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Terms in this set (70)

True
A company's competitive
strategy defines the set of
customer needs that it seeks to
satisfy through its products
T/F

True
The value chain emphasizes the
close relationship between all
the functional strategies within a
company.
T/F

False
A company's product
development strategy defines
the set of customer needs that it
seeks to satisfy through its
products and services.
T/F

True
A company's product
development strategy specifies
the portfolio of new products
that it will try to develop.
T/F

True
Supply chain strategy specifies
what the operations, distribution,
and service functions, whether
performed in-house or
outsourced, should do
particularly well.
T/F

True
A company's supply chain
strategy determines the nature O
of procurement and ₹2
transportation of materials as
well as the manufacture and
distribution of the product.
T/F

True
The degree of supply chain
i h ld b
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responsiveness should be
consistent with the implied
uncertainty.
T/F

False
To achieve complete strategic
fit, a firm must ensure that all
functions in the value chain
have diverse strategies that
support functional goals.
T/F

True
Because demand and supply
characteristics change, the
supply chain strategy must
change over the product life
cycle if a company is to continue
achieving strategic fit.
T/F

True
To retain strategic fit, supply
chain strategy must be adjusted
over the life cycle of a product
and as the competitive
landscape changes.
T/F

False
The intercompany scope of
strategic fit is no longer relevant
today because the competitive
playing field has shifted from
company versus company to
supply chain versus supply
chain.
T/F

False
The interoperation scope has
each stage of the supply chain
devising its strategy
independently.
T/F

True
Intraoperation scope resulted in
minimal supply chain surplus.
T/F
True

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An example of intrafunctional
scope is that outsourcing a key
component is reasonable if the
savings in staying current in
technology results in improved
performance in other areas of
R&D that permit improved
overall performance.
T/F

True
If all functional strategies are
deliberately aligned with each
other and with the overall
competitive strategy, then the
company profit will be
maximized.
T/F

True
Intercompany scope is broader
than intrafunctional scope.
T/F
False

Monolithic Lumber has

purchased timber from Bunyan
Axe, the same wholly-owned
subsidiary, for the last two
centuries and plans to do so for
another two centuries. It is
crucial that Monolithic continue
to demonstrate an agile
company scope.
T/F

True

Greater product variety and

shorter life cycles result in
shorter windows of opportunity
for a supply chain to achieve fit.
T/F

False
Globalization has increased the
opportunities and decreased the
risks for supply chains.
T/F

False
Over the past several decades,

the supply chains of most firms

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the supply chains of most firms
have become easier to
coordinate.
T/F
A) defines the set of customer needs that it seeks to
satisfy through its products and services.

A company's competitive
strategy

A) defines the set of customer

needs that it seeks to satisfy
through its products and
services.

B) specifies the portfolio of new

products that it will try to
develop.False

C) specifies how the market will

be segmented and how the
product will be positioned,
priced, and promoted.

D) determines the nature of

procurement and transportation
of materials as well as
manufacture and distribution of
the product.

B) competitive strategy.

The value that potential

customers place on product cost
and delivery time determines a
company's

A) customer needs.

B) competitive strategy.

C) supply chain surplus.

D) product life cycle.

C) new product development.

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The value chain in a company
begins with

A) the customer.

B) marketing and sales.

C) new product development.

D) operations.

D) being responsive and having an excellent

information infrastructure.

Seven-Eleven in Japan's
operations and distribution
strategy focuses on

A) convenience in the form of

easy access to stores.

B) constantly adding new

products and services.

C) low cost for gasoline, which

drives traffic to the store.

D) being responsive and having

an excellent information
infrastructure.

A) Operations

Which element in the value

chain is responsible for
transforming inputs into
outputs?

A) Operations

B) Marketing

C) Distribution

D) All elements of the value

chain do this.

B) Information Technology

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Which of these services

facilitates the function of the
value chain but is not
considered a core element of
the supply chain?

A) Marketing

B) Information Technology

C) Distribution

D) Service

B) specifies the portfolio of new products that it will

try to develop.

A company's product
development strategy

A) defines the set of customer

needs that it seeks to satisfy
through its products and
services.

B) specifies the portfolio of new

products that it will try to
develop.

C) specifies how the market will

be segmented and how the
product will be positioned,
priced, and promoted.

D) determines the nature of

procurement and transportation

of materials as well as
manufacture and distribution of
the product.

C) specifies how the market will be segmented and

how the product will be positioned, priced, and
promoted.

A company's marketing and

sales strategy

A) defines the set of customer

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A) defines the set of customer
needs that it seeks to satisfy
through its products and
services.

B) specifies the portfolio of new

products that it will try to
develop.

C) specifies how the market will

be segmented and how the
product will be positioned,
priced, and promoted.

D) determines the nature of

procurement and transportation
of materials as well as
manufacture and distribution of
the product.

D) determines the nature of procurement and

transportation of materials as well as manufacture
and distribution of the product.

A company's supply chain

strategy

A) defines the set of customer

needs that it seeks to satisfy
through its products and
services.

B) specifies the portfolio of new

products that it will try to
develop.

C) specifies how the market will

be segmented and how the
product will be positioned,
priced, and promoted.

D) determines the nature of

procurement and transportation
of materials as well as
manufacture and distribution of
the product.

C) Human Resources

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The value chain consists of

direct and indirect activities.
Which of the following is an
indirect activity for an
enterprise?

A) Marketing

B) Distribution

C) Human Resources

D) Service

A) Product Development

A ________ strategy specifies

the portfolio of new products
that a company will try to
develop.

A) Product Development

B) Marketing and Sales

C) Supply Chain

D) Finance

B) Marketing and Sales

A ________ strategy specifies

how the market will be
segmented and how the product
will be positioned, priced, and
promoted.

A) Product Development

B) Marketing and Sales

C) Supply Chain

D) Finance

D) Supply chain strategy

Which of the following

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determines the nature of

procurement of raw materials,
transportation of materials to
and from the company,
manufacture of the product or
operation to provide the service,
and distribution of the product to
the customer along with follow-
up service?

A) Competitive strategy

B) Product development
strategy

C) Marketing and sales strategy

D) Supply chain strategy

A) Competitive strategy

Which of the following defines

the set of customer needs that a
company seeks to satisfy
through its products and
services?

A) Competitive strategy

B) Product development
strategy

C) Marketing and sales strategy

D) Supply chain strategy

B) Product development strategy

Which of the following specifies

the portfolio of new products
that a company will try to
develop?

A) Competitive strategy

B) Product development
strategy
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C) Marketing and sales strategy

D) Supply chain strategy

C) new product development.

A supply chain strategy involves

decisions regarding all of the
following except

A) inventory.

B) transportation.

C) new product development.

D) operating facilities.

B) demand uncertainty.

The uncertainty of customer

demand for a product is the

A) rate of strategic uncertainty.

B) demand uncertainty.

C) implied demand uncertainty.

D) average forecast error.

C) implied demand uncertainty.

The uncertainty that exists due

to the portion of demand that
the supply chain is required to
meet is the

A) rate of strategic uncertainty.

B) demand uncertainty.

C) implied demand uncertainty.

D) average forecast error.

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B) Lead time decreases

Which of the following customer

needs will cause implied
uncertainty of demand to
increase?

A) Product margin

B) Lead time decreases

C) Average stockout rate

D) Average forced season end

markdown

B) understand customers and supply chain

uncertainty.

The first step in achieving

strategic fit between competitive
and supply chain strategies is to

A) understand the supply chain

and map it on the
responsiveness spectrum.

B) understand customers and

supply chain uncertainty.

C) match supply chain

responsiveness with the implied
uncertainty of demand.

D) ensure that all functional

strategies within the supply
chain support the supply chain's
level of responsiveness.

A) understand the supply chain and map it on the

responsiveness spectrum.

The second step in achieving

strategic fit between competitive
and supply chain strategies is to

A) understand the supply chain

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and map it on the

responsiveness spectrum.

B) understand customers and

supply chain uncertainty.

C) match supply chain

responsiveness with the implied
uncertainty of demand.

D) ensure that all functional

strategies within the supply
chain support the supply chain's
level of responsiveness.

C) match supply chain responsiveness with the

implied uncertainty of demand.

The final step in achieving

strategic fit between competitive
and supply chain strategies is to

A) understand the supply chain

and map it on the
responsiveness spectrum.

B) understand customers and

supply chain uncertainty.

C) match supply chain

responsiveness with the implied
uncertainty of demand.

D) combine customer and

supply chain uncertainty and
map it on the implied uncertainty
spectrum.

A) Handle supply uncertainty

Supply chain responsiveness

includes the ability to do which
of the following?

A) Handle supply uncertainty

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B) Understand customers and

supply chain uncertainty

C) Match supply chain

responsiveness with the implied
uncertainty of demand

D) Ensure that all functional

strategies within the supply
chain support the supply chain's
level of responsiveness

B) Meet a very high service level

Supply chain responsiveness

includes the ability to do which
of the following?

A) Understand customers and

supply chain

B) Meet a very high service level

C) Match supply chain

responsiveness with the implied
uncertainty of demand

D) Ensure that all functional

strategies within the supply
chain support the supply chain's
level of responsiveness

C) Meet short lead times

Supply chain responsiveness

includes the ability to do which
of the following?

A) Understand customers and

supply chain

B) Match supply chain

responsiveness with the implied
uncertainty of demand

C) Meet short lead times

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D) Ensure that all functional

strategies within the supply
chain support the supply chain's
level of responsiveness

B) supply chain efficiency.

The cost of making and

delivering a product to the
customer is referred to as

A) supply chain responsiveness.

B) supply chain efficiency.

C) cost-responsiveness efficient
frontier.

D) implied uncertainty.

C) cost-responsiveness efficient frontier.

The curve that shows the lowest

possible cost for a given level of
responsiveness is referred to as
the

A) supply chain responsiveness

curve.

B) supply chain efficiency curve.

C) cost-responsiveness efficient
frontier.

D) responsiveness spectrum.

A) both responsiveness and cost performance.

A firm that is not on the cost-

responsiveness efficient frontier
can improve

A) both responsiveness and

t f
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cost performance.

B) only responsiveness.

C) only cost performance.

D) responsiveness, but not cost

performance.

C) uncertainty/responsiveness map.

A graph with two axes with

implied uncertainty along the
horizontal axis and
responsiveness along the
vertical axis is referred to as the

A) implied uncertainty spectrum.

B) responsiveness spectrum.

C) uncertainty/responsiveness
map.

D) zone of strategic fit.

D) zone of strategic fit.

The relationship where

increasing implied uncertainty
from customers and supply
sources is best served by
increasing responsiveness from
the supply chain is known as the

A) implied uncertainty spectrum.

B) responsiveness spectrum.

C) uncertainty/responsiveness
map.

D) zone of strategic fit.

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C) the highest levels of the organization, such as the

CEO.
The drive for strategic fit should
come from

A) the supply chain manager.

B) the strategic planning

department.

C) the highest levels of the

organization, such as the CEO.

D) middle management.

C) tailor the supply chain to best meet the needs of

each product's demand.

The preferable supply chain

strategy for a firm that sells
multiple products and serves
customer segments with very
different needs is to

A) set up independent supply

chains for each different product
or customer segment.

B) set up a supply chain that

meets the needs of the highest
volume product or customer
segment.

C) tailor the supply chain to best

meet the needs of each
product's demand.

D) set up a supply chain that

meets the needs of the
customer segment with the
highest implied uncertainty.

C) Product availability is crucial to capturing the

market.

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Which of the following would be

a demand and supply
characteristic toward the
beginning stages of a product's
life cycle?

A) Demand has become more

certain and supply is
predictable.

B) Margins are lower due to an

increase in competitive
pressure.

C) Product availability is crucial

to capturing the market.

D) Price becomes a significant

factor in customer choice.

A) be responsive.

Between 1993 and 2006, Dell's

competitive strategy was to
provide a large variety of
customizable products at a
reasonable price. Given the
focus on customization, Dell's
supply chain was designed to

A) be responsive.

B) provide a different product.

C) operate on a low-cost basis.

D) provide sustainable products.

C) The overall supply chain must operate at the

lowest cost possible to achieve success.

For a company to achieve

strategic fit, it must accomplish
the following keys:

A) All functional strategies must

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fit together to form a

coordinated overall strategy.

B) The different functions in a

company must appropriately
structure their processes and
resources to be able to execute
these strategies successfully

C) The overall supply chain

must operate at the lowest cost
possible to achieve success.

D) The design of the overall

supply chain and the role of
each stage must be aligned to
support the supply chain
strategy.

D) maximize performance at a minimum cost.

Efficient supply chains

A) respond quickly to demand.

B) have higher margins because

price is not a prime customer
driver.

C) maintain buffer inventory to

deal with demand/supply
uncertainty.

D) maximize performance at a
minimum cost.

C) scope of strategic fit.

The functions and stages that

devise an integrated strategy
with a shared objective are
referred to as

A) competitive strategy.

B) supply chain strategy.

C) scope of strategic fit.

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D) scope of marketing strategy.

A) Intrafunctional scope

With the ________ view, firms

attempt to align all operations
within a function. In this view, all
supply chain functions including
sourcing, manufacturing,
warehousing, and transportation
must align their strategy to
minimize total functional cost.

A) Intrafunctional scope

B) Intraoperation scope

C) Interfunctional scope

D) Intercompany scope

A) Intrafunctional scope

The key weakness of the

________ view is that different
functions within a firm may have
conflicting objectives.

A) Intrafunctional scope

B) Intraoperation scope

C) Interfunctional scope

D) Intercompany scope

B) Intercompany scope
Which of these has the broader
range?

A) Intrafunctional scope

B) Intercompany scope

C) Interfunctional scope

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D) Intraoperational scope

C) function within the firm and stages across the

supply chain.

Scope of strategic fit refers to

both the

A) function within the firm and

the satisfaction of the customer.

B) satisfaction of the customer

and the profits returned to the
shareholders.

C) function within the firm and

stages across the supply chain.

D) profits returned to the

shareholders and the stages
across the supply chain.

D) increase the supply chain surplus.

The authors cite IKEA as

achieving an intercompany
scope of strategic fit which
serves to

A) minimize IKEA's costs.

B) align the strategic fit with the

consumer surplus.

C) minimize the costs of all

supply chain elements.

D) increase the supply chain

surplus.

A) the company's success.

A company's partners in the

supply chain determine

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A) the company's success.

B) the scope of strategic fit.

C) the relevance of
sustainability initiatives.

D) the need for customers.

D) intercompany scope.

Company A and Company B of

the same supply chain rely on
market responsiveness to attract
customers. Each company has
access to the other company's
designs, production schedules,
and goals, and if Company A
needs product overnight,
Company B gladly ships it,
knowing that in the long run it
works to the benefit of both.
Such an arrangement is an
example of

A) intrafunctional scope.

B) intraoperation scope.

C) interfunctional scope.

D) intercompany scope.

A) the deliberate phase-out of older products.

Increased product variety and

shrinking product life cycles
usually result in

A) the deliberate phase-out of

older products.

B) a decrease in overall
uncertainty for the supply chain.

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C) an increase in the time

allowed for a supply chain to
develop specific competencies.

D) a deliberate proliferation in
the variety of components used
for all products produced.

B) increasing globalization.

Risks and opportunities have

increased for supply chains due
to

A) the decreasing value of the

U.S. dollar.

B) increasing globalization.

C) the increasing population.

D) a decline in energy prices.

C) the number of owners per supply chain has

increased.

Over the past several decades

A) the life cycle of products has

increased.

B) most firms have become

more vertically integrated.

C) the number of owners per

supply chain has increased.

D) product variety has

decreased.

D) take advantage of supplier and customer

competencies that they did not possess.

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One motivation for companies to

shed noncore functions to their
supply chains has been to

A) increase supply chain

membership and participation.

B) increase supply chain

complexity to ease supply chain
alignment.

C) maximize focus on local

objectives.

D) take advantage of supplier

and customer competencies
that they did not possess.

A) Netflix has two content delivery systems that are

inexpensive to operate.

Which of these examples ripped

from the headlines of business
periodicals is most accurate?

A) Netflix has two content

delivery systems that are
inexpensive to operate.

B) Blockbuster's reliance on
streaming services was
overwhelmed by a lack of
bandwidth at the dawn of the
21st century.

C) Once an increase in
demanded customization seized
the market, Dell was unable to
rely on its retail store strategy.

D) Redbox's reliance on
streaming services ended Dell's
run as a leader in the industry.

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B) are sometimes dictated by regulations and

sometimes by perception.

Concerns related to the

environment and sustainability

A) are becoming less important

to the consuming public.

B) are sometimes dictated by

regulations and sometimes by
perception.

C) result in increased cost for

the supply chain.

D) are relevant to only the retail

member of each supply chain.

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