CH3 MIS – Flashcard

Unlock all answers in this set

Unlock answers
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
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New