Chapter 2
Supply Chain Performance: Achieving Strategic Fit and Scope
True/False 1. A company’s competitive strategy defines the set of customer needs that
it seeks to satisfy through its products and services. Answer: True Difficulty: Easy
2. The value chain emphasizes the close relationship between all the
functional strategies within a company.
Answer: True
Difficulty: Moderate
3. A company’s product development strategy defines the set of customer needs
that it seeks to satisfy through its products and services.
Answer: False
Difficulty: Moderate
4. A company’s product development strategy specifies the portfolio of new
products that it will try to develop.
Answer: True Difficulty: Easy
5. A company’s supply chain strategy specifies how the market will be
segmented and how the product will be positioned, priced, and promoted. Answer: False Difficulty: Easy
6. A company’s supply chain strategy determines the nature of procurement and
transportation of materials as well as the manufacture and distribution of the product.
Answer: True Difficulty: Easy
7. The degree of supply chain responsiveness should be consistent with the
implied uncertainty.
Answer: True Difficulty: Easy
8. The degree of supply chain responsiveness does not need to be consistent
with the implied uncertainty.
Answer: False
Difficulty: Moderate
9. To achieve complete strategic fit, a firm must ensure that all functions in
the value chain have consistent strategies that support the competitive strategy.
Answer: True
Difficulty: Moderate
10. To achieve complete strategic fit, a firm must ensure that all functions in
the value chain have diverse strategies that support functional goals.
Answer: False
Difficulty: Moderate
11. Because demand and supply characteristics change, the supply chain strategy
must change over the product life cycle if a company is to continue achieving strategic fit.
Answer: True Difficulty: Easy
12. The supply chain strategy must be established at the beginning of the
product life cycle and not changed if a company is to continue achieving strategic fit.
Answer: False Difficulty: Easy
13. To retain strategic fit, supply chain strategy must be adjusted over the
life cycle of a product and as the competitive landscape changes.
Answer: True
Difficulty: Moderate
14. The intercompany scope of strategic fit is essential today because the
competitive playing field has shifted from company versus company to supply chain versus supply chain.
Answer: True
Difficulty: Moderate
15. The intercompany scope of strategic fit is no longer relevant today because
the competitive playing field has shifted from company versus company to supply chain versus supply chain.
Answer: False Difficulty: Easy
16. The intercompany scope of strategic fit requires firms to evaluate every
action in the context of the entire supply chain.
Answer: True
Difficulty: Moderate
17. There is a close connection between the design and management of supply
chain flows and the success of a supply chain.
Answer: True Difficulty: Easy
Multiple Choice 1. A company’s competitive strategy
a. defines the set of customer needs that it seeks to satisfy
through its products and services.
b. specifies the portfolio of new products that it will try to
develop.
c. specifies how the market will be segmented and how the product
will be positioned, priced, and promoted.
d. determines the nature of procurement and transportation of
materials as well as manufacture and distribution of the product.
e. determines how it will obtain and maintain the appropriate set of
skills and abilities to meet customer needs.
Answer: a
Difficulty: Moderate
2. A company’s product development strategy
a. defines the set of customer needs that it seeks to satisfy
through its products and services.
b. specifies the portfolio of new products that it will try to
develop.
c. specifies how the market will be segmented and how the product
will be positioned, priced, and promoted.
d. determines the nature of procurement and transportation of
materials as well as manufacture and distribution of the product.
e. determines how it will obtain and maintain the appropriate set of
skills and abilities to meet customer needs.
Answer: b
Difficulty: Easy
3. A company’s marketing and sales strategy
a. defines the set of customer needs that it seeks to satisfy
through its products and services.