Problem Set Quiz #2
Value Chain
pages 137-141
Questions and Answers
- 1.
_____ relate directly to the actual creation, development, manufacture, distribution, sale and servicing of a product.
- A.
Primary activities
- B.
Support activities
- C.
Secondary activities
- D.
Upstream activities
- E.
Downstream activities
Correct Answer
A. Primary activitiesExplanation
Primary activities are the core activities that directly relate to the creation, development, manufacture, distribution, sale, and servicing of a product. These activities are essential for the functioning of a business and include inbound logistics, operations, outbound logistics, marketing and sales, and service. Inbound logistics involve receiving, storing, and distributing inputs. Operations refer to transforming inputs into the final product. Outbound logistics involve collecting, storing, and distributing the finished product. Marketing and sales focus on promoting and selling the product. Service activities include providing after-sales support and maintaining customer satisfaction. These primary activities are crucial in the value chain of a business.Rate this question:
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- 2.
Muriel hires people to work in the payroll department of a large corporation. Her job can be described as
- A.
A support activity
- B.
Infrastructure
- C.
Human resource management that supports infrastructure
- D.
A and c
- E.
None of the above
Correct Answer
D. A and cExplanation
Muriel's job involves hiring people to work in the payroll department, which is a support activity for the overall functioning of the corporation. Additionally, her role in human resource management supports the infrastructure of the organization. Therefore, the correct answer is "a and c" as her job can be described as both a support activity and human resource management that supports infrastructure.Rate this question:
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- 3.
______ occur closer to the raw materials, further from the consumer end of the value chain
- A.
Primary activities
- B.
Support activities
- C.
Secondary activities
- D.
Upstream activities
- E.
Downstream activities
Correct Answer
D. Upstream activitiesExplanation
Upstream activities refer to the processes that occur closer to the raw materials, further from the consumer end of the value chain. These activities involve sourcing, extracting, and processing raw materials, as well as manufacturing and production. They are essential for creating the products or services that will eventually reach the consumer. Examples of upstream activities include mining, farming, refining, and manufacturing. By focusing on upstream activities, companies can ensure the efficient and effective utilization of resources and materials, which ultimately impacts the quality and cost of the final product.Rate this question:
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- 4.
A company is known for its employee-centric culture. What part of the value chain model best encapsulates the culture of this company and how it impacts its creation of value?
- A.
Operations
- B.
Service
- C.
Human Resource Management
- D.
Infrastructure
- E.
None of the above
Correct Answer
D. InfrastructureExplanation
Infrastructure is the part of the value chain model that best encapsulates the culture of a company known for its employee-centric culture. Infrastructure refers to the physical and technological resources that support the company's operations, including its facilities, equipment, and information systems. In an employee-centric culture, the company prioritizes creating a supportive and efficient work environment for its employees. This includes providing them with the necessary tools, resources, and infrastructure to perform their jobs effectively. By investing in infrastructure that supports employee well-being and productivity, the company can create value by enabling its employees to deliver high-quality products or services.Rate this question:
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- 5.
Philip programs computer software used to ensure safe on-time delivery of the dairy products his company packages. His job can be described as
- A.
A support activity
- B.
Infrastructure
- C.
Infrastructure that supports outbound logisitics
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
Philip's job can be described as "all of the above" because he is involved in a support activity by programming computer software. This software is used to ensure the safe and on-time delivery of dairy products, which supports outbound logistics. Additionally, his role can be considered as part of the infrastructure since he plays a crucial role in maintaining and improving the systems necessary for the company's operations.Rate this question:
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- 6.
Jane hires machinests who maintain and repair manufacturing equipment. Her job is part of
- A.
Procurement
- B.
Human resource management
- C.
Inbound logistics
- D.
Technology development
- E.
None of the above
Correct Answer
B. Human resource managementExplanation
Jane's job of hiring machinists who maintain and repair manufacturing equipment falls under human resource management. This is because human resource management involves activities related to the recruitment, selection, training, and development of employees within an organization. By hiring and managing the machinists, Jane is directly involved in the human resource management aspect of her job.Rate this question:
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- 7.
Ashley works for a general contractor. She buys materials that are used in a large variety of jobs. In what part of the value chain does Ashley work?
- A.
Procurement
- B.
Technology development
- C.
Inbound logistics
- D.
Operations
- E.
None of the above
Correct Answer
A. ProcurementExplanation
Ashley works in the procurement part of the value chain. Procurement involves the process of sourcing and purchasing materials or services needed for a business. Since Ashley buys materials for a variety of jobs, it aligns with the responsibilities of procurement, which involves acquiring the necessary resources for an organization's operations.Rate this question:
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- 8.
Brad works for a general contractor. He writes bids for customers. The bids include a written description of the item that will be built, the materials that will be used, and the labor required. In what part of the value chain does Brad work?
- A.
A support activity
- B.
A primary activity
- C.
Marketing and sales supports operations
- D.
A and c
- E.
B and c
Correct Answer
B. A primary activityExplanation
Brad works in a primary activity in the value chain. This is because he is directly involved in the production process by writing bids for customers. The bids he writes include crucial information such as the item description, materials, and labor required, which are all essential components of the production process. Therefore, Brad's role falls under the primary activities category of the value chain.Rate this question:
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- 9.
Consider the value chain that produces food products such as snack cakes and potato chips, ADM, headquartered in Decatur, Illinois, is an industry-leader in the production of food products such as cocoa, corn syrup, corn and soybean oil. Relative to companies such as Hostess and Lays, ADM performs
- A.
Upstream activities
- B.
Downstream activities
- C.
Primary rather than support activities
- D.
Support activities rather than primary activities
- E.
None of the above
Correct Answer
A. Upstream activitiesExplanation
ADM performs upstream activities. Upstream activities refer to the processes involved in the production and sourcing of raw materials. In this case, ADM is involved in producing raw materials such as cocoa, corn syrup, corn, and soybean oil, which are used in the production of food products like snack cakes and potato chips. This indicates that ADM is engaged in activities that occur earlier in the value chain, before the final production and distribution of the food products.Rate this question:
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- 10.
Olivia hires newly-minted PhDs for the research and development team at her company. Her job can be described as
- A.
A support activity
- B.
Procurement that supports operations
- C.
Human resource management that supports operations
- D.
Human resource management that supports technology development
- E.
A and d
Correct Answer
E. A and dExplanation
Olivia's job can be described as a support activity because she hires newly-minted PhDs for the research and development team at her company. Additionally, it can also be described as human resource management that supports technology development, as she is responsible for recruiting and managing the PhDs who contribute to the company's technology development efforts.Rate this question:
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- 11.
What part of the value chain involves all activities necessary to get a company's goods to its customers?
- A.
Inbound logistics
- B.
Operations
- C.
Outbound logistics
- D.
Services/post-sale
- E.
None of the above
Correct Answer
C. Outbound logisticsExplanation
Outbound logistics involves all activities necessary to get a company's goods to its customers. This includes activities such as packaging, storage, transportation, and delivery of products to the end customers. It is a crucial part of the value chain as it ensures that the products are efficiently and effectively delivered to the customers in a timely manner.Rate this question:
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- 12.
A team at Quinet is responsible for raising the funds needed to purchase a new computer system that will enhance the company's ability to track incoming material orders. Their work can be described as part of
- A.
Techonology development that supports marketing and sales
- B.
Technology development that supports inbound logistics
- C.
Infrastructure that supports outbound logisitics
- D.
Infrastructure that supports inbound logistics
- E.
None of the above
Correct Answer
D. Infrastructure that supports inbound logisticsExplanation
The team at Quinet is responsible for raising funds to purchase a new computer system that will enhance the company's ability to track incoming material orders. This indicates that their work is focused on improving the efficiency and effectiveness of the company's inbound logistics processes. Inbound logistics refers to the management of the flow of materials and information from suppliers to the company. Therefore, the team's work can be described as part of the infrastructure that supports inbound logistics.Rate this question:
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- 13.
A traditional grocery store is least likely to include which of the following types of activities in its value chain?
- A.
Procurement
- B.
Inbound logistics
- C.
Outbound logistics
- D.
Infrastructure
- E.
None of the above (i.e., the grocery store will include all of these activities)
Correct Answer
E. None of the above (i.e., the grocery store will include all of these activities)Explanation
A traditional grocery store is unlikely to exclude any of the mentioned activities in its value chain. Procurement involves sourcing and purchasing products, inbound logistics involves receiving and storing the products, outbound logistics involves delivering the products to customers, and infrastructure refers to the physical and technological resources required to support these activities. Therefore, all of these activities are essential for a traditional grocery store to operate efficiently and effectively.Rate this question:
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- 14.
Marcus buys raw materials used in production at his firm. His job can be described as
- A.
Procurement
- B.
A support activity
- C.
An activity that supports operations
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above" because Marcus's job of buying raw materials can be described as procurement, which is a support activity that supports the operations of the firm.Rate this question:
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- 15.
Which of the following is a primary activity in the value chain model?
- A.
Human resource management
- B.
Infrastructure
- C.
Technology development
- D.
Procurement
- E.
None of the above
Correct Answer
E. None of the aboveExplanation
In the value chain model, primary activities are those that are directly involved in the creation and delivery of a product or service. These activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Human resource management, infrastructure, technology development, and procurement are considered support activities in the value chain model, as they provide the necessary resources and infrastructure to support the primary activities. Therefore, the correct answer is "None of the above" as none of the options listed are primary activities in the value chain model.Rate this question:
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- 16.
Muriel works on a team that improves raw material warehousing at her company. Her job can be described as
- A.
A support activity
- B.
Technology development
- C.
Technology development that supports inbound logistics
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
Muriel's job can be described as "all of the above" because she works on a team that improves raw material warehousing, which can be considered a support activity. Additionally, her work involves technology development, as she is focused on improving the processes and systems used in the warehouse. Finally, her role also supports inbound logistics, as the improvements in the warehousing directly impact the efficiency and effectiveness of the company's inbound logistics operations.Rate this question:
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- 17.
A company's customers have begun to complain about defective products. Management should focus its internal investigation on
- A.
Procurement
- B.
Technology development
- C.
Operations
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above" because when customers complain about defective products, it indicates issues in multiple areas of the company. Procurement could be responsible for sourcing low-quality materials, technology development could have flaws in product design or manufacturing processes, and operations could have errors in the production or quality control. Therefore, management should investigate all these areas to identify and address the root causes of the defective products.Rate this question:
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- 18.
Sally receives, inventories, and warehouses non-defective product returns. What parts of the value chain are involved in her job?
- A.
Post sale service
- B.
Outbound logistics
- C.
Infrastructure
- D.
All of the above
- E.
None of the above
Correct Answer
C. InfrastructureExplanation
Sally's job involves receiving, inventorying, and warehousing non-defective product returns. These activities are part of the infrastructure component of the value chain. Infrastructure refers to the support systems and facilities needed for the smooth functioning of a business. In this case, Sally's role in managing the physical storage and organization of returned products contributes to the overall infrastructure of the company's operations. Therefore, the correct answer is infrastructure.Rate this question:
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- 19.
At a fast food restaurant, the cooks wrap burgers and put them in warming slots, while front line workers take the burgers out of the warming slots and put them on trays or in bags to give to the customer. How would company management most likely categorize these activities?
- A.
As service
- B.
As inbound logistics
- C.
As operations and marketing/sales
- D.
All of the above
- E.
None of the above
Correct Answer
C. As operations and marketing/salesExplanation
The activities described in the question, such as wrapping burgers, putting them in warming slots, and serving them to customers, can be categorized as operations and marketing/sales. Operations refer to the production and delivery of goods or services, which includes the cooking and wrapping of burgers. Marketing/sales involve the front line workers taking the burgers and serving them to customers. Therefore, the company management would most likely categorize these activities as operations and marketing/sales.Rate this question:
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- 20.
A company's customers have begun to complain about late delivery. Management should focus its internal investigation on
- A.
Infrastructure
- B.
Human resource management
- C.
Outbound logistics
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
Management should focus its internal investigation on all of the above options: infrastructure, human resource management, and outbound logistics. Late delivery can be caused by various factors, including issues with the company's infrastructure, such as transportation or warehousing systems. It can also be influenced by human resource management, such as staffing or training problems. Additionally, outbound logistics, including the company's shipping and distribution processes, can contribute to late deliveries. Therefore, investigating all of these areas is necessary to identify and address the root causes of the customer complaints.Rate this question:
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- 21.
Phillip trains purchase agents at his company. His job is best described as
- A.
Procurement
- B.
Human resource management
- C.
Infrastructure
- D.
Human resource management that supports procurement
- E.
None of the above
Correct Answer
D. Human resource management that supports procurementExplanation
The correct answer is "human resource management that supports procurement" because Phillip's job involves training purchase agents, which is a function related to procurement. However, his role specifically focuses on the human resource aspect of managing these agents, such as hiring, training, and supporting their professional development. This aligns with the description of "human resource management that supports procurement."Rate this question:
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- 22.
Which of the following is a support activity in the value chain model?
- A.
Inbound logistics
- B.
Operations
- C.
Outbound logistics
- D.
Marketing/sales
- E.
None of the above
Correct Answer
E. None of the aboveExplanation
The support activities in the value chain model include procurement, technology development, human resource management, and firm infrastructure. Inbound logistics, operations, outbound logistics, and marketing/sales are primary activities in the value chain model, not support activities. Therefore, none of the options provided are support activities.Rate this question:
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- 23.
Muriel works on a team that improves production activities at her company. Her job can be described as
- A.
A support activity
- B.
Technology development
- C.
Technology development that supports operations
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
Muriel's job can be described as "all of the above" because she works on a team that improves production activities, which can be considered a support activity. Additionally, her role involves technology development, as she is involved in improving and implementing new technologies to enhance production. Lastly, her work in technology development supports the overall operations of the company, making this option an accurate description of her job.Rate this question:
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- 24.
Sally receives, inventories and warehouses raw materials. What part of the value chain are involved in her job?
- A.
Procurement
- B.
Inbound logistics
- C.
Infrastructure
- D.
B and c
- E.
None of the above
Correct Answer
D. B and cExplanation
Sally's job involves receiving, inventorying, and warehousing raw materials. These activities are part of the inbound logistics process in the value chain, as they involve the movement and storage of materials from suppliers to the organization. Additionally, her job also involves infrastructure, as she is responsible for managing the physical facilities and equipment required for the storage and handling of the materials. Therefore, the correct answer is "b and c" - inbound logistics and infrastructure.Rate this question:
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Current Version
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Mar 18, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 10, 2008Quiz Created by
Mrmbball
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