Business Strategy Chapter 2

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Questions and Answers

What is the term for a strategy that is designed to meet current needs without compromising the ability of future generations to meet their needs?

Competitive

Economic

Environmental

Sustainable (correct)

What are the three criteria included in a triple bottom line?

Product, process, chain

Cost, quality, delivery

Marketing, sales, finance

Social, economic, environmental (correct)

What occurs when a company seeks to match what a competitor is doing while maintaining its existing competitive position?

Cooperating

Straddling (correct)

Competing

Innovating

What is a criterion that differentiates the products or services of one firm from those of another?

Order winner Signup and view all the answers

What is a diagram showing the activities that support a company’s strategy?

Activity-system map Signup and view all the answers

What is a measure calculated by taking the ratio of output to input?

Productivity Signup and view all the answers

What is the approach that uses interfunctional teams to get input from the customer in design specification?

Quality function deployment Signup and view all the answers

What is the incorporation of environmental considerations into the design and development of products or services?

Design for environment Signup and view all the answers

What is the term for a firm that designs and builds products from scratch according to customer specifications?

Engineer-to-order Signup and view all the answers

What is the primary purpose of the House of Quality?

To create a visual representation of customer needs and product features Signup and view all the answers

What is the term for the procedure used to reduce project completion time by trading off time versus cost?

Crashing Signup and view all the answers

What is the term for a project structured where a self-contained team works full time on the project?

Pure project or skunkworks Signup and view all the answers

What is the term for a chart that shows both the time and sequence for completing the activities in a project?

Gantt chart Signup and view all the answers

What is the term for a firm that makes predesigned products directly to fill customer orders?

Make-to-order Signup and view all the answers

What is the term for activities that in sequence form the longest chain in a project?

Critical path(s) Signup and view all the answers

What is the term for the difference between the late and early start time for an activity?

Slack Signup and view all the answers

Study Notes

Strategy

A sustainable strategy meets current needs without compromising future generations' ability to meet their needs.
A triple bottom line includes social, economic, and environmental criteria.
Seven competitive dimensions in operations and supply chain are cost, quality, delivery speed, delivery reliability, coping with changes in demand, flexibility, and speed of new product introduction.
Cost is a major competitive dimension that is difficult to compete on.
Straddling occurs when a company matches a competitor's actions while maintaining its existing competitive position.
An order winner is a criterion that differentiates a firm's products or services from others.
An order qualifier is a screening criterion that permits a firm's products to be considered for purchase.
An activity-system map shows the activities that support a company's strategy.
Productivity is a measure calculated by taking the ratio of output to input.

Design of Product, Service, and Capacity

A contract manufacturer is an organization capable of manufacturing or purchasing all components needed to produce a finished product.
A core competency is the one thing a company can do better than its competitors.
The six phases of the product development process are planning, concept development, system-level design, detail design, testing, and production ramp-up.
Net present value is a useful tool for the economic analysis of a product development project.
Quality function development uses interfunctional teams to get input from customers in design specification.
A house of quality is a matrix of information that helps translate customer requirements into operating or engineering goals.
Design for manufacturing and assembly aims to simplify products by reducing the number of separate parts.
Ecodesign incorporates environmental considerations into the design and development of products or services.

Project Management

A pure project or skunkworks is a project structured where a self-contained team works full-time on the project.
Milestones are specific events that mark important progress toward completing a project.
A work breakdown structure defines the hierarchy of project tasks, subtasks, and work packages.
Activities are pieces of work in a project that consume time to complete.
A Gantt chart shows both the time and sequence for completing activities in a project.
Critical paths are activities that in sequence form the longest chain in a project.
Slack is the difference between the late and early start time for an activity.
The Program Evaluation and Review Technique (PERT) schedules activities with probabilistic task times.
Crashing is the procedure used to reduce project completion time by trading off time versus cost.
Resources are always available, a key assumption related to the resources needed to complete activities when using the critical path method.

Manufacturing and Service Processes

A made-to-order production environment involves making predesigned products directly to fill customer orders.
A decoupling point is a point where inventory is positioned to allow the production process to operate independently of the customer order delivery process.
A make-to-order production environment involves designing and building products from scratch according to customer specifications.
If a production process makes a unit every two hours and it takes 42 hours for the unit to go through the entire process, the expected work-in-process equals 21 units.
A finished goods inventory, on average, contains 10,000 units if the production rate is 1000 units per day and the average delivery time is 10 days.

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Description

This quiz assesses understanding of business strategies, including sustainable practices, competitive dimensions, and competitive positioning. It covers key concepts and criteria in strategy development.