Chapter 2 PDF

Preview

Summary

Chapter 2...

Description

Homework Assignment for Chapter 2 Operations Strategy in a Global Environment 1. [2 pts] The stated purposed of NAFTA is to a) reduce the outsourcing of jobs to foreign countries. b) gain membership in the WTO. c) increase product innovation in the wireless communication sector. d) phase out all trade and tariff barriers among Canada, Mexico, and the U.S. SOLUTION = D 2. [2 pts] Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? a) improve the supply chain b) attract and retain local talent c) improve products d) improve operations SOLUTION = B 3. [2 pts] Which of the following is the purpose or rationale for an organization's existence? a) articles of incorporation b) mission c) strategy d) charter SOLUTION = B 4. [2 pts] Competing on differentiation is a) based upon low-cost leadership. b) based upon flexibility. c) concerned with reliability of scheduling. d) concerned with uniqueness. SOLUTION = D

5. [2 pts] Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? a) forecasting critical b) enhance distribution c) reduce capacity d) shift towards product focus SOLUTION = C 6. [2 pts] SWOT analysis refers to a) support, opportunities, weaknesses, and threats. b) support, opponents, weaknesses, and threats. c) strengths, opponents, weaknesses, and threats. d) strengths, opportunities, weaknesses, and threats. SOLUTION = D 7. [2 pts] Which of these is NOT an advantage of outsourcing? a) gaining outside expertise b) accessing outside technology c) cost savings d) potential creation of future competition SOLUTION = D 8. Claudia Program Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Program wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table below, where 1 is a lower risk and 4 is a higher risk. Assume that the executives have determined four criteria weightings: Price, with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2; and History, with 0.1. a) [2 pts] In the following table, the total weighted score for England is 2.7 and the total weighted score for Canada is 2.0. (enter your responses rounded to one decimal place). Selection Criterion Criteria (Risk Factors) Weight England Canada Price of service from outsourcer 0.10 1 2 Nearness of facilities to client 0.60 3 1 Level of technology 0.20 3 4 History of successful outsourcing 0.10 2 4

England  price = .1*1 = .1  Nearness = .6*3 = 1.8  Technology = .2*3 = .6  Outsourcing = .1*2 = .2 Canada  price = .1*2 = .2  Nearness = .6*1 = .6  Technology = .2*4 = .8  Outsourcing = .1*4 = .4

TOTAL = 2.7

TOTAL = 2.0

b) 2 pts] Based on a comparison of weighted risk scores, Claudia Program should choose Canada as the best country for outsourcing. c) [2 pts] Double each of the weights used in part (a) (to 0.20, 1.20, 0.40, and 0.20, respectively). If each weight is doubled, Claudia Program should choose Canada as the best country for outsourcing. England  Price = .2*1 = .2  Nearness = 1.2*3 = 3.6  Technology = .4*3 = 1.2  Outsourcing = .2*2 = .4 Canada  Price = .2*2 = .4  Nearness = 1.2*1 = 1.2  Technology = .4*4 = 1.6  Outsourcing = .2*4 = .8

TOTAL = 5.4

TOTAL = 4.0...