SCMN 3730 Exam 1 Questions and
Answers
a set of business processes that consistently provides superior value to the customer
- ANSWER-competitive advantages
michael porter's 3 competitive advantages - ANSWER-cost leadership,
differentiation, focus
3 strategic cycles - ANSWER-business strategy, strategic procurement, buying
strategic cycle: articulate vision and goals - ANSWER-business strategy
strategic cycle: engage with vision and goals - ANSWER-strategic procurement
strategic cycle: place and approve requisition - ANSWER-buying
processes are done at an offshore subsidiary of the firm - ANSWER-offshore
insourcing
processes are sourced from an offshore vendor - ANSWER-offshore outsourcing
processes are done in-house in the home country - ANSWER-domestic insourcing
processes are sourced from a domestic supplier in the home country - ANSWER-
domestic outsourcing
the cost of producing something should be weighed against the cost of acquiring it in
a market - ANSWER-transaction cost ecconomics
the tradeoff which must be managed when managing an exchange relationship is the
level of _ required to avoid opportunistic behavior - ANSWER-incentives
attributes of transaction cost economics - ANSWER-incentives: economic incentives
to compel exchange
administrative control: ability to compel cooperation without additional need for
incentives
adaptation: the ability to change in response to disturbances
contract law: the need for formal enforcement of contracts to maintain exchange
relationships
the degree to which an asset can be redeployed for other purposes, comes in 6
forms - ANSWER-asset specificity
the supply chain is situated as to economize transactions for a specific location -
ANSWER-site specificity
, specialized equipment required to produce a component - ANSWER-physical asset
specificity
specialized knowledge to perform a process - ANSWER-human asset specificity
the value of products produced by a certain company - ANSWER-brand name
capital
discrete investments by a specific customer in an otherwise general-purpose facility -
ANSWER-dedicated assets
timely responsiveness by on-site human assets is vital - ANSWER-temporal
specificity
types of governance - ANSWER-market, hybrid, hierarchy
type of governance: purchase of the product in a free market - ANSWER-market
type of governance: requires strong incentives and contract enforcement -
ANSWER-market
type of governance: does not cope well with asset specificity and administrative
controls - ANSWER-market
type of governance: a combination of market and hierarchy - ANSWER-hybrid
type of governance: contains the strengths and weaknesses of both in moderated
amounts - ANSWER-hybrid
type of governance: vertical integration to control the supply chain - ANSWER-
hierarchy
type of governance: highly cooperative and ideal for high asset specificity -
ANSWER-hierarchy
type of governance: administrative controls are effective and little need for formal
contracts - ANSWER-hierarchy
type of governance: lacks adaptiveness - ANSWER-hierarchy
dangers of giving supply management to 1st tier suppliers - ANSWER-less control,
less visibility if not interacting with lower-tier suppliers
two examples of less control - ANSWER-costs, sustainability
two examples of less visibility - ANSWER-technology developments, market
information
only incurred if something is actively produced - ANSWER-variable costs
Answers
a set of business processes that consistently provides superior value to the customer
- ANSWER-competitive advantages
michael porter's 3 competitive advantages - ANSWER-cost leadership,
differentiation, focus
3 strategic cycles - ANSWER-business strategy, strategic procurement, buying
strategic cycle: articulate vision and goals - ANSWER-business strategy
strategic cycle: engage with vision and goals - ANSWER-strategic procurement
strategic cycle: place and approve requisition - ANSWER-buying
processes are done at an offshore subsidiary of the firm - ANSWER-offshore
insourcing
processes are sourced from an offshore vendor - ANSWER-offshore outsourcing
processes are done in-house in the home country - ANSWER-domestic insourcing
processes are sourced from a domestic supplier in the home country - ANSWER-
domestic outsourcing
the cost of producing something should be weighed against the cost of acquiring it in
a market - ANSWER-transaction cost ecconomics
the tradeoff which must be managed when managing an exchange relationship is the
level of _ required to avoid opportunistic behavior - ANSWER-incentives
attributes of transaction cost economics - ANSWER-incentives: economic incentives
to compel exchange
administrative control: ability to compel cooperation without additional need for
incentives
adaptation: the ability to change in response to disturbances
contract law: the need for formal enforcement of contracts to maintain exchange
relationships
the degree to which an asset can be redeployed for other purposes, comes in 6
forms - ANSWER-asset specificity
the supply chain is situated as to economize transactions for a specific location -
ANSWER-site specificity
, specialized equipment required to produce a component - ANSWER-physical asset
specificity
specialized knowledge to perform a process - ANSWER-human asset specificity
the value of products produced by a certain company - ANSWER-brand name
capital
discrete investments by a specific customer in an otherwise general-purpose facility -
ANSWER-dedicated assets
timely responsiveness by on-site human assets is vital - ANSWER-temporal
specificity
types of governance - ANSWER-market, hybrid, hierarchy
type of governance: purchase of the product in a free market - ANSWER-market
type of governance: requires strong incentives and contract enforcement -
ANSWER-market
type of governance: does not cope well with asset specificity and administrative
controls - ANSWER-market
type of governance: a combination of market and hierarchy - ANSWER-hybrid
type of governance: contains the strengths and weaknesses of both in moderated
amounts - ANSWER-hybrid
type of governance: vertical integration to control the supply chain - ANSWER-
hierarchy
type of governance: highly cooperative and ideal for high asset specificity -
ANSWER-hierarchy
type of governance: administrative controls are effective and little need for formal
contracts - ANSWER-hierarchy
type of governance: lacks adaptiveness - ANSWER-hierarchy
dangers of giving supply management to 1st tier suppliers - ANSWER-less control,
less visibility if not interacting with lower-tier suppliers
two examples of less control - ANSWER-costs, sustainability
two examples of less visibility - ANSWER-technology developments, market
information
only incurred if something is actively produced - ANSWER-variable costs
