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MBA 6205 - Supply Chain - Chapter 6 & 7
Questions and Correct Answers
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
3.) Span the globe to acquire the best resources, and
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
3. Increased bureaucracy
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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 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: 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.
A critical step in the analysis is to organize the findings in a way
that communicates a compelling story Ans: For this reason, SWOT
(strengths, weaknesses, opportunities, and threats) analysis often
accompanies scanning efforts.q
Issue - Competitive Pressure Ans: - Must reduce costs relentlessly
© 2025 All rights reserved
MBA 6205 - Supply Chain - Chapter 6 & 7
Questions and Correct Answers
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
3.) Span the globe to acquire the best resources, and
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
3. Increased bureaucracy
© 2025 All rights reserved
, 2 | Page
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 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: 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.
A critical step in the analysis is to organize the findings in a way
that communicates a compelling story Ans: For this reason, SWOT
(strengths, weaknesses, opportunities, and threats) analysis often
accompanies scanning efforts.q
Issue - Competitive Pressure Ans: - Must reduce costs relentlessly
© 2025 All rights reserved
