Question 1

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.

Accepted Answer

A)  value chain 
B)  business network 
C)  value web 
D)  consortia 
E)  supply chain

Question 2

All of the following are considered primary activities of a firm except:

Accepted Answer

A)  inbound logistics. 
B)  sales and marketing. 
C)  procurement. 
D)  service. 
E)  outbound logistics.

Question 3

A firm that locates all systems development and operations at its headquarters is using a ________ system configuration.

Accepted Answer

A)  unilateral 
B)  centralized 
C)  decentralized 
D)  networked 
E)  virtual

Question 4

The inventors of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

Accepted Answer

A) True 
 B)False

Question 5

Caterpillar Corporation is example of which of the following?

Accepted Answer

A)  Domestic exporter 
B)  Multinational 
C)  Franchiser 
D)  Transnational 
E)  Virtual company

Question 6

Which of the following statements about network economics is not true?

Accepted Answer

A)  eBay is an example of a business model that is based on the principle of network economics. 
B)  The law of diminishing returns does not always apply to every situation. 
C)  From a network economics perspective, the value of a community of people grows as the number of participants in the community increases. 
D)  Information technology can be strategically useful from a network economics perspective. 
E)  In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.

Question 7

The effect of the Internet has been to increase a company's bargaining power vis-à-vis its suppliers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not one of the competitive forces in Porter's model?

Accepted Answer

A)  Suppliers 
B)  Other competitors 
C)  External environment 
D)  Customers 
E)  Technology

Question 9

Which of the following statements about cycle time is not true?

Accepted Answer

A)  Cycle time refers to the total elapsed time from the beginning of a process to its end. 
B)  Shorter cycle times mean that problems are caught earlier in the process. 
C)  Finding ways to reduce cycle time often means finding ways to simplify production steps. 
D)  The fewer steps in a production process, the more likely that an error will occur. 
E)  Information systems can help reduce cycle time.

Question 10

The Internet has intensified competitive rivalry.

Accepted Answer

A) True 
 B)False

Question 11

What is BPM? What are the steps involved in practicing BPM?

Accepted Answer

The answer of What is BPM? What are the steps...

Question 12

A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?

Accepted Answer

A)  Product differentiation 
B)  Traditional competitors 
C)  Low number of suppliers 
D)  New market entrants 
E)  Substitute products

Question 13

Why has the Internet made competitive rivalry more intense?

Accepted Answer

The answer of Why has the Internet made competitive rivalry...

Question 14

Business process reengineering involves the radical redesign of business processes.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?

Accepted Answer

A)  Strengthen customer and supplier intimacy 
B)  Focus on market niche 
C)  Differentiate products 
D)  Compete on employee loyalty 
E)  Low-cost leadership

Question 16

Why should a company engage in business process reengineering? How would a company know if it needed or would gain from BPR?

Accepted Answer

The answer of Why should a company engage in business...

Question 17

Which of the following is pursuing a transnational strategy?

Accepted Answer

A)  Caterpillar Corporation 
B)  Ford Motor Co. 
C)  Intel Corporation 
D)  Nestlé 
E)  Starbucks

Question 18

Which of the following industries has the lowest barrier to entry?

Accepted Answer

A)  Automotive 
B)  Computer chip 
C)  Small retailer 
D)  Airline 
E)  Solar energy

Question 19

You are consulting with the owner of Better Bodies, a national chain of gyms. How could the use of information systems help them exert each of the four generic strategies in achieving competitive advantage?

Accepted Answer

The answer of You are consulting with the owner of...

Question 20

Which of the following illustrates the use of information systems to achieve product differentiation?

Accepted Answer

A)  A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy 
B)  A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers 
C)  A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules 
D)  A grocery store chain's use of information systems to produce products and services at a lower price than competitors 
E)  A hotel chain's use of information systems to analyze detailed data on guests to determine each guest's profitability

Exam 3: Achieving Competitive Advantage With Information Systems

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.

All of the following are considered primary activities of a firm except:

A firm that locates all systems development and operations at its headquarters is using a ________ system configuration.

The inventors of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

Caterpillar Corporation is example of which of the following?

Which of the following statements about network economics is not true?

The effect of the Internet has been to increase a company's bargaining power vis-à-vis its suppliers.

Which of the following is not one of the competitive forces in Porter's model?

Which of the following statements about cycle time is not true?

The Internet has intensified competitive rivalry.

What is BPM? What are the steps involved in practicing BPM?

A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?

Why has the Internet made competitive rivalry more intense?

Business process reengineering involves the radical redesign of business processes.

Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?

Why should a company engage in business process reengineering? How would a company know if it needed or would gain from BPR?

Which of the following is pursuing a transnational strategy?

Which of the following industries has the lowest barrier to entry?

You are consulting with the owner of Better Bodies, a national chain of gyms. How could the use of information systems help them exert each of the four generic strategies in achieving competitive advantage?

Which of the following illustrates the use of information systems to achieve product differentiation?