Question 1

Explain how rivalry among competitors affects businesses.

Accepted Answer

The profitability of an industry and its

Question 2

Which of the following is essential if an organization has to follow a low-cost leadership strategy?

Accepted Answer

A)  market leadership on product quality 
B)  relentless search for ways to reduce operating expenses 
C)  product differentiation to distinguish itself from competitors 
D)  focus on a segment or sector of the market 
A)  market leadership on product quality 
B)  relentless search for ways to reduce operating expenses 
C)  product differentiation to distinguish itself from competitors 
D)  focus on a segment or sector of the market

Question 3

Element Inc. manufactures a new range of smartphones to take on incumbent competitors. Element grabs a huge chunk of the market share in its first year because of its feature-rich smartphones. Element's smartphones come with bigger screen sizes, greater memory capacities, and a free online music subscription for two years. The competitors fail to lure customers despite massive price reductions. Which of the following strategies is being used by Element?

Accepted Answer

A)  focused niche strategy 
B)  loss leader strategy 
C)  cost leadership strategy 
D)  product differentiation 
A)  focused niche strategy 
B)  loss leader strategy 
C)  cost leadership strategy 
D)  product differentiation

Question 4

Which of the following results in decreased market profitability?

Accepted Answer

A)  the absence of the threat of new entrants 
B)  intense rivalry among competitors, based on price 
C)  lack of competition among suppliers in an industry 
D)  a lack of leveraging power over suppliers 
A)  the absence of the threat of new entrants 
B)  intense rivalry among competitors, based on price 
C)  lack of competition among suppliers in an industry 
D)  a lack of leveraging power over suppliers

Question 5

Which of the following is true of an ecosystem?

Accepted Answer

A)  An ecosystem insulates Porter's five forces against disruptive innovations. 
B)  Events in one arena of an ecosystem can affect all players involved. 
C)  The power of suppliers and the threat of new entrants are reduced in an ecosystem. 
D)  An ecosystem can reduce the complementary effect between products and services. 
A)  An ecosystem insulates Porter's five forces against disruptive innovations. 
B)  Events in one arena of an ecosystem can affect all players involved. 
C)  The power of suppliers and the threat of new entrants are reduced in an ecosystem. 
D)  An ecosystem can reduce the complementary effect between products and services.

Question 6

The presence of loyalty programs reduces the switching costs of a product or service.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

Procurement and technology support are primary activities of a value chain.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following companies will have the highest buying power?

Accepted Answer

A)  a company that sells agricultural products procured from numerous farmers 
B)  a firm that is an exclusive dealer for an automotive company 
C)  a bank that borrows from the Federal Reserve 
D)  a company that procures IT services from a large software company 
A)  a company that sells agricultural products procured from numerous farmers 
B)  a firm that is an exclusive dealer for an automotive company 
C)  a bank that borrows from the Federal Reserve 
D)  a company that procures IT services from a large software company

Question 11

What is a disruptive innovation? How is it different from sustaining technologies?

Accepted Answer

A disruptive innovation is a new product

Question 12

While IT consumes a significant amount of the funds required for running a business, the funds for growing an organization are closely tied to strategy, innovation, and competitive advantage.

Accepted Answer

A) True 
 B)False

Question 13

Network effects refer to the ________.

Accepted Answer

A)  increased value of a product or service because there are more people using it 
B)  the additional costs incurred by customers when they change suppliers 
C)  the leveraging influence of customers over suppliers 
D)  ability of suppliers to charge more owing to the lack of competition 
A)  increased value of a product or service because there are more people using it 
B)  the additional costs incurred by customers when they change suppliers 
C)  the leveraging influence of customers over suppliers 
D)  ability of suppliers to charge more owing to the lack of competition

Question 14

Which of the following pairs of products are complementary 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 15

Differentiating the product or service for a particular market niche is called product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following actions of a sugar manufacturing company is an extension of its value chain beyond its own primary and support activities?

Accepted Answer

A)  The company intensifies its marketing activities to cater to new customers. 
B)  The company buys a large sugarcane plantation in another country. 
C)  The company adds a few more distributors to extend the reach of its products. 
D)  The company launches a new promotional campaign to attract more buyers. 
A)  The company intensifies its marketing activities to cater to new customers. 
B)  The company buys a large sugarcane plantation in another country. 
C)  The company adds a few more distributors to extend the reach of its products. 
D)  The company launches a new promotional campaign to attract more buyers.

Question 17

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 18

Which of the following is a major ethical issue arising out of value chain extension?

Accepted Answer

A)  Who is responsible when there is damage? 
B)  How many members should there be in the chain? 
C)  What should be the marketing strategy? 
D)  Should the company make revenue by expansion? 
A)  Who is responsible when there is damage? 
B)  How many members should there be in the chain? 
C)  What should be the marketing strategy? 
D)  Should the company make revenue by expansion?

Question 19

Sustaining technologies are radical and unexpected breakthroughs that replace lower-end products and rapidly overtake high-end products of the market.

Accepted Answer

A) True 
 B)False

Question 20

What is a benchmark? Provide an example.

Accepted Answer

A benchmark is a reference point used as

Explain how rivalry among competitors affects businesses.

Which of the following is essential if an organization has to follow a low-cost leadership strategy?

Which of the following results in decreased market profitability?

Which of the following is true of an ecosystem?

The presence of loyalty programs reduces the switching costs of a product or service.

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

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

Procurement and technology support are primary activities of a value chain.

Which of the following companies will have the highest buying power?

What is a disruptive innovation? How is it different from sustaining technologies?

While IT consumes a significant amount of the funds required for running a business, the funds for growing an organization are closely tied to strategy, innovation, and competitive advantage.

Network effects refer to the ________.

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

Differentiating the product or service for a particular market niche is called product differentiation strategy.

Which of the following actions of a sugar manufacturing company is an extension of its value chain beyond its own primary and support activities?

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 major ethical issue arising out of value chain extension?

Sustaining technologies are radical and unexpected breakthroughs that replace lower-end products and rapidly overtake high-end products of the market.

What is a benchmark? Provide an example.

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

Explain how rivalry among competitors affects businesses.

Which of the following is essential if an organization has to follow a low-cost leadership strategy?

Which of the following results in decreased market profitability?

Which of the following is true of an ecosystem?

The presence of loyalty programs reduces the switching costs of a product or service.

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

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

Procurement and technology support are primary activities of a value chain.

Which of the following companies will have the highest buying power?

What is a disruptive innovation? How is it different from sustaining technologies?

While IT consumes a significant amount of the funds required for running a business, the funds for growing an organization are closely tied to strategy, innovation, and competitive advantage.

Network effects refer to the ________.

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

Differentiating the product or service for a particular market niche is called product differentiation strategy.

Which of the following actions of a sugar manufacturing company is an extension of its value chain beyond its own primary and support activities?

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 major ethical issue arising out of value chain extension?

Sustaining technologies are radical and unexpected breakthroughs that replace lower-end products and rapidly overtake high-end products of the market.

What is a benchmark? Provide an example.

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