K201 Lecture Exam 2 – Flashcards
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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 force model, the intensity of each of the forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be. T or F
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True
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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 that cures a disease
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According to Porter's five forces model, in which of the following situations would the suppliers have the highest bargaining power?
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A single vendor providing raw materials to many department stores
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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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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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US military services
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In the context of Porter's five forces model, the bargaining power of customers of medicinal drugs is increased when pharmaceutical companies patent their products. T or F
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False - the patent would decrease customer bargaining power because there would be no alternative until the patent expires.
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The automobile industry is characterized by many manufacturers and intense competition among them. This statement illustrates _________.
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high levels of rivalry
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Focused differentiation occurs when ________.
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a better product is provided within an industry segment
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A telecom service provider focusing on high-end users is following an industry-wide differentiation strategy. T or F
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False - this is an example of a focused differentiation strategy not industry-wide.
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A business that selects a differentiation strategy would invariably structure itself around low-cost activities. T or F
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False
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A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin. T or F
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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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Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to product.
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inbound logistics
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Which of the following value chain activities involves collecting, storing, and physically distributing the product buyers?
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Outbound logistics
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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 ________ is a network of activities that generate value by transforming inputs into outputs
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business process
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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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Locking in customer 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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An organization implements an information system to optimize its supply chain. The system helps the organization to reduce wastes. In this scenario, implementing the information system has helped the organization to gain a competitive advantage by ______.
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reducing costs
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Purchasing raw materials is an example of a structured process. T or F
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True
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_____ are formally defined, standardized processes that involve day to day operations
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Structured processes
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Which of the following is an example of a dynamic process?
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Nike uses Facebook and Twitter to generate buzz about its new line of running shoes.
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_____ processes span an organization and support activities in multiple departments.
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Enterprise
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____ is a measure of the ratio of process outputs to inputs
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process efficiency
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Which of the following conditions exists when data are isolated in separated information systems?
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information silo
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Tony requrest a credit approval of $25,ooo. Instead, he gets $15,000 approved as customer credit. Which of the following problems caused by information silos is most likely the reason behind it?
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disjointed processes
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A ____ system is a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service.
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Customer relationship managment
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Which phase of the customer life cycle focuses on sending messages to the target market to attract customer prospects?
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marketing
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Which of the following is performed by enterprise application integration?
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It connects system "islands" via a new layer of software
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Facebook, Twitter, LinkedIn, and Google are social media (SM) application providers. T or F
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True
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Data and responses to data that are contributed to social media sites by users and social media sponsors are referred to as _____.
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content data
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Social CRM is a ______ process.
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unstructured and uncontrolled
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____ is the dynamic social media process of employing users to participate in product design or product redesign.
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crowdsourcing
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_____ is the investment in social relations with the expectation of returns in the marketplace.
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social capital
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Which of the following best represents the value of social capital?
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Number of Relationships x Relationship Strength x Entity Resources
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The ____ revenue model offers users a basic service for free, and then charges a premium for upgrades or advanced features.
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freemium
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Most social media companies rely on _____ for revenue.
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advertising
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____ is the application of social media to facilitate the cooperative work of people inside organizations
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Enterprise 2.0
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According to McAfee, pushing enterprise content to users based on subscriptions and alerts is a characteristics of the ______ component of Enterprise 2.0
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signals
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when ALDI works to create a relationship with a supplier to ensure quality products at low prices, in which of the primary activities in the value chain does this occur?
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inbound logistics
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Which of the support activities consists of the processes of finding vendors, setting up contractual agreements, and negotiating prices
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Procurement
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ALDI's competitive strategy tell sue that they are less likely to invest in expensive information systems that enhance the customer's experience? T or F
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True
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Which of the following is an example of a value chain linkage?
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A manufacturing information system used to reduce inventory costs (information system links them and causes better communication)
