Q&A Hero

Q: 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. A. True B. False

Q: 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. A. True B. False

Q: Effective process reengineering reduces the number of order fulfillment tasks that must be performed or reduces the time each task takes. A. True B. False

Q: Process reengineering involves the fundamental rethinking and radical redesign of customer services. A. True B. False

Q: People often respond poorly to greater autonomy and responsibility; the use of empowered self-managed teams decreases productivity and efficiency. A. True B. False

Q: 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. A. True B. False

Q: A fixed-position layout is used for producing a variety of custom-made products, each tailored to the needs of a different kind of customer. A. True B. False

Q: In a process layout, each workstation is self-contained, and a product goes to whichever workstation is needed to perform the next operation to complete the product. A. True B. False

Q: 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. A. True B. False

Q: Increasing the efficiency of a system is not related to attracting more customers. A. True B. False

Q: The more steps required to assemble a product or provide a service, the more opportunities there are for making a mistake. A. True B. False

Q: Total quality management focuses on stocking a large inventory so that raw materials are available even before they are needed. A. True B. False

Q: According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering. A. True B. False

Q: Soliciting information and suggestions about improvements from employees is one of the steps in implementing a successful TQM program. A. True B. False

Q: Total quality management requires the cooperation of managers of certain functions of an organization. A. True B. False

Q: Total quality management is a technique that focuses on improving the quality of an organizations products and services. A. True B. False

Q: Higher product quality can increase efficiency and thereby lower operating costs. A. True B. False

Q: High-quality products are characterized by low prices. A. True B. False

Q: Quality is a concept that can be applied to manufacturing but not to service organizations. A. True B. False

Q: A newsletter publisher in a small town accepts subscription requests and handles queries only through the town's mail services. The publishing unit keeps track of its customers by entering or modifying customer information in a book. This publisher is using a customer relationship management technique. A. True B. False

Q: Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time. A. True B. False

Q: A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry. A. True B. False

Q: 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. A. True B. False

Q: The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer. A. True B. False

Q: A high-quality, well-designed product will always be successful in the market. A. True B. False

Q: Market function is the engineering and scientific research activities involved in innovating new or improved products that add value to a product. A. True B. False

Q: Each functional activity along the value chain adds value to a product when it raises costs and decreases the price a company can charge for it. A. True B. False

Q: A value chain is a chain of functional activities that transform inputs into finished goods or services customers value. A. True B. False

Q: Successful innovation gives an organization something unique about its products that can strengthen its competitive advantage. A. True B. False

Q: Innovation refers to producing goods and services that have attributessuch as design, styling, performance, and reliabilitythat customers perceive as being superior to those found in competing products. A. True B. False

Q: The fewer the inputs required to produce a given output, the lower is the efficiency and the higher the cost of outputs. A. True B. False

Q: Discuss the five steps involved in implementing an organizational strategy.

Q: List and briefly explain the different methods of international expansion. Arrange the methods according to the level of foreign involvement and investment and degree of risk starting from the least to the highest.

Q: Differentiate global strategy from multidomestic strategy for a business and discuss the advantages and disadvantages of each strategy.

Q: List and briefly explain the different corporate-level strategies.

Q: Differentiate between the main types of business-level strategies by explaining how they give an organization a competitive advantage.

Q: Discuss the five major threats of Michael Porter's five forces model.

Q: What is a SWOT analysis? List the possible strengths, weaknesses, opportunities, and threats a SWOT analysis of your educational institution might reveal.

Q: Define rolling plans, standing plans, and single-use plans. List the different kinds of standing plans and single-use plans.

Q: Discuss the three levels of planning and their respective strategies. For an organization of choice, give an example of a strategy that can be applied at each level.

Q: Discuss the four qualities of an effective plan as emphasized by Henri Fayol.

Q: Discuss the necessity and the importance of the planning process.

Q: Discuss the three main steps of the planning process.

Q: _____ is the final step in implementing strategy. A. Drafting detailed action plans that specify how a strategy is to be implemented B. Allocating responsibility for implementation to the appropriate individuals or groups C. Establishing a timetable for implementation that includes precise, measurable goals linked to the attainment of the action plan D. Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals E. Allocating appropriate resources to the responsible individuals or groups

Q: The first step in implementing a strategy is: A. drafting detailed action plans that specify how a strategy is to be implemented. B. allocating responsibility for implementation to the appropriate individuals or groups. C. allocating appropriate resources to the responsible individuals or groups. D. holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals. E. establishing a timetable for implementation that includes precise, measurable goals linked to the attainment of the action plan.

Q: The method of international expansion which presents managers with many threats and is the most expensive due to the high level of foreign investment is the method of international expansion through _____. A. joint ventures B. exporting and importing C. licensing D. franchising E. wholly owned subsidiaries

Q: Nokia has established production operations in foreign countries to sell its phones in those regions. The production operations perform as separate entities without any local direct involvement. These production operations are _____ of Nokia. A. joint ventures B. acquisitions C. wholly owned subsidiaries D. mergers E. hostile takeovers

Q: Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson combining a part of their resources to manufacture mobile phones is an example of a(n) _____. A. joint venture B. acquisition C. wholly owned subsidiary D. merger E. hostile takeover

Q: An agreement in which managers pool or share their organizations resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture is called a(n) _____. A. takeover agreement B. franchise sharing C. license lending D. strategic alliance E. foreign subsidiary

Q: Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is referred to as: A. licensing. B. franchising. C. strategic alliance. D. exporting. E. importing.

Q: Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as: A. licensing. B. franchising. C. strategic alliance. D. exporting. E. importing.

Q: Which method of international expansion poses the least amount of risk? A. Exporting B. Franchising C. Licensing D. Wholly owned subsidiary E. Joint venture

Q: Most electronic goods have the option of changing the operating language. This is done by manufacturers so that the same electronic device can be supplied and marketed around the world. The manufacturers in this case are applying a(n) _____. A. focused-differentiation strategy B. global strategy C. related diversification strategy D. multidomestic strategy E. unrelated diversification strategy

Q: Selling the same standardized product and using the same basic marketing approach in each national market is called _____. A. unrelated diversification strategy B. multidomestic strategy C. national strategy D. focused-differentiation strategy E. global strategy

Q: In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers customized versions of its menu to suit different countries. This is an example of _____. A. international strategy B. global strategy C. multidomestic strategy D. low-cost strategy E. unrelated diversification strategy

Q: Cameo Ltd., a record label company, subsequently entered the airline industry to expand business. This example of a record label company entering the airline industry is an example of _____. A. vertical integration B. unrelated diversification C. related diversification D. horizontal integration E. concentration

Q: Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and reduce fixed costs. This is an example of _____. A. concentration B. rivalry C. counteraction D. adversity E. synergy

Q: Entering a new business or industry to create a competitive advantage in one or more of an organizations existing divisions or businesses is called _____. A. related diversification strategy B. international expansion strategy C. low-cost strategy D. concentration on a single industry E. unrelated diversification strategy

Q: A toy manufacturing company which previously sold its products through a popular toy and juvenile-product retailer decides to enter the retail industry, quickly establishing several retail outlets exclusively for its products. The toy manufacturing company is engaging in _____. A. forward horizontal integration B. backward vertical integration C. forward vertical integration D. backward horizontal integration E. unrelated diversification

Q: _____ is a corporate-level strategy in which a company expands its business operations into a new industry that produces inputs for the companys products. A. Forward vertical integration B. Forward horizontal integration C. Unrelated diversification D. Backward horizontal integration E. Backward vertical integration

Q: _____ is a corporate-level strategy that emphasizes reinvesting a companys profits in strengthening its competitive position in its current industry. A. Concentration on a single industry B. Forward vertical integration C. Diversification D. Backward vertical integration E. International expansion

Q: In a first of its kind, a multinational tire manufacturer introduces a new range of premium tires that can handle extreme temperatures better at a higher price. The tires are designed keeping in mind the climatic conditions in the Middle East and products are marketed only in the Middle East. The manufacturer is pursuing ____. A. a focused differentiation strategy B. a focused low-cost strategy C. a general differentiation strategy D. a general low-cost strategy E. both a low-cost and a differentiation strategy

Q: Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true? A. Organizations stuck in the middle tend to have higher levels of performance than those that pursue a low-cost or a differentiation strategy. B. Focusing on the differentiation of a product will result in reduced costs for a company. C. Extremely well managed companies may be able to keep low costs and differentiate their products. D. Managers try to gain a competitive advantage by focusing only on driving the company's costs down below the costs of industry rivals. E. Managers try to gain a competitive advantage by focusing only on distinguishing an organizations products from the products of competitors on dimensions such as product design, quality, or after-sales service.

Q: An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a(n) _____. A. differentiation strategy B. low-cost strategy C. diversification strategy D. stuck-in-the-middle strategy E. association strategy

Q: A furniture company is trying to keep the costs of the company low by switching its suppliers and ordering materials in larger quantities to reduce overall costs. The company is employing a _____. A. focused differentiation strategy B. low-cost strategy C. high-cost strategy D. unifying strategy E. hypercompetition strategy

Q: There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customer tastes. This is called _____. A. ultracompetition B. hypocompetition C. supercompetition D. hypercompetition E. extracompetition

Q: The pharmaceutical industry is extremely dynamic. A company that releases a product to the general public with the intention of keeping prices high may see quick competition arising from other products made from different compounds that perform the same functions as the company's product. According to the five forces model, this type of threat is called _____. A. the level of rivalry among organizations in an industry B. the potential for entry into an industry C. the power of large suppliers D. the power of large customers E. the threat of substitute products

Q: Which of the following can be defined as a threat according to the five forces model? A. The level of rivalry among organizations in an industry is low. B. Brand loyalty is very high. . C. There are a large number of suppliers. D. Only a few large customers are available to buy an industrys output. . E. Products are unique and cannot be substituted.

Q: In the Five Forces Model, the _____ that companies compete against one another for customers, the _____ the level of profits is likely to be for that industry. A. more; lower B. more; higher C. less; lower D. less; equal E. more; equal

Q: In performing a SWOT analysis, a furniture company realized that the number of competing firms in its industry was increasing. The company would classify this as a(n) _____. A. strength B. weakness C. opportunity D. threat E. advantage

Q: Which of the following will most likely be an opportunity according to an organization's SWOT analysis? A. The company can probably take over one of its bankrupt competitors. B. The sales of the organization's products are the highest in the industry. C. The organization is growing rapidly without any direction. D. The government has passed a law which will increase labor costs. E. The organization faces increased competition in its market.

Q: In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as a(n) _____. A. strength B. weakness C. opportunity D. threat E. advantage

Q: According to an organization's SWOT analysis, which of the following would be a potential strength? A. The organization has the potential to break the barriers of entry to a new market. B. The organization has the highest profit margin in its market. C. The organization's research and development sector is on the decline. D. The organization's customer preferences are rapidly changing. E. There is a lack of cooperation between the organization's various divisions.

Q: A group of managers analyze both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this? A. Mission analysis B. SWOT analysis C. Functional analysis D. Diversification analysis E. Competition analysis

Q: Employees tend to be motivated and perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essential for top managers to develop a strong sense of _____. A. goal orientation B. strategic leadership C. strategy formulation D. business planning E. organizational affluence

Q: To determine an organization's missions and goals, managers must first _____. A. perform a SWOT analysis B. apply the Five Forces Model C. define its business D. develop a long-term plan E. develop a short-term plan

Q: As a part of its yearly planning activities, PDQ Financial Services generates a list of possible future scenarios and creates a plan to respond to each of these forecasts. PDQ Financial Services is practicing _____. A. single-use planning B. ad-hoc planning C. divisional-level planning D. contingency planning E. functional planning

Q: Another name for contingency planning is _____. A. single-use planning B. ad-hoc planning C. business planning D. divisional-level planning E. scenario planning

Q: A firm has a formal, written guide regarding its zero-tolerance attitude toward sexual harassment and the consequences of its violation. By definition, this is a _____ of the firm. A. standing plan B. mission statement C. policy D. rule E. norm

Q: Though not formally written, an organization allows its employees to dress casually on Fridays. This is a(n) _____ of the organization. A. policy B. rule C. standard operating procedure D. standing plan E. ethical code