Question 1

If customers perceive the benefits of an alternative to be similar to that of a product,then the ________.

Accepted Answer

A) switching cost is high 
B) price of the product should be increased to retain market share 
C) threat from the substitute is strong 
D) customers' bargaining power decreases 
A) switching cost is high 
B) price of the product should be increased to retain market share 
C) threat from the substitute is strong 
D) customers' bargaining power decreases

Question 2

Which of the following is a primary activity in the value chain?

Accepted Answer

A) setting up contractual arrangements 
B) process of finding vendors 
C) negotiating prices 
D) delivering products to consumers 
A) setting up contractual arrangements 
B) process of finding vendors 
C) negotiating prices 
D) delivering products to consumers

Question 3

Which of the following is true of supporting activities?

Accepted Answer

A) Customer service is considered a supporting activity. 
B) Their contribution toward a product's value is negligible. 
C) Their contributions to margin can be calculated easily. 
D) Negotiation of prices is considered a supporting activity. 
A) Customer service is considered a supporting activity. 
B) Their contribution toward a product's value is negligible. 
C) Their contributions to margin can be calculated easily. 
D) Negotiation of prices is considered a supporting activity.

Question 4

A firm introduces a new range of laptops that concentrate on delivering good graphics performance.Which of the following competitive strategies has the firm adopted if these laptops have relatively low prices?

Accepted Answer

A) industry-wide low cost 
B) focus differentiation 
C) focus low cost 
D) industry-wide differentiation 
A) industry-wide low cost 
B) focus differentiation 
C) focus low cost 
D) industry-wide differentiation

Question 5

Porter originally developed the five forces model to determine the ________.

Accepted Answer

A) potential profitability of an industry 
B) nature of competitive industrial environments 
C) reason why certain industries collapse 
D) means by which to improve resource utilisation 
A) potential profitability of an industry 
B) nature of competitive industrial environments 
C) reason why certain industries collapse 
D) means by which to improve resource utilisation

Question 6

An organisation responds to the structure of its industry by choosing a ________ strategy.

Accepted Answer

A) diversification 
B) leadership 
C) growth 
D) competitive 
A) diversification 
B) leadership 
C) growth 
D) competitive

Question 7

According to Porter,the processes and systems in an organisation pursuing differentiation strategy must ________ to avoid negative margins.

Accepted Answer

A) develop new technologies 
B) create sufficient value to cover their costs 
C) increase procurement 
D) provide products at lowest costs to customers 
A) develop new technologies 
B) create sufficient value to cover their costs 
C) increase procurement 
D) provide products at lowest costs to customers

Question 8

A competitive strategy of an organisation determines its ________.

Accepted Answer

A) value chains 
B) short-term goals 
C) industry rivals 
D) structure 
A) value chains 
B) short-term goals 
C) industry rivals 
D) structure

Question 9

A business with a cost strategy will add cost to an activity only as long as the activity has a positive margin.

Accepted Answer

A) True 
 B)False

Question 10

Briefly describe how organisational strategy determines the functions of information systems.

Accepted Answer

Organisations examine the structure of t

Question 11

Distinguish between a primary and a support activity in the value chain.

Accepted Answer

Primary activities are business function

Question 12

Procurement falls under the category of primary activities in a value chain.

Accepted Answer

A) True 
 B)False

Question 13

Business processes implement value chains or portions of value chains.

Accepted Answer

A) True 
 B)False

Question 14

In which of the following cases is the strength of competitive forces low?

Accepted Answer

A) when rival products are priced relatively low 
B) when switching costs are high 
C) when finding rival products is easy 
D) when customer loyalty to the brand or company is low 
A) when rival products are priced relatively low 
B) when switching costs are high 
C) when finding rival products is easy 
D) when customer loyalty to the brand or company is low

Question 15

Customer service falls under the category of supporting activities in a value chain.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following competitive strategies does a company follow if it produces a uniquely formulated anti-ageing face cream targeted at women above the age of forty?

Accepted Answer

A) industry-wide differentiation 
B) focus differentiation 
C) industry-wide low cost 
D) focus low cost 
A) industry-wide differentiation 
B) focus differentiation 
C) industry-wide low cost 
D) focus low cost

Question 17

Which of the following is a product implementation principle of competitive advantage?

Accepted Answer

A) establish alliances 
B) raise barriers to market entry 
C) lock in customers and buyers 
D) enhance products or services 
A) establish alliances 
B) raise barriers to market entry 
C) lock in customers and buyers 
D) enhance products or services

Question 18

Value chains exist in service-oriented companies.

Accepted Answer

A) True 
 B)False

Question 19

Two companies with the same value chain activities will have the same business processes.

Accepted Answer

A) True 
 B)False

Question 20

A business that selects a differentiation strategy will always structure itself around least-cost activities.

Accepted Answer

A) True 
 B)False

Exam 3: Organisational Strategy, Information Systems and Competitive Advantage

If customers perceive the benefits of an alternative to be similar to that of a product,then the ________.

Which of the following is a primary activity in the value chain?

Which of the following is true of supporting activities?

A firm introduces a new range of laptops that concentrate on delivering good graphics performance.Which of the following competitive strategies has the firm adopted if these laptops have relatively low prices?

Porter originally developed the five forces model to determine the ________.

An organisation responds to the structure of its industry by choosing a ________ strategy.

According to Porter,the processes and systems in an organisation pursuing differentiation strategy must ________ to avoid negative margins.

A competitive strategy of an organisation determines its ________.

A business with a cost strategy will add cost to an activity only as long as the activity has a positive margin.

Briefly describe how organisational strategy determines the functions of information systems.

Distinguish between a primary and a support activity in the value chain.

Procurement falls under the category of primary activities in a value chain.

Business processes implement value chains or portions of value chains.

In which of the following cases is the strength of competitive forces low?

Customer service falls under the category of supporting activities in a value chain.

Which of the following competitive strategies does a company follow if it produces a uniquely formulated anti-ageing face cream targeted at women above the age of forty?

Which of the following is a product implementation principle of competitive advantage?

Value chains exist in service-oriented companies.

Two companies with the same value chain activities will have the same business processes.

A business that selects a differentiation strategy will always structure itself around least-cost activities.

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Introduction to Microsoft Excel 2013

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