LOMA 335 THE INSURANCE COMPANY
AND OPERATIONS MANAGEMENT
EXAM QUESTIONS AND
When a performance standard for a process or activity is critical to a company's
success, it's a ______ ____________ ____________ (KPI). - Answer-key performance
indicator
Performance standards may be objective or subjective.
The more _____________ a performance standard, the more difficult it is to measure
performance, and ultimately improve performance. - Answer-subjective
At the corporate level, a code of ___________ - a formal statement of a company's core
values and its expectations for how its employees should behave in the course of
business - is an example of a steering control. - Answer-conduct
A _____________ is a set of instructions for following a series of steps in a regular,
definite order to accomplish a process. - Answer-procedure
Corporate ______________ is the responsibility and authority of a company's board of
directors to direct senior management to fulfill its mission on behalf of the company's
stakeholders in a legal and fiscally responsible manner. - Answer-governance
______________ is particularly common in large companies with complex
organizational structures and many specialized and often geographically dispersed
operational units. - Answer-Misalignment
List 3 possible reasons for misalignment: - Answer-1) Senior management might not
view the entire organization as an interconnected value chain but as distinct business
units, each with its own value chain.
2) Operational managers, with a narrower planning focus, sometimes focus on short-
term results to the detriment of long-term strategies.
3) Operational employees operate in silos - operational units that act in isolation from
other operating units - and often do not understand how their jobs relate to different
operational units or how strategic goals relate to their jobs
A strategic alignment _______ can be helpful in determining whether the company's
organizational purpose actually aligns with the company's strategy, and whether the
company's strategy aligns with organizational capabilities. - Answer-matrix
, The 4 types of companies shown in the strategic alignment matrix include: - Answer-1)
best companies
2) companies with the best of intentions
3) companies going nowhere
4) failing companies
A ____________ is a physical or virtual area in which buyers and sellers of a particular
good or service interact to exchange resources. - Answer-market
A company's competitive success is often measured in terms of market ___________ -
the percentage of an industry or a market's total sales that is earned by a particular
company over a specified time period. - Answer-share
Market ____________ refers to a company's position relative to its competitors in terms
of market share percentage. - Answer-leadership
Companies can use a concentration ________, which measures the sum of the
percentage market shares of the top companies in the industry to determine industry
competitiveness. - Answer-ratio
Note: the higher the ratio, the less competitive the industry
When the concentration ratio is between 50-80%, an industry has medium levels of
competitiveness. Economics categorize this level of competition as __________
competition - a market with many sellers, similar products and services, a reliance on
advertising, and some barriers to entry. - Answer-monopolistic
When the concentration ratio rises above 80 but below 100%, the market is categorized
as an ___________ - a market with few sellers of similar products or services, vigorous
advertising, and many barriers to entry for new sellers. - Answer-oligopoly
If one company or a group of related companies has 100% of the market share, then
the industry is categorized as a ____________ - a market in which one firm, or a group
of firms acting together, controls the production and distribution of a product. - Answer-
monopoly
A _________ statement is a declaration of where a company would like to be in the
future. - Answer-vision
______________ innovation is innovation that can change a company's business
model. - Answer-Breakthrough
_____________ innovation is innovation to enhance operations and profitability. -
Answer-Incremental
AND OPERATIONS MANAGEMENT
EXAM QUESTIONS AND
When a performance standard for a process or activity is critical to a company's
success, it's a ______ ____________ ____________ (KPI). - Answer-key performance
indicator
Performance standards may be objective or subjective.
The more _____________ a performance standard, the more difficult it is to measure
performance, and ultimately improve performance. - Answer-subjective
At the corporate level, a code of ___________ - a formal statement of a company's core
values and its expectations for how its employees should behave in the course of
business - is an example of a steering control. - Answer-conduct
A _____________ is a set of instructions for following a series of steps in a regular,
definite order to accomplish a process. - Answer-procedure
Corporate ______________ is the responsibility and authority of a company's board of
directors to direct senior management to fulfill its mission on behalf of the company's
stakeholders in a legal and fiscally responsible manner. - Answer-governance
______________ is particularly common in large companies with complex
organizational structures and many specialized and often geographically dispersed
operational units. - Answer-Misalignment
List 3 possible reasons for misalignment: - Answer-1) Senior management might not
view the entire organization as an interconnected value chain but as distinct business
units, each with its own value chain.
2) Operational managers, with a narrower planning focus, sometimes focus on short-
term results to the detriment of long-term strategies.
3) Operational employees operate in silos - operational units that act in isolation from
other operating units - and often do not understand how their jobs relate to different
operational units or how strategic goals relate to their jobs
A strategic alignment _______ can be helpful in determining whether the company's
organizational purpose actually aligns with the company's strategy, and whether the
company's strategy aligns with organizational capabilities. - Answer-matrix
, The 4 types of companies shown in the strategic alignment matrix include: - Answer-1)
best companies
2) companies with the best of intentions
3) companies going nowhere
4) failing companies
A ____________ is a physical or virtual area in which buyers and sellers of a particular
good or service interact to exchange resources. - Answer-market
A company's competitive success is often measured in terms of market ___________ -
the percentage of an industry or a market's total sales that is earned by a particular
company over a specified time period. - Answer-share
Market ____________ refers to a company's position relative to its competitors in terms
of market share percentage. - Answer-leadership
Companies can use a concentration ________, which measures the sum of the
percentage market shares of the top companies in the industry to determine industry
competitiveness. - Answer-ratio
Note: the higher the ratio, the less competitive the industry
When the concentration ratio is between 50-80%, an industry has medium levels of
competitiveness. Economics categorize this level of competition as __________
competition - a market with many sellers, similar products and services, a reliance on
advertising, and some barriers to entry. - Answer-monopolistic
When the concentration ratio rises above 80 but below 100%, the market is categorized
as an ___________ - a market with few sellers of similar products or services, vigorous
advertising, and many barriers to entry for new sellers. - Answer-oligopoly
If one company or a group of related companies has 100% of the market share, then
the industry is categorized as a ____________ - a market in which one firm, or a group
of firms acting together, controls the production and distribution of a product. - Answer-
monopoly
A _________ statement is a declaration of where a company would like to be in the
future. - Answer-vision
______________ innovation is innovation that can change a company's business
model. - Answer-Breakthrough
_____________ innovation is innovation to enhance operations and profitability. -
Answer-Incremental
