Mis Chapter 3 Answers – Flashcards
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Determines the structure, features, and functions of an information system used in a company
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competitive strategy
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Porter's 5 forces model is used to assess ____________________
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industry structure
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Which firm would be least affected by the threat of substitutes
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firm that sells the only drug for a disease
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Porter's 5 forces
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bargaining power of customers threat of substitutes bargaining power of suppliers threat of new entrants rivalry
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which company would be most affected by the threat of substitutes
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Southwest Airlines
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in which situation 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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when would rivalry be considered a weak force affecting the market
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military services
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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. This is ___________
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rivalry
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ABC Motors is the largest manufacturer of cars. The company purchases raw materials from many small-sized sellers across the globe. In this case, ABC Motors is characterized by ___________
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high bargaining power over its suppliers
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An automobile company decides to improve he quality of all its products and bring more variety into its product line. The company has decided to adopt __________________
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industry-wide differentiation
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Focus differentiation
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a better product 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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The difference between the value that an activity generates and the cost of the activity is the _____________
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margin
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Porter defines value as __________________________
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the amount of money that a customer is willing to pay for an offering
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Activity in the value chain that involves receiving and handling raw materials and other inputs to the product
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inbound logistics
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Receiving, storing, and disseminating inputs to the products
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inbound logistics primary activity
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transforming inputs into the final product
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operations/manufacturing primary activity
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collecting, storing, and physically distributing the products to buyers
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outbound logistics primary activity
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Inducing buyers to purchase the products and providing a means for them to do so
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sales and marketing primary activity
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Assisting customers' use of the products and thus maintaining and enhancing the products; value
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customer service primary activity
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R&D, New techniques, methods, procedures
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technology support activity
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raw materials
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procurement support activity
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training, recruiting, compensation
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Human resources support activity
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General management, finance, accounting, legal, government affairs
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firm infrastructure support activity
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A retail marketing company sells such products as agricultural produce and consumer products. The company procures materials from farmers and local producers. This process of obtaining the inputs needed for a business is called ____________________
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inbound logistics
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example of a primary activity in the value chain
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receiving and disseminating inputs into the product
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Mae manages delivery at a custom-kitchen outlet. Based on her customer's feedback, she contacts Gem Cabinets and places an order for a full motion wall mount. Which of the primary activities is Mae performing?
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inbound logistics
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Lynn, the manager of a transportation company, is going through this week's delivery schedule. She calls her team and assigns territories for each executive. She 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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Support activity
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contract negotiation (HR)
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Central idea of business process design
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organizations should create new business processes rather than improve existing systems
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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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Transforms finished goods into cash
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sales process
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Material ordering is part of
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inbound logitics
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RAC Associates is a car rental company. The company rents cars to customers in the US. The company uses controls and procedures to prevent car theft. Such procedures are examples of_______________
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supporting business process
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Product Implementations
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Create a new product or service enhance products or services differentiate products or services
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Process Implementations
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Lock in customers and buyers lock in suppliers raise barriers to market entry establish alliances reduce costs
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RedDart is a premium freigght provider in the US. The company offers premium shipment services to its customers. The company ships faster than its competitors and uses tamper proof containers to ship its products
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providing an enhanced service
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Huen Software, an application provider to the gaming industry, decided to increase its portfolio by developing 3-D graphics-enabled games for the mobile gaming industry. By doing this, which competitive strategy are they implementing?
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product differentiation
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PowerCruise, a holiday cruise firm, recently offered its existing customers, who had registered for a two-year membership, an extension of 6 months to their membership without any additional charges. By doing this what competitive strategy are they implementing?
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locking in customers
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An organization wants to achieve competitive advantage through process implementations. Which action would help them do that
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establishing alliances
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Synap, a manufacturer of office automation products, recently received a patent for an advanced therapeutic ergonomics technology. By doing this, Synapz has
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created an entry barrier
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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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Organizations can lock in suppliers by making it difficult to switch to another organization or by ________________
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making it easy to work with the organization
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A group of manufacturing organizations purchases raw materials collectively to obtain better deals. This is ____________________
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establishing alliances
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reduction in product cost results in
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increased profitability
