Question 1

Higher product quality can increase efficiency and thereby increase operating costs.

Accepted Answer

Higher product quality can increase efficiency and thereby lower operating costs and boost profits.

Question 2

Each functional activity along the chain adds value to the product when it lowers costs or gives the product differentiated qualities that increase the price a company can charge for it.

Accepted Answer

Each functional activity along the chain adds value to the product when it lowers costs or gives the product differentiated qualities that increase the price a company can charge for it.

Question 3

A high quality,well-designed product will always be successful.

Accepted Answer

Even the best-designed product can fail if the marketing function hasn't devised a careful plan to persuade people to buy it and try it out-or to make sure customers really want it.

Question 4

Providing high quality products creates a brand-name reputation for an organization's products.

Accepted Answer

Often providing high-quality products creates a brand-name reputation for an organization's products.

Question 5

Quality is a concept that can be applied to manufacturing but not to service organizations.

Accepted Answer

Quality is a concept that can be applied to the products of both manufacturing and service organizations.

Question 6

Successful innovation gives an organization something different about its products that can strengthen its competitive advantage.

Accepted Answer

Successful innovation gives an organization something unique or different about its products that rivals lack-more sophisticated products,production processes,or strategies and structures that strengthen its competitive advantage.

Question 7

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer.

Accepted Answer

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer.

Question 8

Dianna,a shift supervisor for RST Manufacturing,leads a crew that continually turns out high quality products.This translates into increased efficiency,lower operating costs and ultimately increased profits.

Accepted Answer

Higher product quality can increase efficiency and thereby lower operating costs and boost profits.

Question 9

Southwest's low-cost operating system focuses value chain management.

Accepted Answer

Southwest's excellent value chain management has given it a competitive advantage in the airline industry.

Question 10

The fewer the inputs required to produce a given output,the lower is the efficiency and the higher the cost of outputs.

Accepted Answer

The fewer the inputs required to produce a given output,the higher is efficiency and the lower the cost of outputs.

Question 11

Managers know that the more desired product attributes a company's value chain builds into its products,the lower the price charged to the consumer.

Accepted Answer

Managers know that the more desired product attributes a company's value chain builds into its products,the higher the price that must be charged to cover the costs of developing and making the product.

Question 12

There are ten steps necessary to make a TQM control system work.

Accepted Answer

10 steps are necessary for managers to implement a successful TQM program.

Question 13

Innovation means producing goods and services that have attributes-such as design,styling,performance,and reliability-that customers perceive as being superior to those found in competing products.

Accepted Answer

Quality means producing goods and services that have attributes-such as design,styling,performance,and reliability-that customers perceive as being superior to those found in competing products.

Question 14

TQM will do little to improve the performance of an organization unless all employees embrace it.

Accepted Answer

TQM requires the cooperation of managers in every function of an organization and across functions.

Question 15

Managers must seek to improve responsiveness to customers by offering a level of responsiveness to customers that causes the operating system to sustain a small loss.

Accepted Answer

Although managers must seek to improve their responsiveness to customers by improving how the value chain operates,they should not offer a level of responsiveness to customers that results in costs becoming too high-something that threatens an organization's future performance and survival.

Question 16

The term "value chain" refers to the idea that a company is a chain of functional activities that transforms inputs into an output of goods or services that customers value.

Accepted Answer

A company's value chain is the coordinated series or sequence of functional activities necessary to transform inputs such as new product concepts,raw materials,component parts,or professional skills into the finished goods or services customers value and want to buy.

Question 17

The first step in a successful TQM program is to focus on the customer.

Accepted Answer

The first step in the TQM process is build organizational commitment to quality.

Question 18

Each functional activity along the chain adds value to the product by increasing costs that increase the price a company can charge for it.

Accepted Answer

Each functional activity along the chain adds value to the product when it lowers costs or gives the product differentiated qualities that increase the price a company can charge for it.

Question 19

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes.

Accepted Answer

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes.

Question 20

One functional strategy managers can use to get close to customers and understand their needs is value chain management.

Accepted Answer

One functional strategy managers can use to get close to customers and understand their needs is customer relationship management.

Quiz 9: Value-Chain Management: Functional Strategies for Competitive Advantage

Higher product quality can increase efficiency and thereby increase operating costs.

Each functional activity along the chain adds value to the product when it lowers costs or gives the product differentiated qualities that increase the price a company can charge for it.

A high quality,well-designed product will always be successful.

Providing high quality products creates a brand-name reputation for an organization's products.

Quality is a concept that can be applied to manufacturing but not to service organizations.

Successful innovation gives an organization something different about its products that can strengthen its competitive advantage.

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer.

Dianna,a shift supervisor for RST Manufacturing,leads a crew that continually turns out high quality products.This translates into increased efficiency,lower operating costs and ultimately increased profits.

Southwest's low-cost operating system focuses value chain management.

The fewer the inputs required to produce a given output,the lower is the efficiency and the higher the cost of outputs.

Managers know that the more desired product attributes a company's value chain builds into its products,the lower the price charged to the consumer.

There are ten steps necessary to make a TQM control system work.

Innovation means producing goods and services that have attributes-such as design,styling,performance,and reliability-that customers perceive as being superior to those found in competing products.

TQM will do little to improve the performance of an organization unless all employees embrace it.

Managers must seek to improve responsiveness to customers by offering a level of responsiveness to customers that causes the operating system to sustain a small loss.

The term "value chain" refers to the idea that a company is a chain of functional activities that transforms inputs into an output of goods or services that customers value.

The first step in a successful TQM program is to focus on the customer.

Each functional activity along the chain adds value to the product by increasing costs that increase the price a company can charge for it.

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes.

One functional strategy managers can use to get close to customers and understand their needs is value chain management.