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Chapter 3 inss

Which of the following is not one of the competitive forces of Porter’s Model? External Environment

A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.
product differentiation
traditional competitors
low number of suppliers
new market entrantsNew Market Entrants

Which of the following industries has a low barrier to entry?
) automotive
computer chip
restaurant
airline
AnswerRestaurant

A substitute product of most concern for a cable TV distributor is
satellite TV.
broadcast TV.
satellite radio.
the Internet.
AnswerSatellite TV

Which of the following can force a business and its competitors to compete on price alone?
transparent marketplace
high product differentiation
poor process efficiency
demand control
AnswerTransparent Market Place

A firm can exercise greater control over its suppliers by having
more suppliers.
fewer suppliers.
global suppliers.
local suppliers.
AnswerMore Suppliers

Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces? Compete on employee loyalty

Wal-Mart’s continuous replenishment system allows it to
provide mass customization.
provide an efficient customer response system.
strengthen customer intimacy.
achieve economy of scale. provide an efficient customer response system

Which of the following illustrates the use of information systems to achieve product
differentiation? A shoe manufacturer’s use of information systems in selling custom, made-to-order shoes directly to customers

Which of the following illustrates the use of information systems to strengthen customer and
supplier intimacy? A PC manufacturer’s use of information systems to facilitate direct access from suppliers to production schedules

Which of the following illustrates the use of information systems to focus on market niche? A hot tub dealer’s use of information systems to determine which models and options its customers are most likely to buy

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ___ strategyMarket Niche

A information system can enable a company to focus on a market niche throughintensive customer data analysis

Hilton Hotels’ use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to
strengthen customer intimacy.
differentiate their service.
focus on market niche.
increase efficiency.
AnswerFocus on market niche

To what competitive force did the printed encyclopedia industry succumb? Substitute products and services

Internet technology
makes it easy for rivals to compete on price alone.
imposes a significant cost of entry, due to infrastructure requirements.
increases the difference between competitors because of the wide availability of information.
makes it easy to sustain operational advantages.
AnswerMakes it easy for rivals to compete on price alone

The Internet raises the bargaining power of customers by
creating new opportunities for building loyal customer bases.
making more products available.
making information available to everyone.
lowering transaction costs.
Answermaking information available to everyone

Which of the following is not an advantage for new companies entering the marketplace? They can establish new relationships with suppliers

Based on your reading of the chapter case, which of the four generic business strategies was Ford Motor Company following in implementing its new software and apps? product differentiation

The value chain modelhelps a firm identify points at which information technology can most effectively to enhance
its competitive position

All of the following are considered activities of a firm except: Procurement

The support activities of a firm include: organization infrastructure, human resources, technology, and procurement

When the output of some units can be used as inputs to other nits, or if two organizations pool markets and expertise that result in lower costs and generate profits, it is often referred to as creating: synergies

All of the following industries have been severely disrupted by the Internet except: PC manufacturer

A firm’s value chain is linked to thevalue chains of its suppliers, distributors, and customers

Network economicssees the cost of adding new members as inconsequential

In Network Economics, the value of a commercial software vendor’s software productsincreases as more people use them

A virtual company: Uses

Benchmarkingcompares the efficiency and effectiveness of your business processes against strict standards

The most successful solutions or methods for achieving a business objective are called: Best practices

A virtual companyuses the capabilities of other companies without being physically tied to those companies

The iPAD can be seen as a disruptive technology for the ___ industrypublishing

The emergence of the World Wide Web acted as a disruptive technology for: print publishing

All of the following have been disruptive technologies except: minicomputers

Which of the following best describes business globalization? Business selling their products worldwide

The greatest impact the Internet has had on globalization is the lowering the costs ofentry to global-scale operations

The _____ strategy concentrates financial management and control out of a central home base while decentralizing productions, sales, and marketing operations to units in other countriesmultinational

An information system can enhance core competencies byencouraging the sharing of knowledge across business units

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as
the point of no return.
the law of diminishing returns.
supply and demand.
network inelasticity.
AnswerLaw of diminishing returns

Network economicsincreases as more people use them

How are information systems used at the industry level to achieve strategic advantage? By building industry wide, IT-supported consortia and symposia

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