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Chapter 02 - Operations and Supply Chain Strategy
2-1
1. At Disney, "making people happy" is an example of:
Difficulty: Easy
2. The four elements that form the heart of operations strategy include:
Difficulty: Easy
3. According to Michael Porter, the generic types of business strategies include:
Difficulty: Moderate
Chapter 02 - Operations and Supply Chain Strategy
2-2
4. The four common objectives of operations are:
Difficulty: Easy
5. An example under the capacity area of strategic decisions in operations would be:
Difficulty: Moderate
6. The operation objectives of quality, cost, delivery, and flexibility are:
Difficulty: Moderate
Chapter 02 - Operations and Supply Chain Strategy
2-3
7. In the product imitator strategy, the order winner is usually _____, while in the product
innovator strategy, the order winner is usually ______.
Difficulty: Moderate
8. Make or buy is an example of what type of strategic decision?
Difficulty: Hard
9. Which of the following is NOT a characteristic of a global corporation?
Difficulty: Easy
Chapter 02 - Operations and Supply Chain Strategy
2-4
10. Another term used for operations objectives is:
Difficulty: Moderate
11. Which of the following illustrates a distinctive competence?
Difficulty: Easy
12. Supply Chain Strategy focuses, in part, on:
Difficulty: Moderate
13. A decision is made that suppliers will be chosen based on quality rather than cost. This is
an example of which of the following?
Difficulty: Moderate
Chapter 02 - Operations and Supply Chain Strategy
2-5
14. Next year's goal is to fill 99% of all orders from stock. This is an example of which of the
following?
Difficulty: Easy
15. A company uses proprietary computer software to offer services that other companies
have not been able to emulate. These services have enabled Marketing to enter new markets
and have caused new organizational structures to be formed. This is an example of which of
the following?
Difficulty: Hard
16. Which operations objective does the author suggest as the basis for improvement in the
other operations objectives?
Difficulty: Moderate
Chapter 02 - Operations and Supply Chain Strategy
2-6
17. Which of the following statements about operations objectives is NOT true?
Difficulty: Hard
18. Which of the following is NOT a characteristic of a distinctive competence?
Difficulty: Moderate
19. A global corporation has which of the following characteristics?
Difficulty: Easy
20. McDonald's distinctive competence has changed over time from continuous improvement
of the transformation system and brand to the unique service and supply chain transformation
system.
Difficulty: Moderate
Chapter 02 - Operations and Supply Chain Strategy
2-7
21. A corporate strategy drives the business strategy, which in turn drives the operations
strategy in an organization.
Difficulty: Easy
22. The business strategy can be derived from a firm's distinctive competence that is difficult
for competitors to copy or imitate.
Difficulty: Easy
23. Imitative products have low profit margins and fairly predictable demand.
Difficulty: Easy
24. Think of an example of a manufacturing (e.g., 3M) or service (e.g., Southwest Airlines)
firm. Briefly discuss in your own words the operations mission, order winner, order qualifiers
and distinctive competence of the chosen firm(s).
Difficulty: Moderate
Chapter 02 - Operations and Supply Chain Strategy
2-8
25. Describe five focused initiatives with which a company should start its sustainability
journey?
Difficulty: Moderate
26. How do the operations strategic decisions differ for a product imitator strategy versus a
product innovator strategy?
Difficulty: Moderate
