Question 1

What is one of the most common ways a company can decrease supplier power?

Accepted Answer

A)  Charge lower prices. 
B)  Charge higher prices. 
C)  Use MIS to find and create alternative products. 
D)  Companies cannot affect supplier power. 
A)  Charge lower prices. 
B)  Charge higher prices. 
C)  Use MIS to find and create alternative products. 
D)  Companies cannot affect supplier power.

Question 2

There are many challenges to changing doctors,including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history.Changing doctors provides a great example of switching costs.

Accepted Answer

A) True 
 B)False

Question 3

The threat of substitute products or services is _____ when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Accepted Answer

The answer of The threat of substitute products or services...

Question 4

Amazon.com uses a customer-profiling system whenever a customer visits its website.Using this system,Amazon can offer products tailored to that particular customer's profile and buying pattern.What is Amazon using to achieve this competitive advantage?

Accepted Answer

A)  Rivalry. 
B)  Buyer power. 
C)  Product differentiation. 
D)  Substitute product. 
A)  Rivalry. 
B)  Buyer power. 
C)  Product differentiation. 
D)  Substitute product.

Question 5

Kevin Campbell is an incoming freshman at your college.Kevin is frustrated by the cost of books,tuition,and expenses,and he also needs to purchase a rather expensive laptop.In an effort to save money,Kevin begins a Facebook group finding other college students who need to purchase laptops.Soon,Kevin's Facebook group has close to 100,000 students.Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount.What business strategy is Kevin using to purchase laptops?

Accepted Answer

A)  Collecting business intelligence. 
B)  Decreasing entry barriers. 
C)  Purchasing a substitute product. 
D)  Increasing buyer power. 
A)  Collecting business intelligence. 
B)  Decreasing entry barriers. 
C)  Purchasing a substitute product. 
D)  Increasing buyer power.

Question 6

Which of the following is a reason why competitive advantages are typically temporary?

Accepted Answer

A)  The competitor hiring your key employees. 
B)  The competitor seeking ways to duplicate your business operations. 
C)  The competitor acquiring new technology. 
D)  All of these. 
A)  The competitor hiring your key employees. 
B)  The competitor seeking ways to duplicate your business operations. 
C)  The competitor acquiring new technology. 
D)  All of these.

Question 7

The Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for __________ in an industry.

Accepted Answer

The answer of The Porter's Five Forces Model analyzes the...

Question 8

Imagine you are creating a new product to sell in an up and coming market.Which of the following statements indicates that it would be difficult for you to enter this new market?

Accepted Answer

A)  The threat-of-new-entrants is high in the up and coming market. 
B)  The threat-of-new-entrants is low in the up and coming market. 
C)  The threat-of-new-entrants is high during the summer months in the up-and-coming market. 
D)  All of these, depending on the time of year. 
A)  The threat-of-new-entrants is high in the up and coming market. 
B)  The threat-of-new-entrants is low in the up and coming market. 
C)  The threat-of-new-entrants is high during the summer months in the up-and-coming market. 
D)  All of these, depending on the time of year.

Question 9

MIS can add value to both primary and support activities within a business.Which of the following is not an example of a company adding value by the use of MIS in a support activity?

Accepted Answer

A)  Netflix creating a business strategy for the video rental market that delivers videos via the mail. 
B)  The human resources department creates a tracking system to efficiently reward employees based on their performance. 
C)  Scottrade Corp. creating an online system for employees to track paychecks, benefits, their wellness-rewards program, and other employee benefit items. 
D)  The University of Forks creates a program to automatically order office supplies, such as pens and pads of paper, for its employees. 
A)  Netflix creating a business strategy for the video rental market that delivers videos via the mail. 
B)  The human resources department creates a tracking system to efficiently reward employees based on their performance. 
C)  Scottrade Corp. creating an online system for employees to track paychecks, benefits, their wellness-rewards program, and other employee benefit items. 
D)  The University of Forks creates a program to automatically order office supplies, such as pens and pads of paper, for its employees.

Question 10

Imagine you are creating a new product to sell in an up and coming market.Which of the following statements indicates that it would be easy for you,as the new entrant,to compete in this market?

Accepted Answer

A)  The threat of new entrants is high in the up and coming market. 
B)  The threat of new entrants is low in the up and coming market. 
C)  The threat of new entrants is impossible to define in the up and coming market. 
D)  All of these, depending on the time of year. 
A)  The threat of new entrants is high in the up and coming market. 
B)  The threat of new entrants is low in the up and coming market. 
C)  The threat of new entrants is impossible to define in the up and coming market. 
D)  All of these, depending on the time of year.

Question 11

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?

Accepted Answer

A)  Suppliers can drive down profits by charging more for supplies. 
B)  New market entrants can steal potential investment capital. 
C)  Substitute products can steal customers. 
D)  All of these. 
A)  Suppliers can drive down profits by charging more for supplies. 
B)  New market entrants can steal potential investment capital. 
C)  Substitute products can steal customers. 
D)  All of these.

Question 12

Broad differentiation,broad cost leadership,and _________ are the three generic strategies identified by Porter.

Accepted Answer

A)  narrow market leadership 
B)  high cost versus low cost 
C)  focused strategy 
D)  none of these 
A)  narrow market leadership 
B)  high cost versus low cost 
C)  focused strategy 
D)  none of these

Question 13

Focused strategies concentrate on either cost leadership or ___________.

Accepted Answer

The answer of Focused strategies concentrate on either cost leadership...

Question 14

Paula Logston is the owner and operator of a high-end online custom clothing company.Paula has never heard of Porter's Five Forces Model,and she wants to understand why she should perform an analysis using it.If you were tasked with explaining Porter's Five Forces Model to Paula,what would be the primary reason she would want to use this type of analysis?

Accepted Answer

A)  To help Paula choose a clothing business focus. 
B)  To help Paula evaluate the attractiveness of the clothing industry. 
C)  To help Paula evaluate and execute business goals. 
D)  All of these. 
A)  To help Paula choose a clothing business focus. 
B)  To help Paula evaluate the attractiveness of the clothing industry. 
C)  To help Paula evaluate and execute business goals. 
D)  All of these.

Question 15

The value chain will group a company's activities into two categories: primary value activities and support value activities.

Accepted Answer

A) True 
 B)False

Question 16

What is a feature of a product or service that customers have come to expect and that entering competitors must match if they want to survive?

Accepted Answer

A)  Significant barrier. 
B)  Entry barrier. 
C)  Product differentiation. 
D)  Entry chain. 
A)  Significant barrier. 
B)  Entry barrier. 
C)  Product differentiation. 
D)  Entry chain.

Question 17

Which of the following demonstrates a company that has implemented a low-cost,broad-market strategy?

Accepted Answer

A)  Neiman Marcus. 
B)  Payless Shoes. 
C)  The Sharper Image. 
D)  Walmart. 
A)  Neiman Marcus. 
B)  Payless Shoes. 
C)  The Sharper Image. 
D)  Walmart.

Question 18

Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers?

Accepted Answer

A)  Product analysis. 
B)  Primary supplier power. 
C)  Value chain analysis. 
D)  Buyer chain analysis. 
A)  Product analysis. 
B)  Primary supplier power. 
C)  Value chain analysis. 
D)  Buyer chain analysis.

Question 19

John Cleaver is the CEO of Tech World,which is a retail store that sells computers,monitors,cameras,televisions,and many other electronic products.John and his executive team are meeting to brainstorm new ideas on how to grow the business.One idea is to mimic the product of a competitor that is attempting to sell a new product in a different industry.After performing a Porter's Five Forces analysis,John determines that all of the forces are high in this new industry.What should John do?

Accepted Answer

A)  Explode into the market with an overflow of the product. 
B)  Contemplate other products to introduce at the same time in this new market. 
C)  Compare the competitor's prices and offer his product lower in this new market. 
D)  Not introduce the product. Because all five forces are strong, introducing the product would be a highly risky business strategy. 
A)  Explode into the market with an overflow of the product. 
B)  Contemplate other products to introduce at the same time in this new market. 
C)  Compare the competitor's prices and offer his product lower in this new market. 
D)  Not introduce the product. Because all five forces are strong, introducing the product would be a highly risky business strategy.

Question 20

If a business is following a focused strategy,then its competitive scope is ________.

Accepted Answer

A)  broad market 
B)  narrow market 
C)  broad range of products 
D)  broad range of services 
A)  broad market 
B)  narrow market 
C)  broad range of products 
D)  broad range of services

Exam 2: Identifying Competitive Advantages

What is one of the most common ways a company can decrease supplier power?

There are many challenges to changing doctors,including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history.Changing doctors provides a great example of switching costs.

The threat of substitute products or services is _____ when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Amazon.com uses a customer-profiling system whenever a customer visits its website.Using this system,Amazon can offer products tailored to that particular customer's profile and buying pattern.What is Amazon using to achieve this competitive advantage?

Which of the following is a reason why competitive advantages are typically temporary?

The Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for __________ in an industry.

Imagine you are creating a new product to sell in an up and coming market.Which of the following statements indicates that it would be difficult for you to enter this new market?

MIS can add value to both primary and support activities within a business.Which of the following is not an example of a company adding value by the use of MIS in a support activity?

Imagine you are creating a new product to sell in an up and coming market.Which of the following statements indicates that it would be easy for you,as the new entrant,to compete in this market?

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?

Broad differentiation,broad cost leadership,and _________ are the three generic strategies identified by Porter.

Focused strategies concentrate on either cost leadership or ___________.

The value chain will group a company's activities into two categories: primary value activities and support value activities.

What is a feature of a product or service that customers have come to expect and that entering competitors must match if they want to survive?

Which of the following demonstrates a company that has implemented a low-cost,broad-market strategy?

Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers?

If a business is following a focused strategy,then its competitive scope is ________.

Business Driven Technology

Strategic Initiatives for Implementing Competitive Advantages

Measuring the Success of Strategic Initiatives

Organizational Structures That Support Strategic Initiatives

Valuing Organizational Information

Storing Organizational Information-Databases

Accessing Organizational Information-Data Warehouse

Enabling the Organization-Decision Making

Extending the Organization-Supply Chain Management

Building a Customer-Centric Organization-Customer Relationship Management

Integrating the Organization From End to End-Enterprise Resource Planning

Creating Innovative Organizations

Ebusiness

Creating Collaborative Partnerships

Integrating Wireless Technology in Business

Developing Software to Streamline Operations

Methodologies for Supporting Agile Organizations

Managing Organizational Projects

Developing a 21st-Century Organization

Business Basics

Business Process

Hardware and Software Basics

Mis Infrastructures

Networks and Telecommunications

Information Security

Ethics

Operations Management

Sustainable Mis Infrastructures

Business Intelligence

Global Information Systems

Global Trends

Filters