Exam 3: Strategy and Information Systems

Porter defined value as the ________.

Outbound logistics refers to transforming inputs into the final product.

Information systems create competitive advantage by providing support to a product rather than by becoming a part of the product.

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

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 ________.

The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

A service company checks the availability of resources before planning its projects. This activity can be classified under ________.

Organizations can lock in suppliers either by making it difficult to switch to another organization or by ________.

Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to the product.

What are the various support activities in a value chain?

Explain linkages with an example.

A linkage is a network of activities that generate value by transforming inputs into outputs.

A retail company sells products such 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 ________.

The difference between the value that an activity generates and the cost of the activity is called the ________.

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

Employees often resist changes in business processes.

Organizations can lock in customers by making it difficult or expensive for them to move to another product.

In the context of Porter's five forces model, the bargaining power of suppliers is a weak force when considering the example of auto dealers setting the price of new cars.

In the next ten years, the ________ is most likely to change.

An information system that allows a cell phone user to limit the volume of data transferred through the Internet creates a competitive advantage as part of a product.