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Operations Management > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Define maquiladoras

A

Mexican factories located along the U.S. - Mexico border that receive preferential tariff treatment

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2
Q

Define World Trade Organization (WTO)

A

An international organization that promotes world trade by lowering barriers to the free flow of goods across borders.

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3
Q

Define North American Free Trade Agreement (NAFTA)

A

A free trade agreement between Canada, Mexico, and the United States.

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4
Q

European Union (EU)

A

A european trade group that has 27 member states.

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5
Q

Define mission

A

The purpose or rationale for an organization’s existence.

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6
Q

Define strategy

A

How an organization expects to achieve its missions and goals

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7
Q

Define competitive advantage

A

The creation of a unique advantage over competitors

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8
Q

Define response

A

a set of values related to rapid, flexible, and reliable performance

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9
Q

Define differentiation

A

Distinguishing the offerings of an organization in a way that the customer perceives as adding value.

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10
Q

Define experience differentiation

A

Engaging a customer with a product through imaginative use of the five senses, so the customer “experiences” the product.

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11
Q

Define low-cost leadership

A

Achieving maximum value, as perceived by the customer.

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12
Q

Define resources view

A

A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage

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13
Q

Define value-chain analysis

A

a way to identify those elements in the product/service chain that uniquely add value.

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14
Q

Define five forces model

A

a method of analyzing the five forces in the competitive environment.

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15
Q

define SWOT analysis

A

a method of determining internal strengths and weaknesses and external opportunities and threats.

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16
Q

define activity map

A

a graphical link of competitive advantage, KSFs, and supporting activities.

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17
Q

define key success factors (KSFs)

A

activities or factors that are key to achieving competitive advantage

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18
Q

define core competencies

A

a set of skills, talents, and capabilities in which a firm is particularly strong

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19
Q

define outsourcing

A

transferring a firm’s activities that have traditionally been internal to external suppliers.

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20
Q

define theory of comparative advantage

A

a theory which states that countries benefit from specializing in (and exporting) goods and services in which they have relative advantage, and they benefit from importing goods and services in which thy have a relative disadvantage

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21
Q

define international business

A

a firm that engages in cross-border transactions

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22
Q

define multinational corporation (MNC)

A

a firm that has extensive involvement in international business, owning or controlling facilities in more than one country.

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23
Q

define international strategy

A

a strategy in which global markets are penetrated using exports and licenses.

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24
Q

define multi-domestic strategy

A

a strategy in which operating decisions are decentralized to each country to enhance local responsiveness

25
Q

define global strategy

A

a strategy in which operating decisions are centralized and headquarters coordinates the standardization and learning between facilities.

26
Q

define transnational strategy

A

a strategy that combines the benefits of global-scale efficiencies with the benefits of local responsiveness

27
Q

In determining the value of a product, customers take into account

A

the benefits derived from the product compared to the costs associated with it

28
Q

Davis and Meyer (Blur) indicate three factors that are changing the way we do business today. The factors are:

A

connectivity, speed, and intangibility

29
Q

Which of the following is an infrastructural operation decision?

A

quality management decision

30
Q

If the perceived customer value is measured as the ratio of Total Benefits/Total costs, a customer feels he/she received value if the ratio is

A

b > 1

31
Q

Which of the following decisions is the most narrow in scope?

A

functional strategy

32
Q

As a competitive priority, flexibility refers to a firm’s

A

ability to quickly change to a new line of products

33
Q

As a competitive priority, flexibility refers to a firm’s

A

ability to quickly change to a new line of products

34
Q

Which of the following has been added most recently to the four basic competitive priorities?

A

service

35
Q

During the 1960’s and early 1970’s the focus was on which competitive priority?

A

cost

36
Q

A low cost business strategy refers to

A

producing products/services at the lowest possible cost

37
Q

Which of the following decisions is the broadest?

A

corporate strategy

38
Q

Which of the following is a structural operations decision?

A

location decision

39
Q

According to the authors, which of the following is becoming the newest competitive advantage?

A

environmental friendliness

40
Q

Which of the following statements is NOT consistent with the concept of core capabilities?

A

focus on core capabilities has had little impact on service

41
Q

If the perceived customer value is measured as the ratio of Total Benefits/Total Costs, a customer feels ‘ripped off’ if the ratio is

A

a

42
Q

Which of the following is NOT a way to improve the customer’s perceived value of a product or service?

A

raise the price

43
Q

According to the authors, which of the following is becoming the newest competitive advantage?

A

information

44
Q

Strategic development divides strategy into three broad categories. They are:

A

corporate, business unit, and functional.

45
Q

If the perceived customer value is measured as the Total Benefits minus Total costs, a customer feels he/she received value if the difference is

A

positive

46
Q

If the perceived customer value is measured as the Total Benefits minus Total costs, a customer feels ‘ripped off’ if the difference is

A

negative

47
Q

During the 1980’s the focus was on which competitive priority?

A

delivery

48
Q

As a competitive priority, flexibility refers to a firm’s

A

ability to offer a wide variety of products

49
Q

Which of the following was NOT originally identified by Skinner as a basic competitive priority?

A

service

50
Q

During the 1990’s the focus was on which competitive priority?

A

service

51
Q

During the 1970’s and early 1980’s the focus was on which competitive priority?

A

quality

52
Q

The three strategic approaches to competitive advantage are:

A

Differentiation, cost leadership, and response

53
Q

Forces in Porter’s five forces model are:

A
  1. immediate rivals
  2. potential entrants
  3. customers
  4. suppliers
  5. substitute products
54
Q

Identify the six reasons domestic business operations decide to change to some form of international operation.

A
  1. Improve the supply chain
  2. Reduce costs (labor, taxes, tariffs, etc.)
  3. Improve operations.
  4. Understand markets.
  5. Improve products.
  6. Attract and retain global talent.
55
Q

A mission statement is beneficial to an organization because it:

A

is a statement of the organization’s purpose

56
Q

The three strategic approaches to competitive advantage are:

A

differentiation, cost leadership, and response.

57
Q

Core competencies are those strengths in a firm that include:

A

specialized skills, unique production methods, proprietary information/knowledge, and things a company does better than others.

58
Q

Evaluating outsourcing providers by comparing their weighted average scores involves:

A

factor-rating analysis

59
Q

A company that is organized across international boundaries, with decentralized authority and substantial autonomy at each business via subsidiaries, franchises, or joint ventures, has:

A

an international strategy

Operations Management (8 decks)

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