Bcis Ashton Quiz 3 – Flashcards
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According to Porter's five forces model, a group of grain farmers in a surplus year will have reduced ________.
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bargaining power
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A major drawback of Porter's five forces model is that it ignores the rivalry among firms in the industry.(T/F)
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False
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Organizations can lock in suppliers either by making it difficult to switch to another organization or by ________.
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making it easy for the customers to switch products
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Which of the following principles of competitive advantage is related to process implementations?
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locking in buyers, if it has enhance services, create new products, differentiate services as choices 2nd Q:
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Bargaining power of customers is likely to be the highest for markets involving ________.
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industrial products
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Information systems create competitive advantage by providing support to a product rather than by becoming a part of the product.(T/F)
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False
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Inbound logistics constitute support activities in the value chain of manufacturing firms.(T/F)
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False
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According to Porter's five forces model, in which of the following situations would a supplier have the highest bargaining power?
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a Houston-based vendor that is the only supplier of a patented material for many smartphone manufacturers
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Dynotrix Motors is a large car-manufacturing company. The company purchases raw materials from many small-sized sellers across the globe. In this case, Dynotrix Motors is characterized by ________.
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high bargaining power over its suppliers
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Which of the following value chain activities involves inducing buyers to purchase a product and providing a means for them to do so?
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sales and marketing
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The total margin of the value chain is the difference between the total value added and the total costs incurred.(T/F)
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True
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A retail company sells products such as agricultural produce and consumer products. The company procures materials from farmers and local producers. This process of obtaining the inputs needed for a business is called ________.
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Inbound logistics
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Which of the following principles of competitive advantage is associated with product implementations?
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NOT LOCKING IN CUSTOMERS
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Outbound logistics refers to transforming inputs into the final product.(T/F)
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False
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A new drug that has shown promise in curing skin cancer has been discovered by a famous chemical laboratory. This is the only known drug effective for treatment of this disease. The laboratory obtains a patent for the product and decides to sell it. This situation is characterized by ________.
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low threat of substitutions
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A furniture dealer offering a wide variety of designs exclusively to premium customers is following an industry-wide cost leadership strategy.(T/F)
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False
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A service company checks the availability of resources before planning its projects. This activity can be classified under ________.
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Linkages
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A(n) ________ is a network of activities that generate value by transforming inputs into outputs.
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Business process
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Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.
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NOT value differentiation
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Which of the following factors determines the structure, features, and functions of an information system used in a company?
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the competitive strategy
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The sales process involves sales and marketing as well as outbound logistics activities.(T/F)
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True
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Identify the principle of competitive advantage that is associated with product implementations.
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NOT lock in customers
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Focused cost leadership is observed when a product has the lowest cost ________.
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within an industry segment
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Which of the following is a primary activity in the value chain?
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receiving and distributing inputs to the product
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Streamtech, a manufacturer of automobiles, recently received a patent for an unmanned search boat. By doing this, Streamtech has ________.
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introduced product differentiation
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The competitive strategy of an organization is determined by its value chain.(T/F)
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False
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The ________ discipline created by Porter states that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.
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business process design
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To determine if an information system delivers net savings in costs, the cost of developing and operating the information system will need to be offset against the gains in reduced errors and reduced costs for paper, ink, and printing.(T/F)
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True
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Employees often resist changes in business processes.(T/F)
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True
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Creating a new product to increase margin is an example of using product implementations to achieve competitive advantage.(T/F)
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True
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Porter defined value as the ________.
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amount of money that a customer is willing to pay for an offering
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Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintaining and enhancing the products' value?
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Customer Service
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In the context of Porter's five forces model, the bargaining power of grain farmers in a surplus year is an example of a weak market force.(T/F)
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True
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Organizations can lock in customers by making it difficult or expensive for them to move to another product.(T/F)
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True
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Establishing alliances with other organizations increases purchasing costs, though these alliances do provide competitive advantages.(T/F)
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False
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The automobile industry is characterized by many manufacturers and intense competition among them. According to Porter's five forces model, this statement illustrates ________.
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high levels of rivalry
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In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.(T/F)
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True
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A furniture manufacturer delivers products to his customers' houses. This is an example of inbound logistics.(T/F)
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False
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In a manufacturing business, the materials ordering process transforms cash into a raw materials inventory.(T/F)
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True
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The difference between the total value added and the total costs incurred is called the ________ of the value chain.
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Total margin
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Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers?
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outbound logistics
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FunText is a company that owns an app used for text messaging. It recently offered a membership extension of six months without any additional charges to its existing customers who had registered for a three-year membership. By doing this, which competitive strategy did FunText implement?
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locking in customers
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In the next ten years, the ________ is most likely to change.
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pace of integration of new technology
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Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service.(T/F)
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true
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In a manufacturing business, which of the following transforms finished goods into cash?
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sales process
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Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to the product.
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inbound logistics
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In the value chain, customer service is concerned with inducing buyers to purchase the product and providing a means for them to do so.(T/F)
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false
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Organizations cannot gain a competitive advantage by enhancing existing products or services.(T/F)
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false
