Using MIS Chapter 3 Flashcards
The cost of the business process is the cost of the inputs plus the cost of the outputs.
False
In the context of Porter’s five forces model, the bargaining power of grain farmers in a surplus year is an example of a weak market force.
True
Activities such as collecting, storing, and physically distributing the products to buyers are considered as primary activities in a value chain.
True
Which of the following principles of competitive advantage is associated with product implementations?
a. differentiating service offerings
b. locking in suppliers
c. establishing alliances
d. locking in customers
differentiating service offerings
A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. The strategy used by the company is referred to as ________.
a. low cost operation strategy
b. standardization strategy
c. Correct switching costs strategy
d. consumerist strategy
switching costs strategy
Organizations can lock in customers by making it difficult or expensive for them to move to another product.
True
The difference between the value that an activity generates and the cost of the activity is called revenue.
False
Which of the following principles of competitive advantage is related to process implementations?
a. differentiating services
b. creating new products
c. Correct raising the barriers to market entry
d. enhancing services
Correct raising the barriers to market entry
A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.
True
Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers?
a. outbound logistics
b. customer service
c. inbound logistics
d. operations
outbound logistics
