QUICK 20 QUESTIONS MULTIPLE CHOICE QUIZ!!!!!!!!!<-----ATTACHED LOOK<-----------

Chapters 10, 14 and 18 and related videos

Frei, F. X. (2006). Breaking the trade-off between efficiency and service. Harvard Business Review, 84(11), 92-101. (available from coursepack)

Be sure to read all of the chapters at least a couple of times

I would even suggest that you sumarize the chapters

Read the article a couple of times and I would summarize it. THE ARTICLE IS IN THE COURSEPACK. You will see questions over the article on the quiz

Then review the videos a couple of times and make notes over the Videos

Review the PowerPoints slides a couple of times.

uestion 1 [2605] All of the following are benefits of a multisite type of expansion except: 0.22 points 0.22 points

LECTURE NOTES

OPS 5095 ONLINE FORMAT

WEEK TEN

In our final week, we cover the last special topic which is globalization of services. Chapter 14 begins with a discussion of generic expansion strategies and then reviews the concept of franchising as a form of multisite expansion. Three international expansion strategies are then presented including 1) global,

) transnational, and 3) multi-domestic. These three strategies are characterized by differing levels of local autonomy in which the global strategy has the least local autonomy and the multi-domestic strategy has the most. It is important to realize that these strategies must be implemented within a business environment which is itself becoming globalized, as depicted by Kenichi Ohmae’s discussion of the “borderless world”.

The strategic service vision framework which we originally covered in Chapter 3 is updated for international issues (Table 14.1) and three important related challenges for overseas business development are discussed including 1) cultural transferability, 2) labor market norms, and 3) host-government policy. Finally, five different types of global service strategies are presented. Note that these five strategies are not mutually exclusive and two or more can be combined into a single overall strategy.

Remember to post your response to the Week Ten Discussion Question by Thursday and then post at least one reply to other students’ posts by Sunday.

Course Overview

Define, describe and classify services (Ch 1,2)Strategic view of service design & development (Ch 3,4)Process-facility view of quality improvement(Ch 6,7,8)Encounter view of customers & employees (Ch 9)

VIEWSSPECIAL TOPICSTOOLS

Capacity planning & queuing models(Ch 11,12,16)Project management (Ch 15)Information technology (Ch 5)Supply Chains & Outsourcing (Ch 13)Globalization (Ch 14)Facility location(Ch 10)Inventory control (Ch 18)

This Course Overview chart provides a logical model for the entire course. The chart can be used as a “mental model” for putting each chapter into perspective. Using this kind of model can help you to better understand the relationships between chapters/topics and it can also improve your future retention of the material.

In the top block, we begin the course with a basic definition, description, and classification of “services” (Ch 1,2). We then proceed with the first of three levels of “views” – a high-level strategic view of services and how they are designed and developed (Ch 3,4). This is followed by a lower-level process view in which we analyze quality (Ch 6,7,8). Finally, we move to the lowest level “encounter view” in which we consider how employees and customers interact in typical service encounters (Ch 9).

After we finish the three basic views, we then proceed to consider various kinds of “tools” which are used for particular management and analytical purposes. These tools include capacity planning and queuing models (Ch 11,12,16), project management techniques (Ch 15), facility location models (Ch 10), and inventory control methods (Ch 18). Along the way, we also consider certain “special topics” which supplement the other chapters. These topics include information technology (Ch 5), supply chains and outsourcing (Ch 13), and Globalization (Ch 14).

Course Overview
Define, describe and classify services (Ch 1,2)
Strategic view of service design & development (Ch 3,4)
Process-facility view of quality improvement
(Ch 6,7,8)
Encounter view of customers & employees (Ch 9)
VIEWS
SPECIAL TOPICS
TOOLS
Capacity planning & queuing models
(Ch 11,12,16)
Project management (Ch 15)
Information technology (Ch 5)
Supply Chains & Outsourcing (Ch 13)
Globalization (Ch 14)
Facility location
(Ch 10)
Inventory control
(Ch 18)
2

Globalization of Services
Chapter 14

McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Course Overview
Define, describe and classify services (Ch 1,2)
Strategic view of service design & development (Ch 3,4)
Process view of quality improvement
(Ch 6,7,8)
Encounter view of customers & employees (Ch 9)
VIEWS
SPECIAL TOPICS
TOOLS
Capacity planning & queuing models
(Ch 11,12,16)
Project management (Ch 15)
Information technology (Ch 5)
Supply Chains & Outsourcing (Ch 13)
Globalization (Ch 14)
Facility location
(Ch 10)
Inventory control
(Ch 18)
*

Expansion Strategies

Single Service Multiservice
Focused service: Clustered service:
Single * Dental practice * Stanford University
Location * Retail Store * Mayo Clinic
* Family restaurant * USAA Insurance
Focused network: Diversified network:
Multisite * Federal Express * Nations Bank
* McDonald’s * American Express
* Red Roof Inns * Accenture
*

Franchising
Benefits to the Franchisee
Management Training
Brand Name
National Advertising
Acquisition of Proven Business
Economics of Scale
Issues for the Franchisor
Franchisee Autonomy
Franchise Contract
Conflict Resolution
*

Generic International Strategies

Transnational
Strategy
Global
Strategy
Multi-domestic
Strategy
No
International
Strategy
Low
High
Force Towards Local Responsiveness
Force Towards Global
Integration
High
Low

*

The Borderless World
(Kenichi Ohmae)
Customers – information has empowered
Competitors – nothing stays proprietary
Company – fixed costs require large markets
Currency – become currency neutral
Country – deprive competitor of home market
*

International Strategic Service Vision
(Extension of Chapter 3)

*
Service Delivery
System
Operating Strategy
Service Concept
Target Market Segments
Available technology?
Infrastructure?
Utility service?

Labor market norms and customs?

Space availability?

Interaction with suppliers?

Educating customers?

Appropriate managerial practice?
Participative?
Autocratic?

Labor market institutions?
Government regulations?
Unions?

Host government policies?

Language?
Front office?
Back office?

What are customer expectations?
Perception of value?
Service ethic?

Service encounter?
Language?
Acceptance of self-serve?

What are the usage patterns?

Cultural transferability?

What are the market segments?
Domestic?
Multinational?
Tourist?

What are important cultural differences?
Language?
Life style?
Disposable income?

What are the workforce demographics?
Skills?
Age distribution?
Attitudes?
Work ethic?

International Strategic Service Vision
(Extension of Chapter 3)

*

Service Delivery
System
Operating Strategy
Service Concept
Target Market Segments
Available technology?
Infrastructure?
Utility service?

Labor market norms and customs?

Space availability?

Interaction with suppliers?

Educating customers?

Appropriate managerial practice?
Participative?
Autocratic?

Labor market institutions?
Government regulations?
Unions?

Host government policies?

Language?
Front office?
Back office?

What are customer expectations?
Perception of value?
Service ethic?

Service encounter?
Language?
Acceptance of self-serve?

What are the usage patterns?

Cultural transferability?

What are the market segments?
Domestic?
Multinational?
Tourist?

What are important cultural differences?
Language?
Life style?
Disposable income?

What are the workforce demographics?
Skills?
Age distribution?
Attitudes?
Work ethic?

Hofstede Dimensions
Power Distance Index
Individualism
Masculinity
Uncertainty Avoidance Index
Long-Term Orientation
*

International Strategic Service Vision
(Extension of Chapter 3)

*

Examples of Global Service Strategies

Globalization Global Service Strategies
Factors
Multicountry Importing Follow Your Service Beating the
Expansion Customers Customers Offshoring Clock

Customer Train local Contact workers Customization Usually a standard service Complexity Usually routine Information Satellite Intensity network Cultural Modify Adaptation service Labor Intensity Reduced labor costs Other Government restrictions Develop foreign Develop Specialize in Provide
language & foreign back- office extended
cultural sensitivity customers office service hours of
skills components service
Strategic Re-prototype Quality and More need for
opportunity locally coordination reliability &
coordination
Strategic Modify Opportunity for Time
opportunity operations focus compression
On site advantage Move Training Exploit
experienced investments opportunity
managers
Accommodate Could be Cultural Common
foreign guests necessary to understanding language
achieve scale necessary
Increased labor Hire local Reduced labor Reduced labor
costs personnel costs costs
Logistics Inadequate Home office Capital
management infrastructure employee investments
morale

PLEA

E READ THE INSTRUCTIONS

This is an OPEN BOOK and OPEN NOTES test. However, you are NOT allowed to work with other individuals, share information, or otherwise collaborate in any way during the test. The time available to complete the test is 40 minutes.

This test consists of:

Multiple choice questions: 17 questions @ .22 points each …..…. 3.74 points

For each question or statement, check the letter of the most appropriate respons

Timed Test

This Test has the time limit of 40 minutes. You are notified when time expires, and you may continue or submit.
Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain.

Multiple Attempts

Not allowe

This Test can only be taken once.

Force Completion

This Test can be saved and resumed later.

Remaining Time:

18 minutes, 32 seconds.

Question Completion Status:

Question 1

[2605] All of the following are benefits of a multisite type of expansion except:

Answer

ability to reach a mass market quickly.

reduced financial risk from local economic downturn.

preemption of competitors by capturing premium locations.

retention of control.

0.22 points

Question 2

[2601] A strategy that may be used by urban retailers to locate multiple sites close to each other in high-density areas despite the potential for cannibalization is called:

Answer

	competitive clustering.
marketing intermediaries.
	saturation marketing.
saturation clustering.

0.22 points

Question 3

[3609] In the annual cost curve for the EOQ model, the ordering cost _________ with the order quantity.

Answer

increases linearly

decreases linearly

increases negative exponentially

decreases negative exponentially

0.22 points

Question 4

[2607] Multinational expansion by a service firm is:

Answer

often driven by customer demand.

vital for growth.

not recommended for labor intensive operations.

primarily a defense strategy.

0.22 points

Question 5

[71109] Frei argues that a manufacturing environment is different than a service environment. What makes service different than manufacturing?

Answer

Service and manufacturing environments are so similar that customers do not perceive any real differences.

Manufacturing has more variables than a service offering and is therefore more complex.

Customers judge quality of their experience primarily by how much variability is accommodated.

Service has more variables than a manufacturing environment and is therefore more complex.

0.22 points

Question 6

[73610] During the year (360 days), Dutch Farms sells 2,160 cases of cheese. Due to spoilage, Dutch Farms estimates that it costs the firm $12.50 per year to store a case of cheese. The cost to place an order runs about $15. The desired service level is 98 percent. The lead time is one day. Which of the following statements is accurate?

Answer

The EOQ is 72 which will require about 1 order per 12 days.
The EOQ is 84 which will require about 1 order per 15 days.
The EOQ is 54 which will require about 2 orders per month.
The EOQ is 60 which will require about 1 order per 10 days.
	e.	The EOQ is 40 which will require about 2 orders per month.

0.22 points

Question 7

[2511] The following marketing phenomenon occurs when there exists within two city blocks the following hamburger outlets: McDonald’s, Burger King, Sonic, and Wendys.

Answer

competitive clustering.

saturation marketing.

customized marketing.

relationship marketing.

0.22 points

Question 8

[2112] Referencing Frei’s article, when a company faces customer induced variability, they have two choices – to accommodate or to reduce it. Which of the following is true?

Answer

Low cost service providers will typically try to accommodate customer variability.

High cost service providers will typically try to reduce customer variability.

Low cost service providers will typically try to reduce customer variability.

None of the statements are true.

0.22 points

Question 9

[2514] Which of the following is not one of Kenichi Ohmae’s five “Cs” of strategic planning in a borderless world economy?

Answer

Competitors

Creativity

Company

Country

0.22 points

Question 10

[2513] Which of the following is not a benefit to the franchisee of a franchise?

Answer

Brand name

National advertising

Economics of scale

Autonomy

0.22 points

Question 11

[72512] The disadvantage of saturation marketing lies in which of the following areas?

Answer

Increased advertising costs

Cannibalization of business

Increased supervision requirement

Reduction in customer awareness

0.22 points

Question 12

[3603] The cross-median approach is used for _________ location.

Answer

single facility

multiple facility

(a) and (b)

none of the above

0.22 points

Question 13

[2606] When franchising which one of the following is not a benefit to the franchiser?

Answer

Proven business

Rapid expansion

Right to dictate conditions

Fees from the franchisee

0.22 points

Question 14

[3602] The optimization criteria governing the location of a service facility is determined mainly by the:

Answer

ownership of the service, i.e., public or private.

kind of service, e.g. food, banking, or postal.

number of facilities to be located.

average size of the facilities to be located.

0.22 points

Question 15

[3608] Service level influences _______ and ________.

Answer

reorder point, safety stock

reorder point, backorder quantity

safety stock, backorder quantity

backorder quantity, lead-time demand

0.22 points

Question 16

[3604] When applying a cross-median approach for a facility location decision, the optimal facility location will definitely be represented by a line segment in which of the following situations?

Answer

The north-south median line has only one position and the east-west median line has only one position.

The north-south median line has only one position and the east-west median line has multiple positions.

The north-south median has multiple positions and the east-west median line has multiple positions.

The demand generators are evenly distributed.

The demand generators are clustered in one area only.

0.22 points

Question 17

[3515] In the ABC inventory classification, C items can best be described as:

Answer

expensive.

among the most numerous.

having a high stockout cost.

requiring close attention.

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