CHAP 2 OM: OPERATIONS STRATEGY

Question 1

denotes a firm’s ability to achieve market and financial superiority over its competitors

Answer 1

competitive advantage

Question 2

understood by segmenting customers on their unique wants and needs

Answer 2

customer’s expectation

Question 3

basic customer expectations are generally considered the minimum performance level required to stay in business

Answer 3

order qualifiers

Question 4

goods and service features and performance characteristics that differentiate one customer benefit package from another and win the customer’s business

Answer 4

order winners

Question 5

3 types of attributes in evaluating the quality of goods and services

Answer 5

-search attributes
-experience attributes
-credence attributes

Question 6

those that can be discerned only after purchase or during consumption or use

Answer 6

experience attributes

Question 7

those that a customer can determine prior to purchasing the goods & services

Answer 7

search attributes

Question 8

any aspect of a good/services that the customer must believe in but cannot personally evaluate even after purchase and consumption

Answer 8

credence attributes

Question 9

represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain

Answer 9

competitive priorities

Question 10

5 key competitive priorities

Answer 10

-cost
-quality
-time
-flexibility
-innovation

Question 11

goods & service help firm gain competitive advantage

Answer 11

low cost goods & services

Question 12

is positively and significantly related to a higher return on investment for almost all kinds of market situations

Answer 12

quality

Question 13

customers demand quick response, short waiting lines, and consistency in performance

Answer 13

time

Question 14

requires both design & demand flexibility. enabling them o switch output as demand shifts, will be able to sell profitability at lower volumes

Answer 14

flexibility

Question 15

is being able to make whatever goods & services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world

Answer 15

mass customization

Question 16

is the discovery and practical application or commercialization of a device, method or idea that differs from existing norms

Answer 16

innovation

Question 17

is a pattern or plan that integrates an organizations major goals, policies, and action sequences into a cohesive whole

Answer 17

strategy

Question 18

which are the strengths that are unique to that organization

Answer 18

core competencies

Question 19

process of determining long term goals, policies, and plans for an organization

Answer 19

strategic planning

Question 20

3 levels of strategy

Answer 20

-corporate
-business
-functional

Question 21

necessary to define the business in which the corporation will participate and develop plans for the acquisition and allocation of resources

Answer 21

corporate strategy

Question 22

the business in which the firm will participate

Answer 22

strategic business units (SBUs)

Question 23

define the focus of SBU, major decisions involve which markets to pursue and how best to compete in those markets

Answer 23

business strategy

Question 24

by which strategies are accomplished. Set of decisions that each functional area develops to support its particular business strategy

Answer 24

functional strategy

Question 25

is the set of decisions across the value chain that supports the implementation of higher-level business strategies

Answer 25

operations strategy

Question 26

are the decisions mngmt must make as to what type of process structure is best suited to produce goods & create services

Answer 26

operations design choices

Question 27

focuses on the nonprocess features and capabilities of the organization

Answer 27

infrastructure