Quiz 3 Flashcards
Which of the following is NOT a benefit that can be derived from IT investment?
A.
Benefits to end customers
B.
Productivity
C.
”Technology for technology’s sake”
D.
Cheaper and better goods and services to consumers
E.
Benefit from the structure of competition
C.
”Technology for technology’s sake”
All the following statements are true regarding the ICT sector, except:
A.
The ICT sector has a wide variety of jobs.
B.
Not all jobs in the ICT sector are highly technical in nature.
C.
The rate of growth for the overall economy is far greater than the ICT sector’s.
D.
The number of employees in the ICT sector increased to 4.2% in 2015.
E.
The ICT sector accounts for 548,850 jobs.
C.
The rate of growth for the overall economy is far greater than the ICT sector’s.
Valueminus
Total
Cost = ________.
Question content area bottom
Part 1
A.
Wholesale price
B.
Net revenue
C.
Margin
D.
Overhead
E.
Working capital
C.
Margin
Which of the following is the correct order of primary activity components of a generic value chain?
Question content area bottom
Part 1
A.
Inbound logistics, operations and manufacturing, outbound logistics, sales and marketing, and customer service
B.
Sales and inbound logistics, outbound logistics, operations and manufacturing, marketing, and customer service
C.
Sales and marketing, inbound logistics, outbound logistics, operations and manufacturing, and customer service
D.
Inbound logistics, outbound logistics, operations and manufacturing, sales and marketing, and customer service
E.
Inbound logistics, outbound logistics, operations and manufacturing, sales and marketing, and accounting
A.
Inbound logistics, operations and manufacturing, outbound logistics, sales and marketing, and customer service
With respect to value chains, if your job relates directly to design and maintenance of the organizational infrastructure, you would be involved in ________ activities.
Question content area bottom
Part 1
A.
operations
B.
support
C.
manufacturing
D.
logistics
E.
primary
B.
support
The management of raw materials/parts inventory to ensure optimal availability during production is which value chain primary activity?
Question content area bottom
Part 1
A.
sales and marketing
B.
inbound logistics
C.
outbound logistics
D.
customer service
E.
operations/manufacturing
E.
operations/manufacturing
How did Porter define the concept of “value”?
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Part 1
A.
The price of a resource, product, or service
B.
Value is the amount of money a customer is willing to pay for a resource, product, or service.
C.
The difference between resource, product, or service costs and their respective sales price
D.
The cost of a resource, product, or service
E.
Although Porter defined a “value chain,” he never explicitly defined “value.”
B.
Value is the amount of money a customer is willing to pay for a resource, product, or service.
“Doing things right” refers to ____________________.
A.
social responsibility
B.
effectiveness
C.
efficiency
D.
sustainability
E.
value creation
C.
efficiency
”Doing the right things” refers to ______________________.
A.
efficiency
B.
sustainability
C.
social responsibility
D.
effectiveness
E.
improved quality
D.
effectiveness
How does organizational strategy determine IS requirements?
Question content area bottom
Part 1
A.
Existing rivalries in the given industry determine organizational strategies that directly dictate requirements of the IS department.
B.
Organizations design competitive strategy based on industry structure. Those competitive strategies determine value chains, which determine business processes, which determine IS requirements.
C.
Porter’s five forces directly dictate the structure of the IS department.
D.
Bargaining power of the consumers and the suppliers in a given industry directly dictate the requirements for the IS department.
E.
New entrants in the given industry directly dictate the requirements for the IS department.
B.
Organizations design competitive strategy based on industry structure. Those competitive strategies determine value chains, which determine business processes, which determine IS requirements.
What five forces determine industry structure?
Question content area bottom
Part 1
A.
Operating costs, threat of substitution, bargaining power of consumers, bargaining power of suppliers, and threat of new entrants
B.
Existing rivalries, threat of substitution, bargaining power of consumers, bargaining power of suppliers, and swings in the world economy
C.
Existing rivalries, threat of governmental regulation changes, bargaining power of consumers, bargaining power of suppliers, and threat of new entrants
D.
Existing rivalries, threat of new entrants, consumer bargaining power, supplier bargaining power, and threat of substitution
E.
Consumer loyalty, existing rivalries, threat of substitution, bargaining power of consumers, and bargaining power of suppliers
D.
Existing rivalries, threat of new entrants, consumer bargaining power, supplier bargaining power, and threat of substitution
What is the definition of competitive strategy?
Question content area bottom
Part 1
A.
The choice to maximize profit while minimizing cost and keeping consumers satisfied with the product
B.
The choice to offer low cost products across the industry
C.
The choice to offer low cost products in an industry segment
D.
The response by an organization to the structure of its industry by choosing to be a cost or a differentiation competitor across the industry or on a particular industry segment
E.
The response by an organization to the structure of its industry by choosing to work with other existing members of the industry to keep out new entrants
D.
The response by an organization to the structure of its industry by choosing to be a cost or a differentiation competitor across the industry or on a particular industry segment
Your organization can choose one of ________ alternative competitive strategies.
Question content area bottom
Part 1
A.
nearly a million
B.
sixteen
C.
two
D.
eight
E.
four
E.
four
An examination of the industry in which you operate reveals that you have three successful competitors. One focuses on cost industry-wide. One focuses on industry-wide differentiation. One focuses on cost in a specific industry segment (the largest segment). Which competitive strategy should you adopt?
Question content area bottom
Part 1
A.
Industry-wide product differentiation
B.
Industry segment cost differentiation
C.
Industry-wide cost differentiation
D.
Product differentiation across a specific industry segment
E.
A competitive strategy that reflects all of the possible alternatives and see how the other competitors react
D.
Product differentiation across a specific industry segment
In a grocery store, you notice that one brand of canned vegetables, Excalibur green beans, indicates on the label, “Premium quality, exceptional color, texture and flavor! When only the best will do!” Excalibur green beans cost almost a dollar more than the second highest priced variety. In the canned vegetable industry, which of Porter’s competitive strategies has Excalibur embraced (assuming Excalibur only sells green beans)?
Question content area bottom
Part 1
A.
Industry-wide, product differentiation in the canned vegetable industry.
B.
Focused product differentiation in the canned vegetable industry
C.
You really can’t make any reasonable conclusion based on such a simple observation. You need a lot more information to make any conclusions.
D.
Focused, low cost differentiation in the canned vegetable industry
E.
Industry-wide, low cost differentiation in the canned vegetable industry
B.
Focused product differentiation in the canned vegetable industry
Kelsie told you her goal is to be one of the best overall programmers in the world. She doesn’t care who she works for, or what systems she develops, she just wants to be the best. She feels with that level, and breadth of skill, she will be able to command the highest salary possible. On a personal level, Kelsie is embracing which of Porter’s competitive strategies?
Question content area bottom
Part 1
A.
Product differentiation across a specific industry segment
B.
Industry-wide cost differentiation
C.
Adopt a competitive strategy that reflects all of the possible alternatives and see how the other competitors react
D.
Industry segment cost differentiation
E.
Industry-wide product differentiation
E.
Industry-wide product differentiation
A business with a differentiation strategy will _______.
Question content area bottom
Part 1
A.
ensure that the products it sells fit the category of commodities
B.
find a niche and offer product(s) / service(s) that fit the niche better than its competitors product(s) / service(s) do
C.
make sure it doesn’t spend more money on service / sale than its competitors do
D.
ensure the service it offers is just as good as its competitors,’ not better, not worse
E.
try to sell its products at the lowest possible price
B.
find a niche and offer product(s) / service(s) that fit the niche better than its competitors product(s) / service(s) do
Which of the following is a fundamental competitive strategy suggested by Porter?
A.
Growing the diversity of the products and/or service offered
B.
Creating alliance partners
C.
Developing innovative products
D.
Differentiating products
E.
Providing the best customer service
D.
Differentiating products
Which of the following is best described as a disruptive technology?
A.
Digital music players
B.
Compact discs
C.
Portable computers
D.
Vulcanized rubber tires
E.
Liquid crystal displays
A.
Digital music players
Which of the following best describes the introduction of a disruptive technology in Canada through IT?
A.
The introduction of high-definition TV
B.
The introduction of automatic banking machines
C.
The introduction of digital projection in theaters
D.
The introduction of satellite radio
E.
The introduction of movies on DVDs
B.
The introduction of automatic banking machines
What is the relationship between the value chain and business processes and IS structure?
Question content area bottom
Part 1
A.
Business processes do the manufacturing, IS does the marketing, the value chains generates profit.
B.
There is no relationship among the three.
C.
Value chains supplies products for customers, and the business process fills customer orders.
D.
Value chain determines customer requirements. Business processes implement the activities needed to satisfy those requirements. IS structure supports each of those business process activities.
E.
IS determines business processes, which in turn determine the value chain.
D.
Value chain determines customer requirements. Business processes implement the activities needed to satisfy those requirements. IS structure supports each of those business process activities.
You are the IS department director, and you design and implement a feature that makes it very easy for customers to customize their purchase, enter their shipping and payment information, track their shipped packages, and automatically register warranty information with manufacturers. The principle of competitive strategy you are implementing is ________.
Question content area bottom
Part 1
A.
customer lock-in
B.
supplier lock-in
C.
raising entry barriers
D.
product enhancement
E.
establishing alliances
A.
customer lock-in
You just heard that a well-known manufacturer in a different industry segment is going to enter your market with a product that will be a direct competitor in your existing industry. What should you do?
Question content area bottom
Part 1
A.
Reduce costs across the board and reduce product price so you drive your competitor out of business.
B.
Modify and manage your existing business processes to maximize supplier lock in and to build alliances with consumers and suppliers.
C.
Reduce costs across the board and build up your cash reserves so that you can make it through the hard times to come.
D.
Create a new service.
E.
Create a new product.
B.
Modify and manage your existing business processes to maximize supplier lock in and to build alliances with consumers and suppliers.
Amazon’s information system is massive, almost foolproof, simple to use, patented, and would be incredibly expensive for a new competitor to replicate. What type of competitive advantage does Amazon’s information system represent?
Question content area bottom
Part 1
A.
Reduce costs
B.
Lock in customer and buyers
C.
Lock in suppliers
D.
Raise barriers to market entry
E.
Establish alliances
D.
Raise barriers to market entry
