Deck 2: Operations Strategy in a Global Environment

Question 1

Boeing's new 787 Dreamliner:

A) is assembled in Washington, D.C.
B) uses engines from Japan.
C) has its fuselage sections built in Australia.
D) has increased efficiency from new engine technology.
E) results from a partnership of about a dozen companies.

Answer 1

D

Question 2

One reason for global operations is to gain improvements in the supply chain.

Answer 2

True

Question 3

A product will always be in the same stage of its product life cycle regardless of the country.

Answer 3

False

Question 4

Which of the following did the authors NOT suggest as a reason for globalizing operations?

A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent

Question 5

Cost cutting in international operations can take place because of:

A) lower taxes and tariffs.
B) lower wage scales.
C) lower indirect costs.
D) less stringent regulations.
E) all of the above.

Question 6

NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States.

Question 7

Which of the following statements regarding the Dreamliner 787 is NOT true?

A) Boeing has found partners in over a dozen countries.
B) The new aircraft incorporates a wide range of aerospace technologies.
C) The new aircraft uses engines from not one, but two manufacturers.
D) Boeing is only sourcing 787 components from suppliers in countries that have agreed not to purchase planes from Airbus.
E) Boeing's enormous global supply chain delivers more than a billion parts and subassemblies to Boeing plants every year.

Question 8

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through quick response.

Question 9

Which of the following represents a reason for globalizing operations?

A) to improve the supply chain
B) to improve operations
C) to expand a product's life cycle
D) to attract and retain global talent
E) all of these

Question 10

Which of the following is TRUE of maquiladoras?

A) They discourage foreign businesses from outsourcing.
B) They assess tariffs only on the value-added work done.
C) They originated in China.
D) None of these
E) All of these

Question 11

Due to cultural reasons, there are more female managers in the Middle East than in India.

Question 12

Which of the following does NOT represent a valid reason for globalizing operations?

A) reduce costs
B) improve the supply chain
C) reduce responsiveness
D) attract and retain global talent
E) understand markets

Question 13

The World Trade Organization has helped significantly reduce tariffs around the world.

Question 14

Production processes are being dispersed to take advantage of national differences in labor costs.

Question 15

To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.

Question 16

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.

Question 17

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

Question 18

One reason to globalize is to learn to improve operations.

Question 19

The term maquiladora is most synonymous with:

A) free trade zones in Mexico.
B) North Korean forced labor camps.
C) home-based or cottage industry.
D) areas that do not meet U.S. standards for workplace safety and pollution.
E) tax breaks provided by some South American countries to other South American countries.

Question 20

Multinational organizations can shop from country to country and cut costs through:

A) lower wage scales.
B) lower indirect costs.
C) less stringent regulations.
D) lower taxes and tariffs.
E) all of the these.

Question 21

________ are areas located along the United States-Mexico border in which factories receive preferential tariff treatment.

Question 22

With reference to cultural and ethical issues, the World Trade Organization has:

A) eliminated bribery.
B) made progress in providing equal protection of intellectual property among nations.
C) phased out all trade and tariff barriers between the United States and Mexico.
D) eliminated slave labor and child labor.
E) played little role in addressing cultural and ethical issues among nations.

Question 23

How can global operations improve the supply chain?

Question 24

________ is a free trade agreement among Canada, Mexico, and the United States.

Question 25

A firm should formulate its strategy before establishing its mission.

Question 26

An effective operations management effort must have a strategy so it knows where it is going and a mission so it knows how to get there.

Question 27

Which of the following activities takes place most immediately once the mission has been developed?

A) The firm develops alternative or back-up missions in case the original mission fails.
B) The functional areas develop their functional area strategies.
C) The functional areas develop their supporting missions.
D) The ten OM decision areas are prioritized.
E) Operational tactics are developed.

Question 28

An organization's strategy is the purpose or rationale for its existence.

Question 29

An organization that has worked to achieve global uniformity in cultural and ethical issues such as bribery, child labor, and environmental regulations is ________.

Question 30

________ and ________ are two issues where significant cultural differences are large, yet progress toward global uniformity is slowly being accepted.

Question 31

State two examples of cultural and ethical issues that face operations managers in a global environment.

Question 32

The fundamental purpose of an organization's mission statement is to:

A) create a good human relations climate in the organization.
B) define the organization's purpose in society.
C) define the operational structure of the organization.
D) generate good public relations for the organization.
E) define the functional areas required by the organization.

Question 33

Which of the following statements is TRUE?

A) Corporate mission is shaped by functional strategies.
B) Corporate strategy is shaped by functional strategies.
C) Functional strategies are shaped by corporate strategy.
D) External conditions are shaped by corporate mission.
E) Functional area missions are merged to become the organizational mission.

Question 34

Since the early 1990s, residents in a number of developing countries have overcome culture, religious, ethnic, and political productivity barriers. These disappearing barriers coupled with simultaneous advances in technology, reliable shipping, and cheap communication have all led to the growth of what three things?

Question 35

The purpose of NAFTA is to:

A) substitute cheap labor in Mexico for expensive labor in the United States.
B) curb illegal immigration from Mexico to the United States.
C) phase out all trade and tariff barriers between North America and South America.
D) phase out all trade and tariff barriers between the United States, Canada, and Mexico.
E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.

Question 36

Identify five countries from which Boeing's 787 Dreamliner has suppliers.

Question 37

Which of the following statements about organizational missions is FALSE?

A) They reflect a company's purpose.
B) They indicate what a company intends to contribute to society.
C) They are formulated after strategies are known.
D) They define a company's reason for existence.
E) They provide guidance for functional area missions.

Question 38

According to the authors, which of the following strategic concepts allow firms to achieve their missions?

A) productivity, efficiency, and quality leadership
B) differentiation, cost leadership, and response
C) differentiation, quality leadership, and response
D) distinctive competency, cost leadership, and experience
E) differentiation, distinctive competency, quality leadership, and capacity

Question 39

Identify four trade agreements that are facilitating the growth of world trade.

Question 40

How do global operations understand markets?

Question 41

Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.

Question 42

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is:

A) sensory response.
B) time-based competition.
C) differentiation.
D) flexible response.
E) experience differentiation.

Question 43

Which of the following is the best example of competing on low-cost leadership?

A) A firm produces its product with less raw material waste than its competitors do.
B) A firm offers more reliable products than its competitors do.
C) A firm's products are introduced into the market faster than its competitors' products are.
D) A firm's research and development department generates many ideas for new products.
E) A firm advertises more than its competitors do.

Question 44

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is:

A) mass production.
B) time-based competition.
C) competing on productivity.
D) competing on quality.
E) competing on differentiation.

Question 45

The ________ is how an organization expects to achieve its missions and goals.

Question 46

Which of the following is LEAST likely to be a low-cost leadership competitive advantage?

A) low overhead
B) effective capacity use
C) inventory management
D) broad product line
E) mass production

Question 47

Which of the following is an example of competing on the basis of differentiation?

A) A firm manufactures its product with less raw material waste than its competitors do.
B) A firm's products are introduced into the market faster than its competitors' products are.
C) A firm's distribution network routinely delivers its product on time.
D) A firm offers a much broader product line than its competitors do.
E) A firm advertises more than its competitors do.

Question 48

Franz Colruyt has achieved low-cost leadership through:

A) effective use of voice mail.
B) plastic, not paper, shopping bags.
C) background music that subtly encourages shoppers to buy more.
D) converting factories, garages, and theaters into retail outlets.
E) exclusive use of the Euro.

Question 49

Which of the following is an example of competing on quick response?

A) A firm produces its product with less raw material waste than its competitors do.
B) A firm offers more reliable products than its competitors do.
C) A firm's products are introduced into the market faster than its competitors' products.
D) A firm utilizes its capacity more effectively than its competitors do.
E) A firm advertises more than its competitors do.

Question 50

A strategy is a(n):

A) set of opportunities in the marketplace.
B) broad statement of purpose.
C) simulation used to test various product line options.
D) plan for cost reduction.
E) action plan to achieve the mission.

Question 51

Experience differentiation:

A) isolates the consumer from the delivery of a service.
B) is an extension of product differentiation in the service sector.
C) uses only the consumer's senses of vision and sound.
D) keeps consumers from becoming active participants in the service.
E) attempts to make the service experience different for every single customer.

Question 52

Which of the following is NOT an example of competing on the basis of differentiation?

A) A car manufacturer offers the best warranty in the automobile industry.
B) A firm designs its smart phone product with unique features.
C) A movie theater distinguishes itself by offering cinema suites and dine-in options.
D) A firm offers a much broader product line than its competitors do.
E) A firm advertises more than its competitors do.

Question 53

The creation of a unique advantage over competitors is called a(n) ________.

Question 54

Which of the following best describes experience differentiation?

A) immerses consumers in the delivery of a service
B) uses people's five senses to enhance the service
C) complements physical elements with visual and sound elements
D) consumers may become active participants in the product or service
E) All of the these are elements of experience differentiation.

Question 55

A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT:

A) customization of the product.
B) setting equipment utilization goals below the industry average.
C) speed of delivery.
D) constant innovation of new products.
E) maintaining a variety of product options.

Question 56

Response-based competitive advantage can be:

A) flexible response.
B) reliable response.
C) quick response.
D) all of these.
E) none of the these.

Question 57

What is the difference between a firm's mission and its strategy?

Question 58

Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service.

Question 59

Which of the following statements best characterizes delivery reliability?

A) a company that always delivers on the same day of the week
B) a company that always delivers at the promised time
C) a company that delivers more frequently than its competitors
D) a company that delivers faster than its competitors
E) a company that has a computerized delivery scheduling system

Question 60

Define the functional areas of a typical business.

Question 61

Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time?

A) forecasting
B) cost cutting
C) increasing capacity
D) product and process reliability
E) enhancing distribution

Question 62

Cost minimization is an appropriate strategy in which stage of the product life cycle?

A) introduction
B) growth
C) adolescence
D) decline
E) retirement

Question 63

Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice ________.

Question 64

Which of the following has progressed the FURTHEST along its product life cycle?

A) video physical rentals
B) Boeing 787
C) autonomous vehicles
D) virtual reality
E) Xbox One

Question 65

Who introduced the concept of value-chain analysis?

A) Ford
B) Toyota
C) Porter
D) Smith
E) Gates

Question 66

Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain.

Question 67

Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available?

A) financial
B) physical
C) human
D) technological
E) all of these

Question 68

In the product life cycle, the best stage to increase market share is maturity.

Question 69

________ is the stage in the product life cycle at which it is a poor time to change quality.

Question 70

Which of the following has made the LEAST progress along its product life cycle?

A) video physical rentals
B) Boeing 787
C) autonomous vehicles
D) virtual reality
E) Xbox One

Question 71

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects?

A) research and development, cost, legal regulations, suppliers, customers
B) immediate rivals, potential entrants, customers, suppliers, and substitute products
C) potential entrants, customers, suppliers, legal regulations, and cost
D) immediate rivals, potential entrants, cost, substitute products, and legal regulations
E) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals

Question 72

Which of the following is NOT part of value-chain analysis?

A) product research
B) quality management
C) supply chain management
D) project management
E) human resources

Question 73

Porter introduced the concept of value-chain analysis.

Question 74

A resources view is used to identify activities that represent strengths, or potential strengths, and may be opportunities for developing competitive advantage.

Question 75

Competitive advantage through operations can be achieved by ________, ________, and/or ________.

Question 76

Standardization is an appropriate strategy in which stage of the product life cycle?

A) introduction
B) growth
C) maturity
D) decline
E) retirement

Question 77

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas?

A) product research
B) human resources
C) process innovation
D) quality management
E) all of these

Question 78

Which of the following environmental factors has not contributed to Microsoft's changing strategy?

A) Google
B) security issues
C) faster processors
D) the Internet
E) global warming

Question 79

Which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time?

A) increase capacity
B) long production runs
C) standardization
D) cost cutting
E) fewer rapid product changes

Question 80

Porter's Five Forces Model contains which of the following?

A) immediate rivals
B) potential entrants
C) customers
D) suppliers
E) all of the these