Chapter 2 Review Questions
Competitive strategy defines the set of customer needs a firm seeks to satisfy through its products and services.
Value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
Supply Chain Strategy is an iterative process that evaluates the cost- benefit trade-offs of operational components. Business strategy involves leveraging the core competencies of the organization to achieve a defined high-level goal or objective.
Implied demand uncertainty is resulting uncertainty for only the portion of the demand that the supply chain plans to ...view middle of the document...
2. The different functions in a company must appropriately structure their processes and resources to be able to execute these strategies successfully.
7). •Strategic fit – competitive and supply chain strategies must have aligned goals
•A company may fail because of a lack of strategic fit or because its processes and resources do not provide the capabilities to execute the desired strategy
1.The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy.
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.
13). Scope of strategic fit – the functions within the firm and stages across the supply chain that devise an integrated strategy with an aligned objective.
14). •Interfunctional scope – maximize company profit
–Functional strategies are developed to align with one another and the competitive strategy
•Intraoperation scope – minimize local cost view
–Each stage of the supply chain devises strategy independently
•Intrafunctional view – minimize total functional cost
–Firms align all operations within a function
•Intercompany scope – maximize supply chain surplus
–Supplier and customer work together and share information to reduce total cost and grow supply chain surplus