Question 1

Flexible manufacturing technologies enable companies to produce small batches of high-quality customized products at a cost that,at one time,could be achieved only through mass production.

Accepted Answer

Flexible manufacturing technologies, such as robotics, artificial intelligence, and additive manufacturing, allow for greater flexibility in production processes, making it easier and more cost-effective to produce small batches of highly customized products. This capability was traditionally only possible through mass production, making flexible manufacturing technologies a game-changer for many industries.

Question 2

No matter how complex the task is,learning effects typically die out after a limited period of time.

Accepted Answer

This statement is true. Learning effects refer to the improvement in performance or skill that occurs as a result of practice or experience. However, research has shown that these effects tend to plateau and eventually level off after a certain amount of time or repetitions. This is known as the law of diminishing returns.

Question 3

Distinctive competencies shape the functional-level strategies that a company can pursue.

Accepted Answer

Distinctive competencies are unique strengths and capabilities that a company has compared to its competitors, which can be used to create a competitive advantage. These competencies can shape the functional-level strategies that a company can pursue, such as focusing on cost leadership, differentiation, or niche market segments.

Question 4

Mass customization describes the ability of companies to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Accepted Answer

Mass customization allows companies to produce customized products at a low cost through flexible manufacturing technology.

Question 5

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 lead to a product not being perceived correctly by the target market and failing to generate enough sales, even if the product itself is of high quality and has potential.

Question 6

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 7

A vital source of information about the causes of poor quality are the firm's own employees.

Accepted Answer

The firm's own employees have firsthand experience and knowledge of the processes and systems, and they can help identify the root cause of poor quality. They are also in a position to suggest improvements and solutions to the problems.

Question 8

While Information Systems (IS)have greatly improved externally focused decision making,they have had little impact on lowering costs.

Accepted Answer

Information Systems have had a significant impact on lowering costs for organizations through automation, optimization, and streamlining of processes.

Question 9

Learning effects tend to be more significant when a technologically complex task is performed only occasionally.

Accepted Answer

The answer of Learning effects tend to be more significant...

Question 10

The challenge for a company's human resource function is to find ways to lower wage and benefits costs.

Accepted Answer

While cost savings is often a consideration for the human resource function, their primary responsibility is to manage and support the company's workforce, including recruitment, training, and development. Additionally, lowering wages and benefits can have negative impacts on employee morale and retention, making it a less desirable strategy for HR.

Question 11

Six Sigma is a quality and efficiency program derived from the concept of Total Quality Management,and was widely used in Japan before acceptance in the U.S.

Accepted Answer

The answer of Six Sigma is a quality and efficiency...

Question 12

The Six Sigma name refers to the Greek letter meaning standard deviation from the mean.

Accepted Answer

The Six Sigma name is derived from statistics and specifically refers to a measure of quality that is six standard deviations from the mean. The Greek letter used to denote standard deviation is sigma. Therefore, Six Sigma represents an extremely high level of quality control and process efficiency.

Question 13

Functional strategies,because they occur at a low level in the firm,play only a small role in organizational success.

Accepted Answer

This statement is false. Functional strategies play a crucial role in organizational success as they are responsible for the day-to-day operations of the firm, ensuring the efficient use of resources, and ultimately contributing to the achievement of the firm's overall goals and objectives.

Question 14

The law of economies of scale suggests that unit costs continue to fall indefinitely as output volume increases.

Accepted Answer

The law of economies of scale suggests that unit costs initially decrease as output volume increases, but eventually reach a minimum point before increasing again. This is because as production increases, fixed costs can be spread out over more units, leading to lower unit costs. However, there are also limitations to this, such as the availability of raw materials, labor, and equipment, which can cause inefficiencies or bottlenecks that increase costs. Additionally, as output volume continues to increase, there may be diminishing returns or diseconomies of scale, where further increases in production can actually lead to higher unit costs due to factors such as increased complexity, difficulty in coordination, or decreased flexibility.

Question 15

A benefit of long-time customer loyalty is the free advertising that customers provide for a company through referrals.

Accepted Answer

Long-time loyal customers are more likely to recommend a company to others, which can result in free advertising through word-of-mouth referrals.

Question 16

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 refers to situations where there is demand for a product but the product itself is not well-suited for the needs of the customers. This typically occurs due to factors such as poor design and low quality, which can lead to low sales and a lack of business success.

Question 17

All else being equal,if a company moves down the experience curve faster than its rivals,it should realize a lower cost structure.

Accepted Answer

The experience curve refers to the reduction in costs that occurs as a company gains experience in producing a product or providing a service. If a company is able to move down the experience curve faster than its competitors, it will be able to produce the same product or service at a lower cost, giving it a competitive advantage in the marketplace.

Question 18

Diseconomies of scale are the unit cost increases associated with a large scale of output.

Accepted Answer

Diseconomies of scale occur when the cost per unit of production increases as output increases. This can be due to factors such as increased complexity of management, difficulty in coordinating large scale operations, or inefficiencies in communication and decision-making. It is the opposite of economies of scale, where the cost per unit decreases as output increases.

Question 19

Unfortunately,Harvard Business School found no differences in learning effects among hospitals performing a new cardiac procedure.

Accepted Answer

Harvard Business School found differences in learning effects among hospitals performing a new cardiac procedure, indicating variability in how hospitals learn and improve over time.

Question 20

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

Accepted Answer

The answer of There is a negative relationship between the...

Quiz 4: Building Competitive Advantage Through Functional-Level Strategy