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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 b e
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
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