Chapter 2 Questions Flashcards
True or False
A link between a firm’s IS strategy and organizational strategy focuses more on its external requirements than internal requirements.
False
Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as:
Co-opetition
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
Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter’s value chain activities?
Marketing & Sales
Which is not a prescribed area of focus for gaining competitive advantage?
Strongholds Cost/Quality Deep Pockets Timing/Know-how Insider Information
Strongholds
True or False
Zara’s use of information resources has given it a substantial advantage over its competitors
True
Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care?
a) Demonstrating bad timing
b) Awakening a sleeping giant
c) Mobile-based alternative removes advantages
d) Running afoul of the law
e) Implementing IS poorly
d) Running afoul of the law
Match an organization’s activity with the competitive force it has successfully influenced.
Threat of new entrants
Bargaining power of the buyer
Threat of substitute
Bargaining power of suppliers
Amazon’s One Click ordering system makes buying online easy, enticing the customer to return for other purchases.
Bargaining power of the buyer
Match an organization’s activity with the competitive force it has successfully influenced.
Threat of new entrants
Bargaining power of the buyer
Threat of substitute
Bargaining power of suppliers
Apple’s ability to create new products even at the risk of cannibalizing existing products.
Threat of new entrants
Match an organization’s activity with the competitive force it has successfully influenced.
Threat of new entrants
Bargaining power of the buyer
Threat of substitute
Bargaining power of suppliers
Amazon’s purchase of Zappos.
Bargaining power of suppliers
Match an organization’s activity with the competitive force it has successfully influenced.
Threat of new entrants
Bargaining power of the buyer
Threat of substitute
Bargaining power of suppliers
Walmart’s massive, complex inventory control system is hard for others to replicate and gain the same economies of scale.
Threat of substitute product
The supply chain:
a) Points out the concept of weak link in an ordering process
b) Helps us understand how value is built inside a single firm.
c) Is composed of several value chains linked into a larger chain (a chain within a chain).
d) All of the above
e) None of the above
c) Is composed of several value chains linked into a larger chain (a chain within a chain).
Which of the following is a support activity of the Value Chain Model?
Operations Facilities Organization Informatics Outbound Logistics
Organization
An inter-organizational relationship that affords one or more companies in the relationship a strategic advantage
Strategic Alliance
Facebook has for some years offered services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself well from which competitive force since the beginning?
Bargaining power of suppliers Threat of substitute products Potential threat of new entrants Bargaining power of buyers Industry collaboration
Potential threat of new entrants
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?
Demonstrating bad timing Awakening a sleeping giant Mobile-based alternative removes advantages Running afoul of the law Implementing IS poorly
Awakening a sleeping giant
True or False
Saleforce.com is an example of SAAS (Software as a service).
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?
Demonstrating bad timing Awakening a sleeping giant Mobile-based alternative removes advantages Running afoul of the law Implementing IS poorly
Implementing IS poorly
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?
Bargaining power of suppliers Threat of substitute products Potential threat of new entrants Bargaining power of buyers Industry collaboration
Threat of substitute products
Match the technology with the era it dominated.
Era I 1960s
Centralized mainframe
Match the technology with the era it dominated.
Era II 1970s
Centralized minicomputers
Match the technology with the era it dominated.
Era III 1980s
Decentralized minicomputers and personal computers
