Question 1

Funds and human effort applied to growing and transforming an organization are closely tied to strategy, innovation, and competitive advantage.

Accepted Answer

A) True 
 B)False  True

Question 2

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. A

Question 3

What are network effects? Provide an example.

Accepted Answer

Network effects refer to the increased value of a product or service that results simply because there are more people using it. A large customer base can be significant because of network effects. The value of Facebook, for example, is low if you can only connect a few people. But the more people who use that social network, the more valuable it becomes to everyone.

Question 4

How can a company avoid the trap of competing only on price?

Accepted Answer

A)  by keeping the price at a level higher than the competitors 
B)  by following a pricing strategy inconsistent with the market equilibrium 
C)  by differentiating the products or services that it offers 
D)  by selling at a price much lower than the competition 
A)  by keeping the price at a level higher than the competitors 
B)  by following a pricing strategy inconsistent with the market equilibrium 
C)  by differentiating the products or services that it offers 
D)  by selling at a price much lower than the competition

Question 5

Which of the following is a feature of nonprofit organizations that differentiate them from for-profit organizations?

Accepted Answer

A)  lack of shareholders 
B)  lack of target customers 
C)  lack of stakeholders 
D)  lack of products or services 
A)  lack of shareholders 
B)  lack of target customers 
C)  lack of stakeholders 
D)  lack of products or services

Question 6

eBay's customers enrich the Web site by giving their reviews after every purchase. These reviews are used by buyers to evaluate the sellers in eBay. eBay also provides special privileges to sellers who have higher ratings. This is an example of ________.

Accepted Answer

A)  reverse engineering 
B)  value chain extension 
C)  focused strategy 
D)  niche marketing 
A)  reverse engineering 
B)  value chain extension 
C)  focused strategy 
D)  niche marketing

Question 7

Which of the following pairs of products are complimentary to each other?

Accepted Answer

A)  computer and software 
B)  tea and coffee 
C)  petroleum and natural gas 
D)  gold and silver 
A)  computer and software 
B)  tea and coffee 
C)  petroleum and natural gas 
D)  gold and silver

Question 8

Durodoll is a leading manufacturer of decorative crafts in Canada. Which of the following, if true, will indicate that the threat of new entrants is high for Durodoll?

Accepted Answer

A)  Durodoll has a patent for its manufacturing process. 
B)  The crafts that Durodoll manufactures are low-priced commodities. 
C)  The process of manufacturing the crafts is labor intensive. 
D)  The decorative goods' industry is capital intensive. 
A)  Durodoll has a patent for its manufacturing process. 
B)  The crafts that Durodoll manufactures are low-priced commodities. 
C)  The process of manufacturing the crafts is labor intensive. 
D)  The decorative goods' industry is capital intensive.

Question 9

The iPad challenges even the low-cost providers in the market due to its attractive features. Which of the following strategies is being used by Apple?

Accepted Answer

A)  focused strategy 
B)  market leadership 
C)  cost leadership strategy 
D)  product differentiation 
A)  focused strategy 
B)  market leadership 
C)  cost leadership strategy 
D)  product differentiation

Question 10

E-government involves ________.

Accepted Answer

A)  a supply chain system specifically designed for governmental trade 
B)  governmental involvement in conducting e-commerce 
C)  a government elected through online voting 
D)  efforts to make unclassified information available to citizens online 
A)  a supply chain system specifically designed for governmental trade 
B)  governmental involvement in conducting e-commerce 
C)  a government elected through online voting 
D)  efforts to make unclassified information available to citizens online

Question 11

What impact do government policies have on business? How do businesses try to influence government policies?

Accepted Answer

Government policies and funding prioriti

Question 12

Power of suppliers is high when there are many suppliers in a market.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following industries has the highest switching cost?

Accepted Answer

A)  packaged food 
B)  textile 
C)  software 
D)  food and beverage 
A)  packaged food 
B)  textile 
C)  software 
D)  food and beverage

Question 14

Which of the following statements is true about the IT strategy of nonprofit organizations?

Accepted Answer

A)  Nonprofit organizations have no shareholders and do not require a dedicated strategy. 
B)  Nonprofit organizations do not require significant IT support unless they are transformational in nature. 
C)  Nonprofit organizations need IT support and strategy to achieve their objectives. 
D)  Nonprofit organizations may not invest in IT if their objectives are directly related to IT. 
A)  Nonprofit organizations have no shareholders and do not require a dedicated strategy. 
B)  Nonprofit organizations do not require significant IT support unless they are transformational in nature. 
C)  Nonprofit organizations need IT support and strategy to achieve their objectives. 
D)  Nonprofit organizations may not invest in IT if their objectives are directly related to IT.

Question 15

A value chain can be extended by incorporating feedback from customers.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an example of a sustaining technology?

Accepted Answer

A)  Digital cameras replaced chemical cameras that required film. 
B)  Digital music sold over the Internet allowed one song at a time downloads. 
C)  LCD monitors were introduced to replace analog monitors. 
D)  Car manufacturers invented airbags to improve safety of passengers. 
A)  Digital cameras replaced chemical cameras that required film. 
B)  Digital music sold over the Internet allowed one song at a time downloads. 
C)  LCD monitors were introduced to replace analog monitors. 
D)  Car manufacturers invented airbags to improve safety of passengers.

Question 17

Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?

Accepted Answer

A)  A recent regulation by the government has made the entry of new players more difficult. 
B)  The market growth has slowed down significantly in recent months. 
C)  One of the dominant players decides to launch its products in Argentina. 
D)  In order to strengthen national security, the Brazilian government has banned the use of Internet telephony. 
A)  A recent regulation by the government has made the entry of new players more difficult. 
B)  The market growth has slowed down significantly in recent months. 
C)  One of the dominant players decides to launch its products in Argentina. 
D)  In order to strengthen national security, the Brazilian government has banned the use of Internet telephony.

Question 18

"IT resources have become an infrastructure commodity." Which of the following statements best supports this claim?

Accepted Answer

A)  IT resources are available to all the players in a market. 
B)  Implementation of IT resources increase employee productivity. 
C)  Technology helps organizations perform better than their competitors. 
D)  IT investments by companies have increased in recent years. 
A)  IT resources are available to all the players in a market. 
B)  Implementation of IT resources increase employee productivity. 
C)  Technology helps organizations perform better than their competitors. 
D)  IT investments by companies have increased in recent years.

Question 19

"The information and communications technology (ICT) component is at the very heart of the company's competitive advantage." Which of the following statements is the most accurate justification of this claim?

Accepted Answer

A)  Companies benefit from the cost savings made possible through information systems. 
B)  Cost of implementing technology has increased over a period of time. 
C)  Most businesses involve the sale of technical or technological services. 
D)  Global technological investments have increased in the past ten years. 
A)  Companies benefit from the cost savings made possible through information systems. 
B)  Cost of implementing technology has increased over a period of time. 
C)  Most businesses involve the sale of technical or technological services. 
D)  Global technological investments have increased in the past ten years.

Question 20

Which of the following statements describes the product differentiation strategy?

Accepted Answer

A)  special features for which customers are willing to pay more 
B)  products sold in more than one market at different price levels 
C)  prices of product or service are held at moderate levels 
D)  products sold to the entire market 
A)  special features for which customers are willing to pay more 
B)  products sold in more than one market at different price levels 
C)  prices of product or service are held at moderate levels 
D)  products sold to the entire market

Funds and human effort applied to growing and transforming an organization are closely tied to strategy, innovation, and competitive advantage.

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

What are network effects? Provide an example.

How can a company avoid the trap of competing only on price?

Which of the following is a feature of nonprofit organizations that differentiate them from for-profit organizations?

eBay's customers enrich the Web site by giving their reviews after every purchase. These reviews are used by buyers to evaluate the sellers in eBay. eBay also provides special privileges to sellers who have higher ratings. This is an example of ________.

Which of the following pairs of products are complimentary to each other?

Durodoll is a leading manufacturer of decorative crafts in Canada. Which of the following, if true, will indicate that the threat of new entrants is high for Durodoll?

The iPad challenges even the low-cost providers in the market due to its attractive features. Which of the following strategies is being used by Apple?

E-government involves ________.

What impact do government policies have on business? How do businesses try to influence government policies?

Power of suppliers is high when there are many suppliers in a market.

Which of the following industries has the highest switching cost?

Which of the following statements is true about the IT strategy of nonprofit organizations?

A value chain can be extended by incorporating feedback from customers.

Which of the following is an example of a sustaining technology?

Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?

"IT resources have become an infrastructure commodity." Which of the following statements best supports this claim?

"The information and communications technology (ICT) component is at the very heart of the company's competitive advantage." Which of the following statements is the most accurate justification of this claim?

Which of the following statements describes the product differentiation strategy?

Information Systems and People

Systems Development and Procurement

Project Management and Strategic Planning

Information and Communications Technologies: The Enterprise Architecture

Managing Information Resources with Databases

Information Systems for the Enterprise

The Web and E-Commerce

Ethics, Privacy, and Security

Business Intelligence and Decision Support

Collaborating with Technology

Knowledge Management and E-Learning

Filters

Exam 2: Information Systems and Strategy

Funds and human effort applied to growing and transforming an organization are closely tied to strategy, innovation, and competitive advantage.

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

What are network effects? Provide an example.

How can a company avoid the trap of competing only on price?

Which of the following is a feature of nonprofit organizations that differentiate them from for-profit organizations?

eBay's customers enrich the Web site by giving their reviews after every purchase. These reviews are used by buyers to evaluate the sellers in eBay. eBay also provides special privileges to sellers who have higher ratings. This is an example of ________.

Which of the following pairs of products are complimentary to each other?

Durodoll is a leading manufacturer of decorative crafts in Canada. Which of the following, if true, will indicate that the threat of new entrants is high for Durodoll?

The iPad challenges even the low-cost providers in the market due to its attractive features. Which of the following strategies is being used by Apple?

E-government involves ________.

What impact do government policies have on business? How do businesses try to influence government policies?

Power of suppliers is high when there are many suppliers in a market.

Which of the following industries has the highest switching cost?

Which of the following statements is true about the IT strategy of nonprofit organizations?

A value chain can be extended by incorporating feedback from customers.

Which of the following is an example of a sustaining technology?

Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?

"IT resources have become an infrastructure commodity." Which of the following statements best supports this claim?

"The information and communications technology (ICT) component is at the very heart of the company's competitive advantage." Which of the following statements is the most accurate justification of this claim?

Which of the following statements describes the product differentiation strategy?

Information Systems and People

Systems Development and Procurement

Project Management and Strategic Planning

Information and Communications Technologies: The Enterprise Architecture

Managing Information Resources with Databases

Information Systems for the Enterprise

The Web and E-Commerce

Ethics, Privacy, and Security

Business Intelligence and Decision Support

Collaborating with Technology

Knowledge Management and E-Learning

Filters