Chap03, Strategic Initiatives for Implementing Competitive Advantages

Multiple Choice

1. What does supply chain management involve?

A. The management of production material flows between and among stages in a supply chain to
maximize total supply chain efficiency
B. The management of information flows between and among stages in a supply chain to
maximize total supply chain costs
C. The management of information flows between and among stages in a supply chain to
maximize total supply chain effectiveness and profitability
D. None of the above

2. All of the following are part of the four basic components of supply chain management, except:
A. Supply chain strategy
B. Supply chain customers
C. Supply chain partners
D. Supply chain logistics

3. Which of the following defines supply chain partners?

A. The schedule for production activities including testing, packaging, and preparation for
delivery
B. The product delivery processes and elements including orders, warehouses, carriers, defective
product returns, and invoicing
C. The strategy for managing all the resources required to meet customer demand for all products
and services
D. The partners chosen to deliver finished products, raw materials, and services including
pricing, delivery, and payment processes along with partner relationship monitoring metrics

4. Which of the following defines supply chain operations?

A. The schedule for production activities including testing, packaging, and preparation for
delivery
B. The product delivery processes and elements including orders, warehouses, carriers, defective
product returns, and invoicing
C. The strategy for managing all the resources required to meet customer demand for all products
and services
D. the partners chosen to deliver finished products, raw materials, and services including pricing,
delivery, and payment processes along with partner relationship monitoring metrics

5. Which of the following defines supply chain logistics?

A. The schedule for production activities including testing, packaging, and preparation for
delivery
B. The product delivery processes and elements including orders, warehouses, carriers, defective
product returns, and invoicing
C. The strategy for managing all the resources required to meet customer demand for all products
and services
D. the partners chosen to deliver finished products, raw materials, and services including pricing,
delivery, and payment processes along with partner relationship monitoring metrics
6. Which of the following defines supply chain strategy?
A. The schedule for production activities including testing, packaging, and preparation for
delivery
B. The product delivery processes and elements including orders, warehouses, carriers, defective
product returns, and invoicing
C. The strategy for managing all the resources required to meet customer demand for all products
and services
D. the partners chosen to deliver finished products, raw materials, and services including pricing,
delivery, and payment processes along with partner relationship monitoring metrics

7. Wal-Mart and Procter & Gamble (P&G) implemented a tremendously successful SCM system. The
system linked Wal-Mart’s _____________ centers directly to P&G’s _____________ centers.
A. Manufacturing, distribution
B. Distribution, manufacturing
C. Stores, distribution
D. Distribution, stores

8. What can effective and efficient supply chain management systems enable an organization to
accomplish?
A. Increase the power of its buyers
B. Increase its supplier power
C. Increase switching costs to increase the threat of substitute products or services
D. All of the above

9. Which of the following is an organizational result from an effective and efficient supply chain
management system?
A. Decrease the power of its buyers
B. Create entry barriers thereby reducing the threat of new entrants
C. Increase efficiencies while seeking a competitive advantage through cost leadership
D. All of the above

10. Charles Schwab recouped the cost of a multimillion-dollar system in less than two years. What type of
system was it?
A. Supply chain management
B. Customer relationship management
C. Enterprise resource planning
D. All of the above

11. What type of system did Kaiser Permanente implement in order to improve and prolong the lives of
diabetics?
A. Supply chain management
B. Customer relationship management
C. Enterprise resource planning
D. All of the above

12. What is CRM?

A. A strategy
B. A technology
C. Both a technology and a strategy
D. Neither a technology nor a strategy
13. Which of the following can a customer use to contact an organization?
A. Telephone
B. E-mail
C. Web access
D. All of the above

14. Which of the following is not a valid way that a CRM system can collect information?
A. Accounting system
B. Order fulfillment system
C. Inventory system
D. Customer’s personal computer

15. What is a business process?

A. The analysis and redesign of workflow within and between enterprises
B. A standardized set of activities that accomplish as specific task, such as processing a
customer’s order
C. Integrates all departments and functions throughout an organization into a single TI system so
that employees can make decisions by viewing enterprisewide information on all business
operations
D. None of the above

16. What is business process reengineering?

A. The analysis and redesign of workflow within and between enterprises
B. A standardized set of activities that accomplish as specific task, such as processing a
customer’s order
C. Integrates all departments and functions throughout an organization into a single TI system so
that employees can make decisions by viewing enterprisewide information on all business
operations
D. None of the above

17. What is the purpose of business process reengineering?

A. To make all business processes best-in-class
B. To make all employees best-in-class
C. To make all business partners best-in-class
D. All of the above

18. Which company used BPR to change its industry by implementing a mobile claims process?
A. Saab
B. Progressive Insurance
C. Trek
D. Charles Schwab

19. What is the key word in ERP?

A. Enterprise
B. Resource
C. Planning
D. All of the above
20. What is enterprise resource planning?
A. The analysis and redesign of workflow within and between enterprises
B. A standardized set of activities that accomplish as specific task, such as processing a
customer’s order
C. Integrates all departments and functions throughout an organization into a single TI system so
that employees can make decisions by viewing enterprisewide information on all business
operations
D. Involves managing all aspects of a customer’s relationship with an organization to increase
customer loyalty and retention and an organization’s profitability

21. What do most organizations fail to do?

A. Implement SCM strategies
B. Maintain consistency across business operations
C. Implement BPR strategies
D. Maintain consistency across employee information

22. Which city implemented an ERP system to improve inefficiencies?

A. Denver
B. Chicago
C. Los Angeles
D. All of the above

True/False

1. Supply chain strategy, supply chain partners, supply chain operation, and supply chain logistics are the
four basic components of supply chain management.

2. Effective and efficient supply chain management systems can enable an organization to decrease the
power of its buyers.

3. Customer relationship management involves managing all aspects of a customer’s relationship with an
organization.

4. Eddie Bauer has successfully used CRM to collect information through customer’s transactions and
analyze the information to determine the best way to market to each individual customer.

5. A business process is the analysis and redesign of workflow within and between enterprises.

6. Progressive Insurance used CRM to revamp its insurance claims process.

Structure

1. List and describe the four components of supply chain management.

2. In terms of Porter’s Five Forces Model, explain the benefits an organization can receive from
implementing an efficient and effective SCM system.

3. Summarize why CRM is more than just technology and must be embraced on an enterprisewide level,
along with the types of things an organization can determine when using a CRM system.

4. Explain the goal of enterprise resource planning.

5. Describe SCM, CRM, and ERP and the differences among them.

6. Identify how an organization can use business process reengineering to improve its business.