Multiple Choice Questions

The value chain model:
  • A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules
  • In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.
  • Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
  • helps a firm identify points at which information technology can most effectively enhance its competitive position.
Which of the following illustrates the use of information systems to achieve product differentiation?
  • Nestlé
  • Small retailer
  • Compete on employee loyalty
  • A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
When the output of some units can be used as inputs to other units, synergies develop, which can lower cost and generate profits.
  • True
  • False
  • market niche
  • Ethanol
________ typically develop a single information system, usually at the home base, and then replicate it around the world.
  • Duplicated
  • Franchisers
  • domestic exporter
  • Mass customization
The inventors of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
  • True
  • Centralized
  • False
  • value web
An information system can enable a company to focus on a market niche through:
  • Substitute products or services
  • External environment
  • making information available to everyone.
  • intensive customer data analysis.
Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?
  • increases as more people use them.
  • Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
  • Compete on employee loyalty
  • A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules
All of the following are considered primary activities of a firm except:
  • minicomputers.
  • Ethanol
  • External environment
  • procurement.
When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy.
  • Small retailer
  • synergies
  • market niche
  • Centralized
In network economics, the value of a commercial software vendor's software products:
  • traditional boxed software companies.
  • increases as more people use them.
  • Compete on employee loyalty
  • They can establish new relationships with suppliers.
The most successful solutions or methods for achieving a business objective are called:
  • best practices.
  • multinational
  • procurement.
  • Small retailer
________ systems are those in which development occurs at the home base, but operations are handed over to autonomous units in foreign locations.
  • multinational
  • Duplicated
  • Mass customization
  • domestic exporter
Which of the following is pursuing a transnational strategy?
  • Nestlé
  • External environment
  • Small retailer
  • Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
The support activities of a firm include:
  • provide mass customization.
  • helps a firm identify points at which information technology can most effectively enhance its competitive position.
  • intensive customer data analysis.
  • organization infrastructure, human resources, technology, and procurement.
To what competitive force did the printed encyclopedia industry succumb?
  • increases as more people use them.
  • Substitute products or services
  • Domestic exporter
  • making information available to everyone.
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
  • A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy
  • In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.
  • A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created.
  • synergies
  • Centralized
  • market niche
  • value web
Walmart's continuous replenishment system allows it to do all of the following except:
  • encouraging the sharing of knowledge across business units.
  • Decentralized
  • organization infrastructure, human resources, technology, and procurement.
  • provide mass customization.
How are information systems used at the industry level to achieve strategic advantage?
  • making information available to everyone.
  • traditional boxed software companies.
  • Substitute products or services
  • By building industry-wide, IT-supported consortia and symposia
In the value chain model, primary activities are those that are most directly related to the production and distribution of the firm's products and services.
  • False
  • value web
  • True
  • Centralized
The activities that measure the performance of your business processes against strict standards are called best practices.
  • Ethanol
  • value web
  • True
  • False
The Internet has intensified competitive rivalry.
  • Nestlé
  • False
  • procurement.
  • True
________ is the ability to offer individually tailored products or services using the same production resources as bulk production.
  • Mass customization
  • multinational
  • Duplicated
  • domestic exporter
The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.
  • multinational
  • Duplicated
  • Mass customization
  • value web
Which of the following industries has the lowest barrier to entry?
  • Small retailer
  • Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
  • External environment
  • Nestlé
The emergence of software as a web service has acted as a disruptive technology for:
  • The Internet of Things
  • Substitute products or services
  • traditional boxed software companies.
  • They can establish new relationships with suppliers.
According to the chapter case, the Nike+ ecosystem is part of which of the following larger phenomena?
  • Compete on employee loyalty
  • Transparent marketplace
  • The Internet of Things
  • New market entrants
A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.
  • False
  • True
  • Centralized
  • Ethanol
All of the following have been disruptive technologies except:
  • Small retailer
  • External environment
  • best practices.
  • minicomputers.
In a ________ system configuration, separate information systems are designed and managed by each foreign unit.
  • Decentralized
  • Centralized
  • intensive customer data analysis.
  • domestic exporter
Hilton Hotels' use of customer information software to identify the most profitable customers to direct its services to is an example of using information systems to:
  • focus on market niche.
  • The Internet of Things
  • External environment
  • Centralized
Studies show that less than one-quarter of a business firm's profits can be explained by alignment of IT with business.
  • False
  • True
  • Centralized
  • Ethanol
A firm can exercise greater control over its suppliers by having:
  • Domestic exporter
  • more suppliers.
  • True
  • procurement.
The power of customers is one of the competitive forces that affect an organization's ability to compete.
  • False
  • True
  • synergies
  • Ethanol
Which of the following illustrates the use of information systems to focus on market niche?
  • Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
  • A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
  • They can establish new relationships with suppliers.
  • A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy
The effect of the Internet has been to increase a company's bargaining power vis-à-vis its suppliers.
  • Ethanol
  • True
  • market niche
  • False
The Internet raises the bargaining power of customers most effectively by:
  • True
  • By building industry-wide, IT-supported consortia and symposia
  • making information available to everyone.
  • Transparent marketplace
Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources.
  • value web
  • True
  • synergies
  • False
Benchmarking:
  • compares the efficiency and effectiveness of your business processes against strict standards.
  • A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers
  • makes it easy for rivals to compete on price alone.
  • is also known as a virtual organization.
A firm can be said to have competitive advantage when it has access to resources that others do not.
  • Centralized
  • True
  • more suppliers.
  • value web
A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.
  • Franchisers
  • True
  • Mass customization
  • value web
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Multiple Choice Questions
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