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o.m. 2
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1Is a series of consecutive steps that go into the creation of a finished product, from its initial design to its arrival at a customer's door. The chain identifies each step in the process at which value is added, including the sourcing, manufacturing, and marketing stages of its production.
- Avalue chain
- Bsupply chain
2This strategy is a long-term action plan of a company that is directed to gain a competitive advantage over its rivals after evaluating their strengths, weaknesses, opportunities, and threats in the industry and comparing them with your own.
Also defines the set of customer needs that it seeks to satisfy through its products and services.- Acompetitive strategy
- Bsupply chain strategy
3The value chain begins with new product development, which creates specifications for the product.
- ATrue
- BFalse
4This function in typical organizations generates demand by publicizing the customer priorities that the products and services will satisfy. Also brings customer input back to new product development.
- AOperations
- BMarketing and sales
- CDistribution
5Using new product specifications, this function in the value chain transforms inputs into outputs to create the product.
- AMarketing and sales
- BOperations
- CDistribution
6This function in the value chain either takes the product to the customer or brings the customer to the product.
- AMarketing and sale
- BOperations
- CDistribution
7This function in the value chain responds to customer requests during or after the sale. These are core processes or functions that must be performed for a successful sale.
- ADistribution
- BOperations
- CService
8Finance, accounting, information technology, and human resources support and facilitate the functioning of the value chain.
- ATrue
- BFalse
9To execute a company’s competitive strategy, all these functions play a role, and each must develop its own strategy. Here, strategy refers to what each process or function will try to do particularly well.
- ATrue
- BFalse
10This functional strategy specifies the portfolio of new products that a company will try to develop. It also dictates whether the development effort will be made internally or outsourced.
- AA product development
- BMarketing and sales
- CA supply chain strategy
11This functional strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
- AA product development strategy
- BMarketing and sales
- CA supply chain strategy
12This strategy determines the nature of procurement of raw materials, transportation, manufacture of the product or operation to provide the service, and distribution of the product to the customer, along with any follow-up service and a specification of whether these processes will be performed in-house or outsourced.
- AA product development strategy
- BMarketing and sales
- CA supply chain strategy
13Achieving Strategic Fit
Strategic fit requires that both the competitive and supply chain strategies of a company have aligned goals.
It refers to consistency between the customer priorities that the competitive strategy hopes to satisfy and the supply chain capabilities that the supply chain strategy aims to build.
For a company to achieve strategic fit, it must accomplish the following:
1. The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal.
2. The different functions in a company must appropriately structure their processes and resources to be able to execute these strategies successfully.
3. The design of the overall supply chain and the role of each stage must be aligned to support the supply chain strategy.
A company may fail either because of a lack of strategic fit or because its overall supply chain design, processes, and resources do not provide the capabilities to support the desired strategic fit.- ATrue
- BFalse
14A competitive strategy specifies customer segments that a company hopes to satisfy. To achieve strategic fit, a company must ensure that its SC capabilities support its ability to satisfy the needs of the targeted customer segments.
There are three basic steps to achieving this strategic fit:- AUnderstanding the Customer and Supply Chain Uncertainty:
- BUnderstanding the Supply Chain Capabilities
- CAchieving Strategic Fit
- DUnderstanding the Value Chain Capabilities
15A company must understand the customer needs for each targeted segment and the uncertainty these needs impose on the supply chain. These needs help the company define the desired cost and service requirements. The supply chain uncertainty helps the company identify the extent of the unpredictability of demand, disruption, and delay that the supply chain must be prepared for.
- A1. Understanding the Customer and Supply Chain Uncertainty
- B2. Understanding the Supply Chain Capabilities
- C3. Achieving Strategic Fit
16Each of the many types of SCs is designed to perform different tasks well. A company must understand what its SC is designed to do well.
- A1. Understanding the Customer and Supply Chain Uncertainty
- B2. Understanding the Supply Chain Capabilities
- C3. Achieving Strategic Fit
17If a mismatch exists between what the supply chain does particularly well and the desired customer needs, the company will either need to restructure the SC to support the competitive strategy or alter its competitive strategy.
- A1. Understanding the Customer and Supply Chain Uncertainty
- B2. Understanding the Supply Chain Capabilities
- C3. Achieving Strategic Fit
18This is the uncertainty of customer demand for a product.
- ADemand uncertainty
- BImplied demand uncertainty
191. Understanding the SC Uncertainty
This is resulting uncertainty for the SC given the portion of the demand the SC must handle and attributes to the customer's desires.- ADemand uncertainty
- BImplied demand uncertainty
20Key Point
The first step in achieving strategic fit between competitive and supply chain strategies is to understand customers and supply chain uncertainty. Uncertainty from the customer and the supply chain can be combined and mapped on the implied uncertainty spectrum.
The second step in achieving strategic fit between competitive and supply chain strategies is to understand the supply chain and map it on the responsiveness spectrum- ATrue
- BFalse
21Supply chain responsiveness includes a supply chain’s ability to do the following:
- ARespond to wide ranges of quantities demanded
- BMeet short lead times
- CHandle a large variety of products
- DBuild highly innovative products
- EMeet a high service level
- FHandle supply uncertainty
- Gthere is no right answer
22Achieving Strategic Fit
The goal is to target high responsiveness for a SC facing high implied uncertainty, and efficiency for a SC facing low implied uncertainty.
This relationship is represented by the “zone of strategic fit” shown below. For a high level of performance, companies should move their competitive strategy (and resulting implied uncertainty) and SC strategy (and resulting responsiveness) toward the zone of strategic fit.
Ensure that the degree of supply chain responsiveness is consistent with the implied uncertainty.
Assign roles to different stages of the supply chain that ensure the appropriate level of responsiveness.
Ensure that all functions maintain consistent strategies that support the competitive strategy.
- ATrue
- BFalse
23Expanding the Scope of Strategic Fit
The Minimize Local Cost View:
- each stage of the supply chain devising strategy independently.- AIntraoperation Scope
- BIntrafunctional Scope
- CInterfunctional Scope
- DIntercompany Scope
- EAgile Intercompany Scope
24Expanding the Scope of Strategic Fit
The Minimize Functional Cost View:
- firms attempted to align all operations within a function- AIntraoperation Scope
- BIntrafunctional Scope
- CInterfunctional Scope
25Expanding the Scope of Strategic Fit
The Maximize Company Profit View:
- all functional strategies are developed to align with one another and the competitive strategy.- AIntraoperation Scope
- BIntrafunctional Scope
- CInterfunctional Scope
26Expanding the Scope of Strategic Fit
The Maximize Supply Chain Surplus View:
- Supplier and customer work together and share information to reduce total cost and increase SC surplus .- AInterfunctional Scope
- BIntercompany Scope
- CAgile Intercompany Scope
27Expanding the Scope of Strategic Fit
- a firm’s ability to achieve strategic fit when partnering with supply chain stages that change over time.- AInterfunctional Scope
- BIntercompany Scope
- CAgile Intercompany Scope
28Key Point
The intercompany scope of strategic fit requires firms to evaluate every action in the context of the entire supply chain. This broad scope increases the size of the surplus to be shared among all stages of the supply chain.- ATrue
- BFalse
29Challenges to Achieving and Maintaining Strategic Fit
- Greater product variety and shorter life cycles increase uncertainty while reducing the window of opportunity within which the supply chain can achieve fit.- AIncreasing Product Variety and Shrinking Life Cycles
- BGlobalization and Increasing Uncertainty
- CFragmentation of Supply Chain Ownership
30Challenges to Achieving and Maintaining Strategic Fit
- significant fluctuations in exchange rates, global demand, and the price of crude oil, all factors that impact supply chain performance.- AIncreasing Product Variety and Shrinking Life Cycles
- BGlobalization and Increasing Uncertainty
- CFragmentation of Supply Chain Ownership
31Challenges to Achieving and Maintaining Strategic Fit
Firms are less vertically integrated.
New ownership structure makes aligning and managing the supply chain more difficult
Aligning all members of a supply chain has become critical to achieving supply chain fit.- AGlobalization and Increasing Uncertainty
- BFragmentation of Supply Chain Ownership
- CChanging Technology and Business Environment
32Challenges to Achieving and Maintaining Strategic Fit
- firms are forced to constantly rethink their supply chain strategy, because of these changes.- AGlobalization and Increasing Uncertainty
- BFragmentation of Supply Chain Ownership
- CChanging Technology and Business Environment
33Challenges to Achieving and Maintaining Strategic Fit
- Growing in relevance and must be accounted for when designing supply chain strategy.
- To be successful, firms will need to design a strategy that engages the entire supply chain to identify and address opportunities for improved sustainability.- AFragmentation of Supply Chain Ownership
- BChanging Technology and Business Environment
- CThe Environment and Sustainability
34Key Point
Many challenges, such as rising product variety and shorter life cycles, have made it increasingly difficult for supply chains to achieve strategic fit. Overcoming these challenges offers a tremendous opportunity for firms to use supply chain management to gain competitive advantage.- ATrue
- BFalse
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- Quiz on o.m. 2, created by Olzhas Ibraev on 13/10/2022.
- Author
- Olzhas Ibraev
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- English
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