chapter 3 INSS
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Which of the following is not one of the competitive forces of Porter's Model?
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External Environment
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A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force. product differentiation traditional competitors low number of suppliers new market entrants
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New Market Entrants
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Which of the following industries has a low barrier to entry? ) automotive computer chip restaurant airline Answer
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Restaurant
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A substitute product of most concern for a cable TV distributor is satellite TV. broadcast TV. satellite radio. the Internet. Answer
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Satellite TV
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Which of the following can force a business and its competitors to compete on price alone? transparent marketplace high product differentiation poor process efficiency demand control Answer
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Transparent Market Place
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A firm can exercise greater control over its suppliers by having more suppliers. fewer suppliers. global suppliers. local suppliers. Answer
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More Suppliers
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Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?
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Compete on employee loyalty
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Wal-Mart's continuous replenishment system allows it to provide mass customization. provide an efficient customer response system. strengthen customer intimacy. achieve economy of scale.
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provide an efficient customer response system
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Which of the following illustrates the use of information systems to achieve product differentiation?
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A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
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Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy?
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A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules
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Which of the following illustrates the use of information systems to focus on market niche?
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A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy
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When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ___ strategy
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Market Niche
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A information system can enable a company to focus on a market niche through
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intensive customer data analysis
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Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to strengthen customer intimacy. differentiate their service. focus on market niche. increase efficiency. Answer
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Focus on market niche
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To what competitive force did the printed encyclopedia industry succumb?
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Substitute products and services
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Internet technology makes it easy for rivals to compete on price alone. imposes a significant cost of entry, due to infrastructure requirements. increases the difference between competitors because of the wide availability of information. makes it easy to sustain operational advantages. Answer
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Makes it easy for rivals to compete on price alone
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The Internet raises the bargaining power of customers by creating new opportunities for building loyal customer bases. making more products available. making information available to everyone. lowering transaction costs. Answer
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making information available to everyone
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Which of the following is not an advantage for new companies entering the marketplace?
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They can establish new relationships with suppliers
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Based on your reading of the chapter case, which of the four generic business strategies was Ford Motor Company following in implementing its new software and apps?
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product differentiation
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The value chain model
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helps a firm identify points at which information technology can most effectively to enhance its competitive position
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All of the following are considered activities of a firm except:
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Procurement
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The support activities of a firm include:
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organization infrastructure, human resources, technology, and procurement
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When the output of some units can be used as inputs to other nits, or if two organizations pool markets and expertise that result in lower costs and generate profits, it is often referred to as creating:
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synergies
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All of the following industries have been severely disrupted by the Internet except:
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PC manufacturer
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A firm's value chain is linked to the
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value chains of its suppliers, distributors, and customers
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Network economics
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sees the cost of adding new members as inconsequential
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In Network Economics, the value of a commercial software vendor's software products
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increases as more people use them
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A virtual company:
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Uses
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Benchmarking
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compares the efficiency and effectiveness of your business processes against strict standards
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The most successful solutions or methods for achieving a business objective are called:
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Best practices
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A virtual company
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uses the capabilities of other companies without being physically tied to those companies
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The iPAD can be seen as a disruptive technology for the ___ industry
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publishing
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The emergence of the World Wide Web acted as a disruptive technology for:
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print publishing
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All of the following have been disruptive technologies except:
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minicomputers
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Which of the following best describes business globalization?
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Business selling their products worldwide
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The greatest impact the Internet has had on globalization is the lowering the costs of
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entry to global-scale operations
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The _____ strategy concentrates financial management and control out of a central home base while decentralizing productions, sales, and marketing operations to units in other countries
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multinational
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An information system can enhance core competencies by
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encouraging the sharing of knowledge across business units
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The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as the point of no return. the law of diminishing returns. supply and demand. network inelasticity. Answer
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Law of diminishing returns
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Network economics
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increases as more people use them
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How are information systems used at the industry level to achieve strategic advantage?
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By building industry wide, IT-supported consortia and symposia
