Exam 3: Strategy and Information Systems

In the context of Porter's five forces model, the bargaining power of grain farmers in a surplus year is an example of a weak market force.

A major drawback of Porter's five forces model is that it does not analyze the threat of substitutes when forming a corporate strategy.

Organizations cannot gain a competitive advantage by enhancing existing products or services.

N-joi Ice Cream recently faced competition against their flagship brand of "black currant ice cream." The competitor made significant in-roads into this market by offering three varieties of "black currant ice cream." N-joi decided to counter this threat by introducing five new varieties of ice creams.Which competitive strategy is N-joi implementing?

Briefly describe the concepts of value, margin, and value chain.

In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to the product.

A new drug that has shown promise in curing lung cancer has been discovered by a famous chemical laboratory.This is the only 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 ________.

According to Porter's five forces model, in which of the following situations would the suppliers have the highest bargaining power?

A major drawback associated with Porter's five forces model is that it ignores the rivalry among firms in the industry.

Reduction in production cost results in ________.

Which of the following statements is consistent with the central idea of business process design?

A group of grain farmers in a surplus year will have reduced ________.

What is the central idea of business process design?

Activities such as collecting, storing, and physically distributing the product to buyers are considered as primary activities in a value chain.

An organization that minimizes the costs associated with the delivery of its products uses a product implementation tactic to obtain competitive advantage.

RAC Associates is a car rental company.The company rents cars to customers in the United States.The company uses controls and procedures to prevent car theft.Such procedures are examples of ________.

In the context of Porter's five forces model, the bargaining power of customers of medicinal drugs is enhanced when pharmaceutical companies patent their products.

An organization implements an information system to optimize its supply chain.The system helps the organization reduce wastages and inventory charges.Hence, the system provides a competitive advantage to the organization.Here, the information system helped the organization achieve competitive advantage by ________.

Explain the concept of switching costs with an example.