OM TQM

1. The management of systems or processes that create goods and/or provide services
a. Operation Management
b. Financial management
c. Marketing Management
d. Human Resource Management
2. Goods:
a. Activities that provide some combination of time, location, form and psychological value
b. Physical items produced by business organization
c. A sequence of activities and organizations involved in producing and delivering a goods and
services
d. None of the above
3. Supply Chain:
a. Activities that provide some combination of time, location, form and psychological value
b. Physical items produced by business organization
c. A sequence of activities and organizations involved in producing and delivering a goods
and services
d. None of the above
4. Value Added:
a. Activities that provide some combination of time, location, form and psychological value
b. Physical items produced by business organization
c. A sequence of activities and organizations involved in producing and delivering a goods and
services
d. The difference between the cost of inputs and the value or price of outputs
5. This is how effectively an organization meets the wants and needs of customers relative to
others that offer similar goods and services
a. Mission
b. Competitiveness
c. Tactics
d. Strategies
6. Statement 1: Forecast is made with reference to a specific time horizon
Statement 2: Forecast is the basis for budgeting, planning capacity, sales production and
inventory, personnel, purchasing and the like
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
7. Goals:
a. The reason for the organization’s existence
b. Provide detail and scope of the mission
c. States the purpose of an organization
d. The methods and actions taken to accomplish strategies
8. Statement 1: Accounting has responsibility for procurement of materials, supplies and
equipment.
Statement 2: Close contact with operations is necessary to ensure correct quantities and timing
of purchases
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false

9. The special attributes or abilities that give an organization a competitive edge

a. Core Competencies
b. Tactics
c. Strategies
d. Goals
10. The considering of events and trends that presents threats or opportunities for a company
a. Order qualifiers
b. Order winners
c. Environmental Scanning
d. None of the above
11. The following are the reason that might be consider why some organizations fail except for:
a. Neglecting operations strategy
b. Failing to take advantage of strength and opportunities
c. Putting too much emphasis on long -term financial performance at the expense of
Research and development
d. Failure to consider customer wants and needs
12. These are the basic input in the decision processes of the operations management because they
provide information on future demand
a. Planning
b. Forecasting
c. Product innovation
d. Product development
13. The forecasting horizon must cover the time necessary to implement the possible changes. This
statement means that:
a. The forecast should be in writing
b. The forecast should be expressed in meaningful units
c. The forecast should be timely
d. The forecasting technique should be simple to understand and use
14. Judgmental Forecast:
a. Forecast that use subjective outputs such as opinions from customer surveys, sales staff,
managers, executives and experts
b. Forecast that use objective inputs such as opinions from consumer surveys, sales staff,
managers, executive’s ad experts
c. Forecasts that project patterns identified in recent time series observation
 d. Forecast that use subjective inputs such as opinions from consumer surveys, sales staff,
managers, executives and experts
15. Time- series forecasts:
a. Forecasting technique that uses exploratory variables to predict future demand
b. Forecasts that project patterns identified in recent time series observations
c. Forecasts that uses subjective inputs such as opinions from consumer surveys, managers and
executives
d. None of the above
16. Forecast based on time-series which are due to unusual circumstances such as severe weather
conditions, strikes, or a major change in products or service
a. Seasonality
b. Irregular variation
c. Cycles
d. Trend
17. A forecast for any period that equals the previous periods actual value
a. Moving Average
b. Irregular variation
c. Naïve Forecast
d. Exponential Smoothing
18. The following are the techniques for averaging except for:
a. Moving Average
b. Weighted Moving Average
c. Exponential Smoothing
d. Naive Forecasts
19. Moving Average
a. Technique that averages a number of recent actual values, updated as new values become
unavailable
b. More recent values in a series are given more weight in computing a forecast
c. A weighted averaging method based on previous forecasts plus a percentage of a forecast
error
d. Technique that averages a number of recent actual values, updated as a new values
become available
20. Statement 1: High Flexibility can be a competitive advantage in a changeable environment
Statement 2: Productivity is an important determinant of cost.
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
21. Statement 1: The ideal situation for a business organization is to achieve a match of supply and
demand
Statement 2: Goods are activities that provide some combination of time, location, form and
psychological value
a. Only Statement 1 is True
b. Only Statement 2 is true
 c. Both statements are true
d. Both Statements are false
22. Statement 1: Service operations can build up inventories of time and are much more sensitive to
demand variability
Statement 2: Measurement of productivity is more straightforward in services due to high
degree of uniformity in services due to high degree of uniformity of most service items
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
23. Statement 1: Quality Assurance is less challenging in service when production and consumption
occur at the same time
Statement 2: Many services involve lower labor content than manufacturing operations
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
24. Statement 1: Maintenance is often concerned with scheduling, performance standards, work
methods, quality control and material handling
Statement 2: Advertising and promotion are ways organizations can inform potential customers
about features of their products or service and attract buyers
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
25. Statement 1: Pricing is usually a key factor on consumer buying operations
Statement 2: Service might involve after – sale activities customer perceive value – added, such
as delivery set up, warranty work and technical support.
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false

STRATEGIC MANAGEMENT

1. Statement 1: Globalization is the internationalization of markets and corporations

Statement 2: One of the benefits of strategic management is a clearer sense of vision for the
firm.
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
2. Statement 1: As more industries become global, strategic management is becoming less
important in positioning a company for long-term competitive advantage.
Statement 2: Environmental sustainability reflects business practices to reduce a firm's impact
on the physical environment.
a. Only Statement 1 is True
b. Only Statement 2 is true
c. Both statements are true
d. Both Statements are false
3. The emphasis of strategic management is on
a. monitoring and evaluating external opportunities and threats in light of a
corporation's strengths and weaknesses.
b. first line managers.
c. the short-run performance of the corporation.
d. an examination of the organization's internal environment.
4. Research suggests that strategic management evolves through four
sequential phases in corporations. The first phase is
a. externally-oriented planning.
b. basic financial planning.
c. internally-oriented planning.
d. forecast-based planning
5. The time horizon involved with regard to basic financial planning is usually
a. one year.
b. one quarter.
c. more than five years.
d. less than one month
6. A difference between basic financial planning and forecast-based planning is
a. the time horizon is shorter in forecast-based planning.
b. forecast-based planning incorporates internal and external information.
c. basic financial planning utilizes consultants with sophisticated techniques.
d. basic financial planning utilizes scenarios and contingency strategies
7. Top-down planning that emphasizes formal strategy formulation and
leaves the implementation issues to lower management levels is
known as
a. forecast-based planning.
b. externally-oriented planning.
c. strategic management.
d. basic financial planning
8. In the final phase of strategic management, strategic information is available to
a. people throughout the organization.
b. the top management responsible for decision making.
c. middle management.
d. operational personnel
9. When an organization is evaluating its strategic position, which is NOT one of the
strategic questions that an organization must ask itself?
a. Where is the organization now?
b. How can functional and operational areas be improved?
c. If no changes are made, where will the organization be in one year?
 d. If the evaluation is negative, what specific actions should management take?
10. Strategic planning within a small organization
a. may be informal and irregular.
b. must be elaborate to allow for future growth.
c. should always be formalized and explicitly stated.
d. should be done by the president only.
11. Strategic planning in a multidivisional corporation
a. should be informal to allow complete understanding by the many participants.
b. should be instigated only from the main corporate office.
c. should be accomplished quickly to decrease the likelihood of it becoming outdated.
d. should be a formalized and sophisticated system.
12. The integrated internationalization of markets and corporations is called
a. normalization.
b. economic integration.
c. globalization.
d. nationalization.
13. One of the benefits of globalization is
a. economies of scale.
b. decreased outsourcing.
c. increased union negotiations.
d. increased taxes.
14. All of the following reflect categories of organizational risk as a result of
climate change EXCEPT
a. regulatory risk.
b. supply chain risk.
c. sustainability risk.
d. reputational risk
15. Which theory proposes that once an organization is successfully established in
a particular environmental niche, it is unable to adapt to changing conditions?
a. population ecology
b. institution
c. citizenship
d. strategic choice
16. The theory that proposes organizations can and do adapt to changing conditions
by imitating other successful organizations is known as
a. population ecology.
b. institution theory.
c. citizenship theory.
d. strategic theory
17. The ability of a corporation to shift from one dominant strategy to another is called
a. strategy implementation.
b. chaos formulation.
c. logical incrementalism.
d. strategic flexibility.
18. An organization skilled at creating, acquiring, and transferring knowledge, and at
modifying its behavior to reflect new knowledge and insights is a(an)
a. learning organization.
b. strategically managed corporation.
 c. innovative organization.
d. hypercompetitive competitor
19. Strategic management is that set of managerial decisions and actions that
determine the long- run performance of a corporation. Which one of the
following is NOT one of the basic elements of the strategic management process?
a. strategy formulation
b. strategy implementation
c. statistical process control
d. evaluation and control
20. The task environment
a. includes those elements or groups within an organization's industry.
b. encompasses the physical working areas of the organization.
c. is an accounting of the many jobs within an organization.
d. is an advisory committee to top-management.
21. Which one of the following is included in the firm's societal environment?
a. competitors
b. economic forces
c. resources
d. governments
22. The type of strategy which achieves corporate and business unit objectives and
strategies by maximizing resource productivity is
a. functional.
b. operational.
c. business.
d. product.
23. Which of the following is an example of a policy?
a. Diversify product line to appeal to more people.
b. Increase sales by 10% over last year.
c. Pay highest salaries to keep high quality employees.
d. Develop and sell quality appliances worldwide.
24. The process by which strategies and policies are put into action through the
development of programs, budgets, and procedures is
a. strategy formulation.
b. strategy control.
c. strategy implementation.
d. strategy development
25. Which of the following is an example of a program?
a. Diversify product line to appeal to more people.
b. Increase sales by 10% over last year.
c. Develop and sell quality appliances worldwide.
d. Reduce final assembly time to three days by having suppliers build plan sections.
26. A program is
a. a detailed cost statement in terms of dollars.
b. A system of sequential steps.
c. A statement of the activities needed to accomplish a single-use plan.
d. The process by which strategies and policies are put into action.
27. As a part of the strategic management process, evaluation and control is
concerned with all of the following, EXCEPT
 a. generating feedback to decision makers.
b. stimulating a review of the corporation's strategic management.
c. pinpointing problem areas.
d. determining top management compensation
28. The existence of a performance gap
a. should cause management to question their objectives, strategies, and policies.
b. is not an indicator of problems if it only happens once.
c. is only the concern of top management because they set the original strategies.
d. should cause management to look only within the organization to determine the
problem.
29. A corporation's ability to exploit its resources is referred to as its
a. resources.
b. capabilities.
c. core competencies.
d. critical success factors
30. When a company's core competencies are superior to those of competitors,
these are known as
a. resources.
b. distinctive competencies.
c. core competencies.
d. critical success factors
31. The rate at which a firm's underlying resources and capabilities depreciate
or become obsolete is called
a. replicability.
b. transparency.
c. imitability.
d. durability.
32. In many cases, integration is more profitable than integration.
a. forward, backward
b. vertical, backward
c. backward, vertical
d. Backward, forward
33. When a firm internally makes 100% of its key supplies and completely
controls its distributors, this is known as
a. full integration.
b. vertical integration.
c. mass integration
d. economic integration
34. Which strategy is developed to pull together the various activities and
competencies of each department so that corporate and business unit
performance improves and resource productivity is maximized?
a. business strategy
b. competitive strategy
c. generic strategy
d. functional strategy
35. When the value chains of two separate products or services share activities, such
as the same marketing channels, in order to reduce costs, this is an example of
a. economies of scope.
 b. economies of scale.
c. economies of integration.
d. economies of learning
36. Which of the following describes a typical functional structure?
a. Employees tend to be specialists in the business functions important to
that industry such as manufacturing, marketing, finance, and human
resources.
b. This is most appropriate for large corporations with many product
lines in several related industries, with employees acting as specialists
attempting to gain synergy among divisional activities.
c. This is most appropriate for small, entrepreneur-dominated companies with one or two
product lines that operate in a small niche market, with employees acting as jack-of-all
trades.
d. Employees have two or more superiors, a project manager and a functional manager
37. Which of the following best describes a simple structure?
a. Work is divided into subunits on the basis of such functions as
manufacturing, marketing, finance, and human resources.
b. This is most appropriate for large corporations with many product
lines in several related industries, with employees acting as functional
specialists attempting to gain synergy among divisional activities.
c. This is most appropriate for small, entrepreneur-dominated
companies with one or two product lines that operate in a small
niche market, with employees acting as jack-of-all trades.
d. Employees have two or more superiors, a project manager and a functional manager.
38. Which of the following is an example of a corporate strategy?
a. Diversify product line to appeal to more people.
b. Increase sales by 10% over last year.
c. Pay highest salaries to keep high quality employees.
d. Develop and sell quality appliances worldwide
39. Which of the following is an example of an objective?
a. Diversify product line to appeal to more people.
b. Increase sales by 10% over last year.
c. Pay highest salaries to keep high quality employees.
d. Develop and sell quality appliances worldwide.
40. The type of strategy which emphasizes the improvement of the competitive
position of a corporation's products or services in a particular industry or market
segment served by a business unit is
a. functional.
b. operational.
c. business.
d. Environmental
41. What characterizes the planning mode of strategy formulation?
a. Top management believes that the environment is a force to be used and controlled.
b. It assumes the environment is too complex to be completely comprehended.
c. It involves the systematic gathering of appropriate information for
situation analysis, the generation of feasible alternative strategies,
and the rational selection of the most appropriate strategy.
d. Rather than utilizing a proactive search for new opportunities, it only has the
 opportunity for reactive behavior.
42. The mode of strategic decision-making typical of most universities, many large
hospitals, a large number of governmental agencies, and a surprising number of
large corporations is
a. adaptive.
b. entrepreneurial.
c. logical incrementalism.
d. Planning
43. The mode of strategy formulation used when top management has a reasonably
clear idea of the corporation's mission and objectives, but it chooses to develop a
series of tentative or partial strategies instead of developing full-blown strategies is
called
a. planning mode.
b. logical incrementalism.
c. entrepreneurial mode.
d. adaptive mode.
44. The relationship among the board of directors, top management, and
shareholders is referred to as
a. corporate synergy.
b. corporate management.
c. corporate governance.
d. corporate strategy
45. A description of what the company is capable of becoming is referred to as
a. strategic vision.
b. strategic concept.
c. strategic mission.
d. strategic flexibility
46. The combination of the degree of complexity and the degree of change
existing in an organization's external environment is/are called
a. strategic factors.
b. strategic issues.
c. environmental uncertainty.
d. strategic fit.
47. Which of the following is NOT descriptive of external environmental scanning?
a. Used as a tool to ensure a corporation's long-term health.
b. Used to monitor, evaluate, and disseminate information from the external environment
to key people within the corporation.
c. Used to identify strengths and weaknesses.
d. It is a tool that corporations use to avoid strategic surprise.
48. The corporation's task environment
a. encompasses the physical working areas of the organization.
b. includes those elements or groups within an organization's industry.
c. is an advisory committee to top-management.
d. is an accounting of the many jobs within an organization
49. Which of the following is NOT a major force in the societal environment?
a. political-legal forces
b. labor forces
c. economic forces
 d. technological forces
50. A sugar company that is worried that consumers may buy artificial
sweetener instead of sugar is concerned about the
a. threat of new entrants.
b. rivalry among existing firms.
c. threat of substitute products.
d. bargaining power of suppliers
51. A formal program of gathering information on a company's competitors is referred to as
a. statistical modeling.
b. competitive intelligence.
c. competitive strategy.
d. quantitative forecasting.
52. A non-quantitative approach to forecasting that requires simply the presence of
people with some knowledge of the situation to be predicted is called
a. simulations.
b. the delphi technique.
c. signal monitoring.
d. Brainstorming
53. Statement 1: Strategic management is one decision that determines the
short-term performance of a corporation.
Statement 2: In the externally oriented planning phase, plans are developed by
heavily involving the input of managers from lower levels
a. Only Statement 1 is True
b. Only Statement 2 is True
c. Both statements are True
d. Both Statements are false
54. Statement 1: To be effective, strategic management must be a formal process.
Statement 2: Climate change has become a growing concern for businesses to
include in their corporate strategies.
a. Only Statement 1 is True
b. Only Statement 2 is True
c. Both statements are True
d. Both Statements are false
55. Statement 1: Knowing a company is mindful of its impact on the environment
seldom changes consumer buying habits.
Statement 2: While there are litigation and physical risks to companies as a result
of climate change, there is no risk currently identified to the company on its
overall reputation
a. Only Statement 1 is True
b. Only Statement 2 is True
c. Both statements are True
d. Both Statements are false