COM Operations Strategy & Planning 2 — Questions and Answers
Question 1: Which strategic framework evaluates a company's Strengths, Weaknesses, Opportunities, and Threats to inform operations planning?
- PESTLE analysis
- SWOT analysis (Correct answer)
- Porter's Five Forces
- Balanced Scorecard
Correct answer: SWOT analysis
SWOT analysis helps operations managers align internal capabilities with external market conditions to shape strategic plans.
Question 2: A company decides to focus its operations on producing a narrow product line at the lowest possible cost. This is an example of which generic competitive strategy?
- Differentiation
- Cost focus
- Broad differentiation
- Cost leadership (Correct answer)
Correct answer: Cost leadership
Cost leadership strategy aims to achieve the lowest production costs across a broad market to undercut competitors on price.
Question 3: In operations strategy, 'order qualifiers' are best described as:
- Criteria that win customer orders over competitors
- Minimum performance standards required to compete in a market (Correct answer)
- Metrics used to rank supplier bids
- Key performance indicators for quality assurance
Correct answer: Minimum performance standards required to compete in a market
Order qualifiers are baseline criteria a company must meet just to be considered by customers, while order winners differentiate it from competitors.
Question 4: Which planning horizon is most appropriate for capacity expansion decisions involving new plant construction?
- Short-term (0–3 months)
- Medium-term (3–18 months)
- Long-term (1–5+ years) (Correct answer)
- Real-time (daily adjustments)
Correct answer: Long-term (1–5+ years)
Long-term planning covers major structural decisions like facility construction that require multi-year commitment and capital investment.
Question 5: An operations strategy that prioritizes delivery speed above all other competitive dimensions is best aligned with which customer value proposition?
- Cost minimization
- Time-based competition (Correct answer)
- Product innovation
- Sustainability leadership
Correct answer: Time-based competition
Time-based competition focuses on reducing lead times and increasing responsiveness as the primary source of competitive advantage.
Question 6: What does the 'sand cone model' of operations capabilities suggest?
- Quality must be built first before adding speed, dependability, flexibility, and cost efficiency (Correct answer)
- Cost reduction is the foundation of all other operational capabilities
- Flexibility should be prioritized above quality in fast-moving markets
- All competitive priorities should be developed simultaneously
Correct answer: Quality must be built first before adding speed, dependability, flexibility, and cost efficiency
The sand cone model proposes a sequential layering of capabilities starting with quality, then dependability, speed, flexibility, and finally cost.
Question 7: A firm's operations strategy is said to be 'aligned' when:
- Production costs match the industry average
- Operational capabilities directly support the business's competitive strategy (Correct answer)
- The supply chain is fully automated
- Inventory levels are minimized across all product lines
Correct answer: Operational capabilities directly support the business's competitive strategy
Strategic alignment means operations capabilities—quality, speed, cost, flexibility—directly reinforce the firm's chosen competitive position in the market.
COM Operations Strategy & Planning 2
Which strategic framework evaluates a company's Strengths, Weaknesses, Opportunities, and Threats to inform operations planning?