O.M. Ch. 2-MC

Question 1

A value chain focuses primarily on the physical movement of goods and material, and supporting flows of information and financial transactions through the supply, production, and distribution processes.

Answer 1

False

Question 2

Value chains involve all major functions in an organization.

Answer 2

True

Question 3

A supply chain is broader in scope than a value chain.

Answer 3

False

Question 4

Value can be increased by increasing perceived benefits while holding price or cost constant.

Answer 4

True

Question 5

A competitively dominant customer experience is often called a value proposition.

Answer 5

True

Question 6

Centralization and decentralization are two forms of operational structure

Answer 6

True

Question 7

Centralization is the opposite of forward integration.

Answer 7

False

Question 8

Vertical integration refers to reducing the levels of authority in an organization to facilitate quicker decision making.

Answer 8

False

Question 9

Backward integration refers to acquiring capabilities toward suppliers.

Answer 9

True

Question 10

Outsourcing is the opposite of vertical integration.

Answer 10

True

Question 11

Outsourcing is acquiring parts and material from foreign suppliers.

Answer 11

False

Question 12

Variable costs typically include the cost of leasing equipment.

Answer 12

False

Question 13

Fixed costs typically include administrative costs.

Answer 13

True

Question 14

Outsourcing is a prerequisite to offshoring.

Answer 14

False

Question 15

A multinational enterprise is an organization that sources, produces, and markets its goods and services in several countries.

Answer 15

True

Question 16

According to our authors, which of the following is correct regarding value chains and supply chains?

Answer 16

A supply chain is a portion of the value chain.

Question 17

The portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes is called the

Answer 17

supply chain

Question 18

One of the simplest functional forms of value is

Answer 18

(perceived benefits)/(cost to the buyer)

Question 19

A competitively dominant customer experience is often called a

Answer 19

value proposition

Question 20

The focus on value has forced many traditional goods-producing companies to add

Answer 20

services

Question 21

The process of acquiring and consolidating elements of a value chain to achieve more control is called

Answer 21

vertical integration

Question 22

The process of having suppliers provide goods and services that were previously provided internally is called

Answer 22

outsourcing

Question 23

Acquiring distributors or even customers is called

Answer 23

forward integration

Question 24

The process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the right quantity, and with the highest attention to detail is called

Answer 24

value chain integration

Question 25

Which of the following lists of four firms is sequenced from lowest degree of offshoring to highest degree?

Answer 25

Harley-Davidson, American Express, Coca-Cola, and Honda