Question 1

Which of the following companies will have the highest buying power?

Accepted Answer

A)  a company that sells agricultural products procured from numerous farmers 
B)  a firm that is an exclusive dealer for an automotive company 
C)  a bank that borrows from the Federal Reserve 
D)  a company that procures IT services from a large software company 
A)  a company that sells agricultural products procured from numerous farmers 
B)  a firm that is an exclusive dealer for an automotive company 
C)  a bank that borrows from the Federal Reserve 
D)  a company that procures IT services from a large software company

Question 2

The operational requirements for nonprofit businesses are completely different from for-profit businesses.

Accepted Answer

A) True 
 B)False

Question 3

A benchmark is a reference point used as a baseline measurement.

Accepted Answer

A) True 
 B)False

Question 4

Why were innovations like Apple's iTunes considered to be disruptive innovations?

Accepted Answer

A)  These innovations, when introduced, were not legal. 
B)  These innovations had a negative effect on all the existing market players. 
C)  These innovations allowed the parent company to benefit in other product categories. 
D)  These innovations involved more operational costs. 
A)  These innovations, when introduced, were not legal. 
B)  These innovations had a negative effect on all the existing market players. 
C)  These innovations allowed the parent company to benefit in other product categories. 
D)  These innovations involved more operational costs.

Question 5

"The value chain does not end when the buyer pays for the product or service." Which of the following statements contradicts this judgment?

Accepted Answer

A)  Customer orientation is the key to success in modern business. 
B)  Value chain includes all components that add value to a product or service. 
C)  Total value transfer of tangible goods happens at the point of sale. 
D)  Marketing success should be measured in terms of customer satisfaction. 
A)  Customer orientation is the key to success in modern business. 
B)  Value chain includes all components that add value to a product or service. 
C)  Total value transfer of tangible goods happens at the point of sale. 
D)  Marketing success should be measured in terms of customer satisfaction.

Question 6

What is a disruptive innovation? How is it different from sustaining technologies?

Accepted Answer

A disruptive innovation is a new product

Question 7

If a supplier has a limited number of buyers, then the ________.

Accepted Answer

A)  regulators will have less power 
B)  suppliers will have more power 
C)  manufacturers will have unlimited power 
D)  buyers will have more power 
A)  regulators will have less power 
B)  suppliers will have more power 
C)  manufacturers will have unlimited power 
D)  buyers will have more power

Question 8

________ is high in an industry when alternative products that offer attractive savings are available.

Accepted Answer

A)  Market profitability 
B)  Threat of substitutes 
C)  Network effects 
D)  Threat of new entrants 
A)  Market profitability 
B)  Threat of substitutes 
C)  Network effects 
D)  Threat of new entrants

Question 9

Which of the following actions of a sugar manufacturing company is an extension of its value chain?

Accepted Answer

A)  The company intensifies its marketing activities. 
B)  The company buys a large sugar cane plantation in Cuba. 
C)  The company adds a few more distributors. 
D)  The company launches a new promotional program. 
A)  The company intensifies its marketing activities. 
B)  The company buys a large sugar cane plantation in Cuba. 
C)  The company adds a few more distributors. 
D)  The company launches a new promotional program.

Question 10

A company incorporates contributions from buyers who help add value to the company's products and services. Which of the following best describes this action?

Accepted Answer

A)  creation of a supply chain 
B)  performing a promotional activity 
C)  creation of a value chain 
D)  extension of the value chain 
A)  creation of a supply chain 
B)  performing a promotional activity 
C)  creation of a value chain 
D)  extension of the value chain

Question 11

Differentiating the product or service for a particular market niche is called product marketing.

Accepted Answer

A) True 
 B)False

Question 12

Explain how rivalry among competitors affects businesses.

Accepted Answer

The profitability of an industry and its

Question 13

What are switching costs?

Accepted Answer

Switching costs are the costs customers

Question 14

What impact does environment have on businesses?

Accepted Answer

Companies are embedded in a complex ecos

Question 15

Which of the following is a result of high rivalry among existing competitors?

Accepted Answer

A)  increased effectiveness of the industry 
B)  decreased market profitability 
C)  decreased threat of substitutes 
D)  increased market prices 
A)  increased effectiveness of the industry 
B)  decreased market profitability 
C)  decreased threat of substitutes 
D)  increased market prices

Question 16

Which of the following is essential if an organization has to follow a low-cost leadership strategy?

Accepted Answer

A)  market leadership on product quality 
B)  relentless search for ways to reduce operating expenses 
C)  product differentiation to distinguish itself from competitors 
D)  focus on a segment or sector of the market 
A)  market leadership on product quality 
B)  relentless search for ways to reduce operating expenses 
C)  product differentiation to distinguish itself from competitors 
D)  focus on a segment or sector of the market

Question 17

"low-cost leaders must automate their processes." Which of the following is the most compelling reason to support this argument?

Accepted Answer

A)  Automation will help them differentiate their products. 
B)  Automation will help them achieve significant improvements in quality. 
C)  Automation will help them eliminate costly human labor. 
D)  Automation can help the company improve its brand image. 
A)  Automation will help them differentiate their products. 
B)  Automation will help them achieve significant improvements in quality. 
C)  Automation will help them eliminate costly human labor. 
D)  Automation can help the company improve its brand image.

Question 18

Which of the following is the best example of an attempt to create network effects?

Accepted Answer

A)  An Internet service provider gives free access to social networking sites. 
B)  A retailer gives volume discounts on large purchases. 
C)  A kitchenware manufacturer introduces a differentiated range of products. 
D)  AT&T introduces a family plan that provides free calls within the family. 
A)  An Internet service provider gives free access to social networking sites. 
B)  A retailer gives volume discounts on large purchases. 
C)  A kitchenware manufacturer introduces a differentiated range of products. 
D)  AT&T introduces a family plan that provides free calls within the family.

Question 19

Explain Porter's value chain model and the types of activities in it.

Accepted Answer

Porter's value chain model describes the

Question 20

Substitutes of a product ________.

Accepted Answer

A)  have the same technical specifications as the product 
B)  are products of similar nature that operate in a different target market 
C)  provide the same product or service through different means 
D)  do not have direct impact on the profitability of the product 
A)  have the same technical specifications as the product 
B)  are products of similar nature that operate in a different target market 
C)  provide the same product or service through different means 
D)  do not have direct impact on the profitability of the product

Which of the following companies will have the highest buying power?

The operational requirements for nonprofit businesses are completely different from for-profit businesses.

A benchmark is a reference point used as a baseline measurement.

Why were innovations like Apple's iTunes considered to be disruptive innovations?

"The value chain does not end when the buyer pays for the product or service." Which of the following statements contradicts this judgment?

What is a disruptive innovation? How is it different from sustaining technologies?

If a supplier has a limited number of buyers, then the ________.

________ is high in an industry when alternative products that offer attractive savings are available.

Which of the following actions of a sugar manufacturing company is an extension of its value chain?

A company incorporates contributions from buyers who help add value to the company's products and services. Which of the following best describes this action?

Differentiating the product or service for a particular market niche is called product marketing.

Explain how rivalry among competitors affects businesses.

What are switching costs?

What impact does environment have on businesses?

Which of the following is a result of high rivalry among existing competitors?

Which of the following is essential if an organization has to follow a low-cost leadership strategy?

"low-cost leaders must automate their processes." Which of the following is the most compelling reason to support this argument?

Which of the following is the best example of an attempt to create network effects?

Explain Porter's value chain model and the types of activities in it.

Substitutes of a product ________.

Information Systems and People

Systems Development and Procurement

Project Management and Strategic Planning

Information and Communications Technologies: The Enterprise Architecture

Managing Information Resources with Databases

Information Systems for the Enterprise

The Web and E-Commerce

Ethics, Privacy, and Security

Business Intelligence and Decision Support

Collaborating with Technology

Knowledge Management and E-Learning

Filters

Exam 2: Information Systems and Strategy

Which of the following companies will have the highest buying power?

The operational requirements for nonprofit businesses are completely different from for-profit businesses.

A benchmark is a reference point used as a baseline measurement.

Why were innovations like Apple's iTunes considered to be disruptive innovations?

"The value chain does not end when the buyer pays for the product or service." Which of the following statements contradicts this judgment?

What is a disruptive innovation? How is it different from sustaining technologies?

If a supplier has a limited number of buyers, then the ________.

________ is high in an industry when alternative products that offer attractive savings are available.

Which of the following actions of a sugar manufacturing company is an extension of its value chain?

A company incorporates contributions from buyers who help add value to the company's products and services. Which of the following best describes this action?

Differentiating the product or service for a particular market niche is called product marketing.

Explain how rivalry among competitors affects businesses.

What are switching costs?

What impact does environment have on businesses?

Which of the following is a result of high rivalry among existing competitors?

Which of the following is essential if an organization has to follow a low-cost leadership strategy?

"low-cost leaders must automate their processes." Which of the following is the most compelling reason to support this argument?

Which of the following is the best example of an attempt to create network effects?

Explain Porter's value chain model and the types of activities in it.

Substitutes of a product ________.

Information Systems and People

Systems Development and Procurement

Project Management and Strategic Planning

Information and Communications Technologies: The Enterprise Architecture

Managing Information Resources with Databases

Information Systems for the Enterprise

The Web and E-Commerce

Ethics, Privacy, and Security

Business Intelligence and Decision Support

Collaborating with Technology

Knowledge Management and E-Learning

Filters