Q1-4 What Five Forces Determine Industry Structure?

Question 1

How does MIS relate to organizational strategy?

Answer 1

MIS helps organizations achieve their strategies by aligning information systems with an organization’s goals, which are determined by its competitive strategy.

The competitive strategy influences the structure, features, and functions of information systems.

Business processes can also impact the design of information systems.

Question 2

What is the relationship between competitive strategy and information systems?

Answer 2

Competitive strategy determines the structure, features, and functions of every information system.

The business processes can also influence the design of information systems.

In some cases, an information system’s capabilities may determine the structure of business processes.

Question 3

What are the steps in the diagram “Organizational Strategy Determines MIS”?

Answer 3

Industry Structure

Competitive Strategy

Value Chains

Business Processes

Information Systems

Information

Question 4

What model helps to understand the elements in the figure “Organizational Strategy Determines MIS”?

Answer 4

Michael Porter’s five forces model helps understand the elements in the diagram by examining competitive forces such as:

the threat of substitutes and new entrants,

existing rivals,

and the bargaining power of suppliers and customers.