Question 1

Customer focus in a function of only the lower levels of an organization.

Accepted Answer

Customer focus should be present at all levels of an organization, from top-level management to front-line employees. It is important for everyone to work towards meeting customer needs and providing a positive customer experience.

Question 2

One of the primary roles of human resources in achieving superior efficiency is:
A)facilitating cooperation among various value creation functions.
B)adopting aggressive marketing to ride down the experience curve.
C)designing products for ease of manufacture.
D)using information systems to automate processes. 
E)implementing self-managing teams.

Accepted Answer

The answer of One of the primary roles of human...

Question 3

Economies of scale are:
A)unit cost increases associated with learning effects.
B)unit cost reductions due to inferior quality of products.
C)realized when output is reduced to a minimum.
D)realized when the selling price is equal to the cost price of the products. 
E)unit cost reductions associated with a large-scale output.

Accepted Answer

Economies of scale refer to the benefits or cost advantages that a company can achieve by increasing the scale of production or output. The larger the scale of production, the lower the unit cost of producing each product, as fixed costs are spread over a larger number of units. Therefore, option E is the correct choice as it describes the unit cost reductions associated with a large-scale output.

Question 4

Research suggests that the adoption of may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.
A)just-in-time manufacturing
B)quick technology
C)flexible production technology
D)stable production
E)unscheduled manufacturing

Accepted Answer

Flexible production technology allows for customization and adaptability in the manufacturing process, resulting in increased efficiency and lower unit costs. This is in contrast to mass production of a standardized output, which can lead to excess inventory and higher costs. Just-in-time manufacturing is a related concept that focuses on minimizing inventory and waste, but doesn't necessarily involve customization. Quick technology and unscheduled manufacturing are not commonly used terms in the field of production management. Stable production may refer to a consistent output, but doesn't necessarily indicate flexibility or customization.

Question 5

Close integration between research and development (R&D), production and marketing can help a company avoid innovation failures.

Accepted Answer

Close integration between R&D, production and marketing allows for better communication and coordination throughout the innovation process, leading to better alignment and higher chances of success.

Question 6

Distinctive competencies shape the strategies that a company can pursue.
A)business-level
B)functional-level
C)corporate-level
D)global-level 
E)industry-level

Accepted Answer

The answer of Distinctive competencies shape the strategies that a...

Question 7

One of the primary roles of research and development in achieving superior efficiency is:
A)facilitating cooperation among functions.
B)limiting customer defection rates by building brand loyalty.
C)designing products for ease of manufacture.
D)instituting training programs to build skills. E)implementing pay for performance.

Accepted Answer

Research and development can play a crucial role in achieving superior efficiency by designing products for ease of manufacture. By creating products that are easier to manufacture, companies can reduce the time and cost involved in the production process, ultimately leading to higher levels of efficiency. Additionally, R&D can help identify new manufacturing processes or materials that can increase efficiency even further.

Question 8

Poor commercialization occurs when there is definite customer demand for a new product, but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

Accepted Answer

Poor commercialization occurs when there is customer demand for a product but it does not meet their needs due to design and quality issues.

Question 9

Learning effects are a result of:
A)automation.
B)knowledge acquired by doing.
C)sound product planning tactics.
D)diseconomies of scale. 
E)outsourcing.

Accepted Answer

Learning effects refer to the increase in knowledge and skills acquired by workers as they gain experience in producing a product or delivering a service. This increase in knowledge and skills leads to an increase in productivity and efficiency, which can result in cost savings and improved quality. Automation, sound product planning tactics, diseconomies of scale, and outsourcing may also lead to cost savings, but they are not specific to learning effects.

Question 10

Poor positioning strategy arises when a company introduces a potentially attractive new product but sales fail to materialize because it is poorly positioned in the marketplace.

Accepted Answer

Poor positioning strategy can indeed lead to a situation where a product fails to generate sales despite its potential attractiveness. This is because the product is not effectively targeted towards the right audience or is not differentiated from competing products in a meaningful way. As a result, potential customers may not be aware of the product's benefits or may not see it as a better option compared to other available choices.

Question 11

Managers should not become complacent about efficiency-based cost advantages because:
A)both learning effects and economics of scale go on forever.
B)the experience curve is likely to bottom out at some point.
C)cost advantages gained from experience effects are not affected by the development of new technologies.
D)unit costs keep reducing as output increases. E)the experience curve steadily rises after a certain threshold is reached indicating an increase in unit costs.

Accepted Answer

While learning effects and economies of scale may go on forever, the experience curve is likely to bottom out at some point, indicating diminishing returns to further production increases. Thus, managers should not become complacent about efficiency-based cost advantages as they may not continue to improve indefinitely.

Question 12

Pay for performance tends to:
A)increase per-unit costs.
B)decrease employee productivity.
C)increase employee output.
D)have little effect on employee output. 
E)impede teamwork.

Accepted Answer

Pay for performance incentivizes employees to increase their output in order to earn higher pay. This can lead to an increase in employee productivity and output.

Question 13

The experience curve refers to the:
A)learning by doing technique.
B)company's overall experience in a particular industry.
C)systematic lowering of the cost structure and unit cost reductions.
D)diseconomies of scale caused by inexperienced workers. 
E)increases in unit costs experienced over time.

Accepted Answer

The experience curve is a concept that suggests that as the volume of production increases, the cost of producing each unit decreases. This decrease in cost is due to the company's accumulated experience and learning over time, resulting in a more efficient manufacturing process, better utilization of resources, and lower unit costs. Therefore, the systematic lowering of the cost structure and unit cost reductions (choice C) is the best answer.

Question 14

Six Sigma 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

Six Sigma primarily focuses on process improvement by reducing variability and defects in production and business processes, rather than encompassing the entire supply chain activities from input acquisition through production to distribution.

Question 15

Self-managing teams:
A)are limited to only very large organizations.
B)require members to coordinate their own activities and make decisions.
C)typically increase the need for supervisors.
D)create a tall organizational structure. 
E)show negligible increase in productivity and substantial decrease in product quality.

Accepted Answer

Self-managing teams require members to coordinate their own activities and make decisions. They do not necessarily need to be limited to very large organizations, increase the need for supervisors, or create a tall organizational structure. Research has shown that self-managing teams can actually improve productivity and product quality when implemented correctly.

Question 16

Although important, unfortunately, innovation plays a minor role in achieving competitive advantage.

Accepted Answer

Innovation plays a major role in achieving competitive advantage. Companies that continuously innovate and improve their products, services, or processes are more likely to stand out from their competitors and attract customers. Innovation can also lead to cost savings and increased efficiency, further enhancing a company's competitive position.

Question 17

The marketing strategy that a company adopts:
A)has little impact on the company's efficiency and cost structure.
B)aims at attaining superior efficiency of the company's operations.
C)should not take into account the impact the strategy has on the company's cost structure.
D)aims at automating much of the work in the production process.
E)refers to the position that the company takes with regard to a product's pricing and distribution.

Accepted Answer

The marketing strategy of a company refers to the positioning it takes with regards to a product's pricing and distribution. Therefore, option E is the correct answer. The other options are not related to marketing strategy, as they either talk about efficiency or automation of production processes. Additionally, marketing strategy should take into account the impact it has on the company's cost structure as it may affect profitability.

Question 18

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Accepted Answer

Production and materials-management functions may need to be changed in response to unanticipated customer demands in order to maintain or improve response time. This could include adjusting production schedules, increasing inventory levels, or changing suppliers for raw materials.

Question 19

Strong brand loyalty leads to more sales and the ability to charge higher prices.

Accepted Answer

Strong brand loyalty means that customers are willing to pay more for a certain brand, leading to increased sales and the ability to charge higher prices.

Question 20

Self-managing work teams:
A)increase per-unit costs of manufactured items.
B)perform all workplace tasks except the making of hiring decisions.
C)increase the cycle time of manufacturing items.
D)require team members to learn only one task and specialize in that alone. 
E)tend to increase productivity and product quality.

Accepted Answer

Self-managing work teams tend to increase productivity and product quality by creating a sense of ownership and accountability among team members, improving communication and collaboration, and allowing for more efficient decision-making. They do not necessarily increase per-unit costs, increase cycle time, or require team members to specialize in only one task.

Quiz 4: Building Competitive Advantage Through Functional-Level Strategy

Customer focus in a function of only the lower levels of an organization.

One of the primary roles of human resources in achieving superior efficiency is:

Economies of scale are:

Research suggests that the adoption of may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Close integration between research and development (R&D), production and marketing can help a company avoid innovation failures.

Distinctive competencies shape the strategies that a company can pursue.

One of the primary roles of research and development in achieving superior efficiency is:

Poor commercialization occurs when there is definite customer demand for a new product, but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

Learning effects are a result of:

Poor positioning strategy arises when a company introduces a potentially attractive new product but sales fail to materialize because it is poorly positioned in the marketplace.

Managers should not become complacent about efficiency-based cost advantages because:

Pay for performance tends to:

The experience curve refers to the:

Six Sigma 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.

Self-managing teams:

Although important, unfortunately, innovation plays a minor role in achieving competitive advantage.

The marketing strategy that a company adopts:

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Strong brand loyalty leads to more sales and the ability to charge higher prices.

Self-managing work teams: