The Theory of Constraints Is

question 25

Multiple Choice

The theory of constraints is

• A)a theory that the benefit of making a change in a production process should be weighed against the cost of making that change.
• B)that even the best suggestions for improvement are likely to be rejected due to opposition from those who have to implement the changes.
• C)a specific approach used to identify and manage constraints in order to achieve the company's goals.
• D)not applicable to service operations.

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Definitions:

Relative Market Share

A metric that compares a company’s market share to that of its largest competitor, indicating its competitive position in the market.

BCG Business Portfolio

A strategic planning tool that categorizes a company's products or services into four quadrants (Stars, Cash Cows, Question Marks, Dogs) based on market growth and market share.

SBU

Strategic Business Unit; a subunit within a larger organization that operates with its own mission, objectives, and market focus, separate from other business units.

SBUs

Organizational units within larger corporations, each responsible for its own market segment and bottom-line objectives, functioning with their strategies and objectives.