2-1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Supply Chain Management, 5e (Chopra/Meindl)
Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope
2.1 True/False Questions
1) A company’s competitive strategy defines the set of customer needs that it seeks to satisfy
through its products and services.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Analytic Skills
2) The value chain emphasizes the close relationship between all the functional strategies within
a company.
Answer: TRUE
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
3) A company’s product development strategy defines the set of customer needs that it seeks to
satisfy through its products and services.
Answer: FALSE
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
4) A company’s product development strategy specifies the portfolio of new products that it will
try to develop.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
5) A company’s supply chain strategy determines the nature of procurement and transportation of
materials as well as the manufacture and distribution of the product.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
6) The degree of supply chain responsiveness should be consistent with the implied uncertainty.
Answer: TRUE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
AACSB: Analytic Skills
7) The degree of supply chain responsiveness does not need to be consistent with the implied
uncertainty.
Answer: FALSE
Diff: 2
Topic: 2.2 Achieving Strategic Fit
2-2
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8) To achieve complete strategic fit, a firm must ensure that all functions in the value chain have
consistent strategies that support the competitive strategy.
Answer: TRUE
Diff: 2
Topic: 2.2 Achieving Strategic Fit
9) To achieve complete strategic fit, a firm must ensure that all functions in the value chain have
diverse strategies that support functional goals.
Answer: FALSE
Diff: 2
Topic: 2.2 Achieving Strategic Fit
10) 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.
Answer: TRUE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
11) To retain strategic fit, supply chain strategy must be adjusted over the life cycle of a product
and as the competitive landscape changes.
Answer: TRUE
Diff: 2
Topic: 2.2 Achieving Strategic Fit
12) 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.
Answer: FALSE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
13) A company will fail if there is a lack of strategic fit or because its overall supply chain
design, processes, and resources do not provide the capabilities to support the maximum strategic
fit.
Answer: FALSE
Diff: 3
Topic: 2.2 Achieving Strategic Fit
AACSB: Analytic Skills
14) The following situation would likely work well. A situation in which marketing is
publicizing a company’s ability to provide a large variety of products very quickly;
simultaneously, distribution is targeting the lowest cost means of transportation.
Answer: FALSE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
AACSB: Reflective Thinking Skills
2-3
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
15) Supply chain strategy specifies what the operations, distribution, and service functions,
whether performed in-house or outsourced, should do particularly well.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Analytic Skills
2.2 Multiple Choice Questions
1) 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.
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.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet
customer needs.
Answer: A
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Reflective Thinking Skills
2) 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.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet
customer needs.
Answer: B
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
2-4
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3) A company’s marketing and sales 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.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet
customer needs.
Answer: C
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
4) 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.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet
customer needs.
Answer: D
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
5) Which of the following 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
E) none of the above
Answer: D
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
6) 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
E) none of the above
Answer: A
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
7) Which of the following specifies the portfolio of new products that a company will try to
develop?
A) Competitive strategy
B) Product development strategy
C) Marketing and sales strategy
D) Supply chain strategy
E) all of the above
Answer: B
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
