Question 1

Which of the following factors increases the power of suppliers?

Accepted Answer

A) disruptive innovation 
B) high switching costs 
C) low-scale operations 
D) lack of competitive advantage 
A) disruptive innovation 
B) high switching costs 
C) low-scale operations 
D) lack of competitive advantage

Question 2

Which of the following best illustrates the strategic use of IT?

Accepted Answer

A) maintaining the IT systems of a company 
B) establishing a data center to store key information 
C) transforming the business model of an organization 
D) licensing the software that a company will use 
A) maintaining the IT systems of a company 
B) establishing a data center to store key information 
C) transforming the business model of an organization 
D) licensing the software that a company will use

Question 3

Which of the following is an accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Accepted Answer

A) The Internet rejigged existing business processes and streamlined them, giving many companies marginal advantages. 
B) Switching costs have increased after the advent of the Internet as a medium of trade. 
C) The Internet reduced entry barriers for newcomers and empowered buyers with more information. 
D) Competition became oligopolistic with only a few companies investing in technology. 
A) The Internet rejigged existing business processes and streamlined them, giving many companies marginal advantages. 
B) Switching costs have increased after the advent of the Internet as a medium of trade. 
C) The Internet reduced entry barriers for newcomers and empowered buyers with more information. 
D) Competition became oligopolistic with only a few companies investing in technology.

Question 4

Which of the following is a useful benchmark for information systems?

Accepted Answer

A) the amount of IT spending per employee in an organization 
B) the number of temporary employees in an organization 
C) the number of unused computers in an organization 
D) the number of monthly employee promotions in an organization 
A) the amount of IT spending per employee in an organization 
B) the number of temporary employees in an organization 
C) the number of unused computers in an organization 
D) the number of monthly employee promotions in an organization

Question 5

Government action can influence how Porter's five forces operate in industries.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true according to Porter's model?

Accepted Answer

A) When start-up costs are low, the threat of new entrants to existing businesses is high. 
B) The power of buyers reduces when deep discounts can be demanded of suppliers. 
C) The power of suppliers is high when constant competition forces them to innovate. 
D) The threat of substitutes is high when there are very few alternative products. 
A) When start-up costs are low, the threat of new entrants to existing businesses is high. 
B) The power of buyers reduces when deep discounts can be demanded of suppliers. 
C) The power of suppliers is high when constant competition forces them to innovate. 
D) The threat of substitutes is high when there are very few alternative products.

Question 7

"Low-cost leaders must automate their processes." Which of the following is the most compelling reason to support this argument?

Accepted Answer

A) Automation will help them differentiate their products. 
B) Automation will help them reach a wider target audience. 
C) Automation will help them eliminate human labor in certain activities. 
D) Automation will help them improve their brand image. 
A) Automation will help them differentiate their products. 
B) Automation will help them reach a wider target audience. 
C) Automation will help them eliminate human labor in certain activities. 
D) Automation will help them improve their brand image.

Question 8

Which of the following organizations faces higher switching costs?

Accepted Answer

A) an organization that wants to automate its processes 
B) an organization that moves it data center to cloud storage 
C) an organization that buys an information system to manage its own records 
D) an organization that wants to switch to open-source software 
A) an organization that wants to automate its processes 
B) an organization that moves it data center to cloud storage 
C) an organization that buys an information system to manage its own records 
D) an organization that wants to switch to open-source software

Question 9

Lifetime Television, an American cable television company, specifically targets female viewers. The channel is devoted to movies, sitcoms, and dramas that are either geared toward women or feature women in lead roles. This is an example of a ________ strategy.

Accepted Answer

A) market leadership 
B) cost leadership 
C) focused niche 
D) price leadership 
A) market leadership 
B) cost leadership 
C) focused niche 
D) price leadership

Question 10

E-government involves efforts to make unclassified information available to citizens via the Internet.

Accepted Answer

A) True 
 B)False

Question 11

Orange, an online-gaming site, has millions of users. The site has many games which pit users against each other. The relative standing of each user is presented in the form of an elaborate ranking system for each game. Users pride themselves on gaining the highest points and the highest rank possible. This rise in user participation has increased the value of Orange significantly. This is an example of ________.

Accepted Answer

A) monopolistic competition 
B) internal marketing 
C) network effects 
D) guerilla marketing 
A) monopolistic competition 
B) internal marketing 
C) network effects 
D) guerilla marketing

Question 12

Network effects refer to the ability of a product to fit into a new system.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a shortcoming of the extended value chain?

Accepted Answer

A) It is difficult to allocate responsibility in the event of a mishap. 
B) It reduces the strategic advantages offered by a shorter chain. 
C) It alienates customers by not taking their opinions into account. 
D) It cannot be expanded beyond the support activities of a company. 
A) It is difficult to allocate responsibility in the event of a mishap. 
B) It reduces the strategic advantages offered by a shorter chain. 
C) It alienates customers by not taking their opinions into account. 
D) It cannot be expanded beyond the support activities of a company.

Question 14

Which of the following statements is true of the value chain?

Accepted Answer

A) Understanding a customer's own value chain does not offer strategic advantages to a company. 
B) As the extended value chain lengthens, responsibility for harmful consequences becomes more diffuse. 
C) The value chain ends at product delivery and any extension to it has no bearing on strategic advantages. 
D) A company's value chain is limited to the internal activities of the company and does not depend on external factors. 
A) Understanding a customer's own value chain does not offer strategic advantages to a company. 
B) As the extended value chain lengthens, responsibility for harmful consequences becomes more diffuse. 
C) The value chain ends at product delivery and any extension to it has no bearing on strategic advantages. 
D) A company's value chain is limited to the internal activities of the company and does not depend on external factors.

Question 15

The threat of new entrants in an industry is very high when startups can open a business with little capital and few employees.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a key attribute of the low-cost leadership strategy?

Accepted Answer

A) providing unique add-ons to supplement the products or services 
B) focusing on a specific market segment 
C) optimizing the value chain by eliminating unwanted expenditures 
D) offering products and services with superior qualities 
A) providing unique add-ons to supplement the products or services 
B) focusing on a specific market segment 
C) optimizing the value chain by eliminating unwanted expenditures 
D) offering products and services with superior qualities

Question 17

What is a benchmark? Provide an example.

Accepted Answer

A benchmark is a reference point used as

Question 18

Which of the following is an example of a disruptive innovation?

Accepted Answer

A) LCD monitors replaced CRT monitors in televisions. 
B) Apple launched iPhone 4 replacing iPhone 3. 
C) Ford introduced small cars for the middle class. 
D) Land Rover markets most of its four-wheel drives in high-altitude regions. 
A) LCD monitors replaced CRT monitors in televisions. 
B) Apple launched iPhone 4 replacing iPhone 3. 
C) Ford introduced small cars for the middle class. 
D) Land Rover markets most of its four-wheel drives in high-altitude regions.

Question 19

Why are the operational requirements to run nonprofits considered similar to businesses?

Accepted Answer

A) Operations such as payroll, accounting and finance, and human resources are essential for nonprofits. 
B) Most of the nonprofit organizations generate profit in some way, and operations are essential for tax planning. 
C) The procedural objectives for for-profit organizations and nonprofit organizations are the same. 
D) The branding requirements for for-profit organizations and nonprofit organizations are the same. 
A) Operations such as payroll, accounting and finance, and human resources are essential for nonprofits. 
B) Most of the nonprofit organizations generate profit in some way, and operations are essential for tax planning. 
C) The procedural objectives for for-profit organizations and nonprofit organizations are the same. 
D) The branding requirements for for-profit organizations and nonprofit organizations are the same.

Question 20

Which of the following is a common way to decrease the IT spending of a company?

Accepted Answer

A) shifting to proprietary software 
B) moving to cloud computing 
C) increasing in-house IT personnel 
D) reducing outsourcing operations 
A) shifting to proprietary software 
B) moving to cloud computing 
C) increasing in-house IT personnel 
D) reducing outsourcing operations

Which of the following factors increases the power of suppliers?

Which of the following best illustrates the strategic use of IT?

Which of the following is an accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Which of the following is a useful benchmark for information systems?

Government action can influence how Porter's five forces operate in industries.

Which of the following is true according to Porter's model?

"Low-cost leaders must automate their processes." Which of the following is the most compelling reason to support this argument?

Which of the following organizations faces higher switching costs?

Lifetime Television, an American cable television company, specifically targets female viewers. The channel is devoted to movies, sitcoms, and dramas that are either geared toward women or feature women in lead roles. This is an example of a ________ strategy.

E-government involves efforts to make unclassified information available to citizens via the Internet.

Network effects refer to the ability of a product to fit into a new system.

Which of the following is a shortcoming of the extended value chain?

Which of the following statements is true of the value chain?

The threat of new entrants in an industry is very high when startups can open a business with little capital and few employees.

Which of the following is a key attribute of the low-cost leadership strategy?

What is a benchmark? Provide an example.

Which of the following is an example of a disruptive innovation?

Why are the operational requirements to run nonprofits considered similar to businesses?

Which of the following is a common way to decrease the IT spending of a company?

Information Systems and People

Information and Communications Technologies: The Enterprise Architecture

Databases and Datawarehouses

Information Systems for the Enterprise

The Web, E-Commerce, and M-Commerce

Business Intelligence and Decision Making

Collaborating With Technology

Knowledge Management and E-Learning

Ethics, Privacy, and Security

Systems Development and Procurement

Project Management and Strategic Planning

Filters

Exam 2: Information Systems and Strategy

Which of the following factors increases the power of suppliers?

Which of the following best illustrates the strategic use of IT?

Which of the following is an accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Which of the following is a useful benchmark for information systems?

Government action can influence how Porter's five forces operate in industries.

Which of the following is true according to Porter's model?

"Low-cost leaders must automate their processes." Which of the following is the most compelling reason to support this argument?

Which of the following organizations faces higher switching costs?

Lifetime Television, an American cable television company, specifically targets female viewers. The channel is devoted to movies, sitcoms, and dramas that are either geared toward women or feature women in lead roles. This is an example of a ________ strategy.

E-government involves efforts to make unclassified information available to citizens via the Internet.

Network effects refer to the ability of a product to fit into a new system.

Which of the following is a shortcoming of the extended value chain?

Which of the following statements is true of the value chain?

The threat of new entrants in an industry is very high when startups can open a business with little capital and few employees.

Which of the following is a key attribute of the low-cost leadership strategy?

What is a benchmark? Provide an example.

Which of the following is an example of a disruptive innovation?

Why are the operational requirements to run nonprofits considered similar to businesses?

Which of the following is a common way to decrease the IT spending of a company?

Information Systems and People

Information and Communications Technologies: The Enterprise Architecture

Databases and Datawarehouses

Information Systems for the Enterprise

The Web, E-Commerce, and M-Commerce

Business Intelligence and Decision Making

Collaborating With Technology

Knowledge Management and E-Learning

Ethics, Privacy, and Security

Systems Development and Procurement

Project Management and Strategic Planning

Filters