Q1-7 How Does Competitive Strategy Determine Business Processes and Information Systems? Flashcards
How does competitive strategy determine business processes and information systems?
Competitive strategy determines how an organization designs its business processes to implement that strategy.
For example, a low-cost strategy will focus on minimizing costs, while a differentiation strategy will invest in processes that add value, such as offering premium services to executives.
What is the difference between the business processes for low-cost bicycle rentals and high-service rentals?
Low-cost rentals implement minimal processes and rely on basic systems such as printed forms and shoebox receipts.
High-service rentals use sophisticated processes like automated inventory systems, customer tracking, and tailored service.
How do information systems (IS) differ between low-cost and high-service rental businesses?
A low-cost rental business may use minimal IS, like basic credit card processing.
A high-service business, however, employs advanced IS such as sales tracking databases and inventory management systems to provide tailored services and maintain high-end operations.
How does information systems (IS) influence business strategy?
IS can influence business strategy by offering new opportunities, such as reducing the threat of competition, improving customer service, or enabling cost reductions. IS can also be integral to strategy when organizations use it to pursue differentiation or low-cost leadership.
Can IS shape or support strategy?
Yes, IS can either support an existing strategy or shape a new one.
For example, advancements in IS can enable a company to offer new products or services that require sophisticated technology, such as self-driving cars or online loan applications.
What is Immanuel Kant’s “categorical imperative”?
Kant’s categorical imperative is the principle that one should act only in ways that could be universal laws. In other words, you should behave in ways that you would want everyone else to behave.
How does Kant’s categorical imperative apply to ethical behavior in marketing?
According to Kant’s categorical imperative, a marketing professional should not present misleading data, as this behavior would not be acceptable if it became universal practice.
According to Kant’s philosophy, how can you test whether a behavior is ethical?
A good test is to ask, “Are you willing to publish your behavior to the world?” If not, the behavior is likely not ethical, at least by Kant’s standards.
