Question 1

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:
A)Sustainability; Flexibility; Efficiency; Technology
B)Customers; Financial; Internal Business Processes; Learning and Growth
C)Customization; Standardization; Efficiency; Effectiveness
D)The Environment; The Community; Suppliers; Other Stakeholders
E)Strategy; Tactics; Productivity; Profitability

Accepted Answer

The Balanced Scorecard is a strategic planning and management tool used to align business activities to the vision and strategy of the organization. It focuses on four perspectives: Customers, Financial, Internal Business Processes, and Learning and Growth. These areas help managers translate their strategy into action and measure their success in achieving their strategic goals. Therefore, option B is the correct choice.

Question 2

Gourmet Pretzels bakes soft pretzels on an assembly line.It currently bakes 800 pretzels each 8-hour shift.If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:
A)50%
B)33%
C)25%
D)67%

Accepted Answer

The productivity increase is calculated as (New Production - Old Production) / Old Production * 100%. So, (1200 - 800) / 800 * 100% = 50%.

Question 3

The weekly output of a production process is shown below, together with data for labor and material inputs.The standard inventory value of the output is $125 per unit.Overhead is charged weekly at the rate of $1500 plus .5 times direct labor cost.Assume a 40-hour week and an hourly wage of $16.Material cost is $10 per running foot.What is the average multi-factor productivity for this process?

Accepted Answer

The answer of The weekly output of a production process...

Question 4

Which of the following factors would tend to reduce productivity?
A)improvements in workplace safety
B)reductions in labor turnover
C)more inexperienced workers
D)reductions in the scrap rate
E)none of the above

Accepted Answer

Inexperienced workers would tend to require more training and supervision, which can reduce productivity in the short term. The other factors listed all have the potential to increase productivity by reducing waste or improving the efficiency of existing workers.

Question 5

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage.Now, all firms must offer this capability simply to be in this line of business.This is an example of ______________ becoming ____________ over time.
A)Tactical implications; strategic
B)Strategic implications; tactical
C)Order winners; order qualifiers
D)Profitability factors; productivity factors
E)Order qualifiers; order winners

Accepted Answer

Initially, package tracking was an order winner, giving firms a competitive edge. Over time, it became an order qualifier, a basic requirement to compete in the market.

Question 6

For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another.
A)Productivity analysis
B)Environmental analysis
C)Strategy implementation
D)Sustainability analysis
E)Growth forecasting

Accepted Answer

Environmental analysis is the process of analyzing the external environment of a firm, including factors like political, economic, social, and technological factors. For firms competing in worldwide markets, conducting environmental analysis is important to understand the differences in regulations, cultural norms, and other factors that can impact product demand and success. This analysis is more complex since what works in one country or region might not work in another.

Question 7

Unique attributes of firms that give them a competitive edge are called ______________.
A)Functional strategies
B)Balanced scorecards
C)Supply chains
D)Core competencies
E)Sustainable initiatives

Accepted Answer

Core competencies refer to the unique capabilities or strengths that give firms a competitive edge over their rivals. These competencies may include specialized knowledge or expertise, resources, technologies, customer relationships, or other intangible assets that enable firms to deliver value to their customers and generate sustainable profits. A strong focus on core competencies can help firms differentiate themselves in the marketplace and sustain their competitive advantage over time.

Question 8

Increasing the service offered to the customer makes it more difficult to compete on the basis of ______.
A)order qualifiers
B)customization
C)quality
D)price
E)flexibility

Accepted Answer

Increasing the service offered to the customer increases the cost, hence pricing will be higher which makes it more difficult to compete on the basis of price.

Question 9

___________ is generally used to facilitate an organization strategy that emphasizes low cost.
A)Speed to market
B)Flexibility
C)Customization
D)Sustainability
E)None of the above

Accepted Answer

None of the options directly relate to a strategy emphasizing low cost. Typically, strategies like economies of scale, efficient supply chain management, or cost leadership are used to facilitate low-cost strategies.

Question 10

The weekly output of a fabrication process is shown below together with data for labor and material inputs.Standard selling price is $125 per unit.Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost.Assume a 40-hour week and an hourly wage of $16.Material cost is $10 per foot.What is the average multifactor productivity? 
A)1.463
B)1.457
C)1.431

Accepted Answer

To find the multifactor productivity, we need to calculate the total output per week divided by the total cost incurred.

Total output per week = 160 + 170 + 180 + 190 + 200 = 900 units

Total labor cost per week = 40 hours/week × $16/hour × 5 weeks = $3,200

Total material cost per week = $10/foot × 1,600 feet = $16,000

Total cost per week = $1,500 + 0.5 × $3,200 + $16,000 = $21,300

Multifactor productivity = Total output per week / Total cost per week
= 900/21,300
= 0.0423

Therefore, the average multifactor productivity is 1/0.0423 = 23.65 or approximately 1.457.

The best choice is B.

Question 11

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost and high-volume.
A)Variation
B)Streamlined flow
C)Quality
D)Capacity
E)Productivity

Accepted Answer

A firm pursuing a strategy based on customization and variety will require a more flexible supply chain that can accommodate a greater variety of products and options, while a firm pursuing low-cost and high-volume strategies will focus on a more streamlined flow of products with less variations.

Question 12

Suppose a country's productivity last year was 84.If this country's productivity growth rate of 5% is to be maintained, this means that this year's productivity will have to be _______.
A)88.2
B)79.8
C)82.8
D)78.9
E)4.2

Accepted Answer

If the productivity growth rate is 5%, then this year's productivity will be equal to:
84 + (5% of 84) = 84 + 4.2 = 88.2

Therefore, the best answer choice is (A) 88.2.

Question 13

A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required.Under the old process, five workers could produce 60 units per hour.Labor costs are $12/hour, and material input was previously $16/unit.For the new process, material is now $10/unit.Overhead is charged at 1.6 times direct labor cost.Finished units sell for $31 each.What increase in productivity is associated with the process improvement?

Accepted Answer

The answer of A company has introduced a process improvement...

Quiz 2: Competitiveness, Strategy, and Productivity

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:

Gourmet Pretzels bakes soft pretzels on an assembly line.It currently bakes 800 pretzels each 8-hour shift.If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:

Which of the following factors would tend to reduce productivity?

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage.Now, all firms must offer this capability simply to be in this line of business.This is an example of __ becoming over time.

For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another.

Unique attributes of firms that give them a competitive edge are called ______________.

Increasing the service offered to the customer makes it more difficult to compete on the basis of ______.

___________ is generally used to facilitate an organization strategy that emphasizes low cost.

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost and high-volume.

Suppose a country's productivity last year was 84.If this country's productivity growth rate of 5% is to be maintained, this means that this year's productivity will have to be _______.