Essentials of Management Information Systems, 11e (Laudon) Chapter 3 – Flashcards
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A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
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TRUE
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A primary challenge in BPM is employee resistance.
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TRUE
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Customers are one of the competitive forces that affect an organization's ability to compete.
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TRUE
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A transparent marketplace means that there is high product differentiation.
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FALSE
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Studies show that about half of a business firm's profits can be explained by alignment of IT with business.
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TRUE
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The greatest barrier to changing business processes is, ironically, management itself.
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FALSE
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In the strategy of product differentiation, information systems are used to enable new products and services.
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TRUE
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BPM is considered concluded when the new processes are both implemented and accepted.
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FALSE
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Strong linkages to customers and suppliers increase switching costs.
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TRUE
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The effect of the Internet has been to raise bargaining power over suppliers.
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TRUE
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In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
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TRUE
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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.
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TRUE
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The value chain model classifies all company activities as either primary or support.
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TRUE
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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.
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TRUE
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The law of diminishing returns always applies to digital, as well as traditional products.
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FALSE
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The more people that use Microsoft Office software and related products, the lower its value.
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FALSE
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The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
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FALSE
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Probably the best single way to reduce quality problems is to reduce cycle time.
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TRUE
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Business process reengineering is the radical redesign of business processes.
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TRUE
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Benchmarks are specific standards for business processes set by industry leaders
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FALSE
