6. _____ is a value creation activity which falls into the category of primary a
ID: 2746091 • Letter: 6
Question
6. _____ is a value creation activity which falls into the category of primary activities. Select one: a. Creation and maintenance of information systems b. Customer service c. Human resources d. Logistics e. Company infrastructure maintenance
7. For services such as banking or health care, "production" typically occurs when: Select one: a. the customer specifies the service requirements. b. the service is paid for by the customer. c. the service is designed in-house. d. the service is delivered to the customer. e. the customer gives a feedback.
8. If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize: Select one: a. a position inside the efficiency frontier. b. the experience curve. c. economies of scale. d. location economies. e. demographic advantages.
9. Consumer surplus captures some of the value of a product thereby reducing the price a firm can charges for it. Select one: True or False
10. A strategy that focuses primarily on increasing the attractiveness of a product is referred to as a low-cost strategy. Select one: True or False
11. The actions that managers take to attain the goals of the firm are referred to as a firm's strategy. Select one: True or False
12. A firm creates a(n) _____ by dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized. Select one: a. integral circle b. dispersal chain c. global web d. international mesh e. worldwide circle
13. Which of the following statements is true about an international strategy? Select one: a. International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets. b. International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs. c. When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy. d. Firms pursuing the international strategy tend to outsource their development functions such as R&D. e. International strategy should be pursued by a firm only if it faces strong competition in foreign markets.
14. For a firm to maximize its profitability, it is necessary that it: Select one: a. creates products similar to the products of its competitors. b. does not configure its internal operations to reduce costs. c. minimizes the value of the consumer surplus d. picks a position on the efficiency frontier that is viable. e. strips all the value out of its product offering.
15. Which of the following support functions is most likely to involve dealing with the organizational structure, control systems, and culture of the firm? Select one: a. Human resource function b. Logistics c. Information systems d. Company infrastructure e. Inventory management
16. In which of the following tasks will the learning effects be most significant? Select one: a. Pizza delivery for a fast-food major b. Data entry for a loan recovery center c. Assembly process involving 1,000 complex steps d. Sewing buttons onto shirts in a garment factory e. Delivering letters to different recipients
17. Which of the following is most likely to require a firm to be locally responsive in a host-country? Select one: a. Similarity in distribution channels b. Identical traditional practices among countries c. Standard consumer tastes and preferences worldwide d. Declining demand for local customization e. Host-government demands
18. One of the reasons why a firm typically charges for a good or service less than the value placed on that good or service by the customer is because: Select one: a. the firm attempts to create value for the consumers by providing them a wide range of products b. it is normally impossible to segment a market based on each customer's reservation price. c. the value creation results in a corresponding reduction in costs of production. d. the firm frequently modifies its products to compete with the products introduced by other firms. e. it is highly unlikely that the same good or service will be available to the customers from other firms.
19. The two phenomena that help explain the experience curve are: Select one: a. learning effects and economies of scale. b. technology inputs and wealth transfer. c. leveraging subsidiary and local responsiveness. d. standardized manufacturing and global web. e. efficiency frontier and location economies
20. The ability to spread fixed costs over a large volume is one of the sources of economies of scale. Select one: True or False
Explanation / Answer
6. b. Customer service
Customer services is the primary activity which also helps in the creation of the value for the organisation.
7. a. the customer specifies the service requirements
8. d. location economies.
location economics is the process of strategies which several organisations use in a monopolistically competitive environment so as to determine where to locate.
9. True
Consumer surplus is difference between the consumers' willingness to pay for a commodity and the actual price paid by them, captures some of the value of a product thereby reducing the price a firm can charges for it.
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