Chapter 02 Operations and Supply Chain Strategy Chapter 02 Operations and Supply Chain Strategy Answer Key Multiple Choice Questions 1 At Disney Making People Happy is an example of A operations mission B corporate strategy C business strategy D operations strategy LO 2 1 Topic Operations Strategy Model Difficulty 1 Easy AACSB Reflective thinking Bloom s Understand Feedback This is Disney s overarching strategic directive Business and operations strategies would fall below this statement 2 The four elements that form the heart of operations strategy include A mission distinctive competence objectives and internal analysis B mission distinctive competence internal analysis and external analysis C mission objectives internal analysis and external analysis D mission distinctive competence objectives and strategic decisions LO 2 2 Topic Operations Strategy Model Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Operations strategy is defined by these four subcategories see Figure 2 1 3 According to Michael Porter the generic types of business strategies include A differentiation low cost focus B high price high quality fast delivery C focus quality imitation D all of the above LO 2 1 Topic Operations Strategy Model Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Differentiation unique or innovative low cost commodity markets and focus narrow or broad are the three generic strategies 2 1 Chapter 02 Operations and Supply Chain Strategy 4 The four common objectives of operations are A quality delivery cost and innovation B quality cost flexibility and agility C quality cost delivery and flexibility D cost quality capacity and flexibility LO 2 2 Topic Operations Strategy Model Difficulty 2 Moderate AACSB Reflective thinking Bloom s Remember Feedback Cost quality flexibility and delivery see Figure 2 1 5 An example under the capacity area of strategic decisions in operations would be A centralized or decentralized warehouse B one large or several small facilities C handmade or machine made D high levels or low levels of inventory LO 2 3 Topic Competing with Operations Objectives Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Only B relates to capacity the others relate to process or inventory decisions see Table 2 2 6 The operation objectives of quality cost delivery and flexibility are A mutually exclusive B independent of each other C connected D unique LO 2 2 Topic Operations Strategy Model Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback All must be connected and in sync with each other for operations strategy to be effective 2 2 Chapter 02 Operations and Supply Chain Strategy 7 In the product imitator strategy the order winner is for the customer whereas in the product innovator strategy the order winner is A flexibility price B flexibility quality C quality price D price flexibility LO 2 4 Topic Cross Functional Strategic Decisions Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback For the imitator strategy the customer priority is price it is flexibility for the innovator strategy 8 Make or buy is an example of what type of strategic decision A Inventory B Process C Quality D Capacity LO 2 3 Topic Competing with Operations Objectives Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback The decision to make versus buy is fundamental to the need for a production process 9 Which of the following is NOT a characteristic of a global corporation A Facilities and plants are located on a country by country basis B Global product design and process technology are used C Logistics and inventory control systems are global D Divisions are organized to have global responsibility for the marketing R D and operations functions LO 2 6 Topic Global Operations and Supply Chains Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Facilities and plants are located on a worldwide basis not country by country 2 3 Chapter 02 Operations and Supply Chain Strategy 10 Another term used for operations objectives is A order winners B order qualifiers C competitive priorities D distinctive competence LO 2 2 Topic Operations Strategy Model Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Operations objectives are derived from the mission and higher level strategies and are thus competitive priorities 11 Strategic decisions are to be made for which of the following decision areas A Quality process capacity and inventory B Cost quality delivery and flexibility C Mission distinctive competence objectives and tactics D All of the above LO 2 2 Topic Strategic Decisions Difficulty 2 Moderate AACSB Reflective thinking Bloom s Remember Feedback Process quality capacity and inventory are the basic set of strategic decisions see Figure 2 1 12 A decision has been made that suppliers will be chosen based on quality rather than cost This is an example of which of the following A Objective B Mission C Distinctive competence D Strategic decision LO 2 7 Topic Supply Chain Strategy Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback This is an example of a strategic decision most likely in support of a quality objective see Table 2 4 2 4 Chapter 02 Operations and Supply Chain Strategy 13 Next year s goal is to fill 99 of all orders from stock This is an example of which of the following A Objective B Mission C Distinctive competence D Strategic decision LO 2 3 Topic Competing with Operations Objectives Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Service level targets are delivery related see Table 2 1 14 A company uses proprietary computer software to offer services that other companies have not been able to emulate These services have enabled the company to enter new markets and have caused new organizational structures to be formed This is an example of which of the following A Objective B Mission C Distinctive competence D Strategic decision LO 2 5 Topic Distinctive Competence Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback The proprietary nature and resistance to emulation indicate the software is a distinctive competence 15 Which operations objective does the author suggest as the basis for improvement in the other operations objectives A Cost B Quality C Delivery D Flexibility LO 2 3 Topic Operations Objectives Difficulty 2 Moderate AACSB Reflective thinking