ISDS 3115 EXAM 1 CHAPTER 5 QUESTIONS WITH
VERIFIED ANSWERS
28. Regal Marine
a. no longer builds boats with any wooden parts
b. designs and builds boat hulls by hand
c. treats the product design decision as critical to its success
d. gets its competitive advantage by being the low-cost producer of boats designed by
others
e. designs several new boats each year, but contracts other firms for their manufacture
- Answers - c. treats the product design decision as critical to its success
29. The three major subdivisions of the product decision are
a. selection, definition, and design
b. goods, services, and hybrids
c. strategy, tactics, and operations
d. cost, differentiation, and speed of response
e. legislative, judicial, and executive - Answers - a. selection, definition, and design
30. Which of the following are likely to influence market opportunities in the auto
industry?
a. the development of stronger materials
b. sustained economic growth
c. changing demographics
d. suppliers
e. All of the above may influence market opportunities - Answers - e. All of the above
may influence market opportunities
31. Operations managers must be able to anticipate changes in which of the following?
a. product mix
b. product opportunities
c. the products themselves
d. product volume
e. all of the above - Answers - e. all of the above
32. In which stage of the product life cycle should product strategy focus on process
modifications?
a. introduction
b. growth
c. maturity
d. decline
e. none of the above - Answers - a. introduction
, 33. Which of the following would likely cause a change in market opportunities based
upon levels of income and wealth?
a. economic change
b. sociological and demographic change
c. technological change
d. political change
e. legal change - Answers - a. economic change
34. A product's life cycle is divided into four stages, which are
a. introduction, growth, saturation, and maturity
b. introduction, growth, stability, and decline
c. introduction, maturity, saturation, and decline
d. introduction, growth, maturity, and decline
e. none of the above - Answers - d. introduction, growth, maturity, and decline
35. When should product strategy focus on forecasting capacity requirements?
a. at the introduction stage of the product life cycle
b. at the growth stage of the product life cycle
c. at the maturity stage of the product life cycle
d. at the decline stage of the product life cycle
e. none of the above - Answers - b. at the growth stage of the product life cycle
36. Which of the following statements regarding product life cycle and profitability is
true?
a. Profit is highest in the growth life cycle phase because the product is new and
unique.
b. Profit is lowest in the growth stage of the life cycle because costs are so high.
c. Profit is at its greatest in the decline stage of the product life cycle.
d. Breakeven is attained in the growth stage of the product life cycle.
e. Cash flow turns positive in the maturity phase. - Answers - c. Profit is at its greatest
in the decline stage of the product life cycle.
37. The analysis tool that helps determine what products to develop, and by what
strategy, by listing products in descending order of their individual dollar contribution to
the firm is
a. decision tree analysis
b. Pareto analysis
c. breakeven analysis
d. product-by-value analysis
e. product life cycle analysis - Answers - d. product-by-value analysis
38. In which stage of the product life cycle should product strategy focus on improved
cost control?
a. introduction
b. growth
VERIFIED ANSWERS
28. Regal Marine
a. no longer builds boats with any wooden parts
b. designs and builds boat hulls by hand
c. treats the product design decision as critical to its success
d. gets its competitive advantage by being the low-cost producer of boats designed by
others
e. designs several new boats each year, but contracts other firms for their manufacture
- Answers - c. treats the product design decision as critical to its success
29. The three major subdivisions of the product decision are
a. selection, definition, and design
b. goods, services, and hybrids
c. strategy, tactics, and operations
d. cost, differentiation, and speed of response
e. legislative, judicial, and executive - Answers - a. selection, definition, and design
30. Which of the following are likely to influence market opportunities in the auto
industry?
a. the development of stronger materials
b. sustained economic growth
c. changing demographics
d. suppliers
e. All of the above may influence market opportunities - Answers - e. All of the above
may influence market opportunities
31. Operations managers must be able to anticipate changes in which of the following?
a. product mix
b. product opportunities
c. the products themselves
d. product volume
e. all of the above - Answers - e. all of the above
32. In which stage of the product life cycle should product strategy focus on process
modifications?
a. introduction
b. growth
c. maturity
d. decline
e. none of the above - Answers - a. introduction
, 33. Which of the following would likely cause a change in market opportunities based
upon levels of income and wealth?
a. economic change
b. sociological and demographic change
c. technological change
d. political change
e. legal change - Answers - a. economic change
34. A product's life cycle is divided into four stages, which are
a. introduction, growth, saturation, and maturity
b. introduction, growth, stability, and decline
c. introduction, maturity, saturation, and decline
d. introduction, growth, maturity, and decline
e. none of the above - Answers - d. introduction, growth, maturity, and decline
35. When should product strategy focus on forecasting capacity requirements?
a. at the introduction stage of the product life cycle
b. at the growth stage of the product life cycle
c. at the maturity stage of the product life cycle
d. at the decline stage of the product life cycle
e. none of the above - Answers - b. at the growth stage of the product life cycle
36. Which of the following statements regarding product life cycle and profitability is
true?
a. Profit is highest in the growth life cycle phase because the product is new and
unique.
b. Profit is lowest in the growth stage of the life cycle because costs are so high.
c. Profit is at its greatest in the decline stage of the product life cycle.
d. Breakeven is attained in the growth stage of the product life cycle.
e. Cash flow turns positive in the maturity phase. - Answers - c. Profit is at its greatest
in the decline stage of the product life cycle.
37. The analysis tool that helps determine what products to develop, and by what
strategy, by listing products in descending order of their individual dollar contribution to
the firm is
a. decision tree analysis
b. Pareto analysis
c. breakeven analysis
d. product-by-value analysis
e. product life cycle analysis - Answers - d. product-by-value analysis
38. In which stage of the product life cycle should product strategy focus on improved
cost control?
a. introduction
b. growth
