Chap 2: Competitiveness, Strategy and Productivity

Question 1

The effectiveness of an organization in the marketplace relative to other organizations that offer similar products and services.

Answer 1

Competitiveness

Question 2

The plans that determine how an organization pursues its
goals.

Answer 2

Strategy

Question 3

The effective use of resources, and it has a direct impact on competitiveness.

Answer 3

Productivity

Question 4

An important factor in determining whether a company prospers, barely gets by or fails.

Answer 4

Competitiveness

Question 5

Marketing influences competitiveness in several ways, including

Answer 5

• identifying consumer
  wants and needs
• pricing
• advertising and promotion

Question 6

the ideal is to achieve a perfect match between those wants and needs, and the organization’s goods and or services

Answer 6

identifying consumer
wants and needs

Question 7

key factor in consumer buying decisions

Answer 7

pricing

Question 8

ways to inform potential customers about features of their products or services, and attract buyers

Answer 8

advertising and promotion

Question 9

Operations has a major influence on competitiveness through

Answer 9

-product and service
design
-cost
-location
-quality
-response time
-flexibility
-inventory management
-supply chain
management
-service
-managers and workers

Question 10

should reflect joint efforts of many areas of the firm to achieve a match among financial resources, operations capabilities, supply chain capabilities, and consumer needs and wants.

Answer 10

product and service
design

Question 11

key variable that affects pricing decisions and profits.

Answer 11

cost

Question 12

can be important in terms of cost and convenience for
customers

Answer 12

location

Question 13

refers to materials, workmanship, design and service

Answer 13

quality

Question 14

It quickly bringing new or improved products or services to the market. Another is being able to quickly deliver existing products and services to a customer after they ordered, and still another is quickly handling customer complaints.

Answer 14

Quick Response

Question 15

The ability to respond to changes. Changes might relate to alterations in design features of a product or service, or to the volume demanded by customers, or the mix of products or services offered by an organization.

Answer 15

flexibility

Question 16

It can be a competitive advantage by effectively matching supplies of goods with demand

Answer 16

inventory management

Question 17

Involves coordinating internal and
external operations (buyers and suppliers) to achieve timely and cost-effective delivery of goods throughout the system

Answer 17

supply chain
management

Question 18

It might involve after sale activities customers perceive as value adding such as delivery, setup, warranty work, and technical support.

Answer 18

service

Question 19

The people at the heart and soul of an organization, and if they are competent and motivated, they can provide a distinct competitive edge by their skills and the ideas they create.

Answer 19

managers and workers

Question 20

Plans for achieving organizational goals.

Answer 20

Strategies

Question 21

the reason for organization’s existence

Answer 21

mission

Question 22

serves as the basis for organizational goals, which provide more detail and describe the scope of the mission

Answer 22

mission statement

Question 23

relate to how an organization wants to be perceived by the general public, and by its employees, suppliers and customers

Answer 23

mission and goals

Question 24

serve as foundation for the development of organizational strategies

Answer 24

Goals

Question 25

provide the basis for strategies and tactics of the functional units of the organization

Answer 25

Goals

Question 26

methods and actions used to strategies

Answer 26

Tactics

Question 27

EXAMPLES OF STRATEGIES

Answer 27

1. Low Cost 2. Scale-based Strategies 3. Specialization 4. Flexible Questions 5. High Quality 6. Service 7. Sustainability

Question 28

Outsource operations to third-world countries that have low labor costs.

Answer 28

Low Cost

Question 29

Use capital-intensive methods to achieve high output volume and low unit costs.

Answer 29

Scale-based Strategies

Question 30

Focus on narrow product lines or limited service to achieve higher quality.

Answer 30

Specialization

Question 31

Focus on quick response and/or customization.

Answer 31

Flexible Operations

Question 32

Focus on achieving higher quality than competitors

Answer 32

High Quality

Question 33

Focus on various aspects of service

Answer 33

Service

Question 34

Focus on environmental-friendly and energy-efficient operations.

Answer 34

Sustainability

Question 35

To formulate the strategy, a firm must assess its own characteristics with regards to the following:

Answer 35

1. Primary purpose of the firm. 2. Mission Statement. 3. Distinctive Competencies

Question 36

A business firm must decide and assess the kind of business it wants to be in, identify its customers, set its goals for survival, growth and profitability.

Answer 36

Primary purpose of the firm

Question 37

The reason for a firm’s existence, states the purpose of the organization.

Answer 37

Mission Statement

Question 38

Signify the competitive advantages of a firm over its rivals in terms of technology, automated production units, skilled and professional production and marketing workforce, coupled with firm’s ability to bring out innovative products to the market.

Answer 38

Distinctive Competencies

Question 39

It is the considering of events and trends that present either threats or opportunities for the organizations.

Answer 39

ENVIRONMENTAL SCANNNING

Question 40

ENVIRONMENTAL SCANNNING INCLUDES:

Answer 40

-competitor’s activities -changing customer needs -legal issues -economic issues -political issues -environmental issues -potential for new markets

Question 41

done by a firm to assess the opportunities which a firm can exploit, and threats it must counter and/or buffer against

Answer 41

external environment analysis

Question 42

Important Key External Factors

Answer 42

Economic Conditions Political Conditions Legal Environment Technology Competition Markets

Question 43

These include the general health and direction of the economy, inflation and deflation, interest rates, tax laws, and tariffs.

Answer 43

Economic Conditions

Question 44

These include favorable or unfavorable attitudes toward business, political stability or instability, and wars.

Answer 44

Political Conditions

Question 45

This includes antitrust laws, government regulations, trade restrictions, minimum wages, product liability laws and recent court experience, labor laws, and patents.

Answer 45

Legal Environment

Question 46

This can include the rate at which product innovations are occurring, current and future process technology (equipment, materials handling) and design technology.

Answer 46

Technology

Question 47

This includes the number and strength of competitors, the basis of competition (price, quality, special features) and the ease of market entry.

Answer 47

Competition

Question 48

This include the size, location, brand loyalties, ease of entry, potential for growth, long-term stability, and demographics.

Answer 48

Markets

Question 49

An organization’s resources are represented by its assets, which include

Answer 49

financial, physical, human and intangible assets that are used by the firm develop, manufacture and deliver products or services to customers

Question 50

represented by the skills and abilities of its human capital in performing different activities in all functional areas, including operations function to support the firm’s business goals.

Answer 50

capabilities

Question 51

Important Key Internal Factors

Answer 51

Human Resources Facilities and equipment Financial Resources Customers Products and Services Technology Suppliers Other factors

Question 52

These include the skills and abilities of managers and workers; special talents (creativity, designing, problem solving); loyalty to the organizations; expertise; dedication; and experience.

Answer 52

Human Resources

Question 53

Capacities, location age, and cost to maintain or replace can have a significant impact on operations.

Answer 53

Facilities and equipment

Question 54

Cash flow, access to additional funding; existing debt burden, and cost of capital are important considerations.

Answer 54

Financial Resources

Question 55

Loyalty, existing relationship, and understanding of wants and needs are important.

Answer 55

Customers

Question 56

These include existing products and services, and the potential for new products and services.

Answer 56

Products and Services

Question 57

Technology

Answer 57

This includes existing technology, the ability to integrate new technology, and the probable impact of technology on current and future operations.

Question 58

Supplier relationships, dependability of suppliers, quality, flexibility, and service are typical considerations.

Answer 58

Suppliers

Question 59

Patents, labor relations, company or product image, distribution channels, relationships with distributors, maintenance of facilities and equipment, access to resources, and access to markets.

Answer 59

Other factors

Question 60

major value creating capabilities and skills of the organization

Answer 60

core-competencies

Question 61

Unique resources and strengths of the organization that are taken into account while formulating the strategy.

Answer 61

Core competencies

Question 62

the characteristics or features of a product or service that qualify it to be considered for purchase by a customer

Answer 62

Order Qualifiers

Question 63

the characteristics of a product or service that wins orders from customers

Answer 63

Order Winner

Question 64

designed according to customer specifications and orders result in different varieties of products, which can be produced in small batches.

Answer 64

Customized products

Question 65

the important requirements for customized products

Answer 65

flexibility and on-time delivery

Question 66

The selection of ____________________for manufacturing results in availability of few limited varieties/types/models of products that can be produced in large batches; some products can be produced even continuously.

Answer 66

standard products

Question 67

best suited to producing unique products, usually in low volumes

Answer 67

Processed focused production system

Question 68

can be regulated to meet customer requirements

Answer 68

Product volumes

Question 69

Quality-based strategies

Answer 69

1. Focused on maintaining or improving the quality of an organization’s products or services. 2. They may reflect an effort to overcome an image of poor quality, a desire to catch up with the competition, a desire to maintain an existing image of high quality, or some combination of these and other factors. 3. Can be part of another strategy such as cost reduction, increased productivity, or time, all of which benefit from higher quality

Question 70

Time-Based Strategies

Answer 70

1. Focused on reducing the time required to accomplish various activities (e.g. develop new products or services and market them, respond to a change in customer demand, or deliver a product or perform a service). 2. Also focus on reducing the time needed to conduct the various activities in a process. The rationale is that by reducing time, costs are generally less, productivity is higher, quality tends to be higher, product innovations appear on the market sooner, and customer service is improved.

Question 71

An index that measures output (goods and services) relative to the input (labor, materials, energy and other resources) used to produce them.

Answer 71

Productivity

Question 72

can be computed for a single operation, a department, an organization or an entire country

Answer 72

productivity ratio

Question 73

used for planning workforce requirements, scheduling equipment, financial analysis, and other important tasks

Answer 73

productivity ratios

Question 74

higher productivity means

Answer 74

lower costs

Question 75

the increase in productivity from one period to the next relative to the productivity in the preceding period

Answer 75

Productivity growth

Question 76

Product Variables percentage of contribute to the annual increase

Answer 76

- Labor (10%) - Capital (38%) - Management (52%)

Question 77

improvement in the contribution of labor to productivity is the result of a healthier, better-educated, and better-nourished labor force

Answer 77

Labor

Question 78

Inflation and taxes increase the cost of

Answer 78

Capital

Question 79

a factor of production and an economic resource.

Answer 79

Management