Question 1

What is a business process?
A) The analysis and redesign of workflow within and between enterprises.
B) A standardized set of activities that accomplish a specific task, such as processing a customer's order.
C) Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations.
D) None of these.

Accepted Answer

This is the definition of business process.

Question 2

What does supply chain management involve?
A) The management of production material flows between and among stages in a supply chain to maximize total supply chain efficiency.
B) The management of information flows between and among stages in a supply chain to maximize total supply chain costs.
C) The management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
D) None of these.

Accepted Answer

This is the definition of SCM.

Question 3

What type of system did Kaiser Permanente implement in order to improve and prolong the lives of diabetics?
A) Supply chain management.
B) Customer relationship management.
C) Enterprise resource planning.
D) All of these.

Accepted Answer

Kaiser Permanente implemented a CRM system to help diabetics.

Question 4

Which of the following is not a valid way that a CRM system can collect information?
A) Accounting system.
B) Order fulfillment system.
C) Inventory system.
D) Customer's personal computer.

Accepted Answer

A CRM system cannot collect information from a customer's personal computer.

Question 5

What is CRM?
A) A strategy.
B) A technology.
C) Both a technology and a strategy.
D) Neither a technology nor a strategy.

Accepted Answer

CRM is not just a technology, but a strategy that an organization must embrace on an enterprise level.

Question 6

What is the formula that an organization can use to find its most valuable customers?
A) RFM - reporting, features, monetary value.
B) RFM - reporting, frequency, market share.
C) RFM - recency, frequency, monetary value.
D) RFM - recency, features, market share.

Accepted Answer

RFM - recency, frequency, monetary value - is the formula that an organization can use to find its most valuable customers.

Question 7

What is enterprise-wide resource planning?
A) The analysis and redesign of workflow within and between enterprises.
B) A standardized set of activities that accomplish a specific task, such as processing a customer's order.
C) Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations.
D) Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability.

Accepted Answer

This is the definition of enterprise resource planning (ERP).

Question 8

What is the term that identifies how frequently a customer purchases items?
A) Recency
B) Frequency
C) Monetary value
D) Reporting

Accepted Answer

Frequency is the term that identifies how frequently a customer purchases items.

Question 9

Which of the following can a customer use to contact an organization?
A) Telephone.
B) Email.
C) Web access.
D) All of these.

Accepted Answer

A customer can contact an organization through any of these methods.

Question 10

What are the three phases in the evolution of CRM?
A) Recency, analyzing, predicting
B) Reporting, analyzing, predicting
C) Recency, analytical, processes
D) Reporting, analytical, predicting

Accepted Answer

Reporting, analyzing, and predicting are the three phases in the evolution of CRM.

Question 11

What is the purpose of business process reengineering?
A) To make all business processes the best-in-class.
B) To make all employees the best-in-class.
C) To make all business partners the best-in-class.
D) All of these.

Accepted Answer

The purpose of BPR is to make all business processes best-in-class.

Question 12

Which company used BPR to change its industry by implementing a mobile claims process?
A) Saab.
B) Progressive Insurance.
C) Trek.
D) Charles Schwab.

Accepted Answer

Progressive Insurance used BPR to change its industry by implementing a mobile claims process.

Question 13

What is the term that defines how recently a customer purchased items?
A) Recency
B) Frequency
C) Monetary value
D) Reporting

Accepted Answer

Recency defines how recently a customer purchased items.

Question 14

Charles Schwab recouped the cost of a multimillion-dollar system in less than two years.What type of system was it?
A) Supply chain management.
B) Customer relationship management.
C) Enterprise resource planning.
D) All of these.

Accepted Answer

Charles Schwab implemented a successful CRM system that paid for itself in less than two years.

Question 15

What is the term that defines how much a customer spends on each purchase?
A) Recency
B) Frequency
C) Monetary value
D) Reporting

Accepted Answer

Monetary value is the term that defines how much a customer spends on each purchase.

Question 16

Which of the following is an organizational result from an effective and efficient supply chain management system?
A) Decrease the power of its buyers.
B) Create entry barriers, thereby reducing the threat of new entrants.
C) Increase efficiencies while seeking a competitive advantage through cost leadership.
D) All of these.

Accepted Answer

All of these are results from an effective and efficient SCM system.

Question 17

What can effective and efficient supply chain management systems enable an organization to accomplish?
A) Increase the power of its buyers.
B) Increase its supplier power.
C) Increase switching costs to increase the threat of substitute products or services.
D) All of these.

Accepted Answer

Answer A should state "decrease" the power of its buyers, and answer C should state "reduce" the threat of substitute products or services.

Question 18

Walmart and Procter & Gamble implemented a tremendously successful SCM system.The system linked Walmart's _____________ centers directly to Procter & Gamble's _____________ centers.
A) manufacturing; distribution
B) distribution; manufacturing
C) stores; distribution
D) distribution; retail

Accepted Answer

Walmart's distribution centers are linked directly to Procter & Gamble's manufacturing centers.

Question 19

What is the key word in ERP?
A) Enterprise.
B) Resource.
C) Planning.
D) All of these.

Accepted Answer

The key word in ERP is "enterprise" and not necessarily "resource" or "planning."

Question 20

What is business process reengineering?
A) The analysis and redesign of workflow within and between enterprises.
B) A standardized set of activities that accomplish as specific task, such as processing a customer's order.
C) Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations.
D) None of these.

Accepted Answer

This is the definition of business process reengineering (BPR).

Quiz 3: Strategic Initiatives for Implementing Competitive Advantages

What is a business process?

What does supply chain management involve?

What type of system did Kaiser Permanente implement in order to improve and prolong the lives of diabetics?

Which of the following is not a valid way that a CRM system can collect information?

What is CRM?

What is the formula that an organization can use to find its most valuable customers?

What is enterprise-wide resource planning?

What is the term that identifies how frequently a customer purchases items?

Which of the following can a customer use to contact an organization?

What are the three phases in the evolution of CRM?

What is the purpose of business process reengineering?

Which company used BPR to change its industry by implementing a mobile claims process?

What is the term that defines how recently a customer purchased items?

Charles Schwab recouped the cost of a multimillion-dollar system in less than two years.What type of system was it?

What is the term that defines how much a customer spends on each purchase?

Which of the following is an organizational result from an effective and efficient supply chain management system?

What can effective and efficient supply chain management systems enable an organization to accomplish?

Walmart and Procter & Gamble implemented a tremendously successful SCM system.The system linked Walmart's _ centers directly to Procter & Gamble's _ centers.

What is the key word in ERP?

What is business process reengineering?