Exam 3: Organizational Strategy, Information Systems, and Competitive Advantage

Jupiter Shop is an online store. Customers have to create an online account to purchase products. The purchased products are delivered free of cost. The address of delivery is stored, so that customers can choose the same address for future purchases. Jupiter Shop features seasonal discounts and exchange offers. It also accumulates redeemable points for regular shoppers. Which of the following statements describes the use of information systems (IS) by Jupiter Shop to lock in customers?

Which of the following is a primary activity in the value chain?

Firm infrastructure excludes general management, finance, accounting, legal, and government affairs.

Which of the following is a process implementation principle of competitive advantage?

If a company implements a policy that states if a customer leaves their firm, they will have to pay a $1,500 penalty, the company is implementing which of Porter's competitive advantages?

Which of the following is TRUE of new entrants?

How does competitive strategy determine value chain structure?

According to Porter, to be effective, an organization's goals, objectives, culture, and activities must be consistent with the organization's ________.

Describe some competitive advantage strategies that are based on business processes.

What is an example of a rivalry weak force in Porter's model?

The difference between the value that an activity generates and the cost of the activity is called the ________.

Simpson's Lawn Services decides to offer two free mowing services for all customers who booked garden landscaping in the fall. Which of the following forces is Simpson's Lawn Services addressing?

Manufacturing systems avoid linkages to reduce inventory costs.

If the costs of switching to another vendor are high, then the bargaining power of the customer is low.

A manufacturing system uses sales forecasts to plan production. It uses the production plan to determine raw material needs and then uses the material needs to schedule purchases. This ultimately leads to reduced inventory costs. Which of the following is being used to reduce the inventory cost?

The threat of substitution in Porter's model concerns the danger of customers taking their business elsewhere.

In Porter's five forces model, the intensity of each of the five forces determines the characteristics of the industry, how profitable it is, and ________.

An organization can choose to either minimize cost or maximize differentiation to gain a competitive advantage.

An organization responds to the structure of its industry by choosing a ________ strategy.

Porter originally developed the five forces model in order to understand organizations' workforce.