ch 2 Flashcards
(110 cards)
1
Q
T/F
NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United
States.
A
True
2
Q
T/F
The World Trade Organization has helped to significantly reduce tariffs around the world.
A
True
3
Q
T/F
Production processes are being dispersed to take advantage of national differences in labor costs.
A
True
4
Q
T/F
Production processes are being dispersed to take advantage of national differences in labor costs.
A
True
5
Q
T/F
One reason for global operations is to gain improvements in the supply chain.
A
True
6
Q
T/F
One reason to globalize is to learn to improve operations.
A
True
7
Q
T/F
To attract and retain global talent, and to expand a product’s life cycle, are both reasons to globalize.
A
True
8
Q
T/F
A product will always be in the same stage of its product life cycle regardless of the country.
A
False
9
Q
T/F
The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.
A
True
10
Q
T/F
Boeing’s development of the 787 Dreamliner is an example of a company obtaining a competitive advantage via product differentiation/innovation.
A
True
11
Q
T/F
An organization’s strategy is its purpose or rationale for an organization’s existence.
A
False
12
Q
T/F
Operations strategies are implemented in the same way in all types of organizations.
A
False
13
Q
T/F
Between 1980 and 2005, the amount of money (bank deposits, government and corporate debt securities, and equity securities) invested in global capital markets more than tripled.
A
True
14
Q
T/F
Experience differentiation is an extension of product differentiation, accomplished by using people’s five senses to create an experience rather than simply providing a service.
A
True
15
Q
T/F
An organization’s ability to generate unique advantages over competitors is central to a successful strategy implementation.
A
True
16
Q
T/F
Low-cost leadership is the ability to distinguish the offerings of the organization in any way that the customer perceives as adding value.
A
False
17
Q
T/F
Most services are tangible; this factor determines how the ten decisions of operations management are handled differently for goods than for services.
A
False
18
Q
T/F
The relative importance of each of the ten operations decisions depends on the ratio of goods and services in an organization.
A
True
19
Q
T/F
Decisions that involve what is to be made and what is to be purchased fall under the heading of
supply chain management.
A
True
20
Q
T/F
Manufacturing organizations have ten strategic OM decisions, while service organizations have only eight.
A
False
21
Q
T/F
Errors made within the location decision area may overwhelm efficiencies in other areas.
A
True
22
Q
T/F
The PIMS study indicated that high ROI firms tend to have high product quality.
A
True
23
Q
T/F
Southwest Airlines’ core competence is operations.
A
True
24
Q
T/F
Critical success factors and core competencies are synonyms.
A
False
25
T/F
SWOT analysis identifies those activities that make a difference between having and not having a
competitive advantage.
False
26
T/F
For the greatest chance of success, an organization's operations management strategy must support
the company's strategy.
True
27
T/F
Critical Success Factors are those activities that are key to achieving competitive advantage.
True
28
T/F
A multinational corporation has extensive international business involvements.
True
29
T/F
The multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage.
False
30
T/F
Firms using the global strategy can be thought of as "world companies."
False
31
Which of the following statements regarding the Dreamliner 787 is true?
a. Boeing has found partners in over a dozen countries.
b. The new aircraft incorporates a wide range of aerospace technologies.
c. The new aircraft uses engines from not one, but two manufacturers.
d. Boeing will add only 20 to 30 percent of the aircraft's value.
e. All of the above are true.
e. All of the above are true.
32
Boeing's new 787 Dreamliner
a. is assembled in Washington, D.C.
b. uses engines from Japan
c. has its fuselage sections built in Australia
d. has increased efficiency from new engine technology
e. results from a partnership of about a dozen companies
d. has increased efficiency from new engine technology
33
Examples of response to the global environment include
a. Boeing's worldwide sales and production
b. Benneton's flexibility in design, production, and distribution
c. A Chinese manufacturer, Haier, opening plants in the United States
d. Ford's partnerships with Volvo and Mazda
e. All of the above are examples.
e. All of the above are examples.
34
Which of the following is an example of globalization of operations strategy?
a. Boeing's Dreamliner has engines with higher fuel/payload efficiency.
b. Ford's new auto models have dent-resistant panels.
c. A Chinese manufacturer, Haier, now operates plants in the United States.
d. Hard Rock Café provides an "experience differentiation" at its restaurants.
e. All of the above are examples.
e. All of the above are examples.
35
Cost cutting in international operations can take place because of
a. lower taxes and tariffs
b. lower wage scales
c. lower indirect labor costs
d. less stringent regulations
e. all of the above
e. all of the above
36
Which of the following did the authors not suggest as a reason for globalizing operations?
a. reduce costs
b. improve the supply chain
c. stockholder approval ratings
d. attract new markets
e. All of the above were suggested.
c. stockholder approval ratings
37
Multinational organizations can shop from country to country and cut costs through
a. lower wage scales
b. lower indirect labor costs
c. less stringent regulations
d. lower taxes and tariffs
e. all of the above
e. all of the above
38
The term maquiladora is most synonymous with
free trade zones
39
Which of the following represent reasons for globalizing operations?
a. to gain improvements in the supply chain
b. to improve operations
c. to expand a product's life cycle
d. to attract and retain global talent
e. All of the above are valid.
e. All of the above are valid.
40
Which of the following does not represent reasons for globalizing operations?
a. reduce costs
b. improve supply chain
c. reduce responsiveness
d. attract and retain global talent
e. All of the above are valid reasons for globalizing operations.
c. reduce responsiveness
41
NAFTA seeks to
a. substitute cheap labor in Mexico for expensive labor in the United States
b. curb illegal immigration from Mexico to the United States
c. phase out all trade and tariff barriers between the United States and Mexico
d. phase out all trade and tariff barriers between the United States, Canada, and Mexico
e. All of the above are NAFTA goals.
d. phase out all trade and tariff barriers between the United States, Canada, and Mexico
42
With reference to cultural and ethical issues, the World Trade Organization has
a. succeeded in providing equal protection of intellectual property among nations
b. made progress in providing equal protection of intellectual property among nations
c. phased out all trade and tariff barriers between the United States and Mexico
d. eliminated slave labor and child labor
e. played little role in addressing cultural and ethical issues among nations
b. made progress in providing equal protection of intellectual property among nations
43
Which of the following is true about business strategies?
a. An organization should stick with its strategy for the life of the business.
b. All firms within an industry will adopt the same strategy.
c. Well defined missions make strategy development much easier.
d. Strategies are formulated independently of SWOT analysis.
e. Organizational strategies depend on operations strategies.
c. Well defined missions make strategy development much easier.
44
Which of the following activities takes place once the mission has been developed?
a. The firm develops alternative or back-up missions in case the original mission fails.
b. The functional areas develop their functional area strategies.
c. The functional areas develop their supporting missions.
d. The ten OM decision areas are prioritized.
e. Operational tactics are developed.
c. The functional areas develop their supporting missions.
45
Which of the following statements about organizational missions is false?
a. They reflect a company's purpose.
b. They indicate what a company intends to contribute to society.
c. They are formulated after strategies are known.
d. They define a company's reason for existence.
e. They provide guidance for functional area missions.
c. They are formulated after strategies are known
46
The impact of strategies on the general direction and basic character of a company is
long range
47
The fundamental purpose of an organization's mission statement is to
define the organization's purpose in society
48
Which of the following is true?
a. Corporate mission is shaped by functional strategies.
b. Corporate strategy is shaped by functional strategies.
c. Functional strategies are shaped by corporate strategy.
d. External conditions are shaped by corporate mission.
e. Functional area missions are merged to become the organizational mission.
c. Functional strategies are shaped by corporate strategy.
49
According to the authors, which of the following strategic concepts allow firms to achieve their
missions?
a. productivity, efficiency, and quality leadership
b. differentiation, cost leadership, and quick response
c. differentiation, quality leadership, and quick response
d. distinctive competency, cost leadership, and experience
e. differentiation, distinctive competency, quality leadership, and capacity
c. differentiation, quality leadership, and quick response
50
A firm can effectively use its operations function to yield competitive advantage via all of the
following except
a. customization of the product
b. setting equipment utilization goals below the industry average
c. speed of delivery
d. constant innovation of new products
e. maintain a variety of product options
b. setting equipment utilization goals below the industry average
51
Which of the following has progressed the furthest along its product life cycle?
a. drive-thru restaurants
b. Internet search engines
c. iPods
d. LCD & plasma TVs
e. Xbox 360
a. drive-thru restaurants
52
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is
competing on differentiation
53
Which of the following has made the least progress along its product life cycle?
a. drive-thru restaurants
b. Internet search engines
c. iPods
d. LCD & plasma TVs
e. Xbox 360
e. Xbox 360
54
A strategy is a(n)
a. set of opportunities in the marketplace
b. broad statement of purpose
c. simulation used to test various product line options
d. plan for cost reduction
e. action plan to achieve the mission
e. action plan to achieve the mission
55
Which of the following statements best characterizes delivery reliability?
a. a company that always delivers on the same day of the week
b. a company that always delivers at the promised time
c. a company that delivers more frequently than its competitors
d. a company that delivers faster than its competitors
e. a company that has a computerized delivery scheduling system
b. a company that always delivers at the promised time
56
Which of the following is an example of competing on the basis of differentiation?
a. A firm manufactures its product with less raw material waste than its competitors do.
b. A firm's products are introduced into the market faster than its competitors’ products are.
c. A firm's distribution network routinely delivers its product on time.
d. A firm offers more reliable products than its competitors do.
e. A firm advertises more than its competitors do.
d. A firm offers more reliable products than its competitors do.
57
The ability of an organization to produce services that, by utilizing the consumer's five senses, have
some uniqueness in their characteristics is
a. mass production
b. time-based competition
c. differentiation
d. flexible response
e. experience differentiation
e. experience differentiation
58
Which of the following best describes "experience differentiation"?
a. immerses consumers in the delivery of a service
b. uses people's five senses to enhance the service
c. complements physical elements with visual and sound elements
d. consumers may become active participants in the product or service
e. All are elements of experience differentiation.
e. All are elements of experience differentiation.
59
Experience Differentiation
a. isolates the consumer from the delivery of a service
b. is an extension of product differentiation in the service sector
c. uses only the consumer's senses of vision and sound
d. keeps consumers from becoming active participants in the service
e. is the same as product differentiation, but applied in the service sector
b. is an extension of product differentiation in the service sector
60
Which of the following is the best example of competing on low-cost leadership?
a. A firm produces its product with less raw material waste than its competitors.
b. A firm offers more reliable products than its competitors.
c. A firm's products are introduced into the market faster than its competitors’ products.
d. A firm's research and development department generates many ideas for new products.
e. A firm advertises more than its competitors.
a. A firm produces its product with less raw material waste than its competitors.
61
Franz Colruyt has achieved low-cost leadership through
a. Spartan headquarters
b. absence of voice mail
c. low-cost facilities
d. no background music
e. all of the above
e. all of the above
62
Franz Colruyt has achieved low-cost leadership through
a. effective use of voice mail
b. plastic, not paper, shopping bags
c. background music that subtly encourages shoppers to buy more
d. converting factories, garages, and theaters into retail outlets
e. use of the Euro, not the currency of each European country
d. converting factories, garages, and theaters into retail outlets
63
Which of the following is an example of competing on quick response?
a. A firm produces its product with less raw material waste than its competitors.
b. A firm offers more reliable products than its competitors.
c. A firm's products are introduced into the market faster than its competitors’ products.
d. A firm's research and development department generates many ideas for new products.
e. A firm advertises more than its competitors.
c. A firm's products are introduced into the market faster than its competitors’ products.
64
Costs, quality, and human resource decisions interact strongly with the _______ decision.
goods and service design
65
Which of the following influences layout design?
a. inventory requirements
b. capacity needs
c. personnel levels
d. technology decisions
e. All of the above influence layout decisions.
e. All of the above influence layout decisions.
66
Response-based competitive advantage can be
a. flexible response
b. reliable response
c. quick response
d. all of the above
e. none of the above
d. all of the above
67
Which of the following is not an operations strategic decision?
a. maintenance
b. price
c. layout design
d. quality
e. inventory
b. price
68
Which of the following OM strategic decisions pertains to sensible location of processes and
materials in relation to each other?
layout design
69
Which of these companies is most apt to have quality standards that are relatively subjective?
a. Chrysler
b. Dell Computer
c. Sanyo Electronics
d. Harvard University
e. Whirlpool
d. Harvard University
70
Which of the following will more likely locate near their customers?
a. an automobile manufacturer
b. an aluminum manufacturer
c. an insurance company headquarters
d. a medical clinic
e. All of the above will tend to locate near their customers.
d. a medical clinic
71
Which of the following statements concerning the operations management decision is relevant to
services?
a. There are many objective quality standards.
b. The customer is not involved in most of the process.
c. The work force's technical skills are very important.
d. Labor standards vary depending on customer requirements.
e. Ability to inventory may allow the leveling of the output rates.
d. Labor standards vary depending on customer requirements
72
Which of these organizations is likely to have the most important inventory decisions?
a. a marketing research firm
b. a lobbying agency
c. a management consulting firm
d. an aluminum manufacturer
e. a law firm
d. an aluminum manufacturer
73
The PIMS program has identified the
a. operations decisions all organizations must make
b. distinctive competencies any company needs
c. characteristics of firms with high "ROI"
d. corporate decisions any company needs to make
e. all of the above
c. characteristics of firms with high "ROI"
74
Which of these is not one of the PIMS characteristics of high return on investment organizations?
a. high product quality
b. high capacity utilization
c. low investment intensity
d. low direct cost per unit
e. All of the above are PIMS characteristics.
e. All of the above are PIMS characteristics.
75
Standardization is an appropriate strategy in which stage of the product life cycle?
maturity
76
Cost minimization is an appropriate strategy in which stage of the product life cycle?
decline
77
Which of the following preconditions does not affect the formulation of an OM strategy?
a. knowledge of each product's life cycle
b. external economic and technological conditions
c. the company's employment benefits
d. competitors' strengths and weaknesses
e. knowledge of the company's strategy
c. the company's employment benefits
78
The stage in the product life cycle at which it is a poor time to change quality is
maturity
79
Which of the following changes does not result in strategy changes?
a. change in the company's financial situation
b. a company's adoption of new technology
c. change in the product life cycle
d. change in the competitive environment
e. change in job scheduling techniques
e. change in job scheduling techniques
80
All of these preconditions affect an operations management strategy except
a. external economic and technological conditions
b. competitors' strengths and weaknesses
c. maintenance policies
d. knowledge of the company's strategy
e. knowledge of each product's life cycle
c. maintenance policies
81
Understanding competitors' strengths and weaknesses, understanding current and prospective
technological issues, and understanding product life cycle are examples of
a. what is important to the transnational strategy but not the multidomestic strategy
b. SWOT analysis
c. elements in the formulation of an organization's mission
d. preconditions to establishing and implementing a strategy
e. the critical decision area of supply chain analysis
d. preconditions to establishing and implementing a strategy
82
Which of the following statements is most correct?
a. CSFs are often necessary, but not sufficient for competitive advantage.
b. CSFs are often sufficient, but not necessary for competitive advantage.
c. CSFs are neither necessary nor sufficient for competitive advantage.
d. CSFs are both necessary and sufficient for competitive advantage.
e. None of the above statements is correct.
a. CSFs are often necessary, but not sufficient for competitive advantage.
83
Given the position of the iPod in the growth stage of its life cycle, which of the following OM
Strategy/Issues should the makers of iPods be least concerned with at the current time?
cost cutting
84
Which of these organizations is likely to have the most complex inventory decisions?
a. a marketing research firm
b. a stock brokerage firm
c. a management consulting firm
d. a computer manufacturing company
e. a high school
d. a computer manufacturing company
85
The three steps of the operations manager's job, in order, are
a. develop the strategy, establish the organizational structure, find the right staff
b. develop the strategy, find the right staff, establish the organizational structure
c. find the right staff, establish the organizational structure, develop the strategy
d. find the right staff, develop the strategy, establish the organizational structure
e. establish the organizational structure, find the right staff, develop the strategy
a. develop the strategy, establish the organizational structure, find the right staff
86
When developing the operations strategy for a new manufacturing organization, one of the most
important considerations is that it
a. requires minimal capital investment
b. utilizes as much automation as possible
c. utilizes an equal balance of labor and automation
d. supports the overall competitive strategy of the company
e. none of the above
d. supports the overall competitive strategy of the company
87
Which of the international operations strategies involves high cost reductions and high local
responsiveness?
transnational strategy
88
Which of the international operations strategies involves low cost reductions and low local
responsiveness?
international strategy
89
Which of the international operations strategies uses import/export or licensing of existing
products?
international strategy
90
Which of the international operations strategies uses the existing domestic model globally?
multidomestic strategy
91
The acronym MNC stands for
Multinational Corporation
92
Caterpillar and Texas Instruments are two firms that have benefited from the use of
the global strategy option.
93
Which of the following are examples of transnational firms?
a. Nestlé
b. Asea Brown Boveri
c. Reuters
d. Citicorp
e. All of the above are transnationals.
e. All of the above are transnationals.
94
Boeing found its Dreamliner 787 partners in _____________________ countries.
over a dozen
95
________ are Mexican factories located along the U.S.-Mexico border that receive preferential
tariff treatment.
Maquiladoras
96
_______ is a free trade agreement among Canada, Mexico, and the United States.
NAFTA--North American Free Trade Agreement
97
_____________________ and __________________ are two issues where significant cultural
differences are large and progress toward global uniformity has been slow.
Bribery, protection of intellectual property
98
An organization that has worked to achieve global uniformity in cultural and ethical issues such as
bribery, child labor, and environmental regulations is _________________________.
the World Trade Organization
99
In goods producing organizations, ________,_________, and ________ may be inventoried.
raw materials, work-in-process, and finished goods
100
Strategy is not static, but dynamic because of changes in the ________________ and
__________________.
organization, environment
101
__________________ is the stage in product life cycle at which it is a poor time to change quality.
Maturity
102
The ______ is how an organization expects to achieve its missions and goals.
strategy
103
The creation of a unique advantage over competitors is called a ________.
competitive advantage
104
Service organizations can immerse the consumer in the service, or have the consumer become a
participant in the service, as they practice ________.
experience differentiation
105
Competitive advantage in operations can be achieved by ______, ______, and/or ________.
differentiation, low cost, response
106
A(n) ________ is a firm that has extensive involvement in international business, owning or controlling facilities in more than one country.
MNC--multinational corporation
107
The ________ strategy utilizes a standardized product across countries.
global
108
The _______ strategy uses exports and licenses to penetrate globally.
international
109
The ________ strategy uses subsidiaries, franchises, or joint ventures with substantial
independence.
multidomestic
110
The ________ strategy describes a condition in which material, people, and ideas cross or
transgress national boundaries.
transnational
