Question 1

The experience curve refers to the:

Accepted Answer

A)  learning by doing technique.
B)  company's overall experience in a particular industry.
C)  systematic lowering of the cost structure and unit cost reductions.
D)  diseconomies of scale caused by inexperienced workers. 
E)  increases in unit costs experienced over time.F) C) and E)
G) A) and D)

Question 2

Discuss why superior efficiency is important and the many ways that different parts of the organization can help achieve it.

Accepted Answer

Superior efficiency can be an important ...

Question 3

With regard to customer defection, which of the following statements is incorrect?

Accepted Answer

A)  Defection rates are determined by customer loyalty.
B)  The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales.
C)  Lowering customer defection rates allows a company to achieve a lower cost structure.
D)  The longer a company retains a customer the higher the average unit cost of each sale.
E)  There is a positive relationship between the length of time that a customer stays with the company and profit per customer.F) B) and D)
G) A) and E)

Question 4

Cool Looks, Inc.is a local fashion design company that actively solicits comments from its customers about the quality of its clothing and the kind of merchandise they want it to supply.Which of the following mechanisms for focusing on the customer is Cool Looks utilizing?

Accepted Answer

A)  Managing materials
B)  Improving response time
C)  Demonstrating leadership
D)  Shaping employee attitudes 
E)  Knowing customer needsF) B) and E)
G) A) and B)

Question 5

In spite of defmite customer demand, new products often fail due to:

Accepted Answer

A)  faster cycle time.
B)  low customer defection rate.
C)  poor commercialization.
D)  increased response time. 
E)  scramble to gain first-mover advantage.F) A) and E)
G) All of the above

Question 6

When credit card companies such as Visa and Mastercard allow an individual to put one of their own photos on their account credit card, they are utilizing:

Accepted Answer

A)  mass customization.
B)  a flexible manufacturing system.
C)  quality as reliability mantra.
D)  supply-chain management.
E)  a just-in-time inventory system.F) A) and C)
G) A) and B)

Question 7

Distinctive competencies shape the strategies that a company can pursue.

Accepted Answer

A)  business-level
B)  functional-level
C)  corporate-level
D)  global-level 
E)  industry-levelF) All of the above
G) D) and E)

Question 8

Which of the following is a tactical step for getting down the experience curve ahead of competitors?

Accepted Answer

A)  Premium pricing to create an image of uniqueness in consumers' minds
B)  Pursuing a distinctive competence in focused marketing
C)  Constructing a manufacturing plant ofless than minimum efficient scale
D)  Using aggressive pricing and promotions to expand sales volume as rapidly as possible 
E)  Making the assembly of the product as complex as possible because this results in greater learning effectsE) B) and D)
F) B) and C)

Question 9

Learning effects:

Accepted Answer

A)  result in unit manufacturing costs increasing by a certain amount each time output is increased.
B)  suggest that production costs increase because of increasing labor productivity.
C)  are more significant when simple steps in an assembly process are performed over and over again.
D)  are more significant when a technologically complex task is repeated.
E)  lead to diseconomies of scale.F) C) and E)
G) B) and D)

Question 10

Research suggests that the adoption of may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Accepted Answer

A)  just-in-time manufacturing
B)  quick technology
C)  flexible production technology
D)  stable production
E)  unscheduled manufacturingF) A) and B)
G) C) and D)

Question 11

The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa.The money used for marketing and advertising can be referred to as:

Accepted Answer

A)  variable costs.
B)  fixed costs.
C)  ratio costs.
D)  diseconomies of scale.
E)  economies of scale.F) B) and D)
G) C) and E)

Question 12

There is a negative relationship between the length of time that a customer stays with a company and profit per
customer.

Accepted Answer

A) True 
 B)False

Question 13

One of the primary roles of human resources in achieving superior efficiency is:

Accepted Answer

A)  facilitating cooperation among various value creation functions.
B)  adopting aggressive marketing to ride down the experience curve.
C)  designing products for ease of manufacture.
D)  using information systems to automate processes. 
E)  implementing self-managing teams.F) A) and B)
G) C) and D)

Question 14

While Information Systems have greatly improved productivity, they have had little impact on lowering costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a benefit of tight cross-functional integration among research and development (R&D) , production, and marketing?

Accepted Answer

A)  New products are designed for ease of manufacture.
B)  Development costs are kept in check.
C)  Product development projects are driven by company innovations.
D)  Time to market is minimized. 
E)  Customer needs are considered in the product development process.F) D) and E)
G) None of the above

Question 16

Economies of scale are:

Accepted Answer

A)  unit cost increases associated with learning effects.
B)  unit cost reductions due to inferior quality of products.
C)  realized when output is reduced to a minimum.
D)  realized when the selling price is equal to the cost price of the products. 
E)  unit cost reductions associated with a large-scale output.F) B) and C)
G) B) and E)

Question 17

A vital source of information about the causes of poor quality are the firm's own employees.

Accepted Answer

A) True 
 B)False

Question 18

Mass customization:

Accepted Answer

A)  limits a company's ability to customize products.
B)  reduces the use of individual machines and hinders quality control at all stages of the manufacturing process.
C)  increases the setup times for complex equipment.
D)  is the use of technology to produce large quantities of a standardized output. 
E)  is a company's ability to reconcile low cost and differentiation that were once thought incompatible.F) A) and B)
G) C) and D)

Question 19

The failure rate of innovative products is:

Accepted Answer

A)  high.
B)  low.
C)  nil.
D)  moderate. 
E)  too difficult to assess.F) A) and D)
G) B) and C)

Question 20

Research and development (R&D)  can help a company improve quality by:

Accepted Answer

A)  designing products that are easy to manufacture.
B)  pursuing economies of scale.
C)  developing strategies on how to market products.
D)  upgrading employee skill levels. 
E)  creating teams whose members coordinate their own activities.F) None of the above
G) A) and E)

Exam 4: Building Competitive Advantage Through Functional-Level Strategy

The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa.The money used for marketing and advertising can be referred to as:

Correct AnswerverifiedShow Answer

Discuss why superior efficiency is important and the many ways that different parts of the organization can help achieve it.

Correct AnswerverifiedSuperior efficiency can be an important ...View AnswerShow Answer

Mass customization:

Correct AnswerverifiedShow Answer

Economies of scale are:

Correct AnswerverifiedShow Answer

Which of the following is a tactical step for getting down the experience curve ahead of competitors?

Correct AnswerverifiedShow Answer

With regard to customer defection, which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

While Information Systems have greatly improved productivity, they have had little impact on lowering costs.

Correct AnswerverifiedShow Answer

Distinctive competencies shape the strategies that a company can pursue.

Correct AnswerverifiedShow Answer

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

Correct AnswerverifiedShow Answer

Cool Looks, Inc.is a local fashion design company that actively solicits comments from its customers about the quality of its clothing and the kind of merchandise they want it to supply.Which of the following mechanisms for focusing on the customer is Cool Looks utilizing?

Correct AnswerverifiedShow Answer

Research and development (R&D) can help a company improve quality by:

Correct AnswerverifiedShow Answer

One of the primary roles of human resources in achieving superior efficiency is:

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of tight cross-functional integration among research and development (R&D) , production, and marketing?

Correct AnswerverifiedShow Answer

Learning effects:

Correct AnswerverifiedShow Answer

The experience curve refers to the:

Correct AnswerverifiedShow Answer

A vital source of information about the causes of poor quality are the firm's own employees.

Correct AnswerverifiedShow Answer

When credit card companies such as Visa and Mastercard allow an individual to put one of their own photos on their account credit card, they are utilizing:

Correct AnswerverifiedShow Answer

In spite of defmite customer demand, new products often fail due to:

Correct AnswerverifiedShow Answer

Research suggests that the adoption of may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output.

Correct AnswerverifiedShow Answer

The failure rate of innovative products is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Superior efficiency can be an important ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified