Question 1

Which of the following is a tool used to reduce health care costs by digitizing patient history?

Accepted Answer

A)  magnetic resonance imaging
B)  ultrasonography
C)  CT-scan
D)  electronic medical record D

Question 2

In the context of Porter's five forces, what impact will patents have on a business?

Accepted Answer

A)  Patents will increase market competition.
B)  Patents will increase the number of substitutes for a given product.
C)  Patents will reduce the threat of new entrants in an industry.
D)  Patents will reduce the bargaining power of suppliers. C

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

"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 are involved in the sale of technical or technological services.
D)  Established players in a market favor creative destruction over sustaining technologies.

Question 6

Roland Inc. is a fashion apparels retailer in the U.S. It wants to measure how its investment is helping create value in comparison with its competitors. Which of the following metrics used by Roland can be classified as a benchmark in this scenario?

Accepted Answer

A)  the number of leaves taken by employees
B)  the total number of brand outlets
C)  the average number of sales made per day
D)  the number of customers on a sales promotion list

Question 7

Which of the following companies has a focused niche strategy?

Accepted Answer

A)  Playball, a merchandise company, customizes T-shirts based on customer requests.
B)  Complus, a computer hardware manufacturer, offers discounts on bulk purchases.
C)  Table Top, a clothing retailer, offers end-of-season sales.
D)  Tracer, a fountain pen manufacturer, launches a new brand of pens.

Question 8

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 will increase the rivalry among these four players?

Accepted Answer

A)  a government regulation hindering the entry of new players
B)  a significant slowdown in market growth
C)  a decision by one of the dominant players to launch its products in Argentina
D)  a ban on Internet telephony

Question 9

A benchmark is a baseline measurement considered as optimal, though it is sometimes simply an industry average.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is based on the cloud computing concept?

Accepted Answer

A)  an email system hosted locally in an organization's data center
B)  an information system shared by two or more businesses and accessed via the Internet
C)  a standard operating system that can be installed on many computers
D)  a mobile connection that supports voice and video calls

Question 11

Explain the power of buyers.

Accepted Answer

The answer of Explain the power of buyers....

Question 12

Explain the importance of IT for nonprofit organizations.

Accepted Answer

The answer of Explain the importance of IT for nonprofit...

Question 13

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

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

Question 15

New information systems will enable the creation of electric meters that run "backwards." Which of the following best explains this statement?

Accepted Answer

A)  IT will allow customers to manipulate their electricity bills.
B)  IT has been instrumental in reducing the global power consumption.
C)  IT has not made any significant contribution to the field of electricity distribution and measurement.
D)  IT will allow customers to see their patterns of daily energy usage.

Question 16

Do you think the strategic importance of IT has reduced? Explain your answer.

Accepted Answer

The answer of Do you think the strategic importance of...

Question 17

________ are the costs that customers incur when they change suppliers.

Accepted Answer

A)  Network costs
B)  Switching costs
C)  Overhead costs
D)  Opportunity costs

Question 18

Which of the following is commonly used by organizations to influence the operation of Porter's five forces?

Accepted Answer

A)  evasion of taxes
B)  selling at prices below the existing market price
C)  lobbying for governmental action
D)  selling at prices above the existing market price

Question 19

A substitute poses a greater threat when it ________.

Accepted Answer

A)  operates in a different market in comparison with the focal product
B)  has a similar nature to the focal product but operates in a different target market
C)  provides the same focal product or service through different means
D)  does not directly impact the profitability of another product or service

Question 20

Which of the following is true of creative destruction?

Accepted Answer

A)  It makes use of illegal innovations and techniques to displace established businesses.
B)  It presents newcomers with an opportunity to succeed against incumbents in an industry.
C)  It happens when technologies that provide process-streamlining advantages come to the fore.
D)  It increases the operational costs of the entire industry and reduces profits.

Exam 2: Information Systems and Strategy