Exercises on Key Concepts/Terms Chapter 2. Operations Strategy and Competitiveness MGMT4102, J. Wang 1. Between business strategy and operations strategy, which one should be determined first? a. Business strategy b. Operations strategy 2. The operation strategy is one functional strategy of a business. The other two functional strategies are _____________ . a. business strategy and marketing strategy b. business strategy and finance strategy c. marketing strategy and finance strategy d. mission and competitive priority strategy 3. ___________ refers to the advantage that a firm must possess to survive or outperform its competitors. a. Mission b. Competitive priority c. Environmental scanning d. Business strategy 4. The advantages that a firm possesses to survive or outperform its competitors is called ______________. a. Operation processes b. Competitive priorities c. Market analyses d. Productivities 5. The minimum standards that a company must meet to stay in the competitive market is called _______________. a. Order qualifiers b. Order winners 6. Environmental scanning refers to ___________________. a. protecting the environment around a company b. watching and recording the environment for the purpose of environment control c. monitoring the external environment of a company to indentify business opportunities and threats d. copying the environment 7. The screen of a mobile phone requires a new material. The technology of making the new material is an example of ________________. a. product technology b. process technology c. information technology 8. Suppose database and data-mining are used to process data and communicate among production departments. Such a technology is an example of ____________. a. product technology b. process technology c. information technology 1 9. The four alternatives of competitive priorities, cost, time, quality, and flexibility, must be selected together. a. True b. False 10. As one of the competitive priorities, “flexibility” refers to that the business pursues to ______________. a. have flexible working hours for its workers b. provide customers with large variety of products c. provide customers with products with varied qualities. d. sell its products in store as well as on-line. 11. “Time” is an alternative of competitive priorities. What does “time” here mean? a. To keep the product updated. b. To pay attention to the time differences among the states and countries. c. To focus on returning customers – try to maximize number of times of revisiting. d. To focus on production / operation speed and on-time delivery. 12. “Productivity” is a measure of __________ . a. the amount of output generated in a process b. the amount of input used in a process c. the efficiency of the operation 13. Total revenue can be used as a clinic’s output. a. True b. False 14. Computers are used in filing income tax return. Such a use of technology is known as ____________. a. product technology b. process technology 15. Mass production for assembling automobiles on an assembly line is an example of ________ operation strategy. a. make-to-stock b. make-to-order 16. Organization of operations, skills and pay of worker, and quality measures are examples of which category of operations strategy? a. Structure b. Infrastructure 17. Machines and facilities, and flow of goods and services through the facility are example of which category of operations strategy? a. Structure b. Infrastructure 2