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MBA 6205 - Supply Chain - Chapter 6 & 7
Questions and Answers (100% Correct
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How has SCM found it place among the hot strategic issues of the day?
Ans: 1.) Meet the needs of demanding customers worldwide.
2.) Build unique competencies to fend off fierce rivals
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3.) Span the globe to acquire the best resources, and
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4.) Do all of these efficiently.
The new environment dictate two rules Ans: 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 Ans: 1.) The
desire to reduce costs and
2.) The desire to increase control
The theoretical benefits of vertical integration almost never emerged.
Ans: 1. Decreased competitiveness was attributed to the vertical
integration strategies undertaken to improve performance.
2. Diluted managerial focus
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3. Increased bureaucracy
4. Inertia increased costs and decreased control.
Relationship integration via collaborative buyer Ans: Supplier alliance
was born
Environmental scanning Ans: The acquisition and use of information
about events, trends, and relationships in an organization's internal and
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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.
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Scanning systems pursue the following objectives: Ans: 1. Detect
important cultural, economic, legal, political, social, and technological
events and trends.
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.