QUIZ QUESTION DEOM 330 (OPERATION MANAGEMENT)
CHAPTER 2
1. One measure of success for a firm is a high
return on investment (ROI). Which of the following
are NOT characteristics of high-return-on-
investment firms?
a. high capacity utilization
b. high product quality relative to
their competition
c. low investment intensity
d. high variety of product options
2. A strategy is
a. an action plan to achieve a
mission.
b. the purpose for which an
organization is established.
c. a functional area of the firm.
d. the goal that is to be achieved.
3. Which of the following is NOT one of the 10
strategic OM decisions listed in the text?
a. marketing
b. location selection
c. layout design
d. quality
4. SWOT analysis refers to
a. strengths, opportunities,
weaknesses, and threats.
b. support, opponents, weaknesses,
and threats.
c. strengths, opponents, weaknesses,
and threats.
d. support, opportunities,
weaknesses, and threats.
5. Which of the following is NOT an OM
strategy/issue during the introduction stage of the
product life cycle?
a. high production costs
b. long production runs
c. limited models
d. frequent product and process
changes
6. Which of the following is NOT an OM
strategy/issue during the growth stage of the
product life cycle?
a. reducing capacity
b. enhanced distribution
c. forecasting critical
d. shift towards product focus
7. An activity map
a. links competitive advantage,
critical success factors, and
supporting activities together.
b. has no relationship to competitive
advantages.
c. links critical success factors and
supporting activities together.
d. has never been applied.
8. Competing on differentiation is
a. based on flexibility.
b. concerned with reliability of
scheduling.
c. based upon low-cost leadership.
d. concerned with uniqueness.
9. Competing on cost is
a. based on flexibility.
b. concerned with reliability of
scheduling.
c. based upon low-cost leadership.
d. concerned with uniqueness.
10. An international business is a firm that
a. hires non-U.S. citizens.
b. produces a wide range of products.
c. engages in international trade or
investment.
d. uses raw materials from outside
the country.
11. The difference between a multinational
corporation (MNC) and an international business is
a. there is no difference.
 QUIZ QUESTION DEOM 330 (OPERATION MANAGEMENT)
CHAPTER 2

b. for the multinational firm, the a. increase product innovation in the

business done outside the country
is especially significant.
c. the international firm has sites in a
larger number of countries.
d. the international business has
been in existence longer than the
multi-national firm.
wireless communication sector.
b. reduce the outsourcing of jobs to
foreign countries.
c. phase out all trade and tariff
barriers among Canada, Mexico,
and the U.S.
d. gain membership in the WTO.

12. Which of the following international operations 16. Which country is NOT a member of the EU?
strategies involves a high degree of centralization?
a. Uruguay
a. global b. Spain
b. international c. France
c. transnational d. Portugal
d. multidomestic
17. An operations manager would probably make
13. Which of the following international operations the decision to lower productive capacity for a
strategies uses decentralized authority with product entering which phase of the product life
substantial autonomy at each business? cycle?

a. transnational a. introduction
b. global b. growth
c. multidomestic c. maturity
d. international d. decline

14. Which of the following international operations 18. Strategies should be continually evaluated
strategies allows a firm to pursue all three against competitive realities.
operations strategies?
o True
a. multidomestic o False
b. international
c. global 19. Mission is the purpose or rationale for the
d. transnational organization's existence.

o True
o False

20. The Strategic Planning Institute has determined

that high-ROI firms tend to have high investment
intensity.

o True
15. The stated purpose of NAFTA is
o False

Essay Question
 QUIZ QUESTION DEOM 330 (OPERATION MANAGEMENT)
CHAPTER 2

Question 1.

Define mission and strategy and describe the relationship between the two.

Question 2.

What is a competitive advantage and what are the three ways that a firm may create one?

Question 3.

Describe the four international operations strategies and tell how each one scores on the cost reduction and
local responsiveness scales.