1
MBA 6205 - Supply Chain - Chapter 6 & 7 Questions with
Answers (100% Correct Answers)
How has SCM found it place among the hot strategic issues of the day?
Answer: 1.) Meet the needs of demanding customers worldwide.
2.) Build unique competencies to fend off fierce rivals
3.) Span the globe to acquire the best resources, and
4.) Do all of these efficiently.
The new environment dictate two rules Answer: 1.) Everything
happens faster,
2.) Anything that can be done will be done, if not by you, then by
someone else, somewhere.
Two objectives that led the decision to vertically integrate Answer: 1.)
The desire to reduce costs and
2.) The desire to increase control
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,2
The theoretical benefits of vertical integration almost never emerged.
Answer: 1. Decreased competitiveness was attributed to the vertical
integration strategies undertaken to improve performance.
2. Diluted managerial focus
3. Increased bureaucracy
4. Inertia increased costs and decreased control.
Relationship integration via collaborative buyer Answer: Supplier
alliance was born
Environmental scanning Answer: The acquisition and use of
information about events, trends, and relationships in an
organization's internal and external environments. Scanning can be
passive or active,. Scanning becomes a primary mode of organizational
learning. Proactive scanner use insight gained to avoid surprises,
identify opportunities and threats, and improve both tactical and
strategic decision making.
Scanning systems pursue the following objectives: Answer: 1. Detect
important cultural, economic, legal, political, social, and technological
events and trends.
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, 3
2. Help managers accurately and objectively understand the
company's strengths and weaknesses.
3. Identify and define potential opportunities and threats implied by
identified events and trends
4. Provide a common and correct perception for tactical and strategic
planning.
5. Promote an adaptable, forward-looking mind-set among managers
and employees.
A critical step in the analysis is to organize the findings in a way that
communicates a compelling story Answer: For this reason, SWOT
(strengths, weaknesses, opportunities, and threats) analysis often
accompanies scanning efforts.q
Issue - Competitive Pressure Answer: - Must reduce costs relentlessly
- Must seek innovation and non-imitable products / processes
- Must create switching costs via relationship
Issue - Corporate Social Responsibility Answer: - Must understand
how customers define "good" or ethical business practice
© 2025 All rights reserved
MBA 6205 - Supply Chain - Chapter 6 & 7 Questions with
Answers (100% Correct Answers)
How has SCM found it place among the hot strategic issues of the day?
Answer: 1.) Meet the needs of demanding customers worldwide.
2.) Build unique competencies to fend off fierce rivals
3.) Span the globe to acquire the best resources, and
4.) Do all of these efficiently.
The new environment dictate two rules Answer: 1.) Everything
happens faster,
2.) Anything that can be done will be done, if not by you, then by
someone else, somewhere.
Two objectives that led the decision to vertically integrate Answer: 1.)
The desire to reduce costs and
2.) The desire to increase control
© 2025 All rights reserved
,2
The theoretical benefits of vertical integration almost never emerged.
Answer: 1. Decreased competitiveness was attributed to the vertical
integration strategies undertaken to improve performance.
2. Diluted managerial focus
3. Increased bureaucracy
4. Inertia increased costs and decreased control.
Relationship integration via collaborative buyer Answer: Supplier
alliance was born
Environmental scanning Answer: The acquisition and use of
information about events, trends, and relationships in an
organization's internal and external environments. Scanning can be
passive or active,. Scanning becomes a primary mode of organizational
learning. Proactive scanner use insight gained to avoid surprises,
identify opportunities and threats, and improve both tactical and
strategic decision making.
Scanning systems pursue the following objectives: Answer: 1. Detect
important cultural, economic, legal, political, social, and technological
events and trends.
© 2025 All rights reserved
, 3
2. Help managers accurately and objectively understand the
company's strengths and weaknesses.
3. Identify and define potential opportunities and threats implied by
identified events and trends
4. Provide a common and correct perception for tactical and strategic
planning.
5. Promote an adaptable, forward-looking mind-set among managers
and employees.
A critical step in the analysis is to organize the findings in a way that
communicates a compelling story Answer: For this reason, SWOT
(strengths, weaknesses, opportunities, and threats) analysis often
accompanies scanning efforts.q
Issue - Competitive Pressure Answer: - Must reduce costs relentlessly
- Must seek innovation and non-imitable products / processes
- Must create switching costs via relationship
Issue - Corporate Social Responsibility Answer: - Must understand
how customers define "good" or ethical business practice
© 2025 All rights reserved
