Exam 3: Organizational Strategy, Information Systems, and Competitive Advantage

Procurement falls under the category of primary activities in a value chain.

Porter's model of business activities includes linkages, which are interactions across value activities.

Two companies with the same value chain activities will have the same business processes.

Each stage of the value chain not only adds value to the product but also ________.

It is easier to calculate the margin of supporting activities than primary activities.

Explain value chain linkages.

If your company's competitive strategy was focus and differentiation, then the company would be known for ________.

Which statement is an example of the threat of substitutions force?

If a value chain's margin is negative, the company must reduce the cost of the value chain.

Which of the following primary value chain activities induce buyers to purchase a product and provide a means for them to do so?

If your department collects, stores, and physically distributes products to buyers, your department is part of the ________ primary activity.

Porter's definition of technology is narrow because it includes only research and development.

The availability of substitutes plays a role in determining the bargaining power of suppliers for industrial clients.

Margin = Value - Cost

Porter defined ________ as the amount of money that a customer is willing to pay for a resource, product, or service.

A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

Which of the following is a product implementation principle of competitive advantage?

Which of the following is TRUE if the threat from a substitute is strong?

Which of the following strategies is also called establishing high switching costs?

According to Porter's five forces model, a company is profitable if all the five forces are strong.