CHAPTER 3: STRATEGIC AND FINANCIAL LOGISTICS

1. Depending on industry and product type, reverse logistics costs as a percent of revenue can range between ____ and ____ percent.

• a. 5; 10

• b. 4; 8

• c. 3; 6

• d. 2; 4

2. Which of the following is not a level at which strategy can be formulated?

• a. corporate

• b. business unit

• c. functional

• d. all of the above are levels at which strategy can be formulated

3. ____ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed.

• a. functional-level

• b. business unit-level

• c. divisional-level

• d. corporate-level

4. Strategy at a ____ level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers.

• a. functional

• b. business unit

• c. divisional

• d. corporate

5. Which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist Michael Porter?

• a. value enhancement

• b. differentiation

• c. cost leadership

• d. focus

• e. all of the above are generic strategies

6. A ____ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.

• a. focus

• b. differentiation

• c. value enhancement

• d. market orientation

7. Which generic strategy concentrates an organization’s effort on a narrowly defined market to achieve either a cost leadership or differentiation strategy?

• a. hybrid

• b. market orientation

• c. tailored

• d. focus

8. A(n) ____ entails the functional units of an organization providing input into the other levels of strategy formulation.

• a. supply chain

• b. interfunctional cooperation

• c. hierarchy of strategy

• d. enterprise resource system

9. Which of the following represents the preferred hierarchy of strategy (i.e., from the first strategy to be developed to the last to be developed)?

• a. corporatebusiness unitfunctional

• b. functionalbusiness unitcorporate

• c. corporatebusiness unitdivisional

• d. business unitdivisionalfunctional

10. ____ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.

• a. marketing

• b. production

• c. finance

• d. logistics