To Obtain Maximum Benefits from Benchmarking, Best Practices, Reengineering, TQM

question 28

Multiple Choice

To obtain maximum benefits from benchmarking, best practices, reengineering, TQM, and Six Sigma programs aimed at facilitating better strategy execution, managers need to

• A)start with a clear idea of what specific outcomes really matter, such as a Six Sigma defect rate or superior customer satisfaction, and then build a total quality culture that is genuinely committed to achieving these outcomes.
• B)have annual contests to see which part of the company is making the greatest strides in approaching operating excellence.
• C)strive for 100 percent control over the variability in how each and every value chain activity is performed.
• D)have at least 50 percent of company personnel earn "green belts" in Six Sigma techniques.
• E)build core competencies in TQM, Six Sigma, benchmarking, best practices adoption, and business process reengineering.

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Definitions:

Market Power

The ability of a firm or group of firms to influence or control prices or output in a particular market.

Barriers to Entry

are obstacles that make it difficult for new competitors to enter an industry, including high startup costs, strict regulations, and established brand loyalty.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical.

Monopolies

Market structures characterized by a single seller controlling a large portion of the market and the lack of viable competition.