Question 1

Top management should take primary responsibility for establishing measures of quality.

Accepted Answer

Quality starts from the top and is a strategic decision for the organization. Top management should set the tone, define goals and objectives, and establish a culture of quality. They should take the primary responsibility for establishing measures of quality to ensure that they align with the organization's objectives and customer expectations.

Question 2

Harvard Business School found no differences in learning effects among hospitals performing a new cardiac procedure.

Accepted Answer

Harvard Business School studies often analyze differences in learning effects, and it is unlikely that they found no differences without specific context or data.

Question 3

Distinctive competencies shape the functional-level strategies that a company can pursue.

Accepted Answer

Distinctive competencies are unique strengths and capabilities that a company possesses which can be used to gain competitive advantage. These competencies directly shape the functional-level strategies a company can pursue in order to leverage these strengths and differentiate themselves from competitors.

Question 4

The challenge for a company's human resource function is to find ways to lower wage and benefits costs.

Accepted Answer

The challenge for a company's human resource function is to find ways to attract, retain, and engage employees while also ensuring their satisfaction and well-being. This may involve offering competitive wages and benefits packages, but the ultimate goal is not to lower costs at the expense of employee morale and productivity.

Question 5

While Information Systems (IS)have greatly improved externally focused decision making,they have had little impact on lowering costs.

Accepted Answer

Information Systems have had a significant impact on lowering costs through automation of processes, reducing inefficiencies, and improving productivity.

Question 6

The Six Sigma name refers to the Greek letter meaning standard deviation from the mean.

Accepted Answer

Six Sigma is named after the Greek letter σ (sigma) which represents standard deviation from the mean in statistics.

Question 7

Learning effects tend to be more significant when a technologically complex task is performed only occasionally.

Accepted Answer

The answer of Learning effects tend to be more significant...

Question 8

Functional strategies,because they occur at a low level in the firm,play only a small role in organizational success.

Accepted Answer

Functional strategies are important for achieving the overall goals and objectives of the organization. They are specific to each functional area and help in coordinating and integrating different activities within the organization. Hence, functional strategies play a crucial role in the success of the organization.

Question 9

One of Otis Elevator's strengths is the ability to continue to improve employee productivity.

Accepted Answer

Otis Elevator has a strong history of innovation and investing in technology to improve employee productivity, such as their development of SmartCycle, a system that optimizes elevator maintenance schedules based on usage patterns. This commitment to innovation and efficiency is a key strength for the company.

Question 10

A benefit of long-time customer loyalty is the free advertising that customers provide for a company through referrals.

Accepted Answer

Long-time customers who are loyal to a company are more likely to recommend the company to friends and family, which can result in free advertising for the company. This is known as word-of-mouth marketing and can have a significant impact on a company's success.

Question 11

The law of economies of scale suggests that unit costs continue to fall indefinitely as output volume increases.

Accepted Answer

The law of economies of scale suggests that unit costs continue to fall as output volume increases up to a certain level, beyond which additional output volume leads to diminishing returns and increasing costs.

Question 12

Six Sigma is a quality and efficiency program derived from the concept of Total Quality Management,and was widely used in Japan before acceptance in the U.S.

Accepted Answer

The answer of Six Sigma is a quality and efficiency...

Question 13

Flexible manufacturing technologies enable companies to produce small batches of high-quality customized products at a cost that,at one time,could be achieved only through mass production.

Accepted Answer

Flexible manufacturing technologies allow companies to produce small batches of customized products at a lower cost than mass production, making it true that high-quality customized products can be produced at a cost that was once only achievable through mass production.

Question 14

Quantum innovation refers to an extension of existing technology.

Accepted Answer

Quantum innovation refers to the development of new technology based on the principles of quantum mechanics, which is a fundamental shift from existing technology rather than a mere extension.

Question 15

All else being equal,if a company moves down the experience curve faster than its rivals,it should realize a lower cost structure.

Accepted Answer

This statement is true. The experience curve refers to the phenomenon where a company's production efficiency improves over time as it gains experience in producing a product or service. This leads to lower costs as the company becomes more efficient at producing the same product. If a company moves down the experience curve faster than its rivals, it will achieve a lower cost structure compared to its competitors.

Question 16

Materials management encompasses the activities necessary to get inputs and components to a production facility,through the production process,and out through a distribution system to the end user.

Accepted Answer

This statement accurately describes the scope of materials management.

Question 17

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

Accepted Answer

The answer of There is a negative relationship between the...

Question 18

Mass customization describes the ability of companies to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Accepted Answer

Mass customization allows companies to offer personalized products without sacrificing low costs through flexible manufacturing technology.

Question 19

Diseconomies of scale are the unit cost increases associated with a large scale of output.

Accepted Answer

Diseconomies of scale are real, and they can lead to a decrease in operational efficiency or increased costs once a company reaches a certain size or scale of production. This can be due to a variety of factors, such as difficulty in managing and coordinating a large workforce, increased bureaucracy, or the need for larger and more expensive infrastructure.

Question 20

No matter how complex the task is,learning effects typically die out after a limited period of time.

Accepted Answer

This statement is true. Learning effects refer to the improvements in performance that occur as a result of practice or repetition. While the initial learning period may be accompanied by significant gains in performance, these effects tend to plateau or diminish over time as the task becomes more automatic and further practice or repetition does not yield further improvements.

Quiz 4: Building Competitive Advantage Through Functional-Level Strategy