Testbank Chapter 2 GSCM

Supply Chain Management, 6e, Global Edition (Chopra/Meindl)
Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope

2.1 True/False Questions

1) A company's competitive strategy defines the set of customer needs that it seeks to satisfy
through its products and services.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Application of knowledge
Objective: LO 2.1: Explain why achieving strategic fit is critical to a company's overall success.

2) The value chain emphasizes the close relationship between all the functional strategies within
a company.
Answer: TRUE
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Application of knowledge
Objective: LO 2.1: Explain why achieving strategic fit is critical to a company's overall success.

3) A company's product development strategy defines the set of customer needs that it seeks to
satisfy through its products and services.
Answer: FALSE
Diff: 2
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Application of knowledge
Objective: LO 2.1: Explain why achieving strategic fit is critical to a company's overall success.

4) A company's product development strategy specifies the portfolio of new products that it will
try to develop.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Application of knowledge
Objective: LO 2.1: Explain why achieving strategic fit is critical to a company's overall success.

5) Supply chain strategy specifies what the operations, distribution, and service functions,
whether performed in-house or outsourced, should do particularly well.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Application of knowledge
Objective: LO 2.1: Explain why achieving strategic fit is critical to a company's overall success.




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,6) A company's supply chain strategy determines the nature of procurement and transportation of
materials as well as the manufacture and distribution of the product.
Answer: TRUE
Diff: 1
Topic: 2.1 Competitive and Supply Chain Strategies
AACSB: Application of knowledge
Objective: LO 2.1: Explain why achieving strategic fit is critical to a company's overall success.

7) The degree of supply chain responsiveness should be consistent with the implied uncertainty.
Answer: TRUE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
AACSB: Application of knowledge
Objective: LO 2.2: Describe how a company achieves strategic fit between its supply chain
strategy and its competitive strategy.

8) To achieve complete strategic fit, a firm must ensure that all functions in the value chain have
diverse strategies that support functional goals.
Answer: FALSE
Diff: 2
Topic: 2.2 Achieving Strategic Fit
AACSB: Application of knowledge
Objective: LO 2.2: Describe how a company achieves strategic fit between its supply chain
strategy and its competitive strategy.

9) Because demand and supply characteristics change, the supply chain strategy must change
over the product life cycle if a company is to continue achieving strategic fit.
Answer: TRUE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
AACSB: Application of knowledge
Objective: LO 2.2: Describe how a company achieves strategic fit between its supply chain
strategy and its competitive strategy.

10) To retain strategic fit, supply chain strategy must be adjusted over the life cycle of a product
and as the competitive landscape changes.
Answer: TRUE
Diff: 2
Topic: 2.2 Achieving Strategic Fit
AACSB: Application of knowledge
Objective: LO 2.2: Describe how a company achieves strategic fit between its supply chain
strategy and its competitive strategy.




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, 11) The intercompany scope of strategic fit is no longer relevant today because the competitive
playing field has shifted from company versus company to supply chain versus supply chain.
Answer: FALSE
Diff: 1
Topic: 2.2 Achieving Strategic Fit
AACSB: Application of knowledge
Objective: LO 2.2: Describe how a company achieves strategic fit between its supply chain
strategy and its competitive strategy.

12) The interoperation scope has each stage of the supply chain devising its strategy
independently.
Answer: FALSE
Diff: 2
Topic: 2.3 Expanding Strategic Scope
AACSB: Application of knowledge
Objective: LO 2.3: Discuss the importance of expanding the scope of strategic fit across the
supply chain.

13) Intraoperation scope resulted in minimal supply chain surplus.
Answer: TRUE
Diff: 2
Topic: 2.3 Expanding Strategic Scope
AACSB: Application of knowledge
Objective: LO 2.3: Discuss the importance of expanding the scope of strategic fit across the
supply chain.

14) An example of intrafunctional scope is that outsourcing a key component is reasonable if the
savings in staying current in technology results in improved performance in other areas of R&D
that permit improved overall performance.
Answer: TRUE
Diff: 2
Topic: 2.3 Expanding Strategic Scope
AACSB: Application of knowledge
Objective: LO 2.3: Discuss the importance of expanding the scope of strategic fit across the
supply chain.

15) If all functional strategies are deliberately aligned with each other and with the overall
competitive strategy, then the company profit will be maximized.
Answer: TRUE
Diff: 3
Topic: 2.3 Expanding Strategic Scope
AACSB: Application of knowledge
Objective: LO 2.3: Discuss the importance of expanding the scope of strategic fit across the
supply chain.




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