BUSI 650 EXAM WITH VERIFIED QUESTIONS
AND ANSWERS|| ALREADY GRADED A+||
LATEST UPDATE 2026
Section 1: Operations Management Fundamentals
1. What is the definition of Operations Management?
Answer: The set of activities that create value in the form of goods and services
by transforming inputs into outputs.
2. What are the two primary themes of Operations Management?
Answer: Customer satisfaction and competitiveness.
3. A purposeful collection of people, objects, and procedures for operating
within an environment is known as a(n):
Answer: System.
4. Which of the following is among the six major elements of a production
system?
Answer: Inputs and Outputs.
5. What does competitiveness define?
Answer: How efficiently an organization meets the wants and needs of
customers relative to others that offer similar goods or services.
6. How does marketing influence the competitiveness of an organization?
(Select all that apply)
Answer: Through advertising and promotion; By identifying consumer wants
and needs; By identifying price point.
7. Which of the following are ways in which operations influences
competitiveness? (Select all that apply)
Answer: Response time; Location.
8. What are reasons some organizations fail? (Select all that apply)
Answer: Not focusing enough on process design and improvement; Failure to
correctly identify customer wants and needs.
,9. Match the operations decision area "Product and service design" with
what it affects:
Answer: Costs, quality, liability, and environmental issues.
10. Match the operations decision area "Capacity" with what it affects:
Answer: Cost structure, flexibility.
11. Match the operations decision area "Process selection and layout" with
what it affects:
Answer: Costs, flexibility, skill level needed, capacity.
12. Match the operations decision area "Location" with what it affects:
Answer: Costs, visibility.
13. Match the operations decision area "Quality" with what it affects:
Answer: Ability to meet or exceed customer expectations.
14. Value can be added to an entity in all the following ways, EXCEPT:
Answer: Facilitating.
15. Inputs in a bank's production system may include:
Answer: Checks and deposits.
16. A distinction between normal goods and information/knowledge is that:
Answer: Both A and B — Normal goods wear out, but information/knowledge
does not; Information/knowledge can be given or sold to many others.
17. Competitive advantage is achieved when:
Answer: A firm implements a strategy that creates superior value for
customers, making it difficult for competitors to replicate.
18. Which business strategy waits for the product to become fairly
standardized and is demanded in large volumes?
Answer: Cost minimization or late-to-market strategy.
19. What are the two trends in the range of accommodation to customers'
needs?
Answer: Customization and standardization.
20. Customization occurs when:
Answer: Products or services are offered on a made-to-order basis.
21. Which business strategy emphasizes being the first to market?
Answer: First-mover strategy.
22. What is a key characteristic of a project process?
Answer: Low volume, high variety, and high customization.
,23. What is a key characteristic of a job shop process?
Answer: High variety, low volume, and skilled labor.
24. What is a key characteristic of a flow shop process?
Answer: High volume, low variety, and standardized processes.
25. What is a key characteristic of a continuous process?
Answer: Very high volume, very low variety, and highly capital-intensive.
26. As the costs of fixed equipment investments rise with the volume
produced, companies move from project to job, flow, and then cell
transformation systems. True or False?
Answer: False.
27. In the product-process matrix, when the size of a batch increases
significantly, with a corresponding decrease in output variety, then the flow
shop is appropriate. True or False?
Answer: True.
28. What does a make-to-order item mean?
Answer: An item is produced in batches of some size that is set by the
customer, and then delivered upon its completion.
29. Paced lines use some sort of conveyor to move output along the
production line at a variable rate. True or False?
Answer: False.
30. Which form of transportation system utilizes group technology?
Answer: Cellular production.
31. Layout analysis is usually performed for the following purpose(s):
Answer: All of the above (minimize material handling costs, utilize space
efficiently, improve workflow).
32. Which of the following is NOT an advantage of rapid response?
Answer: First-mover advantage.
33. In the Service Matrix, to which quadrant does recreation belong?
Answer: Service factory.
34. What is a gap in the service process that is considered the
misperception by the service provider of what the customer truly needs?
Answer: Gap 4.
, 35. Continuous processes are characterized by low to moderate output
variety and one to few in batch size. True or False?
Answer: False.
Section 2: Strategy and Competitiveness
36. What are the five stages of effectiveness in terms of the role operations
play in strategic business objectives?
Answer: Stage 1: Internally neutral; Stage 2: Externally neutral; Stage 3:
Internally supportive; Stage 4: Externally supportive; Stage 5: Operations as a
strategic weapon.
37. What is the primary purpose of scenario planning?
Answer: Prepare for multiple plausible futures.
38. What are the five basic strategic activities an organization must
undertake as part of strategic planning?
Answer: Setting corporate mission; Planning new business activities; and
others such as analyzing the environment, formulating strategy, and
implementing strategy.
39. What is a core competency?
Answer: A unique capability that gives a firm a competitive advantage and is
difficult for competitors to imitate.
40. What is the difference between a mission statement and a vision
statement?
Answer: A mission statement defines the organization's purpose and primary
objectives, while a vision statement describes the desired future state.
41. What is SWOT analysis?
Answer: A strategic planning tool used to evaluate Strengths, Weaknesses,
Opportunities, and Threats.
42. What is the purpose of a PESTLE analysis?
Answer: To analyze the external macro-environmental factors: Political,
Economic, Social, Technological, Legal, and Environmental.
43. What is Porter's Five Forces model used for?
Answer: To analyze the competitive environment of an industry: threat of new
entrants, bargaining power of buyers, bargaining power of suppliers, threat of
substitutes, and rivalry among existing competitors.
AND ANSWERS|| ALREADY GRADED A+||
LATEST UPDATE 2026
Section 1: Operations Management Fundamentals
1. What is the definition of Operations Management?
Answer: The set of activities that create value in the form of goods and services
by transforming inputs into outputs.
2. What are the two primary themes of Operations Management?
Answer: Customer satisfaction and competitiveness.
3. A purposeful collection of people, objects, and procedures for operating
within an environment is known as a(n):
Answer: System.
4. Which of the following is among the six major elements of a production
system?
Answer: Inputs and Outputs.
5. What does competitiveness define?
Answer: How efficiently an organization meets the wants and needs of
customers relative to others that offer similar goods or services.
6. How does marketing influence the competitiveness of an organization?
(Select all that apply)
Answer: Through advertising and promotion; By identifying consumer wants
and needs; By identifying price point.
7. Which of the following are ways in which operations influences
competitiveness? (Select all that apply)
Answer: Response time; Location.
8. What are reasons some organizations fail? (Select all that apply)
Answer: Not focusing enough on process design and improvement; Failure to
correctly identify customer wants and needs.
,9. Match the operations decision area "Product and service design" with
what it affects:
Answer: Costs, quality, liability, and environmental issues.
10. Match the operations decision area "Capacity" with what it affects:
Answer: Cost structure, flexibility.
11. Match the operations decision area "Process selection and layout" with
what it affects:
Answer: Costs, flexibility, skill level needed, capacity.
12. Match the operations decision area "Location" with what it affects:
Answer: Costs, visibility.
13. Match the operations decision area "Quality" with what it affects:
Answer: Ability to meet or exceed customer expectations.
14. Value can be added to an entity in all the following ways, EXCEPT:
Answer: Facilitating.
15. Inputs in a bank's production system may include:
Answer: Checks and deposits.
16. A distinction between normal goods and information/knowledge is that:
Answer: Both A and B — Normal goods wear out, but information/knowledge
does not; Information/knowledge can be given or sold to many others.
17. Competitive advantage is achieved when:
Answer: A firm implements a strategy that creates superior value for
customers, making it difficult for competitors to replicate.
18. Which business strategy waits for the product to become fairly
standardized and is demanded in large volumes?
Answer: Cost minimization or late-to-market strategy.
19. What are the two trends in the range of accommodation to customers'
needs?
Answer: Customization and standardization.
20. Customization occurs when:
Answer: Products or services are offered on a made-to-order basis.
21. Which business strategy emphasizes being the first to market?
Answer: First-mover strategy.
22. What is a key characteristic of a project process?
Answer: Low volume, high variety, and high customization.
,23. What is a key characteristic of a job shop process?
Answer: High variety, low volume, and skilled labor.
24. What is a key characteristic of a flow shop process?
Answer: High volume, low variety, and standardized processes.
25. What is a key characteristic of a continuous process?
Answer: Very high volume, very low variety, and highly capital-intensive.
26. As the costs of fixed equipment investments rise with the volume
produced, companies move from project to job, flow, and then cell
transformation systems. True or False?
Answer: False.
27. In the product-process matrix, when the size of a batch increases
significantly, with a corresponding decrease in output variety, then the flow
shop is appropriate. True or False?
Answer: True.
28. What does a make-to-order item mean?
Answer: An item is produced in batches of some size that is set by the
customer, and then delivered upon its completion.
29. Paced lines use some sort of conveyor to move output along the
production line at a variable rate. True or False?
Answer: False.
30. Which form of transportation system utilizes group technology?
Answer: Cellular production.
31. Layout analysis is usually performed for the following purpose(s):
Answer: All of the above (minimize material handling costs, utilize space
efficiently, improve workflow).
32. Which of the following is NOT an advantage of rapid response?
Answer: First-mover advantage.
33. In the Service Matrix, to which quadrant does recreation belong?
Answer: Service factory.
34. What is a gap in the service process that is considered the
misperception by the service provider of what the customer truly needs?
Answer: Gap 4.
, 35. Continuous processes are characterized by low to moderate output
variety and one to few in batch size. True or False?
Answer: False.
Section 2: Strategy and Competitiveness
36. What are the five stages of effectiveness in terms of the role operations
play in strategic business objectives?
Answer: Stage 1: Internally neutral; Stage 2: Externally neutral; Stage 3:
Internally supportive; Stage 4: Externally supportive; Stage 5: Operations as a
strategic weapon.
37. What is the primary purpose of scenario planning?
Answer: Prepare for multiple plausible futures.
38. What are the five basic strategic activities an organization must
undertake as part of strategic planning?
Answer: Setting corporate mission; Planning new business activities; and
others such as analyzing the environment, formulating strategy, and
implementing strategy.
39. What is a core competency?
Answer: A unique capability that gives a firm a competitive advantage and is
difficult for competitors to imitate.
40. What is the difference between a mission statement and a vision
statement?
Answer: A mission statement defines the organization's purpose and primary
objectives, while a vision statement describes the desired future state.
41. What is SWOT analysis?
Answer: A strategic planning tool used to evaluate Strengths, Weaknesses,
Opportunities, and Threats.
42. What is the purpose of a PESTLE analysis?
Answer: To analyze the external macro-environmental factors: Political,
Economic, Social, Technological, Legal, and Environmental.
43. What is Porter's Five Forces model used for?
Answer: To analyze the competitive environment of an industry: threat of new
entrants, bargaining power of buyers, bargaining power of suppliers, threat of
substitutes, and rivalry among existing competitors.
