Question 1

Incremental product innovations are relatively rare;most managers' activities focus on quantum product innovations.

Accepted Answer

Quantum product innovations are relatively rare;most managers' activities focus on
incremental product innovations that result from ongoing technological advances.

Question 2

Process reengineering involves the radical redesign the value chain to achieve dramatic improvements in critical measures of performance such as cost,quality,service,and speed.

Accepted Answer

Process reengineering involves the fundamental rethinking and radical redesign of business processes (and thus the value chain)to achieve dramatic improvements in critical measures of performance such as cost,quality,service,and speed.

Question 3

The goal of Six Sigma is to improve a company's quality to only six defects per million.

Accepted Answer

The goal of Six Sigma is to improve a company's quality to only three defects per million.

Question 4

The greater the input resources required to produce a given volume of output,the higher will be the efficiency of the operating system.

Accepted Answer

The fewer the input resources required to produce a given volume of output,the higher will be the efficiency of the operating system.

Question 5

By using self-managed teams,organizations can often realize a 30% or more increase in efficiency.

Accepted Answer

The effect of introducing self-managed teams is often an increase in efficiency of 30% or sometimes much more.

Question 6

A favorable outcome of flexible manufacturing is that a company is able to produce many more varieties of a product than before,in the same amount of time.

Accepted Answer

Another favorable outcome from flexible manufacturing is that a company can produce many more varieties of a product than before in the same amount of time.

Question 7

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Accepted Answer

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Question 8

Art,the owner of Arts Electronics,calls every customer 10 days after their purchase to ensure they are satisfied with home electronics purchase.Art is using the ______ function which can create a perception of superior value by supporting customers after they have purchased the product.
A)Production
B)Materials management
C)Service
D)Marketing
E)Information systems

Accepted Answer

The service function can create a perception of superior value by solving customer problems and supporting customers after they have purchased the product.

Question 9

Fast inventory turnover was not a factor influencing Wal-Mart's competitive advantage in the retailing industry.

Accepted Answer

Faster inventory turnover has helped Walmart achieve an efficiency-based competitive advantage in the retailing industry.

Question 10

The more steps required to assemble a product or provide a service,the fewer opportunities there are for making mistakes.

Accepted Answer

The more steps required to assemble a product or provide a service,the more opportunities there are for making a mistake.

Question 11

Wal-Mart,the US retailing giant,has created the most efficient ________________ function in the retail industry by tightly controlling the flow of goods from its suppliers through its stores into the hands of customers.
A)Production
B)Materials management
C)Service
D)Marketing
E)Information systems

Accepted Answer

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

Question 12

All of the following are ways to create a competitive advantage EXCEPT:
A)Improve quality
B)Improve efficiency
C)Improve responsiveness to customers
D)Improve innovation
E)Improve effectiveness

Accepted Answer

Improving effectiveness is not typically considered a distinct way to create a competitive advantage; it is more of a general goal that encompasses the other options like quality, efficiency, responsiveness, and innovation.

Question 13

Output goals and targets need to only include numbers or quotas.

Accepted Answer

Output goals and targets need to include not only numbers or quotas but also some indicators of quality to promote the production of defect-free output.

Question 14

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers:
A)More product attributes at the same price
B)More product attributes at a higher price
C)Fewer product attributes at a lower price
D)Fewer product attributes at the same price
E)Same product attributes at the same price

Accepted Answer

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers either more desired product attributes for the same price or the same product attributes for a lower price.

Question 15

The development of a set of functional-level strategies to increase the performance of the operating system a company uses to transform inputs into finished goods and services is known as:
A)Research and development
B)TQM
C)Value chain management
D)Materials management
E)Efficiency management

Accepted Answer

Value chain management is the development of a set of functional-level strategies that support a company's business-level strategy and strengthen its competitive advantage.

Question 16

Through brand positioning and advertising,the __________ function can increase
The value that customers perceive to be contained in a company's product.
A)Production
B)Materials management
C)Service
D)Marketing
E)Information systems

Accepted Answer

Marketing can help create value through brand positioning and advertising that increase customer perceptions of the utility of a company's product.

Question 17

People often respond poorly to being given greater autonomy and responsibility,so the use of empowered self-managed teams often decreases productivity and efficiency.

Accepted Answer

Because people often respond well to greater autonomy and responsibility,the use of empowered self-managed teams can increase productivity and efficiency.

Question 18

Incremental product innovation results in the development of new,often radically different,kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.

Accepted Answer

Quantum product innovation results in the development of new,often radically different,kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.

Question 19

Dan,the president of Missouri Bank,originates a loan for a customer.Dan is carrying out the ______ function.
A)Production
B)Materials management
C)Service
D)Marketing
E)Sales

Accepted Answer

The production function is responsible for creating,assembling,or providing a good or service-for transforming inputs into outputs.

Question 20

A(n)_________________ is the coordinated series or sequence of functional activities needed to transform inputs into finished goods or services.
A)Operating system
B)Factory layout
C)Organizational hierarchy
D)Value chain
E)Production function

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.

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

Incremental product innovations are relatively rare;most managers' activities focus on quantum product innovations.

Process reengineering involves the radical redesign the value chain to achieve dramatic improvements in critical measures of performance such as cost,quality,service,and speed.

The goal of Six Sigma is to improve a company's quality to only six defects per million.

The greater the input resources required to produce a given volume of output,the higher will be the efficiency of the operating system.

By using self-managed teams,organizations can often realize a 30% or more increase in efficiency.

A favorable outcome of flexible manufacturing is that a company is able to produce many more varieties of a product than before,in the same amount of time.

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Art,the owner of Arts Electronics,calls every customer 10 days after their purchase to ensure they are satisfied with home electronics purchase.Art is using the ______ function which can create a perception of superior value by supporting customers after they have purchased the product.

Fast inventory turnover was not a factor influencing Wal-Mart's competitive advantage in the retailing industry.

The more steps required to assemble a product or provide a service,the fewer opportunities there are for making mistakes.

Wal-Mart,the US retailing giant,has created the most efficient ________________ function in the retail industry by tightly controlling the flow of goods from its suppliers through its stores into the hands of customers.

All of the following are ways to create a competitive advantage EXCEPT:

Output goals and targets need to only include numbers or quotas.

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers:

The development of a set of functional-level strategies to increase the performance of the operating system a company uses to transform inputs into finished goods and services is known as:

Through brand positioning and advertising,the __________ function can increase The value that customers perceive to be contained in a company's product.

People often respond poorly to being given greater autonomy and responsibility,so the use of empowered self-managed teams often decreases productivity and efficiency.

Incremental product innovation results in the development of new,often radically different,kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.

Dan,the president of Missouri Bank,originates a loan for a customer.Dan is carrying out the ______ function.

A(n) _________________ is the coordinated series or sequence of functional activities needed to transform inputs into finished goods or services.