Question $1$

$1$

Point

What is a value chain?

Process of making a product or service available for the consumer or business user who needs it$.$

Sequence of value$-$adding activities performed by any organization to bring a product to consumers.

Manufacturing process where the parts are added in sequence until the final product is produced.

Process of procuring the cheapest raw materials and transporting them to the factory most efficiently.

Question $2$

$1$

Point

Which of the following activities is an example of a downstream activity?

Product design

Product manufacturing

Product repair

Product development

Question $3$

$1$

Point

What are the disadvantages of vertical integration? $($Select all that apply$)$

Large upfront investment

No ownership of physical assets

No control over the manufacturing of product components

High risks

Question $4$

$1$

Point

Which of the terms below defines the type of structure which uses a network of partners and suppliers to conduct most of the value$-$adding activities, rather than having all operations in$-$house?

Outsourcing giant

Virtual corporation

Innovative startup

Multinational corporation

Question $5$

$1$

Point

When Tesla was a start$-$up$,$ they went to Asia and Europe to find suppliers who could produce their lithium$-$ion batteries, battery packs, power electronics modules, as well as the car body itself. What did they discover?

Tesla discovered that there were multiple contract manufacturers who produced parts for other American companies but weren$$t interested in producing for Tesla.

Tesla discovered that there was only one contract manufacturer making car parts and they were in a dedicated partnership already.

Tesla discovered many contract manufacturers willing and able to form relationships as dedicated suppliers.

Tesla discovered that there were no suppliers who knew how to produce the innovative automobile components that they designed.

Question $6$

$1$

Point

Which of the following is true about the electronics industry in the $21$st century?

Most product firms in the electronics industry play significant roles in a large part of their value chain, designing, developing, manufacturing, distributing, and retailing their products themselves.

Most product firms in the electronics industry limit their involvement in the value chain to upstream activities such as research, design, and development of innovative new products, and downstream activities such as customer service, repair, and replacement.

Most contract manufacturers and suppliers in the electronics industry are exclusively involved in downstream activities such as retail, repair, customer services, and product replacement.

Most contract manufacturers and suppliers in the electronics industry form an exclusive relationship with only one product firm.

Question $7$

$1$

Point

In the $21$st century, IBM, Apple, and Dell are all examples of $\_\_\_\_\_\_\_\_\_\_$ companies.

Partially vertically integrated

Highly vertically integrated

Highly vertically disintegrated

Partially vertically disintegrated

Question $8$

$1$

Point

Which of the following correctly explains how advances in process technologies facilitated vertical disintegration in the electronics industry?

The advances made the design parameters of different modules known to various players in the industry.

The advances created obstacles for many product companies to build certain parts because it would require significant investments and specialized expertise, which not all product companies could afford.

The advances standardized product components and defined interfaces, thus enabling multiple companies to manufacture parts according to the design of the final product.

The advances made it easy to collaborate effectively across a global supply chain network.

Question $9$

$1$

Point

What are the main differences between value chains in electronics and automotive industries? $($Select all that apply$)$

Ability to work with many suppliers vs$.$ need to tightly coordinate with a few

Widely distributed vs$.$ limited networked

Standardized vs$.$ customized product components

Rapid technological innovation vs$.$ no technological innovation

Question $10$

$1$

Point

Which company would benefit most from vertical disintegration?

A young startup currently in the innovative stage in a relatively new industry.

An established company that needs to quickly respond to market changes.

A new company in a new industry where product components have not been standardized.

An established company in an industry where production of components requires a heavy financial investment.