Chapter 2 Strategy

Question 1

the setting of broad policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy

Answer 1

operations and supply chain strategy

Question 2

performing activities in a manner that best implements strategic priorities at minimum cost

Answer 2

operations effectiveness

Question 3

this step involves looking out and forecasting how business conditions that impact the firms strategy are going to change in the future

Answer 3

strategic analysis

Question 4

the major steps that need to be taken to drive success in the firm

Answer 4

initiatives

Question 5

make the product or deliver the service inexpensively
- market that buys solely on the basis of low cost
- Typically commodity like, customers cant distinguish the product from one firm to another
- Competition is fierce
which competitive dimension is this ?

Answer 5

Cost or price

Question 6

make a great product or deliver a great service
which competitive dimension is this ?

Answer 6

quality

Question 7

make the product or deliver the service quickly
- Company that offers repair service in 1 0r 2 hours has more advantage than a competing firm that guarantees service within 24 hours
which competitive dimension is this ?

Answer 7

delivery speed

Question 8

deliver it when promised
- Relates to the firms ability to supply the product or service on or before a promised delivery due date
which competitive dimension is this ?

Answer 8

delivery reliability

Question 9

change its volume
- The ability to effectively deal with dynamic market demand over the long term is an essential element of operations strategy
which competitive dimension is this ?

Answer 9

coping with changes in demand

Question 10

change it
- Refers to the ability of a company to offer a wide variety of products to its customers
which competitive dimension is this ?

Answer 10

Flexibility and new product introduction speed

Question 11

support it
i. Technical liasion and support
ii. Meeting a launch date
iii. Supplier after sale suport
iv. Environemntal impact
v. Other dimesions
which competitive dimension is this ?

Answer 11

other prodcut specific criteria

Question 12

activities are incompatible so that more of one thing necessitates less of another

Answer 12

trade offs

Question 13

when a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if trade offs need to be made

Answer 13

straddling

Question 14

one or more specific marketing oriented dimensions that clearly differentiate a product from competing products

Answer 14

order winner

Question 15

dimensions used to screen a product or service as a candidate for purchase

Answer 15

order qualifiers

Question 16

diagrams that show how a company’s strategy is delivered through a set of supporting activities

Answer 16

activity system maps

Question 17

the likelihood of a disruption that would impact the ability of a company to continuously supply products or services

Answer 17

supply chain risk

Question 18

are unplanned and unanticipated events that disrupt the normal flow of goods and materials within a supply chain and that expose firms within the supply chain to operational and financial risks

Answer 18

supply chain disruptions

Question 19

what are the 4 types of risk mitigating strategies

Answer 19

1. avoidance
2. accept
3. transfer
4. limit

Question 20

risks should be avoided that have a high probability of both financial loss and damage
which type of risk mitigating strategy is this ?

Answer 20

avoidance

Question 21

with some risks, the expenses involved in mitigating the risk is more than the cost of tolerating the risk
which type of risk mitigating strategy is this ?

Answer 21

accept

Question 22

risks that have a low probability of taking place but would have large financial impact should be mitigated by being shared or transferred
which type of risk mitigating strategy is this ?

Answer 22

transfer

Question 23

the most common mitigating strategy. Here businesses take some type of action to address the risk and manage the exposure
which type of risk mitigating strategy is this ?

Answer 23

limit

Question 24

a measure of how well resources are used

Answer 24

productivity

Question 25

= outputs / inputs

Answer 25

productivity

Question 26

is what we call a relative measure - to be meaningful, it needs to be compared with something else

Answer 26

productivity

Question 27

what are the 2 ways prodcutivity comparison can be made

Answer 27

1. a company can compare itself to similar operations within its industry 2. it can use industry data

Question 28

concerned with the ratio of some output to a single input

Answer 28

partial productivity measure

Question 29

want to look at the ratio of some output to a group of inputs (but not all inputs)

Answer 29

multifactor productivity measure

Question 30

want to express the ratio of all outputs to all inputs

Answer 30

total factor measure of productivity

Question 31

individuals or companies that legally own one or more shares of stock in the company

Answer 31

shareholders

Question 32

individuals or organizations that influenced, either directly or indirectly, by the actions of the firm

Answer 32

stakeholders

Question 33

pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business

Answer 33

social responsibility

Question 34

the firm is obligated to compensate shareholders who provide capital through stock purchases and other financial instruments via a competitive return on investment

Answer 34

economic prosperity

Question 35

the firms impact on the environment

Answer 35

environmental stewardship

Question 36

drives design decisions within and across the firm involving human resources, equipment, and methods that transform inputs into output.

Answer 36

producutivity strategy