Chapter 9

Question 1

Experience curve

Answer 1

Relationship between the unit cost and the cumulative output

Question 2

7 cost drivers of cost advantage.

Answer 2

Economies of scale,economies of learning,process technology and process design,product design,capacity utilization,input costs,residual efficiency

Question 3

Technology superior process

Answer 3

If it uses less of one input without using more of any other input

Question 4

Business process re-engineering (BPR)

Answer 4

Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance,such as cost,quality,speed and service

Question 5

Business process management

Answer 5

Redesign ans enhancement of org.processes

Question 6

Residual efficency

Answer 6

Extent to which the firm approaches its efficiency frontier of optimal operation

Question 7

Organisatonal slack or x-inefficiency

Answer 7

Surplus costs that keep the firm from max.-efficiency operation-these costs are called organisational fat