question

Which of the following is not one of the competitive forces of Porter's model?

answer

External environment

question

Quality control is seen as an end in itself in Six Sigma.

answer

FALSE

question

The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

answer

value chain

question

An information system can enhance core competencies by:

answer

encouraging the sharing of knowledge across business units.

question

Which of the following can force a business and its competitors to compete on price alone?

answer

Transparent marketplace

question

The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin.

answer

domestic exporter

question

To what competitive force did the printed encyclopedia industry succumb?

answer

Substitute products or services

question

Which of the following illustrates the use of information systems to focus on market niche?

answer

A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy.

question

A ________ is an activity at which a firm excels as a world-class leader.

answer

core competency

question

Probably the best single way to reduce quality problems is to reduce cycle time

answer

TRUE

question

As per your reading of the chapter opening case, which competitive force does Skype represent to AT&T?

answer

...

question

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy.

answer

market niche

question

Which of the following best describes business globalization?

answer

...

question

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 is referred to as:

answer

the law of diminishing returns

question

Internet technology:

answer

makes it easy for rivals to compete on price alone.

question

The support activities of a firm include:

answer

Procurement, Human Resource management, Technological Development and Infrastructure

question

The greatest impact the Internet has had on globalization is in lowering the costs of:

answer

entry to global-scale operations.

question

________ typically develop a single information system, usually at the home base, and then replicate it around the world.

answer

Franchisers

question

Seeing quality as the responsibility of all people and functions in an organization is central to the concept of:

answer

TQM.

question

In a ________ system configuration, separate information systems are designed and managed by each foreign unit.

answer

decentralized

question

In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.

answer

TRUE

question

A substitute product of most concern for a cable TV distributor is:

answer

satellite TV

question

The primary activities of a firm include:

answer

inbound logistics, operations, outbound logistics, sales and marketing, and service.

question

The effect of the Internet has been to raise bargaining power over suppliers.

answer

TRUE

question

Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources.

answer

TRUE

question

The competitive forces model was created for today's digital firm.

answer

FALSE

question

A(n) ________ uses networks to link people, assets, and ideas, enabling it to work with other companies to create products and services without being limited by traditional organizational boundaries or physical locations.

answer

virtual organization

question

A transparent marketplace means that there is high product differentiation.

answer

FALSE

question

In the strategy of product differentiation, information systems are used to enable new products and services. Answer

answer

TRUE

question

Strong linkages to customers and suppliers increase switching costs

answer

TRUE

question

The greatest barrier to changing business processes is ironically, management itself.

answer

FALSE

question

Which of the following does not describe a difference between the way customers and producers see quality?

answer

For a consumer, quality means uniformity of the product.

question

The law of diminishing returns always applies to digital, as well as traditional products.

answer

FALSE

question

Walmart's continuous replenishment system allows it to:

answer

provide an efficient customer response system.

question

A micromultinational is a small firm operating on a global scale.

answer

TRUE

question

The iPad can be seen as a disruptive technology for the ________ industry.

answer

publishing

question

Customers are one of the competitive forces that affect an organization's ability to compete.

answer

TRUE

question

The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.

answer

multinational

question

Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy?

answer

Chrysler Corporation's use of information systems to facilitate direct access from suppliers to production schedules.

question

As per your reading of the chapter case, which of the four generic business strategies was Starbucks following in implementing its Starbucks Digital Network?

answer

Customer and supplier intimacy

question

Mass customization allows a company to offer individually-tailored products using the same production resources as mass production.

answer

TRUE

question

The more people that use Microsoft Office software and related products, the lower its value.

answer

FALSE

question

All of the following have been disruptive technologies except:

answer

Minicomputers

question

A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.

answer

TRUE

question

The four basic strategies a company can employ to deal with competitive forces are:

answer

1) strengthen customer and supplier intimacy, (2) focus on market niche, (3) product differentiation, and (4) low-cost leadership.

question

Benchmarks are specific standards for business processes set by industry leaders.

answer

FALSE

question

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:

answer

focus on market niche.

question

Studies show that about half of a business firm's profits can be explained by alignment of IT with business.

answer

TRUE

question

All of the following are ways to improve quality except:

answer

implementing a new information system.

question

Network economics:

answer

sees the cost of adding new members as inconsequential.

question

All of the following industries have been severely disrupted by the Internet except:

answer

PC manufacturer.

question

Business process reengineering is the radical redesign of business processes.

answer

TRUE

question

A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?

answer

New market entrants

question

The value chain model:

answer

helps a firm identify points at which information technology can most effectively enhance its competitive position.

question

The Internet raises the bargaining power of customers by:

answer

making information available to everyone

question

When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, it is often referred to as creating:

answer

synergies.

question

The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits. Answer

answer

TRUE

question

The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

answer

FALSE

question

How are information systems used at the industry level to achieve strategic advantage?

answer

By building industry-wide, IT-supported consortia and symposia

question

An information system can enable a company to focus on a market niche through:

answer

intensive customer data analysis.

question

In network economics, the value of a commercial software vendor's software products:

answer

increases as more people use them.

question

A firm's value chain is linked to the:

answer

value chains of its suppliers, distributors, and customers.

question

BPM is considered concluded when the new processes are both implemented and accepted.

answer

FALSE

question

Which of the following industries has the lowest barrier to entry?

answer

Restaurant

question

In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.

answer

TRUE

question

The value chain model classifies all company activities as either primary or support.

answer

TRUE

question

A firm that locates all systems development and operations at its headquarters is using a ________ system configuration.

answer

centralized

question

The emergence of the World Wide Web acted as a disruptive technology for:

answer

print publishing.

question

The activities that measure the performance of your business processes against strict standards are called best practices.

answer

FALSE

question

A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.

answer

TRUE

question

A firm can exercise greater control over its suppliers by having:

answer

more suppliers.

question

The most successful solutions or methods for achieving a business objective are called:

answer

best practices.

question

________ systems are those in which development occurs at the home base but operations are handed over to autonomous units in foreign locations.

answer

Duplicated

question

Which of the following illustrates the use of information systems to achieve product differentiation?

answer

An automobile manufacturer's use of information systems to facilitate direct access from suppliers to production schedules.

question

The reduction of errors to 3.4 defects per million opportunities is central to the concept of:

answer

Six Sigma.

question

Benchmarking:

answer

compares the efficiency and effectiveness of your business processes against strict standards.

question

________ is the ability to offer individually tailored products or services using the same production resources as bulk production.

answer

Mass customization

question

A virtual company:

answer

uses the capabilities of other companies without being physically tied to those companies.

question

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.

answer

value web

question

In some instances, BPM will lead to a paradigm shift that transforms the nature of the business itself.

answer

FALSE

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