Question 1

A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.

Accepted Answer

A)  differentiating the industry 
B)  locking in customers 
C)  establishing alliances 
D)  enhancing the products

Question 2

Identify the principle of competitive advantage that is associated with product implementations.

Accepted Answer

A)  lock in customers 
B)  enhance services 
C)  lock in suppliers 
D)  establish alliances

Question 3

The competitive strategy of an organization is determined by its value chain.

Accepted Answer

A) True 
 B)False

Question 4

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

Accepted Answer

A) True 
 B)False

Question 5

An automobile company decides to improve the quality of its products and bring more variety into its product line. The company has decided to adopt ________.

Accepted Answer

A)  focused cost leadership 
B)  industry-wide differentiation 
C)  industry-wide cost leadership 
D)  focused differentiation

Question 6

Each activity in a business process is a business function that receives inputs and produces outputs.

Accepted Answer

A) True 
 B)False

Question 7

The streamlining of business processes to increase margin is key to obtaining competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

An organization reducing operational costs is using product implementation to achieve competitive advantage.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is True of business process designs?

Accepted Answer

A)  Most process designs require people to work in new ways. 
B)  Business process designs do not involve the need to follow different procedures. 
C)  Business process designs should be accompanied by a change in management. 
D)  Process designs very rarely attract employee resistance.

Question 10

Reduction in production cost results in ________.

Accepted Answer

A)  better customer service 
B)  lower shareholder value 
C)  increased profitability 
D)  increased competition

Question 11

Which of the following principles of competitive advantage is related to process implementations?

Accepted Answer

A)  creating new products 
B)  enhancing services 
C)  locking in suppliers 
D)  differentiating products

Question 12

Creating a new product to increase margin is an example of using product implementations to achieve competitive advantage.

Accepted Answer

A) True 
 B)False

Question 13

The International Zoological club publishes a monthly magazine for zoology enthusiasts. Members are required to pay an initial fee to cover the first two years of the subscription when registering with The International Zoological club. Which competitive advantage is the International Zoological club creating?

Accepted Answer

A)  raising barriers to market entry 
B)  establishing alliances 
C)  locking in customers 
D)  standardizing the product

Question 14

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.

Accepted Answer

A)  entry barriers 
B)  switching costs 
C)  product standards 
D)  value differentiation

Question 15

Establishing alliances with other organizations increases purchasing costs, though they do provide competitive advantages.

Accepted Answer

A) True 
 B)False

Question 16

To determine if an information system delivers net savings in costs, the cost of developing and operating the information system will need to be offset against the gains in reduced errors and paper, ink, and printing costs.

Accepted Answer

A) True 
 B)False

Question 17

A generic value chain consists of five primary activities and four support activities.

Accepted Answer

A) True 
 B)False

Question 18

According to Porter's four competitive strategy model, what are the four competitive strategies firms can choose?

Accepted Answer

The answer of According to Porter's four competitive strategy model,...

Question 19

The sales process involves sales and marketing as well as outbound logistics activities.

Accepted Answer

A) True 
 B)False

Question 20

What is a business process? How do you determine the cost and margin of a business process?

Accepted Answer

The answer of What is a business process? How do...

Exam 3: Strategy and Information Systems

A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.

Identify the principle of competitive advantage that is associated with product implementations.

The competitive strategy of an organization is determined by its value chain.

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

An automobile company decides to improve the quality of its products and bring more variety into its product line. The company has decided to adopt ________.

Each activity in a business process is a business function that receives inputs and produces outputs.

The streamlining of business processes to increase margin is key to obtaining competitive advantage.

An organization reducing operational costs is using product implementation to achieve competitive advantage.

Which of the following statements is True of business process designs?

Reduction in production cost results in ________.

Which of the following principles of competitive advantage is related to process implementations?

Creating a new product to increase margin is an example of using product implementations to achieve competitive advantage.

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.

Establishing alliances with other organizations increases purchasing costs, though they do provide competitive advantages.

To determine if an information system delivers net savings in costs, the cost of developing and operating the information system will need to be offset against the gains in reduced errors and paper, ink, and printing costs.

A generic value chain consists of five primary activities and four support activities.

According to Porter's four competitive strategy model, what are the four competitive strategies firms can choose?

The sales process involves sales and marketing as well as outbound logistics activities.

What is a business process? How do you determine the cost and margin of a business process?