Module 1 - Section B

Questions and Answers

Which forces have the most significant impact in revolutionizing supply chain management?

Global expansion and increased project complexity and scope (correct)

Market stabilization and use of third-party logistics providers

Large teams co-locating and greater market volatility

Supply destabilization and demand uncertainty

In today's world, supply chains can be described as moving toward which characteristics?

Interdependence, collaboration, and playing a strategic role (correct)

Interdependence, self-contained, and playing a tactical role

Dependence, self-contained, and playing a strategic role

Independence, collaboration, and playing a tactical role

What action is incentivized when market interest rates are low?

Borrowing to make capital investments (correct)

Decreased hiring of new employees

Avoiding taking on debt for capital investments

Increased product version outputs

After performing an extensive customer survey, what else does an organization need to do to discover whether there are any customer requirements being missed in the market?

Scan what the competitors are offering. Signup and view all the answers

During a product assessment, the services review indicates that their once world-class return policy has been now widely copied and customers no longer consider it a special value. What is the best response shown?

Scan the competitor for services they offer that are not in saturation and if customers want them, add them. Signup and view all the answers

According to macroeconomic theory, as aggregate prices decrease, what happens to the real gross domestic product (GDP), and why?

Real GDP increases, because there is more real wealth. Signup and view all the answers

An organization's macro environment has changed for the worse. As part of a demand analysis, what can the organization's marketing professionals do about this?

Consider whether product end-of-life or new product introductions should be planned for the new environment. Signup and view all the answers

When market research reveals that some customer segments desire certain features but other segments desire different features, an organization's primary criteria for deciding on features to include are those that:

increase net profit margin. Signup and view all the answers

What global force that impacts virtually every supply chain is caused by the increasing power of speed and information available to both consumers and competitors?

Greater market volatility Signup and view all the answers

As part of a regular SWOT analysis, a manufacturer of luxury goods identifies a high likelihood of a national personal income tax increase in its primary market following sweeping electoral changes. What potential outcome should the manufacturer prepare for?

Reduction in demand Signup and view all the answers

If the overall economy of a country is in a trough but economic leading indicators show a healthy increase in demand for the next quarter, which would be a good strategic choice for a risk-seeking organization to make?

Hire high-quality new employees at reasonable salaries. Signup and view all the answers

A SWOT analysis is:

a tool used to analyze an organization's current state and opportunities. Signup and view all the answers

Microeconomics focuses on the decisions that businesses and people make:

in terms of resource allocation and the prices of products and services. Signup and view all the answers

A manufacturer enlists a marketing company to survey current and prospective customers to determine their perceptions of the manufacturer's brand and gauge their reactions when shown a series of new product concepts. What type of marketing research is being conducted?

Consumer research Signup and view all the answers

Which is one reason why suppliers will not increase supply past a given point even if the prices keep getting higher and there is more incentive to produce more supply?

There are diminishing returns. Signup and view all the answers

According to the law of demand, what is likely to happen if the price of a good or service increases?

Consumption of substitute goods may increase. Signup and view all the answers

What is true of demand elasticity over time?

Demand is more inelastic over the short term and more elastic over the long term. Signup and view all the answers

An automobile company has identified a five-year trend in the price of gasoline, with prices consistently increasing year over year. How can it respond to capitalize on this trend?

Design and produce vehicles that are more fuel-efficient. Signup and view all the answers

An organization has attempted to forecast demand for a popular product over the last decade. They have sufficiently accounted for changes due to holidays and climate specifics as well as those due to advertised sales. They have been accurate when forecasting long-term changes, but over short-term periods, they have been inaccurate, at times leading to stockouts and excess inventory. What is the likely cause of their forecast inaccuracy?

Random variation Signup and view all the answers

What is an essential trait for organizations with global supply chains?

Flexibility to withstand disruptions Signup and view all the answers

Study Notes

Supply Chain Management Forces

Technological advancements, globalization, and shifting consumer expectations are key forces revolutionizing supply chain management.

Characteristics of Modern Supply Chains

Today's supply chains are increasingly agile, resilient, transparent, and focused on sustainability.

Effects of Low Market Interest Rates

Low market interest rates incentivize borrowing and investment, encouraging consumer spending and business expansion.

Identifying Missed Customer Requirements

In addition to conducting customer surveys, organizations should analyze competitor offerings and market trends to uncover unmet needs.

Response to Copycat Policies

Organizations facing widely copied return policies should innovate or enhance their service experiences to restore unique value for customers.

Impact of Aggregate Price Decrease on GDP

According to macroeconomic theory, a decrease in aggregate prices generally leads to an increase in real GDP, as consumers are more likely to spend due to lower costs.

Marketing Professionals' Actions in a Negative Macro Environment

In adverse macroeconomic conditions, marketing professionals should reassess pricing strategies and identify new target markets or product offerings.

Decision Criteria for Feature Inclusion

When market research shows divergent feature preferences among customer segments, the primary criterion for deciding features is to prioritize those with the highest overall demand.

Global Force Affecting Supply Chains

The increasing power of speed and information, driven by technology and consumer connectivity, is a crucial global force impacting supply chains.

Preparation for Tax Changes in Luxury Goods Market

A luxury goods manufacturer should prepare for potential declines in consumer spending due to a national income tax increase.

Strategic Choices in Economic Troughs

In a trough with signs of recovery, a risk-seeking organization could pursue aggressive market expansion or investment strategies.

SWOT Analysis Overview

A SWOT analysis assesses an organization's Strengths, Weaknesses, Opportunities, and Threats to inform strategic planning.

Focus of Microeconomics

Microeconomics examines individual and business decision-making processes regarding resource allocation and pricing strategies.

Type of Marketing Research Conducted

The survey of current and prospective customers assessing brand perception and product concepts is classified as exploratory marketing research.

Supplier Production Constraints

Suppliers may not increase production despite higher prices due to capacity limitations and fixed costs that restrict scalability.

Law of Demand

According to the law of demand, an increase in the price of a good or service typically results in a decrease in quantity demanded.

Demand Elasticity Over Time

Demand elasticity can change over time as consumers adjust their purchasing behavior in response to long-term price changes or market shifts.

Responding to Gasoline Price Trend

An automobile company can capitalize on the trend of rising gasoline prices by developing fuel-efficient vehicles or alternative energy options.

Forecasting Demand Challenges

Forecast inaccuracy for short-term demand may stem from unpredictable market fluctuations, changing consumer behavior, or insufficient data analysis.

Essential Trait for Global Supply Chains

Agility is essential for organizations with global supply chains, enabling them to adapt to changes and disruptions quickly.

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Demand Analysis and Patterns