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Baruch College MGT 3121

Zicklin School of Business Fall 2014


Department of Management


SERVICE OPERATIONS MANAGEMENT
CHAPTERS 1 & 2 (The Service Economy & Service Strategy)
Using Fitzsimmons and Fitzsimmons Text 8
th
ed

1. (One Point) Division of labor was the hallmark of the industrial society. (T or F) T
2. (One Point) Impersonal bureaucratic and hierarchical organizations that treated people like things flourished in
the pre-industrial society. (T or F) F
3. (One Point) The decrease in the proportion of income spent on the basic necessities of life has encouraged the
demand for more services and accelerated the transition to post-industrial society. (T or F) T
4. (One Point) The fall in employment in the agricultural sector is the primary reason for the increase in service
sector employment. (T or F) F
5. (One Point) Services are deeds, processes, and performances. (T or F) T
6. (One Point) The consumer participates in the service process, which is also the case in manufacturing. (T or F)
F
7. (One Point) The classification of service systems using the "service process matrix" is based on two
considerations: degree of labor intensity, and the degree of service customization. (T or F) T
8. (One Point) The main difficulty with services is that the product is intangible, and in many cases it is not even
identifiable as any one particular aspect of the service package. (T or F)
9. (One Point) In contrast to manufacturing, the aesthetics of the environment play a major role in the customer's
perception of the service. (T or F)
10. (One Point) Services are time-perishable. An opportunity to provide a service, if forgone, is lost forever.
(T or F)
11. (One Point) From a marketing perspective, services, unlike goods, involve transfer of ownership. (T or F)
12. (One Point) In services, opportunities for quality control intervention are decreased due to simultaneous
production and consumption. (T or F)
13. (One Point) Marketing helps smooth demand to match capacity in service operations. (T or F)
14. (One Point) A characteristic of the overall cost leadership strategy is the incurring of start up losses to build
market share. (T or F)
15. (One Point) On-line networks between suppliers and their customers create a barrier to entry. (T or F)
16. (One Point) When pursuing a differentiation strategy, a service firm should work to ensure that the service
being offered is standardized. (T or F)
17. (One Point) The use of micromarketing does not have the potential to create customer concerns about invasion
of privacy. (T or F)
18. (One Point) Implementing a low-cost strategy can sometimes revolutionize an industry. (T or F)
19. (One Point) A cost leadership strategy often involves customizing a standard service. (T or F)
20. (One Point) American Airlines' early development of the SABRE reservation system became the foundation for
its yield management innovation. (T or F)


21. (Ten Points) Productivity Problem Various financial data for SunPath Manufacturing for 2012 &
2013 follows: Calculate your answers two digits past the decimal point.

2012 2013
Output: Sales $300,000 $340,000
Inputs: Labor $40,000 $44,000
Raw Materials: $45,000 $54,000
Energy: $10,000 $11,000
Capital Employed: $250,000 $268,000
Other $2,000 $2,200
Total Inputs $347,000 $379,200

a. What is the total productivity factor for 2012?


b. What is the total productivity factor for 2013?


c. What is the change in the value of total productivity factor from 2012 to 2013?


d. What is the percent change in total productivity factor?


e. Fill in the below chart for partial productivity factors?

Resource For 2012 For 2013 Change Percent
Change
Labor =

=
Raw Materials

=

=
Energy

=

=
Capital Employed

=

=
Other

=

=

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