement processes involving all employees in the organization to prevent defects and enhance quality, rather than relying solely on end-of-the-line inspections.

Question 17

Supplies are also called MRO items.

Accepted Answer

MRO stands for Maintenance, Repair, and Operating supplies, which are typically used in the production process of a business.

Question 18

Extensive planning time is required for the purchase of supplies.

Accepted Answer

The amount of planning time required for the purchase of supplies can vary greatly depending on the complexity and scale of the purchase. For routine or small-scale purchases, extensive planning time may not be necessary.

Question 19

The first step in the benchmarking process is to identify the world's best performers.

Accepted Answer

The first step in the benchmarking process is to identify what to benchmark, such as processes, products, or services, rather than starting with identifying the world's best performers.

Question 20

Companies with one product line have unlimited growth potential.

Accepted Answer

Companies with one product line may face limitations in growth potential due to market saturation, competition, and the risk of relying on a single source of revenue. Diversification can help mitigate these risks and open up new avenues for growth.

Quiz 10: Product and Service Strategies