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Questions and Answers
What is required for a company to achieve strategic fit?
What is required for a company to achieve strategic fit?
What does a company's competitive strategy primarily define?
What does a company's competitive strategy primarily define?
What can lead to a company's failure regarding strategic fit?
What can lead to a company's failure regarding strategic fit?
What must be understood first to achieve strategic fit?
What must be understood first to achieve strategic fit?
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How does a supply chain strategy impact product delivery?
How does a supply chain strategy impact product delivery?
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Which of the following is included in a supply chain strategy?
Which of the following is included in a supply chain strategy?
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What does supply chain responsiveness NOT include among its capabilities?
What does supply chain responsiveness NOT include among its capabilities?
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What aspect does a marketing and sales strategy specify?
What aspect does a marketing and sales strategy specify?
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What best describes supply chain efficiency?
What best describes supply chain efficiency?
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How does customer needs impact supply chain strategies?
How does customer needs impact supply chain strategies?
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Which of the following factors is NOT typically prioritized in competitive strategy?
Which of the following factors is NOT typically prioritized in competitive strategy?
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In what way does strategic fit between competitive strategy and supply chain strategy affect performance?
In what way does strategic fit between competitive strategy and supply chain strategy affect performance?
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Which of the following describes the relationship between competitive strategy and supply chain strategy?
Which of the following describes the relationship between competitive strategy and supply chain strategy?
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What is the role of a product development strategy?
What is the role of a product development strategy?
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What do supply chain capabilities include in relation to customer service?
What do supply chain capabilities include in relation to customer service?
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Which of the following best describes the nature of a supply chain strategy?
Which of the following best describes the nature of a supply chain strategy?
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What impact do increases in cost have on efficiency?
What impact do increases in cost have on efficiency?
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What does the efficient frontier represent in supply chain management?
What does the efficient frontier represent in supply chain management?
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How can a firm improve its responsiveness and cost performance?
How can a firm improve its responsiveness and cost performance?
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Why does Seven-Eleven Japan replenish its stores at different times of the day?
Why does Seven-Eleven Japan replenish its stores at different times of the day?
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What characterizes the supply chain strategy of Sam’s Club?
What characterizes the supply chain strategy of Sam’s Club?
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What best describes the relationship between customer uncertainty and supply chain responsiveness?
What best describes the relationship between customer uncertainty and supply chain responsiveness?
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What is the correct approach when trying to achieve strategic fit in supply chain management?
What is the correct approach when trying to achieve strategic fit in supply chain management?
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Which statement is true regarding the supply chain strategy?
Which statement is true regarding the supply chain strategy?
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What is the primary goal of a responsive supply chain?
What is the primary goal of a responsive supply chain?
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Which of the following strategies should be employed to support an efficient supply chain?
Which of the following strategies should be employed to support an efficient supply chain?
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What is meant by the 'zone of strategic fit'?
What is meant by the 'zone of strategic fit'?
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What characteristic is associated with the pricing strategy in a responsive supply chain?
What characteristic is associated with the pricing strategy in a responsive supply chain?
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How should supplier selection be approached in an efficient supply chain?
How should supplier selection be approached in an efficient supply chain?
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Which of the following strategies is NOT typically part of a responsive supply chain?
Which of the following strategies is NOT typically part of a responsive supply chain?
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What does tailoring the supply chain to achieve strategic fit require regarding customer segments?
What does tailoring the supply chain to achieve strategic fit require regarding customer segments?
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Which aspect does the scope of strategic fit encompass?
Which aspect does the scope of strategic fit encompass?
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What is the primary focus of the intrafunctional scope within a supply chain?
What is the primary focus of the intrafunctional scope within a supply chain?
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Which intercompany scope focuses on achieving a balance between supply chain partners?
Which intercompany scope focuses on achieving a balance between supply chain partners?
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What is a key obstacle to achieving strategic fit in supply chains?
What is a key obstacle to achieving strategic fit in supply chains?
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How does globalization affect the strategic fit of supply chains?
How does globalization affect the strategic fit of supply chains?
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Which strategy does McMaster-Carr employ to achieve high profits?
Which strategy does McMaster-Carr employ to achieve high profits?
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What does the agile intercompany scope emphasize?
What does the agile intercompany scope emphasize?
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What environmental considerations are necessary when designing a supply chain strategy?
What environmental considerations are necessary when designing a supply chain strategy?
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What is one of the major challenges stemming from the increasing variety of products?
What is one of the major challenges stemming from the increasing variety of products?
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Study Notes
Understanding Supply Chain
- Supply chains encompass procurement, process, distribution, resources, logistics, planning, assets, delivery, processes, product, manufacturer, business plan, strategic system, lifecycle, partnerships, network, delivery activities, and distribute.
- A supply chain strategy defines customer priorities regarding product cost, delivery time, variety, and quality.
- Defining supply chain strategy and explaining how creating a strategic fit between a company's competitive strategy and its supply chain strategy affects performance is key.
Competitive and Supply Chain Strategies
- A company's competitive strategy defines customer needs relative to competitors.
- Competitive strategy includes cost leadership, responsiveness, and product availability.
- Cost leadership involves offering the lowest prices to attract sensitive consumers.
- Responsiveness highlights quick and efficient service.
- Company strategies are determined by prioritizing customer needs that are unique and different among their competitors.
- Competitive strategies consist of specific strategies, competitive advantages, and customer needs.
- Methods are employed to achieve an advantage for the company.
Competitive Strategies Overview
- McMaster-Carr emphasizes convenience, product availability, and responsiveness.
- Walmart focuses on lower prices and product availability.
Competitive and Supply Chain Strategy Models
- Comparing online vs. retail diamond jewelry models highlights tradeoffs between immediate vs. delayed delivery, lower vs. higher margins, and extensive vs. limited product variety.
- Understanding the customer's priorities and the company's goals is critical for achieving strategic fit.
- Balancing Responsiveness and Efficiency in supply chains involves navigating trade-offs between cost and service.
- Supply strategy determines aspects like procurement of raw materials, transportation, manufacturing, distribution, customer service, and whether processes are outsourced or done internally.
Competitive and Supply Chain Strategies: A Product Development Strategy
- A product development strategy specifies the portfolio of new products that a company will try to develop.
- Key stages include plan/design, source, supply, produce, distribute, and sell.
- Marketing and sales strategies segment the market and position, price, and promote a product.
- Product positioning establishes a unique place in consumer minds.
- Pricing strategies determine optimal price points for maximum profitability.
- Promotion tactics craft communication strategies to reach target audiences.
Understanding the Customer and Supply Chain Uncertainty
- Aligning supply chains with customer needs involves optimizing the supply chain by integrating insights.
- Assessing uncertainty in supply, demand, and service is needed for appropriate adjustments.
- Understanding customer needs and supply chain uncertainties helps identify appropriate adjustments.
- Customers may have different needs for varying product variety, response times, and service levels.
- Customers may need various quantities (small to large orders) based on product demands and urgency.
- Customer demand reflects the availability and reliability of products, ranging from high to moderate levels.
- Product variety and price sensitivity indicate customer needs.
Understanding the Supply Chain Capabilities
- Supply chain responsiveness is the ability to respond to wide ranges of quantities demanded.
- Short lead times, handling a large product variety, building highly innovative products, and maintaining a high service level, are indicators of responsiveness.
- Supply chain efficiency is inversely related to the cost of making and delivering a product to the customer.
- The cost-responsiveness efficient frontier is the lowest possible cost for a given level of responsiveness.
- Companies should align their supply chains with the cost-responsiveness efficient frontier.
- Different companies have varying methods, such as production scheduling, delivery schedules, and product variety, reflecting different levels of supply chain efficiency and responsiveness.
- Examples include Integrated steel mills (highly efficient, little variety) vs. Seven-Eleven Japan (highly responsive, changing merchandise mix).
Achieving Strategic Fit
- Strategic fit matches customer priorities with supply chain capabilities.
- A company may struggle to reach optimal fit due to either a lack of strategic fit or if the company's overall supply chain design, processes, and resources do not match the necessary capabilities.
- No single supply chain strategy is perfect for all situations.
- Matching supply chain responsiveness with implied uncertainty from demand and supply is also crucial for strategic fit.
- Companies should consider different supply chain strategies to balance cost and service.
- Tailoring the supply chain to various customer segments and products is essential for achieving strategic fit.
- The scope of strategic fit refers to functions within a firm and stages across the supply chain for devising and implementing an integrated strategy.
Obstacles to Achieving Strategic Fit
- Increasing product variety, globalization, and changing technology/business environments present challenges to achieving strategic fit.
- Supply chain fragmentation (operational, geographic, technological, supplier, organizational) complicating strategic fit.
Achieving Strategic Fit in Dynamic Supply Chains
- Agile intercompany scope refers to a firm's ability to achieve strategic fit when partnering with supply chain stages that change over time.
- Understanding changes in customer needs, supply, and demand in a dynamic environment is crucial.
- Partnering, and coordinating with multiple suppliers and distributors is necessary for matching different product varieties and demands.
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Description
This quiz explores the crucial aspects of supply chain management and competitive strategies. It covers key concepts such as procurement, logistics, and strategic fit between competitive and supply chain strategies. Test your knowledge on how these elements affect business performance.
