Chapter 1 & 2 Flashcards
The IS strategy drives the business strategy.
False
A social business strategy is designed to use social IT tools for all of the following EXCEPT:
Collaborating with stakeholders
Building deeper connections with stakeholders
Innovating with stakeholders
Excluding stakeholders
Networking with employees, customer and/or suppliers
Excluding stakeholders
There has been accelerated competition among market leaders concurrent with the increases in the quality and quantity of IT investments.
True
Which one of the following is NOT part of the information systems strategy matrix?
Personnel
When an organization qualifies its product or service in a way that allows it to appear unique in the marketplace, this is called:
Differentiation
The “Managerial Levers” concept is useful for the following reasons:
Management should not make a change unless they align multiple issues, such as tasks, measures, values, incentives, etc.
By using IS to achieve economies of scale and generate operating efficiencies, Walmart epitomizes which one of Porter’s generic strategies?
Cost leadership
To avoid unwanted consequences, altering the IT Strategy requires adjustments to the organizational strategy.
True
A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. This unique service demonstrates the bank’s desire to practice which one of Porter’s strategies?
Differentiation
General managers should take an active role in decisions about information systems. This is vital because:
Information systems are designed to support business objectives.
Significant changes in IS should trigger a reassessment of the _____________.
business strategy
Organizations seek to gain a competitive advantage by differentiation, cost, or _________.
focus
A general manager should:
Understand the use and consequences of technologies relevant to the business
When a company’s business strategy and technology strategy are intertwined, this situation is known as _______.
convergence
Hypercompetition refers to where a firm obtains more than 5 strong competitors.
False
Which is not a question that can be used to understand organizational design?
Where is the organization’s headquarters located?
Google has disrupted a number of industries, particularly the advertising and software industries. Google’s ability to quickly and aggressively provide new products and services is best described by:
The Hypercompetition Model
The organizational strategy should ideally _____ the IS strategy.
complement
This framework is called the ____________________ because it relates business strategy with IS strategy and organizational strategy.
Information Systems Strategy Triangle
The ____________ is a plan articulating where a business seeks to go and how it expects to get there.
business strategy
There has been accelerated competition among market leaders concurrent with the increases in the quality and quantity of IT investments.
True
Business strategies based on hypercompetition focus on customer satisfaction and profit maximization but also build in a component of business intelligence. Business intelligence helps an agile organization to:
Predict and respond to new opportunities
All of the following benefit from the network effect EXCEPT:
Network bandwidth
Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter’s 5 competitive forces?
a) Bargaining power of suppliers
b) Threat of substitute products
c) Potential threat of new entrants
d) Bargaining power of buyers
e) Industry collaboration
Threat of substitute products
An inter-organizational relationship that affords one or more companies in the relationship a strategic advantage:
Strategic Alliance
The supply chain:
Is composed of several value chains linked into a larger chain (a chain within a chain).
Which one of the following is not considered to be a primary activity of the value chain of a firm?
Technology
Porter’s five “Forces,” used so often in the text for analysis of IT applications, include all of the following except:
Threat of substitute products Bargaining power of suppliers Bargaining power of customers New entrants Switching costs
Switching costs
A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk?
Awakening a sleeping giant
Which of the following is NOT a primary activity of the Value Chain model?
Operations
The three major categories of IT capabilities are technical skills, management skills, and relationship skills.
True
A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter’s Five Competitive Forces?
Bargaining power of suppliers
Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as:
Strategic alliance
Which of the following is a support activity of the Value Chain Model?
Organization
Which is not a prescribed area of focus for gaining competitive advantage?
Insider Information
Zara’s use of information resourses has given it a substantial advantage over its competitors.
True
While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk?
Implementing IS poorly
