CISB 210 Chapter 3 – Flashcards
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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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Porter's five forces model is used to assess ____________________.
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industry structure
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According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?
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a firm that sells the only drug for disease
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According to Porter's five forces model, a frequent traveler's choice of auto rental would be an example of a strong force for ____________.
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threat of substitutions
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According to Porter's five forces model, in which of the following situations would the supplier have the highest bargaining power?
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a dealer of a patented material for smartphone manufacturers
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According to Porter's five forces model, in which of the following examples would rivalry be considered as a weak force affecting the market?
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search engine designers
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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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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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Bargaining power of customers is likely to be the highest for markets involving ________.
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industrial products
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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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Dynotrix Motors is a large car-manufacturing company. The company purchases raw material 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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I-scream-4 Ice Cream recently faced competition against their flagship brand of "Orange peel ice cream." A competitor made significant in-roads into the market by offering three varieties of "Orange peel ice cream." I-scream-4 Ice Cream decided to counter this threat by introducing five new varieties of ice creams. Which competitive strategy is I-scream-4 Ice Cream implementing?
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product differentiation
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An automobile company decides to improve the quality of its products and bring more variety into its entire product line. The company has decided to adopt ________.
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industry-wide differentiation
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Focused differentiation occurs when _______.
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better service is provided within an industry segment
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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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An organization responds to the structure of its industry by choosing a competitive strategy.
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True
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The difference between the value that an activity generates and the cost of the activity is called the ________.
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margin
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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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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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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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A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________.
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inbound logistics
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Which of the following statements best describes the role of operations in a value chain?
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transforming inputs into the final products
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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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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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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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Which of the following is a primary activity in the value chain?
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receiving and handling of raw materials and other inputs
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Cassandra runs a downtown boutique that sells customized clothes. One of her customers wishes to purchase a trench coat with a bejeweled clip. Cassandra contacts "Gems and Stones" and places an order for the clip. This activity can be classified under ________.
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inbound logistics
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Lynn, the manager of a transportation company, goes through the product delivery schedule. She assigns territories to each executive of the delivery team, and also contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing?
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outbound logistics
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Madison, the project manager of a sports apparel company, estimates that the demand for jogging shoes is likely to decline in the coming months. He advises the procurement department to order raw material accordingly to ensure minimum wastage. This intercommunication that facilitates smooth operations is called ________.
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linkages
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Which of the following employees performs a support activity in the value chain?
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Nathaniel is in charge of setting up contractual agreements with vendors
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Which of the following paved the way for the creation of a business process design?
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linkages
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Which of the following statements is consistent with the central idea of business process design?
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organizations should create new business processes instead of improving existing systems.
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The ________ 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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A(n) ___________ is a network of activities that generate worth by transforming inputs into outputs.
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business process
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The cost of the business process is the sum of the cost of the inputs and the ________.
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cost of the activities
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Which of the following defines a repository?
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a collection of something, such as data or raw materials
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Neil creates an application which facilitates the easy storage and access of employee information like name, age, experience, and qualification for his organization. The application is an example of a(n) ________.
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repository
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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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As the purchasing manager of a company that designs costumes, Natalie orders yards of fabric in preparation for Halloween. Natalie's duties can be classified under the ________ category of a business process.
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inbound logistics
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Which of the following statements is true of business process designs?
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Most process designs require people to work in new ways.
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RAC Associates is a car rental company that rents cars to tourists in the United States. The company uses tracking devices and magnetic locks to prevent car theft. These procedures are examples of ________.
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supporting business processes
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Which of the following principles of competitive advantage is associated with product implementations?
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differentiating service offerings
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Cooper, the owner of a small bicycle manufacturing company, is striving to keep his organization running smoothly while remaining profitable in a highly competitive market. Cooper chooses process implementation to give his company a competitive edge over others. Which of the following principles is he most likely to implement?
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reducing costs
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Hueblue Software, an application provider to the gaming industry, decided to enhance its portfolio by developing motion-control-enabled games for the mobile gaming industry. In this scenario, which competitive strategy is Hueblue Software implementing?
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product differentiation
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FunText is a company that owns an app used for text messaging. It recently offered a six month membership extension, to its existing customers, without any additional charges. Which competitive strategy is FunText trying to implement in this scenario?
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locking in customers
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________ is a means through which an organization can gain a competitive advantage through process implementations.
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Establishing alliances
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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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Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.
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switching costs
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The International Zoological club publishes a monthly magazine for zoology enthusiasts. Members are required to pay an initial fee to cover the first two years of the subscription when registering with the club. In this scenario, the International Zoological club is ________.
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locking in customers
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A large software manufacturer attempts to lock in customers by making it difficult for them to substitute their software with one from another company. The strategy used by the company is referred to as ________.
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switching costs strategy
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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 east to work with the organization
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A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.
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establishing alliances
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PL Inc. implements an information system to improve its supply chain. The system helps the organization to reduce wastes and optimally utilize its resources. In this scenario, implementing the information system has helped PL Inc. to gain a competitive advantage by ________.
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reducing its costs
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Reduction in production cost results in __________.
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increased profitability
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Which of the following principles of competitive advantage is related to process implementations?
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reduce costs
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Which of the following principles of competitive advantage is related to process implementations?
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lock in buyers
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Which of the following principles of competitive advantage is related to process implementations?
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raise the barriers to market entry
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Identify the principle of competitive advantage that is associated with product implementations.
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enhance services
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Jason's Burgers, a famous diner, recently started taking orders online to reduce the customer wait time. This arrangement was perfect for busy office workers who frequented the place, and the sales went up considerably. Jason's Burgers attempted to ________.
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lock in customers
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Launch Cars, a car manufacturing company, has patented its breakthrough technology that reduces pollutant emission by half. The company is now an active supporter of anti-pollution laws that are likely to diminish the profitability of many other auto makers. Launch Cars is attempting to ________.
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raise barriers to market entry
