Chapter 2 Homework

A company approves a large capital investment and implements a global computer system (for example, an Enterprise Resource Planning system such as SAP). This decision is ______________ element of their strategy.
A. an infrastructural
B. a structural
C. a cross-structural
D. a mega-structural

B. a structural

Which of these is an infrastructural element of a business?
A. the policies used to guide the employees
B. the copier and printers
C. the office furniture
D. the building used to house the business

A. the policies used to guide the employees

"Organizational strengths or abilities, developed over a long time period, that customers find valuable and competitors find difficult or even impossible to copy" is the definition of:
A. functional strategy
B. business strategy
C. core competency
D. mission statement

C. core competency

Which of the following terms accurately describes functional strategies that are properly aligned, traceable to the business strategy, and require coordination among multiple functional areas?
A. agile strategies
B. traceable strategies
C. supply chain strategies
D. cross-functional strategies

D. cross-functional strategies

You have just graduated from college and are looking to buy your first car. Money is tight right now, so you are concerned with initial cost as well as ongoing expenses. At the same time, you don't want to drive a slow, outdated car like your parents do. You have narrowed your choices down to two vehicles: a Honda Enigma and a Bizzarrini Booster. Based on the numbers below, calculate the value index for each car.

The value index for Honda Enigma is _______.
The value index for Bizzarrini Booster is _______.
The _______ provides the greatest total value index.

52; 48; Honda Enigma

Suppose Supplier B improves its conformance quality so that the chemicals it produces are now 99.7% pure. The following chart shows the new competitive situation.

a. Will this be enough to make Supplier B competitive? Which supplier do you think will win the business?
A. Increasing the conformance quality to above the qualifier level will allow Supplier B to compete for the business. Since Supplier B is better than Supplier A in 2 of the 3 categories, Supplier B will likely win the business if it is able to meet the qualifier. However, it still ultimately depends on how the various customers value the different order winners.
B. Increasing the conformance quality to above the qualifier level will allow Supplier B to compete for the business. It does not depend on how the various customers value the different order winners.
C. Increasing the conformance quality to above the qualifier level will allow Supplier A to compete for the business. SInce Supplier A is better than Supplier B in 2 of the 3 categories, Supplier A will likely win the business.
D. None of the above.

b. Managers at Supplier A have determined that if they increase the minimum order size to 95 liters, they can decrease their costs to $17 per liter. Should they do it?
A. Supplier A should not decrease their cost to $17 per liter by increasing the minimum order quantity to 95 liters. Doing this will result in Supplier A being the leader in 0 of the 3 order winner categories and will likely lose the business.
B. There are no reasons to do it. Supplier A will definitely lose the business.
C. Supplier A should decrease their cost to $17 per liter by increasing the minimum order quantity to 95 liters. Doing this will result in Supplier A being the leader in 2 of the 3 order winner categories and will likely win the business.
D. There are no reasons to do it. Supplier A will definitely win the business.

a.
A. Increasing the conformance quality to above the qualifier level will allow Supplier B to compete for the business. Since Supplier B is better than Supplier A in 2 of the 3 categories, Supplier B will likely win the business if it is able to meet the qualifier. However, it still ultimately depends on how the various customers value the different order winners.

b.
A. Supplier A should not decrease their cost to $17 per liter by increasing the minimum order quantity to 95 liters. Doing this will result in Supplier A being the leader in 0 of the 3 order winner categories and will likely lose the business.

Oklahoma County issued a request for proposal (RFP) to paint all of the offices in the buildings located in District 3. The RFP stipulated that only contractors that were licensed and bonded would be considered. This requirement is an example of:
A. performance dimensions
B. an order winner
C. a trade-off
D. an order qualifier

D. an order qualifier

Cross-docking is an operations and supply chain maneuver whereby:
A. no effort is made to link the operations and supply chain performance with the overall business strategy
B. components from one product are used in as many other products as possible
C. incoming shipments from suppliers are transferred directly to outgoing shipments to individual retail locations
D. the organization's weaknesses are improved to the extend that they become strengths and vice versa

C. incoming shipments from suppliers are transferred directly to outgoing shipments to individual retail locations