132 test bank for operations management canadian edition 1st edition heizer

B Corporate strategy is shaped by functional strategies.. C Functional strategies are shaped by corporate strategy.. E differentiation, distinctive competency, quality leadership, and ca

132 Test Bank for Operations Management Canadian Edition 1st Edition Heizer

Multiple Choice Questions - Page 1

With reference to cultural and ethical issues, the World

Trade Organization has

1. A) succeeded in providing equal protection of intellectual property among nations

2 B) made progress in providing equal protection of intellectual property among nations

3 C) phased out all trade and tariff barriers between the United States and Mexico

4 D) eliminated slave labour and child labour

5 E) played little role in addressing cultural and ethical issues among nations

A firm can effectively use its operations function to yield competitive advantage through all of the following except

1. A) customization of the product

2 B) setting equipment utilization goals below the industry average

3 C) speed of delivery

4 D) constant innovation of new products

5 E) maintaining a variety of product options

Which of the following statements regarding the Dreamliner

787 is true?

1. A) Boeing has found no international partners

2 B) The new aircraft incorporates a limited number of aerospace technologies

3 C) The new aircraft uses engines from only one manufacturer

4 D) Boeing will add 99% of the aircraft's value

5 E) Boeing has found partners in over a dozen countries

The fundamental purpose of an organization's mission

statement is to

1. A) create a good human relations climate in the organization

2 B) define the organization's purpose in society

3 C) define the operational structure of the organization.

4 D) generate good public relations for the organization

5 E) define the functional areas required by the organization

Which of the following is true about business strategies?

1. A) An organization should stick with its strategy for the life of the business

2 B) All firms within an industry will adopt the same strategy

3 C) Well defined missions make strategy development much easier

4 D) Strategies are formulated independently of SWOT analysis

5 E) Organizational strategies depend on operations strategies

Which of the following is true?

1. A) Corporate mission is shaped by functional strategies

2 B) Corporate strategy is shaped by functional strategies

3 C) Functional strategies are shaped by corporate strategy

4 D) External conditions are shaped by corporate mission

5 E) Functional area missions are merged to become the organizational mission

Multinational organizations can shop from country to

country and cut costs through

1. A) higher taxes and tariffs

2 B) higher wage scales

3 C) higher indirect costs

4 D) more stringent regulations

5 E) lower wages, lower indirect costs, and lower taxes and tariffs

A strategy is a(n)

1. A) set of opportunities in the marketplace

2 B) broad statement of purpose

3 C) simulation used to test various product line options

4 D) plan for cost reduction

5 E) action plan to achieve the mission

Which of the following strategic concepts allow firms to achieve their missions?

1. A) productivity, efficiency, and quality leadership

2 B) differentiation, cost leadership, and quick response

3 C) differentiation, quality leadership, and quick response

4 D) distinctive competency, cost leadership, and experience

5 E) differentiation, distinctive competency, quality leadership, and capacity

Cost cutting in international operations can take place

because of

1. A) higher taxes and tariffs

2 B) higher wage scales

3 C) higher indirect costs

4 D) more stringent regulations

5 E) lower wages, lower indirect costs, and lower taxes and tariffs

NAFTA seeks to

1. A) substitute cheap labour in Mexico for expensive labour in the United States

2 B) curb illegal immigration from Mexico to the United States

3 C) phase out all trade and tariff barriers between North America and South

America

4 D) phase out all trade and tariff barriers between the United States, Canada, and Mexico

5 E) phase out trade between the United States, Canada, and Mexico

Franz Colruyt, a Belgian discount food retailer, has achieved low-cost leadership through

1. A) lavish headquarters

2 B) heavy use of voice mail

3 C) state-of-the-art facilities

4 D) piped-in background music

5 E) cutting out all nonessentials

What term describes how an organization expects to achieve its missions and goals?

Which of the following is least likely to be a cost leadership competitive advantage?

1. A) reduce costs with a reduction in effectiveness of the supply chain

2 B) improve the supply chain while increasing overall costs

3 C) understand markets

4 D) reduce stockholder approval ratings

5 E) increase costs at the risk of stockholder approval ratings

Experience differentiation

1. A) isolates the consumer from the delivery of a service

2 B) is an extension of product differentiation in the service sector

3 C) uses only the consumer's senses of vision and sound

4 D) keeps consumers from becoming active participants in the service

5 E) is the same as product differentiation, but applied in the service sector

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness

in their characteristics is referred to as

1. A) mass production

2 B) time-based competition.

3 C) differentiation

4 D) flexible response

5 E) experience differentiation

Which of the following activities takes place most

immediately once the mission has been developed?

1. A) The firm develops alternative or back-up missions in case the original mission fails

2 B) The functional areas develop their functional area strategies

3 C) The functional areas develop their supporting missions

4 D) The ten OM decision areas are prioritized

5 E) Operational tactics are developed

Which of the following is an example of competing on the basis of differentiation?

1. A) A firm manufactures its product with less raw material waste than its

competitors do

2 B) A firm's products are introduced into the market faster than its competitors' products are

3 C) A firm's distribution network routinely delivers its product on time

4 D) A firm offers more reliable products than its competitors do

5 E) A firm advertises more than its competitors do

Which of the following is true of maquiladoras?

1. A) They discourage foreign businesses from outsourcing

2 B) They assess tariffs only on the value-added work done

3 C) They originated in China

4 D) They are not available to Canadian companies

5 E) They can be found in many countries

Which of the international operations strategies involves a focus on high cost reductions and low local

responsiveness?

1. A) international strategy

2 B) global strategy

3 C) transnational strategy

4 D) multidomestic strategy

5 E) transdomestic strategy

The term maquiladora is synonymous with

1. A) free trade zones in Mexico

2 B) Chinese forced labour camps

3 C) home-based or cottage industry

4 D) areas that do not meet U.S standards for workplace safety and pollution

5 E) taxes charged by the Mexican government

Which of the international operations strategies involves a focus on low cost reductions and high local

3 C) to expand a product's life cycle

4 D) to attract and retain global talent

5 E) to increase profits at the expense of quality

Which of the following is an example of globalization of operations strategy?

1. A) Boeing's Dreamliner has engines with higher fuel/payload efficiency

2 B) Ford's new auto models have dent-resistant panels

3 C) A Chinese manufacturer, Haier, now operates plants in the United States

4 D) Hard Rock Café provides an "experience differentiation" at its restaurants

5 E) Porter Airlines focuses on short-haul flights

Which of the following is an example of a response to the global environment?

1. A) Boeing's local sales and production

2 B) Benneton's strict limits on design, production, and distribution

3 C) a Chinese manufacturer, Haier, producing in China

4 D) Ford's partnerships with GM

5 E) Ford's partnerships with Volvo and Mazda

Which of the following best describes "experience

differentiation"?

1. A) It immerses consumers in the delivery of a service

2 B) It uses people's five senses to enhance the service

3 C) It complements physical elements with visual and sound elements

4 D) Consumers may become active participants in the product or service

5 E) All of the above are elements of experience differentiation

Which of the following does not represent a reason for

globalizing operations?

1. A) to reduce costs

2 B) to improve the supply chain

3 C) to reduce responsiveness

4 D) to attract and retain global talent

5 E) All of the above are valid reasons for globalizing operations

Which of the following is the best example of competing on low-cost leadership?

1. A) A firm produces its product with less raw material waste than its competitors

2 B) A firm offers more reliable products than its competitors

3 C) A firm's products are introduced into the market faster than its competitors' products

4 D) A firm's research and development department generates many ideas for new products

5 E) A firm advertises more than its competitors

Which of the following statements about organizational missions is false?

1. A) They reflect a company's purpose

2 B) They indicate what a company intends to contribute to society

3 C) They are formulated after strategies are known

4 D) They define a company's reason for existence

5 E) They provide guidance for functional area missions

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is

2 B) uses engines from Japan

3 C) has its fuselage sections built in Australia

4 D) has increased efficiency from new engine technology

5 E) results from a partnership of about a dozen companies

Which of the following statements best characterizes

delivery reliability?

1. A) a company that always delivers on the same day of the week

2 B) a company that always delivers at the promised time

3 C) a company that delivers more frequently than its competitors

4 D) a company that delivers faster than its competitors

5 E) a company that has a computerized delivery scheduling system

68 Free Test Bank for Operations Management Canadian Edition 1st Edition Heizer Multiple

Choice Questions - Page 2

Caterpillar and Texas Instruments are two firms that have benefited from the use of

1. A) the multidomestic strategy option

2 B) the transdomestic corporation strategy

3 C) the transnational strategy option

4 D) the maquiladora system in Europe

5 E) the global strategy option

Which of the international operations strategies uses import/ export or licensing of existing products?

1. A) change in the company's financial situation

2 B) a company's adoption of new technology

3 C) change in the product life cycle

4 D) change in the competitive environment

5 E) change in job scheduling techniques

When developing the operations strategy for a new

manufacturing organization, one of the most important

considerations is that it

1. A) requires minimal capital investment

2 B) utilizes as much automation as possible

3 C) utilizes an equal balance of labour and automation

4 D) supports the overall competitive strategy of the company.

5 E) utilizes as little automation as possible

The Belgian discount food retailer Franz Colruyt has

achieved low-cost leadership through

1. A) effective use of voice mail

2 B) plastic, not paper, shopping bags

3 C) background music that subtly encourages shoppers to buy more

4 D) converting factories, garages, and theatres into retail outlets

5 E) exclusive use of the Euro

Value-chain analysis is used to identify activities that

represent, or can develop into, the core competencies of a business Who introduced this concept?

1. A) develop the strategy, establish the organizational structure, find the right staff.

2 B) develop the strategy, find the right staff, establish the organizational structure

3 C) find the right staff, establish the organizational structure, develop the strategy

4 D) find the right staff, develop the strategy, establish the organizational structure

5 E) establish the organizational structure, find the right staff, develop the strategy

The acronym MNC stands for

1. A) Mexican National Committee (for international trade)

2 B) Maquiladora Negates Competition

5 E) All of the above influence layout decisions

Which of the following statements concerning the operations management decision is relevant to services?

1. A) There are many objective quality standards

2 B) The customer is not involved in most of the process.

3 C) The work force's technical skills are very important

4 D) Labour standards vary depending on customer requirements

5 E) Ability to inventory may allow the leveling of the output rates

Which of these organizations is likely to have the most

important inventory decisions?

1. A) a marketing research firm

1. A) A firm produces its product with less raw material waste than its competitors

2 B) A firm offers more reliable products than its competitors

3 C) A firm's products are introduced into the market faster than its competitors' products

4 D) A firm utilizes is capacity more effectively than its competitors

5 E) A firm advertises more than its competitors

Which of the following environmental factors has not been a factor in Microsoft's changing strategy?

1. A) Google

2 B) security issues

3 C) faster processors

4 D) the Internet

5 E) location of company headquarters

Which of the following statements is most correct?

1. A) Key success factors (KSFs) are often necessary, but not sufficient for

4 D) Key success factors (KSFs) are both necessary and sufficient for competitive advantage.

5 E) None of the above statements are correct

Which of these companies is most likely to have quality standards that are relatively subjective?

1. A) research and development, cost, legal regulations, suppliers, customers

2 B) immediate rivals, potential entrants, customers, suppliers, and substitute products

3 C) potential entrants, customers, suppliers, legal regulations, and cost

4 D) immediate rivals, potential entrants, cost, substitute products, and legal regulations

5 E) none of the above

Which of the following will more likely to locate near their customers?

Standardization is an appropriate strategy in which stage of the product life cycle?

1. A) increasing capacity

2 B) long production runs

3 C) standardization

4 D) cost cutting

5 E) fewer rapid product changes

Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other?

Cost minimization is an appropriate strategy in which stage

of the product life cycle?

Compared to a firm providing a service, a firm producing a good is more likely to have many quality

standards, product, and a location from customers

1. A) subjective; tangible; far

2 B) subjective; intangible; far

3 C) objective; tangible; near

4 D) objective; tangible; far

5 E) objective; intangible; far

Which of the following is not included in Porter's Five Forces Model?

Which of these organizations is likely to have the most

complex inventory decisions?

1. A) a marketing research firm

2 B) a stock brokerage firm

3 C) a management consulting firm

4 D) a computer manufacturing company

5 E) a high school

Value-chain analysis can be used to determine if a business

is adding unique value in all of the following areas, except