CHAPTER 2

Question 1

How effectively an organization meets the
wants and needs of customer relative to
others that offer similar goods or services.

Answer 1

Competitiveness

Question 2

The reason for the existence of an
organization.

Answer 2

Mission

Question 3

States the purpose of an organization.

Answer 3

Mission statement

Question 4

Provide detail and scope of the mission.

Answer 4

Goals

Question 5

Plans for achieving organizational goals.

Answer 5

Strategies

Question 6

The methods and actions taken to
accomplish strategies.

Answer 6

Tactics

Question 7

Outsource operations to third-world countries
that have low labor costs.

Answer 7

Low cost

Question 8

Use capital-intensive methods to achieve
high output volume and low unit costs.

Answer 8

Scale-based strategies

Question 9

Focus on narrow product lines or limited
service to achieve higher quality.

Answer 9

Specialization

Question 10

Focus on innovation to create new products
or services.

Answer 10

Newness

Question 11

Focus on quick response and/or
customization.

Answer 11

Flexible operations

Question 12

Focus on achieving higher quality than
competitors.

Answer 12

High quality.

Question 13

Focus on various aspects of service (e.g.,
helpful, courteous, reliable, etc.).

Answer 13

Service

Question 14

Focus on environmental-friendly and energyefficient operations.

Answer 14

Sustainability.

Question 15

A measure of the effective use of resources,
usually expressed as the ratio of output to
input.

Answer 15

Productivity

Question 16

These include the general health and
direction of the economy, inflation and
deflation, interest rates, tax laws, and tariffs.

Answer 16

Economic conditions.

Question 17

These include favorable or unfavorable
attitudes toward business, political stability or
instability, and wars.

Answer 17

Political conditions.

Question 18

This includes antitrust laws, government
regulations, trade restrictions, minimum wage
laws, product liability laws and recent court
experience, labor aws, and patents.

Answer 18

Legal environment.

Question 19

This can include the rate at which product
innovations are occurring, current and future
process technology (equipment, materials
handling), and design technology.

Answer 19

Technology.

Question 20

This includes the number and strength of
competitors, the basis of competition (price,
quality, special features), and the ease of
market entry.

Answer 20

Competition

Question 21

This includes size, location, brand loyalties,
ease of entry, potential for growth, long-term
stability, and demographics.

Answer 21

Markets

Question 22

These include the skills and abilities of
managers and workers, special talents
(creativity, designing, problem solving),
loyalty to the organization, expertise,
dedication, and experience.

Answer 22

Human resources.

Question 23

Capacities, location, age, and cost to
maintain or replace can have a significant
impact on operations.

Answer 23

Facilities and equipment.

Question 24

Cash flow, access to additional funding,
existing debt burden, and cost of capital are
important considerations.

Answer 24

Financial resources.

Question 25

Loyalty, existing relationships, and
understanding of wants and needs are
important

Answer 25

Customers.

Question 26

These include existing products and services,
and the potential for new products and
services.

Answer 26

Products and services.

Question 27

This includes existing technology, the ability
to integrate new technology, and the
probable impact of technology on current and
future operations.

Answer 27

Technology

Question 28

Supplier relationships, dependability of
suppliers, quality, flexibility, and service are
typical considerations.

Answer 28

Suppliers.