CPIM Module 1 C
What is the most common form of international distribution?
Expansion into foreign markets through warehousing
Licensing international companies for manufacturing processes
Establishing a joint venture with a foreign organization
Export of products into foreign markets - answerExport of products into foreign markets
When assessing potential points of failure prior to an acquisition, it is critical to analyze
manufacturing activities as well as:
operational strategies.
the electronic data interchange capabilities of all suppliers.
the degree of manufacturing automation.
shop floor work instructions. - answeroperational strategies.
A company with a long history in the marketplace is considering aquiring a start-up that
has technology the company believes will expand its business. What is one of the major
obstacles the company will have to overcome if the acquisition occurs?
Mismatch of organizational cultures
Bringing the new employees into the 401(k) plan
Explaining the acquisition to the financial media
Explaining the acquisition to the board of directors - answerMismatch of organizational
cultures
A company is considering outsourcing one of its patented technologically advanced
processes. Top on the list of concerns should be the fact that some countries do not
always enforce laws on:
hazardous material handling and training.
labor.
intellectual property.
facility safety. - answerintellectual property.
Although a company has the capability to produce a strategically important item, a
question has arisen about the wisdom of outsourcing the item. In most cases, the
decision to outsource, when compared with the item's strategic importance, is:
inversely related.
directly proportionally related.
just a minor consideration in the overall make-or-buy decision.
best left to marketing management. - answerinversely related.
During a core competency analysis, it is discovered that the company has best-in-class
capabilities in designing integrated circuits for their top-end products. A few
, multinational integrated circuit manufacturers have the potential to lower costs
significantly. What should the outsourcing decision be?
To keep this technology in-house
To outsource to the chip manufacturer that comes closest to sharing the company's
vision of the future
To weight the highest-quality outside supplier most heavily
To outsource to the chip manufacturer whose technical design group is geographically
closest to the company - answerTo keep this technology in-house
As an organization becomes more horizontal, which of the following will occur?
Decreasing exposure to risk
Neutral risk, because many suppliers provide the same components
Increased exposure to risk
Need to expand the supplier base with redundant suppliers to reduce overall risks to
supply chain performance - answerIncreased exposure to risk
What must operations do when the overall strategy is to compete with low-cost, no-frills
products?
Compromise from time to time with low-cost/low-quality component suppliers.
Use technology. Robots that replace people don't look for breaks, vacations, or raises.
Leverage low labor costs in countries with low labor rates without the assistance of
sophisticated technology.
Use outsourcing as much as possible regardless of supply chain complexity. -
answerLeverage low labor costs in countries with low labor rates without the assistance
of sophisticated technology.
Early due diligence concerning a backward integration initiative includes an analysis of
both companies':
corporate cultures.
cash flows.
supplier relationships.
balance sheets. - answercorporate cultures.
Acquiring elements of the finished goods distribution channel is called:
a partnership.
alliance development.
backward integration.
forward integration. - answerforward integration.
A strategic decision has been made to expand a highly customer-centric organization
into a foreign country. What should a solid risk assessment reveal?
Local regulations will probably not be an issue, as the opportunity for new tax receipts
usually wins the day.
Processes that work in one country should work in another.
Locals should carry the major share of customer interactions.
What is the most common form of international distribution?
Expansion into foreign markets through warehousing
Licensing international companies for manufacturing processes
Establishing a joint venture with a foreign organization
Export of products into foreign markets - answerExport of products into foreign markets
When assessing potential points of failure prior to an acquisition, it is critical to analyze
manufacturing activities as well as:
operational strategies.
the electronic data interchange capabilities of all suppliers.
the degree of manufacturing automation.
shop floor work instructions. - answeroperational strategies.
A company with a long history in the marketplace is considering aquiring a start-up that
has technology the company believes will expand its business. What is one of the major
obstacles the company will have to overcome if the acquisition occurs?
Mismatch of organizational cultures
Bringing the new employees into the 401(k) plan
Explaining the acquisition to the financial media
Explaining the acquisition to the board of directors - answerMismatch of organizational
cultures
A company is considering outsourcing one of its patented technologically advanced
processes. Top on the list of concerns should be the fact that some countries do not
always enforce laws on:
hazardous material handling and training.
labor.
intellectual property.
facility safety. - answerintellectual property.
Although a company has the capability to produce a strategically important item, a
question has arisen about the wisdom of outsourcing the item. In most cases, the
decision to outsource, when compared with the item's strategic importance, is:
inversely related.
directly proportionally related.
just a minor consideration in the overall make-or-buy decision.
best left to marketing management. - answerinversely related.
During a core competency analysis, it is discovered that the company has best-in-class
capabilities in designing integrated circuits for their top-end products. A few
, multinational integrated circuit manufacturers have the potential to lower costs
significantly. What should the outsourcing decision be?
To keep this technology in-house
To outsource to the chip manufacturer that comes closest to sharing the company's
vision of the future
To weight the highest-quality outside supplier most heavily
To outsource to the chip manufacturer whose technical design group is geographically
closest to the company - answerTo keep this technology in-house
As an organization becomes more horizontal, which of the following will occur?
Decreasing exposure to risk
Neutral risk, because many suppliers provide the same components
Increased exposure to risk
Need to expand the supplier base with redundant suppliers to reduce overall risks to
supply chain performance - answerIncreased exposure to risk
What must operations do when the overall strategy is to compete with low-cost, no-frills
products?
Compromise from time to time with low-cost/low-quality component suppliers.
Use technology. Robots that replace people don't look for breaks, vacations, or raises.
Leverage low labor costs in countries with low labor rates without the assistance of
sophisticated technology.
Use outsourcing as much as possible regardless of supply chain complexity. -
answerLeverage low labor costs in countries with low labor rates without the assistance
of sophisticated technology.
Early due diligence concerning a backward integration initiative includes an analysis of
both companies':
corporate cultures.
cash flows.
supplier relationships.
balance sheets. - answercorporate cultures.
Acquiring elements of the finished goods distribution channel is called:
a partnership.
alliance development.
backward integration.
forward integration. - answerforward integration.
A strategic decision has been made to expand a highly customer-centric organization
into a foreign country. What should a solid risk assessment reveal?
Local regulations will probably not be an issue, as the opportunity for new tax receipts
usually wins the day.
Processes that work in one country should work in another.
Locals should carry the major share of customer interactions.
