TRUE/FALSE
1. Operational
capabilities must be built before a firm should identify competitive
priorities.
2. The
ability to achieve market and financial superiority over competitors is called strategic
planning.
3. While
it is generally difficult to change the structure of a value chain, operations
managers can make strategic choices about technology and human resources.
4. The
customer benefit package that a firm designs is meant to appeal to all
customers.
5. Traditional
market research may not always provide accurate information about customer
needs.
6. Formal
marketing research, such as surveys and focus groups, is the only useful
approach to learn about customer needs and expectations.
7. Order
satisfiers are new or innovative good or service features that customers do not
expect.
8. Eventually,
order qualifiers become order winners.
9. A
clean bed in a hotel would be considered as an order satisfier.
10. Being
able to access the Internet in an automobile at any speed and in any location
would be considered an order satisfier.
11. Order
qualifiers are goods and service features and performance characteristics that
differentiate one customer benefit package from another and win a customer’s
business.
12. Of the three types of
attributes customers use to evaluate goods and services, goods are high in
search attributes while services are high in experience and credence
attributes.
13. The
color and size of an iPod would be considered credence attributes.
14. The
ease by which one can create original music compositions using a software
package such as Band in a Box or Apples’ Garage Band would be an example of an
experience attribute.
15. Customers
generally perceive greater risk when buying goods than when buying services.
16. Employee
training is an example of a key competitive priority.
17. Apple’s
primary competitive priority would probably be innovation while Dell’s would be
flexibility.
18. Southwest
Airlines has gained competitive advantage by focusing on cost as a key
competitive priority.
19. Quality
improvement initiatives generally increase market share in the long term and
also increase profitability in the short term.
20. Improving
design quality usually allows a firm to charge higher prices and thus increase
revenue and profit.
21. Reductions
in flow time generally lead to a deterioration of quality.
22. In
today’s global market, mass customization has become less important than it was
in the past.
23. Core
competencies are the strengths that are unique to an organization, such as a
creative workforce or a strong supply chain.
24. An operations strategy
provides the direction on which corporate strategy is based.
25. A
flexibility strategy requires capacity for both design and demand flexibility.
26. Innovation
does not necessarily involve practical application or commercialization.
27. Because
of the importance of supplying goods or services, operations strategy has
historically received significant high-level management attention.
28. The
infrastructure of an organization must support process choices and provide
managers with timely and accurate information to make good decisions.
29. Professor
Terry Hill’s operations strategy framework provides a systems perspective of
how operations is linked to corporate and marketing strategies.
30. Because
McDonald’s and Pal’s Sudden Service are both in the quick service restaurant
business, we would expect their operations strategies to be nearly identical.
MULTIPLE CHOICE
1. Which
of the following is not generally considered a competitive priority?
a.
time
b.
flexibility
c.
innovation
d.
infrastructure
2. Using
the Four Key Decision Loops in Professor Terry Hill’s Generic Strategy
Framework, which statement is true?
a.
The four
loops are highly integrated and require improvement cycles.
b.
The first
loop ties strategy to operations.
c.
Operations
has no input loop into corporate strategy or marketing strategy.
d.
Infrastructure
decisions must come before marketing strategy decisions.
3. Which one of the following statements in the
Lawn Care Company (LCC) case study is true?
a.
The LCC
already had experience and capabilities in the residential lawn application
service and market segment, and was considering using this expertise to enter
the golf and park market segment.
b.
The gross
margin on grass seed and fertilizer were higher than on the lawn application
service.
c.
Service
management skills play a major role in the LCC current strategy and vision of
the business.
d.
The order
winner for the current strategy at LCC is high physical goods quality.
4. With
regard to the three types of attributes customers use in evaluating the quality
of goods and services, a vacation would best be classified as high in
a.
Search
attributes
b.
Experience
attributes
c.
Credence
attributes
d.
Competitive
advantage attributes
5. In
time sequence, which of the following needs to be accomplished first?
a.
Understand
customer wants and needs
b.
Design and
deliver customer benefit package
c.
Build and
leverage operational capabilities
d.
Hire
creative engineers
6. A
firm’s ability to achieve market and financial superiority over its competitors
is called
a.
Operations
strategy
b.
Strategic
planning
c.
Competitive
advantage
d.
Competitive
priority
7. In
an automobile, which of the following would not be considered an order
winner?
a.
Self-parking
capability
b.
Voice-activated
music system
c.
Front-seat
airbags
d.
Collision-avoidance
system
8. Requirements that are expected in a good or
service are called
a.
Order
Qualifiers
b.
Order
Satisfiers
c.
Order
Exciters
d.
Order
Winners
9. Goods
and service features that differentiate one customer benefit package from
another are called
a.
Order
Qualifiers
b.
Order
Satisfiers
c.
Order
Exciters
d.
Order
Winners
10. With
regard to the three types of customer attributes in evaluating the quality of
goods and services, those associated with buying furniture would best be
classified as
a.
search
attributes
b.
experience
attributes
c.
credence
attributes
d.
reflect attributes
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