OPERATIONS MANAGEMENT Chapter 2 – Operations Strategy in a Global Environment

1. OPERATIONS MANAGEMENTChapter 2 – Operations Strategy in a Global Environment Classroom discussion questions to accompany Heizer/Render Principles of Operations Management, 6e and Operations Management, 8e (to be used in conjunction with wireless polling devices or other classroom interaction activities) Jay Heizer Barry Render Chapter 2

2. Barriers of operating in a global environment do not include increased: • Complexity. • Risk. • Competition. • Increased costs. Chapter 2

3. Which is the least tangible reason to globalize? • Reduce costs. • Improve supply chain. • Provide better goods and services. • Understand new markets. • Learn to improve operations. Chapter 2

4. Expanding the life cycle of a product refers to: • Improving the quality of the product. • Not issuing new releases (models) of the product. • Moving products in a “mature” state in one country to a less developed country where it represents a state-of-the-art product. Chapter 2

5. Which of these is not uniformly considered unacceptable across cultures? • Bribery. • Child labor. • Environmental protection. • Piracy of intellectual property. • All of the above. Chapter 2

6. A strategy defines: • Where the organization is going. • How the organization will satisfy a customer’s needs and wants. • The rationale for the organization’s existence. Chapter 2

7. Which of the following units do not require a mission statement? • The company. • Each major functional area. • Each of the OM functions. • Neither of the above. Chapter 2

8. The most likely strategy to yield a competitive advantage is: • Differentiation. • Cost leadership. • Quick response. • A combination of the above. Chapter 2

9. Which of these primarily employs a quick response strategy? • Nucor. • Dell. • Hunter fans. Chapter 2

10. Experience differentiation is a strategy employed primarily in: • Organizations that provide services. • Organizations that provide goods. Chapter 2

11. Effective facilities utilization is a characteristic of firms that employ a strategy of: • Differentiation. • Quick response. • Cost leadership. Chapter 2

12. Competing on response refers to: • Quickness. • Reliability. • Flexibility. • Quickness and flexibility. • Quickness, flexibility and reliability. Chapter 2

13. The ten strategic operations decisions do not include: • Good and service design. • Quality. • Human resources and job design. • Determining customer wants and needs. • Maintenance. Chapter 2

14. Regardless of the strategy selected, a firm will not be successful unless it achieves: • High product quality. • High capacity utilization. • High operating efficiency. • Low direct cost per unit. • All of the above. Chapter 2

15. Of 32 categories in obtaining a sustainable competitive advantage, how many fall under operations management? • 10% • 25% • 30% • 44% • 61% Chapter 2

16. A SWOT analysis is used to help determine a firm’s: • Mission. • Strategy. • Critical success factors. • Competitive advantage. • All of the above. Chapter 2

17. Critical success factors are found in: • Marketing. • Operations. • Finance. • Overlapping the above. • All of the above. Chapter 2

18. The operations manager’s job process does not include: • Identifying a strategy and critical success factors. • Grouping necessary activities into an organizational structure. • Staffing it with personnel who will get the job done. • Determining the appropriate compensation package to reward employees. Chapter 2

19. A firm that engages in international trade or investment is referred to as a(n): • Multinational corporation. • International business. Chapter 2

20. Which strategy uses exports and licenses to penetrate a global arena? • International. • Multidomestic. • Global. • Transnational. Chapter 2

21. Which strategy has decentralized authority with substantial autonomy at each business? • International. • Multidomestic. • Global. • Transnational. Chapter 2