Chapter 3 - Operations Strategy

Name Chapter 3-Operations Strategy True/False Clas Dat e: 1. Professor Terry Hill's operations strategy framework cannot be applied to service-providing firms. a. b. True False ANSWER: False 2. Customer segments cannot be based on sales volume and profitability. a. True b. False ANSWER: False 3. The core competencies of an organization are the strengths that are unique to that organization. ANSWER: b. True False True 4. For firms that adopt innovation as a core component of their strategy, price, not product performance, is the major selling feature. ANSWER: b. True False False 5. A strategy of quality improvement often leads to increased short-run profitability. ANSWER: True False False 6. A small change in a firm's targeted markets or strategic direction usually has little impact on the value chain. ANSWER: Multiple Choice 7. represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain. b. True False False а. Competitive priorities b. Order satisfiers c. Search attributes d. Order winners ANSWER: 8. The style and fit of a jacket can be classified as a(n) a. search attribute Page 1 Name Clas s: Dat e: Chapter 3-Operations Strategy b. experience attribute credence attribute d. variant attribute ANSWER: a 9. Eric is admitted to a hospital to undergo a surgery for hernia. He is unable to discern the expertise of his surgeon before the surgery nor evaluate the quality of the service after the surgery. In this case, the expertise of Eric's surgeon is an example of a(n) search attribute experience attribute credence attribute d variant attribute C ANSWER: 10. Which of the following is a difference between the evaluation of goods and the evaluation of services by customers? a. Customers rely more on information from nonpersonal sources when evaluating services, whereas they rely more on information from personal sources when evaluating goods. b. Customers perceive lesser risks when buying services, whereas they perceive greater risks when buying goods. c. Customers cannot look at or touch services prior to the purchase decision, whereas they can feel a product prior to purchase. d. Customers adopt innovations in services faster, whereas they resist adopting innovations in products. ANSWER: C 11. is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms. Measurement b. Learning C. Innovation d. Diversity ANSWER: C 12. is driven by ethics and human ideals of protecting the planet and its people for the well-being of future generations. a. Environmental sustainability b. Social sustainability C. Economic sustainability d Political sustainability ANSWER: 13. Credence attributes stem from a. the design of products b. the nature of services C. drive key operational controls. b Page 2 Name Clas s: Dat e: b Chapter 3-Operations Strategy d. operations design choices ANSWER: 14. Applying Professor Terry Hill's generic strategy framework to McDonald's, the operating design choices of resource scheduling, inventory placement and control, and standardized operational and job procedures best relate to the corporate objective of profitable growth b. operational excellence C. operational sustainability d operational diversity ANSWER: b 15. Brenda is planning a vacation to an exotic island. Though she has pre-planned her accommodation and itinerary, she is unsure of how the vacation will turn out. In this case, Brenda's vacation is high in search attributes b. experience attributes c. credence attributes d. variant attributes ANSWER: 16. Which of the following is considered an order winner in an automobile? a. A comfortable seating arrangement that is similar to other automobiles b. A driver-side air bag that most high-end automobiles have c. A good-quality radio particular to that brand of automobile d. A collision avoidance system particular to that design of automobile ANSWER: 17. often drive simultaneous improvements in quality, cost, and productivity. Credence attributes b. Time reductions Corporate strategies d Mass standardization b d ANSWER: b 18. Basic customer expectations are generally considered the minimum performance level required to stay in business and are often called order qualifiers credence attributes C. experience attributes d. order winners ANSWER: a 19. According to several research studies, which of the following findings is true of the role of quality in gaining competitive advantage? Page 3 Name Clas Dat e: d Chapter 3-Operations Strategy a. Quality is negatively related to return on investment for almost all kinds of market situations. b. A strategy of quality improvement is usually accompanied by increased short-run profitability. c. Quality has a trivial effect on returns in most kinds of market situations. d. Businesses offering premium-quality goods usually have large market shares. ANSWER: 20. Rues and West Inc. manufactures various electronic goods. It uses mass-customization strategies to make its products available to all consumers at any place in the world. It also manufactures various electronic goods in the same assembly line. Given this information, Rues and West Inc.'s operations are aligned around a. sustainability b. flexibility c. reliability d. durability ANSWER: 21. is an example of innovation in services. a Optical fibers b. Internet banking C. Customer satisfaction surveys d. Smart tags b ANSWER: 22. Which of the following is one of the key areas that is addressed by operations design choices? a. Functional plans and control systems b. Learning and innovation systems с. Value chain integration and outsourcing d. Quality control and mass customization ANSWER: 23. According to Professor Terry Hill's generic strategy framework, which of the following statements is true of the first loop? a. It ties together an organization's corporate strategy and marketing strategy. b. It describes how operations evaluate the implications of competitive priorities in terms of process choice. c. It determines if process choice decisions are consistent with infrastructure decisions. d. It represents operations' input into the corporate and marketing strategy. ANSWER: a 24. At Ritufa Food Corp., flexibility is the key competitive priority. Food products are manufactured according to customers' requirements, at any volume and globally delivered at any time. Given this information, Ritufa Food Corp.'s operations strategy is based on a. compensation b. mass customization c. mass standardization d. cost reduction Page