Question 1

Users of Adobe Reader, created by Adobe Systems Incorporated, are prompted to provide feedback on their experiences with the software in a bid to improve the product.In this case, Adobe Systems Incorporated is trying to gain a competitive advantage through
A)superior efficiency.
B)superior infrastructure.
C)superior innovation.
D)superior speed and flexibility.
E)superior responsiveness to customers.

Accepted Answer

An organization that is responsive to customers tries to satisfy their needs and give them exactly what they want.

Question 2

The just-in-time view of inventory leads an organization to stockpile excess inputs in a warehouse in case it needs them to meet sudden upturns in demand.

Accepted Answer

The just-in-time inventory system is a system in which parts or supplies arrive at an organization when they are needed, not before.

Question 3

Good value chain management requires that marketing managers focus on 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-or the result can be disaster.

Question 4

According to total quality management philosophy, the managers involved in quality control or engineering define the quality.

Accepted Answer

According to total quality management philosophy, the customer, not managers in quality control or engineering, defines what quality is.

Question 5

A tire company's products are more expensive than those offered by its competitors, but are still sought after by customers since they are more durable and perform better under harsh conditions.The tire company, in this case, has achieved competitive advantage through
A)marketing strategies.
B)superior quality.
C)quantum product innovation.
D)pricing strategies.
E)promotional strategies.

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 6

Which of the following should an organization do in order to obtain a competitive advantage through superior efficiency?
A)make products that are much more reliable than the products available in the market
B)reduce the number of inputs it requires to produce a given amount of outputs
C)use technology to make its product unique and different when compared to its rivals'
D)conduct surveys to determine whether a product will be successful in the market
E)create products that will attract customers and charge a premium price for those products

Accepted Answer

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

Question 7

A value chain is a series of functional activities that convert inputs into finished 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 that customers value and want to buy.

Question 8

An automobile manufacturer redesigning the body of one of its cars to improve its aerodynamics is an example of quantum product innovation.

Accepted Answer

The gradual improvement and refinement of existing products over time as existing technologies are perfected is called incremental product innovations.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 9

An organization gains competitive advantage when it
A)lowers costs and decreases differentiation.
B)increases costs and/or decreases differentiation.
C)increases costs and increases differentiation.
D)lowers costs and/or increases differentiation.
E)increases costs and/or lowers prices.

Accepted Answer

Managers can lower costs and/or increase differentiation to obtain a competitive advantage.

Question 10

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

Accepted Answer

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

Question 11

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, timelines, and development milestones is called a contract book.

Accepted Answer

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, timelines, and development milestones is called a contract book.

Question 12

Marketing function involves research activities to create new or improved products that add value to a product.

Accepted Answer

Product development is the engineering and scientific research activities involved in innovating new or improved products that add value to a product.Marketing function's task is to persuade customers that the product meets their needs and convince them to buy it.

Question 13

Using the Internet to manage the value chain reduces the costs of coordination both between the company and its customers and between the company and its suppliers.

Accepted Answer

Using the Internet to manage the value chain reduces the costs of coordination both between the company and its customers and between the company and its suppliers.

Question 14

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.Incremental product innovation results in gradual improvements and refinements of existing products that occur over time as existing technologies are perfected.

Question 15

Inputs from an organization's members are sufficient for successful product development.

Accepted Answer

Successful product development requires inputs from more than just an organization's members; also needed are inputs from customers and suppliers.

Question 16

Innovation refers to 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.Innovation adds value to products and allows the organization to further differentiate itself from rivals and attract customers who are often willing to pay a premium price for unique products.

Question 17

Flexible manufacturing is a strategy based on the use of manual labor to reduce the costs associated with the product assembly process or the way services are delivered to customers.

Accepted Answer

Flexible manufacturing is a strategy based on the use of IT to reduce the costs associated with the product assembly process or the way services are delivered to customers.

Question 18

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 19

Which of the following should an organization do in order to obtain a competitive advantage through superior innovation?
A)reduce the number of components that go into its products
B)decrease the number of product attributes and lower the price of its products
C)set up a strong team to handle after-purchase support
D)produce products with technologies that have not been used previously
E)provide high-quality products to create a brand-name reputation for its products

Accepted Answer

Successful innovation gives an organization something unique or different about its products that rivals lack and helps an organization gain a competitive advantage.

Question 20

Soliciting information and suggestions about improvements from employees is one of the steps in implementing a successful TQM program.

Accepted Answer

Employees are a major source of information about the causes of poor quality, so it is important that managers establish a system for soliciting employee suggestions about improvements that can be made.

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

Users of Adobe Reader, created by Adobe Systems Incorporated, are prompted to provide feedback on their experiences with the software in a bid to improve the product.In this case, Adobe Systems Incorporated is trying to gain a competitive advantage through

The just-in-time view of inventory leads an organization to stockpile excess inputs in a warehouse in case it needs them to meet sudden upturns in demand.

Good value chain management requires that marketing managers focus on the type of products it makes.

According to total quality management philosophy, the managers involved in quality control or engineering define the quality.

A tire company's products are more expensive than those offered by its competitors, but are still sought after by customers since they are more durable and perform better under harsh conditions.The tire company, in this case, has achieved competitive advantage through

Which of the following should an organization do in order to obtain a competitive advantage through superior efficiency?

A value chain is a series of functional activities that convert inputs into finished goods or services that customers value.

An automobile manufacturer redesigning the body of one of its cars to improve its aerodynamics is an example of quantum product innovation.

An organization gains competitive advantage when it

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

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, timelines, and development milestones is called a contract book.

Marketing function involves research activities to create new or improved products that add value to a product.

Using the Internet to manage the value chain reduces the costs of coordination both between the company and its customers and between the company and its suppliers.

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.

Inputs from an organization's members are sufficient for successful product development.

Innovation refers to 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.

Flexible manufacturing is a strategy based on the use of manual labor to reduce the costs associated with the product assembly process or the way services are delivered to customers.

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

Which of the following should an organization do in order to obtain a competitive advantage through superior innovation?

Soliciting information and suggestions about improvements from employees is one of the steps in implementing a successful TQM program.