CHAPTER 2 & 3

CHAPTER 2 & 3 In the balanced scorecard model, which measures are associated with the innovation and learning perspective? a.service-quality levels, design and demand flexibility, and asset utilization. b.return on investment, economic value added, and shareholder value. c.training hours per employee, hiring process effectiveness, and revenue per employee. d.number of cooperative customer-company design initiatives and percent of sale from new services. Selected Answer: Correctc. training hours per employee, hiring process effectiveness, and revenue per employee. measures of _________ prioritizes an organization's infrastructure and people. a.innovation and learning b.goods and service design flexibility c.customer and market d.service quality Selected Answer: Correcta. innovation and learning The willingness to assist customers and offer timely recovery to service upsets is ________. a.empathy b.assurance c.reliability d.responsiveness Selected Answer: Correctd. responsiveness _________ is the quantitative modeling of cause-and-effect relationships among internal and external performance criteria. a.Productivity b.Sustainability c.Operational efficiency d.Interlinking Selected Answer: Correctd. Interlinking

CHAPTER 2 & 3 Which type of measures consider environmental measures like recycling, energy consumption, and other resource conservation activities? a.Financial measures b.Innovation and learning measures c.Sustainability measures d.Operation efficiency measures Selected Answer: Correctc. Sustainability measures The following tables offers data for the pairs of shoes produced and the cost incurred by Sweet Laces Inc. for the year 2017. Pair of Shoes Produced 200,000 Cost Incurred Direct Labor Cost $50,000 Energy Cost $8,500 Raw Material Cost $42,000 The productivity of Sweet Laces Inc. for 2017, based on the given data, is _______. a.1.39 pairs/USD b.1.99 pairs/USD c.0.99 pair/USD d.2.64 pairs/USD Selected Answer: Correctb. 1.99 pairs/USD The capability of providing goods and services to customers, minimizing waste and maximizing the utilization of resources, is known as ________. a.Volume flexibility b.Sustainability c.Operational efficiency d.Reliability Selected Answer: Correctc. Operational efficiency At an operational level, choose the item that exemplifies a quality performance measure. a.Customer retention b.Customer ratings of goods and services c.Service representative courtesy d.Product recalls

CHAPTER 2 & 3 There is a privately-owned computer technology company that provides various custom laptops that suit the needs of small business owners, students, and corporate professionals. The company's ability to offer a wide range of customized laptops to fulfill its customers' needs can be classified as ________. a.volume flexibility b.manufacturing yield c.budget variance d.design flexibility Selected Answer: Correctd. design flexibility n the balanced scorecard model, which of the following performance perspectives consists of measures such as flow time, asset utilization, and productivity? a.The internal perspective b.The customer perspective c.The financial perspective d.The innovation and learning perspective Selected Answer: Correcta. The internal perspective The process of quantifying the performance of goods and services, people, organizational units, processes, and other business activities is ________. a.fulfillment b.forecasting c.litigating d.measurement Selected Answer: Correctd. measurement Bob's Paint Manufacturing Co. has one factory in each of Spain, France, and Germany. The productivity data for Bob's Paint Manufacturing Co. are the following. Factory Location Amount of Paint Produced (US Gallons) Total Input Cost (USD) France 4,800,000,000 $5,250,000 Germany 5,400,000,000 $5,250,000 Spain 4,000,000,000 $3,500,000 The productivity of Bob's paint factory in ______________, based on the data provided. a.France is higher than that of the factory in Spain.

CHAPTER 2 & 3 b.Spain is lower than that of the factory in Germany c.Spain is higher than that of the factory in France. dGermany is lower than that of the factory in France. c. Spain is higher than that of the factory in France. Choose the best item, according to research, that is a primary dimension customers use to critique service quality. a.Empathy b.Queue time c.Flexibility Selected Answer: Correcta. Empathy What can be considered one of the key measures of innovation and learning? a.percentage of new products developed b.the variance around the average time c.processing time d.supply-chain performance Selected Answer: Correcta. percentage of new products developed What measures the extent to which the output of a process fulfills customer requirements? Answers: a.Quality b.Innovation c.Variability d.Learning Selected Answer: Correcta. Quality With the triple bottom line (TBL) in mind, choose the measure that includes the number of ethical violations. Answers: a.Service quality b.Customer retention rate c.Responsiveness d.Social sustainability

CHAPTER 2 & 3 Responsiveness Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders? a.The learning perspective b.The internal perspective c.The customer perspective d.The financial perspective The financial perspective The innovation and learning perspective in the balanced scorecard model includes measures such as ________ a.training hours per employee, hiring process effectiveness, and revenue per employee. b.service-quality levels, design and demand flexibility, and asset utilization. c.return on investment, economic value added, and shareholder value. d.number of cooperative customer-company design initiatives and percent of sale from new services. training hours per employee, hiring process effectiveness, and revenue per employee. According to research, which of the following is a key dimension that customers use to assess service quality? a.Operational efficiency b.Queue time c.Flexibility d.Empathy Empathy ________ is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources. a.Operational efficiency b.Reliability c.Volume flexibility d.Sustainability Operational efficiency Dextron, a privately owned computer technology company, provides a wide range of customized laptops to suit the needs of students, corporate professionals, and small business owners. In

CHAPTER 2 & 3 this case, Dextron's ability to provide a wide range of customized laptops to suit its customers' needs best describes ________. a.budget variance b.volume flexibility c.manufacturing yield d.design flexibility design flexibility Which of the following is a quality performance measure at an operational level? a.Customer retention b.Product recalls c.Service representative courtesy d.Customer ratings of goods and services Service representative courtesy Key measures of innovation and learning include ________. a.the variance around the average time b.supply-chain performance c.processing time d.percentage of new products developed percentage of new products developed The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called ________. a.operational efficiency b.productivity c.interlinking d.sustainability interlinking In the context of the triple bottom line, ________ measures include corporate ethics and governance. a.social sustainability b.political sustainability c.economic sustainability d.environmental sustainability social sustainability Measures of ________ focus on an organization's people and infrastructure. a.innovation and learning b.goods and service design flexibility

CHAPTER 2 & 3 c. order winners d. order qualifiers order qualifiers 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. mass standardization b. cost reduction c. compensation d. mass customization mass customization Jennifer 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, Jennifer's vacation is high in ________. a. experience attributes b. credence attributes c. search attributes d. variant attributes experience attribute According to Professor Terry Hill's generic strategy framework, which of the following statements is true of the first loop? a. It represents operations' input into the corporate and marketing strategy. b. It ties together an organization's corporate strategy and marketing strategy. c. It determines if process choice decisions are consistent with infrastructure decisions. d.It describes how operations evaluate the implications of competitive priorities in terms of process choice. It ties together an organization's corporate strategy and marketing strategy. The style and fit of a jacket can be classified as a(n) ________. a. search attribute b. experience attribute c. variant attribute d. credence attribute search attribute ________ is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms. a. Innovation b. Diversity c. Learning d. Measurement

CHAPTER 2 & 3 InnovatioN John 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 John's surgeon is an example of a(n) ________. a. credence attribute b. experience attribute c. search attribute d. variant attribute credence attribute Which of the following companies is most likely to have a competitive advantage in its market? a. Porthis Inc., a sports good manufacturer that treats the market as a single segment b.Huran Co., a clothing manufacturer that focuses on the organization's capability rather than customers' needs or wants c.Greyon Inc., a computer manufacturer that builds and leverage operational capabilities to support desired priorities d. Singletone Corp., a stationery manufacturer that reduces mass customization Greyon Inc., a computer manufacturer that builds and leverage operational capabilities to support desired priorities Which of the following is one of the key areas that is addressed by operations design choices? a. Learning and innovation systems b. Functional plans and control systems c. Value chain integration and outsourcing d. Quality control and mass customization Value chain integration and outsourcing 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. reliability b. sustainability c. flexibility d. durability flexibility ________ are the decisions management must make as to what type of process structure is best suited to produce goods or create services. a. Core competencies b. Competitive priorities c. Operations design choices d. Credence attributes

CHAPTER 2 & 3 Which of the following is considered an order winner in an automobile? a. A good-quality radio particular to that brand of automobile b. A comfortable seating arrangement that is similar to other automobiles c. A collision avoidance system particular to that design of automobile d. A driver-side air bag that most high-end automobiles have A collision avoidance system particular to that design of automobile ________ often drive simultaneous improvements in quality, cost, and productivity. a. Time reductions b. Corporate strategies c. Credence attributes d. Mass standardization Time reductions Identify a true statement about corporate strategy of large organizations. a.It is necessary to define the businesses in which an organization will participate. b. It defines how an organization's processes are designed and organized. c. It provides the means by which business strategies are accomplished. d. It defines the focus for strategic business units of an organization. It is necessary to define the businesses in which an organization will participate. ________ is an example of innovation in services. a. Optical fibers b. Customer satisfaction surveys c. Internet banking d. Smart tags Internet banking In the long run, _____ provides above-average performance and is essential to survival of a business. a sustainable competitive advantage Creating a competitive advantage requires management to understand customer needs and expectations 00:19 03:34

CHAPTER 2 & 3 When people dine at a restaurant, they expect the place to be clean and the service to be good. This basic customer expectation is an example of a(n) _____. order qualifier Fliant Airlines provides personalized chauffeurs to its customers. These chauffeurs shuttle between the flyers' destinations and their destined airports. This service differentiates Fliant Airlines from other airlines that do not offer such services. Given this information, providing personalized chauffeurs is an example of a(n) _____. order winner _____ attributes are those attributes that can be discerned only after purchase or during consumption or use of goods and/or services. Experience The safety feature of an electronic equipment is its _____ attribute. experience Which of the following is one of the five key competitive priorities on which organizations compete? Quality According to several research findings, which of the following is true of the role of quality in gaining competitive advantage? Quality is positively and significantly related to a higher return on investment. In an organization, time reductions can only be accomplished by eliminating non-value-added steps such as rework and waiting time. Mass customization requires companies to design goods, services, and operations around _____. flexibility Which of the following is an innovation in management practices? Quantitative decision models

CHAPTER 2 & 3 Many people are hesitant to use online banking or bill paying because customers perceive a greater risk because they cannot evaluate the service prior to using it is most likely to have a true understanding of customer wants and needs. JB sporting goods In general, organizations can compete on five key competitive priorities cost, quality, time, flexibility, and innovation Many firms, such as Apple, focus on research and development for innovation as a core component of their strategy. These companies focus on outstanding product research, design, and development ________ attributes are those attributes that can be discerned only ________ or use of goods and/or services. experience; after purchase or during consumption Effective strategies develop around a few key competitive priorities The following statement illustrates the difference between the evaluation of goods and the evaluation of services by customers customers cannot look at or touch services prior to the purchase decision, whereas they can feel a product prior to purchase Sustainability is best described as a(n) _______ using three dimensions _________ organizational strategy; environmental, social, and economic Infrastructure focuses on the nonprocess features and capabilities of an organization. This does NOT include the area of value chain organization Creating a competitive advantage requires management to

CHAPTER 2 & 3 build and leverage operational capabilities Loop #2 of Hill's generic strategy framework describes how operations evaluates the implications of competitive priorities in terms of process choice and infrastructure ABC Automobiles include remote self-parking assist. This autonomous system allows cars to park themselves even when the owner is not inside the car. This service differentiates ABC from other automobile manufacturers that do not offer this feature. This is an example of a(n) order winner According to Hill's generic strategy framework, the first two stages tie together an organization's corporate strategy and marketing strategy ________ requires companies to design goods, services, and operations around ________ mass customization; flexibility The style and fit of a jacket can be classified as a(n) search attribute. The _____ supply chains of a multinational enterprise provide the capability to maximize profit, customer satisfaction, and social welfare. complex Which statement is true of quality as a key competitive priority? Quality has evolved over the years and now is generally considered an order qualifier. Which company is most likely to have a competitive advantage in its market? Greyon Inc., a computer manufacturer that builds and leverage operational capabilities to support desired priorities Which company is most likely to have a true understanding of customer wants and needs? Blyrie Apparels, where customers are segmented into groups based on buying behavior and demographics.

CHAPTER 2 & 3 _____ is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms. Diversity According to several research studies, which finding is true of the role of quality in gaining competitive advantage? Businesses offering premium-quality goods usually have large market shares. _____ attributes are any aspects of a good or service that a customer must believe in but cannot personally evaluate even after purchase and consumption. Credence _____ are the decisions management must make as to what type of process structure is best suited to produce goods or create services. Operations design choices Families of goods or services having similar characteristics or methods of creation are called: strategic business units. Based on Hill's strategy development framework, product standardization versus customization would be considered as a(n): marketing strategy. 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: mass customization. _____ is an example of innovation in services. Internet banking Why does the Marriott hotel chain require managers to annually work full days as bellhops, waiters, bartenders and front-desk service providers? To gain a true understanding of customer wants and needs

CHAPTER 2 & 3 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: operational excellence. When applying Hill's strategy development framework to McDonald's corporate objectives, which would be an example of a corporate objective? Leveraging innovation and technology capabilities 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: _____ attributes. experience _____ is driven by ethics and human ideals of protecting the planet and its people for the well- being of future generations. Social sustainability Which is considered an order winner in an automobile? A collision avoidance system particular to that design of automobile An operations strategy can be defined as: the set of decisions across the value chain that supports the implementation of higher-level business strategies. _____ often drive simultaneous improvements in quality, cost, and productivity. Time reductions Creating sustainable competitive advantage requires the understanding of what information/knowledge in order to provide above-average performance and is essential to the survival of the business? Customer needs