Question 1

XYZ Ltd is a manufacturing organisation which buys raw materials from ABC Ltd including, but not limited to rubies and gold. These materials are used in the manufacturing of jewellery and watches. XYZ Ltd accepts all orders of the materials provided as they are rare. The supply relationship is therefore one-sided. Which type of network best describes this relationship?

Options :

A : proprietary

B : centralised

C : asymmetric

D : symmetric

Answer: C

Question 2

Which area of operations strategy is concerned with information management systems, automation and productivity?

Options :

A : capacity

B : supply network design

C : process technology

D :

development and organisational design

Answer: C

Question 3

XYZ Ltd is a retail organisation that sells many different hair care products. The marketing team are looking at sales figures from the past year and are trying to decide which products should receive extra marketing in order to boost sales. One product in particular has a low market share but the market has high potential for growth. According to the Boston Consultancy Group Matrix, which category of item would this fall under?

Options :

A : dog

B : cash cow

C : star

D : problem child

Answer: D

Question 4

Salgo Ltd is an oil refinery organisation which has been in operation for 30 years. It has made increasing profits each year with the most recent year's takings in excess of £20m. Salgo Ltd uses an Emergent Strategy principle when it comes to resource planning. What are the characteristics of this approach? Select ALL that apply.

Options :

A : there is a lot of forward planning

B : the strategy is based on historical patterns

C :

the strategy is effective at creating change

D : a new strategy is created each year to replace the old one

E : the organisation responds to market changes

Answer: A,B

Question 5

Blue Bear Ltd is a multifunctional manufacturing organisation with a global supply chain and customers in over 30 different countries. There are many different functions within the organisation who all have their own supply networks and relationships. For each function, select which part of the Value Chain this represents and the type of Supply Network the function uses.

Function 1: This function is a support activity responsible for ensuring the other functions have the right number of resources to complete work. The function has a complex structure with both horizontal and vertical reporting lines. Each person working within the function has separate, clear objectives to achieve.

Function 2: This support activity ensures that the Five Rights are achieved by the organisation. The function makes key strategic decisions which are followed by other departments. Power is centralised here with staff on-hand to support other parts of the business as and when required.

Function 3: Staff within this function describe themselves as ‘the people that get stuff done’. The function is a Primary Activity in the Value Chain responsible for turning raw materials into finished products. The function has a supply network both upstream and downstream which is highly valued and decisions are made jointly with supply partners.

Function 4: This department, although a Primary Activity of the Value Chain, is not well organised and the relationships in the supply network are informal and rely on trust rather than contracts. Information is shared based on ‘good will’ and there are no clear boundaries. The function is responsible for warehousing and transportation.

Function 5: This area of the business has a one-sided supply network. It is considered a Primary Activity of the Value Chain and deals directly with customers.

Complete the table below by listing the Value Chain Activity and the Supply Network Type. Some answers may not be used: HR, Operations, Outbound Logistics, Technology Development, Procurement, Marketing and Sales, Symmetrical, Asymmetrical, Proprietary, Social, Centralised, Bureaucratic.

2022-12-05-20-49-51-4224576d406c221760eb4005716d4a3b

Which of the following will you put into box 1?

Options :

A : HR

B : Operations

C : Outbound Logistics

D : Technology Development

E : Procurement

F : Marketing and Sales

Answer: A