Chapter 2: Strategic Use of Information Resources

Question 1

information resources, is defined as the available __________ within an organization to be used by the manager to perform business processes and tasks.

Answer 1

1. data
2. technology
3. people
4. processes

Question 2

What are the Two Types of Information Resources

Answer 2

1. Assets
2. Capabilities

Question 3

IT asset is anything, _____________, that can be used by a firm to ___________ its products

Answer 3

tangible or intangible
create, produce, and/or offer

Question 4

Examples of IT assets include

Answer 4

1. firm’s website
2. data files
3. computer equipment.

Question 5

IT capability is something that is ______________ or _____________ over time for the firm to _________________ its products.

Answer 5

learned, developed
create, produce, or offer

Question 6

IT Capabilties Include:

Answer 6

1. Technical skills
2. IT management skills
3. Relationship skills.

Question 7

IT Assets =

Answer 7

IT infrastructure

Question 8

What are Porters Five Forces?

Answer 8

1. Threat of New Entrants
2. Buyer Power
3. Supplier Power
4. Threat of Substitutes
5. Rivalry

Question 9

What are examples of Barriers to Entry

Answer 9

1. a firm’s controlled access to limited distribution channels
2. public image of a firm
3. unique relationships with customers
4. an understanding of their industry’s government regulations

Question 10

Switching costs can be any aspect of a buyer’s purchasing decision that decreases the likelihood of _______?.

Answer 10

“switching” his or her purchase to a competitor

Question 11

The potential of a substitute product in the marketplace depends on

Answer 11

1. The buyers’ willingness to substitute
2. The relative price‐to‐performance ratio of the substitute
3. The level of switching costs a buyer faces.

Question 12

Rivalry among the firms competing within an industry is high when? (3)

Answer 12

1. it is expensive for a firm to leave the industry
2. The growth rate of the industry is declining
3. Products have lost differentiation.

Question 13

The value chain model addresses the activities that __________ a company’s product or service.

Answer 13

1. Create
2. Deliver
3. Support

Question 14

Porter’s Value Chain Divided activities into two Categories:

Answer 14

1. Primary Activities
2. Support Activities

Question 15

Primary activities relate directly to:

Answer 15

the value created in a product or service,

Question 16

support activities make it possible for the primary activities to _____

Answer 16

exist and remain coordinated.

Question 17

What are the 5 Primary Activities

Answer 17

1. Inbound Logistics
2. Operations
3. Outbound Logistics
4. Marketing and Sales
5. Service

Question 18

The value chain framework suggests that competition stems from two sources: ___________ to perform activities and _________ to a product or service so that buyers will pay more.

Answer 18

lowering the cost, adding value

Question 19

RBV has been applied in the area of IS to help identify two types of information resources: those that enable a firm to ___________ competitive advantage and those that enable a firm to ____________ the advantage over the long term.

Answer 19

1. attain
2. sustain

Question 20

What type of resources are required to Attain Competitive Advantage

Answer 20

1. Valuable Resources
2. Rare resources

Question 21

What type of resources are required to Sustain Competitive Advantage

Answer 21

1. Inimitable
2. Unsubstitutable
3. Non-transferable

Question 22

the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit.

Answer 22

Social capital