Question 1

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

Accepted Answer

A)  It ends when the customer buys a product. 
B)  It involves components that are external to the company. 
C)  It involves only the primary activities of a business. 
D)  It does not involve the intermediaries that a company maintains. 
A)  It ends when the customer buys a product. 
B)  It involves components that are external to the company. 
C)  It involves only the primary activities of a business. 
D)  It does not involve the intermediaries that a company maintains.

Question 2

A low-cost leadership strategy means offering a highly differentiated product at a price that is lower than the market price.

Accepted Answer

A) True 
 B)False

Question 3

How did online markets affect the balance of power between buyers and suppliers?

Accepted Answer

A)  The power imbalance between the buyers and the suppliers decreased. 
B)  Buyers' focus shifted from being powerful to being cooperative. 
C)  Sellers became more powerful than the buyers. 
D)  Buyers became more powerful than the sellers. 
A)  The power imbalance between the buyers and the suppliers decreased. 
B)  Buyers' focus shifted from being powerful to being cooperative. 
C)  Sellers became more powerful than the buyers. 
D)  Buyers became more powerful than the sellers.

Question 4

Which of the following is a tool used to reduce health care costs by digitizing patient history and treatment records, and making them available to health care providers as needed?

Accepted Answer

A)  magnetic resonance imaging 
B)  ultrasonography 
C)  medical imaging 
D)  electronic medical record systems 
A)  magnetic resonance imaging 
B)  ultrasonography 
C)  medical imaging 
D)  electronic medical record systems

Question 5

Xerox, a copier machine manufacturing company, sustains its investment in technological innovation, particularly in areas such as color science, digital imaging, and nanotechnology. These strategic investments, made only in specific areas, keep the company ahead of the competition. Which of the following messages does this example convey?

Accepted Answer

A)  Large IT investments are essential for the success of a company in today's business environment. 
B)  The ability to extract the value of technology requires human imagination and innovation. 
C)  IT investments should not be focused on certain aspects and should have a broad outlook. 
D)  IT investments must be made on the most modern technology available in the market. 
A)  Large IT investments are essential for the success of a company in today's business environment. 
B)  The ability to extract the value of technology requires human imagination and innovation. 
C)  IT investments should not be focused on certain aspects and should have a broad outlook. 
D)  IT investments must be made on the most modern technology available in the market.

Question 6

Identify the project for which governmental funding is most critical.

Accepted Answer

A)  a project to launch a new, low-cost car 
B)  a scheme to improve the financial status of a company 
C)  a research project on hybrid oil 
D)  an infrastructure project that should be completed in one year 
A)  a project to launch a new, low-cost car 
B)  a scheme to improve the financial status of a company 
C)  a research project on hybrid oil 
D)  an infrastructure project that should be completed in one year

Question 7

Creative destruction occurs when ________.

Accepted Answer

A)  disruptive innovations threaten established players 
B)  sustaining technologies replace old procedures and processes 
C)  bad industrial practices are eradicated through government regulations 
D)  new products or services are introduced by underperforming players 
A)  disruptive innovations threaten established players 
B)  sustaining technologies replace old procedures and processes 
C)  bad industrial practices are eradicated through government regulations 
D)  new products or services are introduced by underperforming players

Question 8

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

Accepted Answer

A)  amount of IT spending per employee 
B)  IT spending per square feet of office area 
C)  number of computers in an organization 
D)  number of programs installed on a computer 
A)  amount of IT spending per employee 
B)  IT spending per square feet of office area 
C)  number of computers in an organization 
D)  number of programs installed on a computer

Question 9

Alduro Plastics, a utensils manufacturing company, decides to extend its value chain by acquiring a manufacturer of raw materials. Which of the following, if true, would most support Alduro's decision?

Accepted Answer

A)  The company's major supplier displays a sloppy attitude while supplying materials. 
B)  The company's production schedule is seasonal. 
C)  The company has projected a growth of 8 percent for the current financial year. 
D)  The company's managing director has resigned recently. 
A)  The company's major supplier displays a sloppy attitude while supplying materials. 
B)  The company's production schedule is seasonal. 
C)  The company has projected a growth of 8 percent for the current financial year. 
D)  The company's managing director has resigned recently.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

An IT company uses industry average as a standard for measuring its financial performance. Here, the industry standard is used as a(n) ________.

Accepted Answer

A)  scheme 
B)  outline 
C)  benchmark 
D)  objective 
A)  scheme 
B)  outline 
C)  benchmark 
D)  objective

Question 12

A benchmark is a(n) ________.

Accepted Answer

A)  quantitative standard used in manufacturing 
B)  minimum standard of performance in certain industries 
C)  reference point used as a baseline measurement 
D)  evaluative standard used to compare two industries 
A)  quantitative standard used in manufacturing 
B)  minimum standard of performance in certain industries 
C)  reference point used as a baseline measurement 
D)  evaluative standard used to compare two industries

Question 13

E-government involves efforts to make unclassified information available to citizens via the Internet, and offers many interactive online services to save people time-consuming visits to government offices.

Accepted Answer

A) True 
 B)False

Question 14

Rivalry within an industry will be high if firms compete mainly on price.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a typical component of a company's value chain?

Accepted Answer

A)  competitors 
B)  suppliers 
C)  customers 
D)  intermediaries 
A)  competitors 
B)  suppliers 
C)  customers 
D)  intermediaries

Question 16

What impact will patents have on a business with respect to Porter's five forces?

Accepted Answer

A)  Patents will result in increased market competition. 
B)  Patents will result in increased rivalry within an industry. 
C)  Patents will result in reduced threat of new entrants. 
D)  Patents will result in increased bargaining power of buyers. 
A)  Patents will result in increased market competition. 
B)  Patents will result in increased rivalry within an industry. 
C)  Patents will result in reduced threat of new entrants. 
D)  Patents will result in increased bargaining power of buyers.

Question 17

Lifetime Television, an American cable television company, specifically targets women 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 
D)  price leadership 
A)  market leadership 
B)  cost leadership 
C)  focused 
D)  price leadership

Question 18

Which of the following strategies is devised to raise switching costs?

Accepted Answer

A)  A major supermarket issues loyalty cards to its customers. 
B)  A vendor offers short-term incentives to retailers for stocking a product. 
C)  An automotive company conducts a trade contest. 
D)  A company offers commission to its employees for pushing the company's products. 
A)  A major supermarket issues loyalty cards to its customers. 
B)  A vendor offers short-term incentives to retailers for stocking a product. 
C)  An automotive company conducts a trade contest. 
D)  A company offers commission to its employees for pushing the company's products.

Question 19

Creative destruction refers to an innovation that fails miserably and leads to huge losses within the industry.

Accepted Answer

A) True 
 B)False

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

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

A low-cost leadership strategy means offering a highly differentiated product at a price that is lower than the market price.

How did online markets affect the balance of power between buyers and suppliers?

Which of the following is a tool used to reduce health care costs by digitizing patient history and treatment records, and making them available to health care providers as needed?

Identify the project for which governmental funding is most critical.

Creative destruction occurs when ________.

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

Alduro Plastics, a utensils manufacturing company, decides to extend its value chain by acquiring a manufacturer of raw materials. Which of the following, if true, would most support Alduro's decision?

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

An IT company uses industry average as a standard for measuring its financial performance. Here, the industry standard is used as a(n) ________.

A benchmark is a(n) ________.

E-government involves efforts to make unclassified information available to citizens via the Internet, and offers many interactive online services to save people time-consuming visits to government offices.

Rivalry within an industry will be high if firms compete mainly on price.

Which of the following is NOT a typical component of a company's value chain?

What impact will patents have on a business with respect to Porter's five forces?

Lifetime Television, an American cable television company, specifically targets women 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.

Which of the following strategies is devised to raise switching costs?

Creative destruction refers to an innovation that fails miserably and leads to huge losses within the industry.

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

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

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

A low-cost leadership strategy means offering a highly differentiated product at a price that is lower than the market price.

How did online markets affect the balance of power between buyers and suppliers?

Which of the following is a tool used to reduce health care costs by digitizing patient history and treatment records, and making them available to health care providers as needed?

Identify the project for which governmental funding is most critical.

Creative destruction occurs when ________.

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

Alduro Plastics, a utensils manufacturing company, decides to extend its value chain by acquiring a manufacturer of raw materials. Which of the following, if true, would most support Alduro's decision?

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

An IT company uses industry average as a standard for measuring its financial performance. Here, the industry standard is used as a(n) ________.

A benchmark is a(n) ________.

E-government involves efforts to make unclassified information available to citizens via the Internet, and offers many interactive online services to save people time-consuming visits to government offices.

Rivalry within an industry will be high if firms compete mainly on price.

Which of the following is NOT a typical component of a company's value chain?

What impact will patents have on a business with respect to Porter's five forces?

Lifetime Television, an American cable television company, specifically targets women 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.

Which of the following strategies is devised to raise switching costs?

Creative destruction refers to an innovation that fails miserably and leads to huge losses within the industry.

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

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