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

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Describe some competitive advantage strategies that are based on business processes.

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Each stage of the generic value chain accumulates costs and reduces the value of the product.

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A business that selects a differentiation strategy will always structure itself around least-cost activities.

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Jupiter Shop is an online store.Customers have to create an online account to purchase products.The purchased products are delivered free of cost.The address of delivery is stored,so that customers can choose the same address for future purchases.Jupiter Shop features seasonal discounts and exchange offers.It also accumulates redeemable points for regular shoppers.Which of the following statements describes the use of information systems (IS)by Jupiter Shop to lock in customers?

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The support activities in the generic value chain facilitate the primary activities and contribute only indirectly to the production,sale,and service of the product.

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It is easier to calculate the margin of supporting activities.

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Which of the following is a primary activity in the value chain?

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How can one develop competitive strategies using products? How can information systems help in the process?

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

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

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The three competitive forces in Porter's model concern the danger of customers taking their business elsewhere.

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According to Porter,the processes and systems in an organization pursuing differentiation strategy must ________ to avoid negative margins.

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How does competitive strategy determine value chain structure?

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Which of the following competitive strategies does a company follow if it produces a uniquely formulated anti-ageing face cream targeted at women above the age of forty?

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

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Firm infrastructure excludes general management,finance,accounting,legal,and government affairs.

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Inbound and outbound logistics are the primary value generators in a service-oriented company.

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Distinguish between a primary and a support activity in the value chain.

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Manufacturing systems avoid linkages to reduce inventory costs.

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Typically,as an individual,a customer has substantial bargaining power over a large manufacturing industry.

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