Question 1

In the strategy of product differentiation, information systems are used to enable new products and services.

Accepted Answer

A) True 
 B)False

Question 2

A firm that locates all systems development and operations at its headquarters is using a ________ system configuration.

Accepted Answer

A) unilateral 
B) centralized 
C) decentralized 
D) networked

Question 3

Why should a company engage in business process reengineering? How would a company know if it needed or would gain from BPR?

Accepted Answer

The answer of Why should a company engage in business...

Question 4

Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy?

Accepted Answer

A) A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy 
B) A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers 
C) A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules 
D) A grocery store chain's use of information systems to produce products and services at a lower price than competitors

Question 5

An information system can enable a company to focus on a market niche through:

Accepted Answer

A) complex trend forecasting. 
B) tailoring products to the client. 
C) intensive product trend analysis. 
D) intensive customer data analysis.

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

________ typically develop a single information system, usually at the home base, and then replicate it around the world.

Accepted Answer

A) Domestic exporters 
B) Multinational firms 
C) Franchisers 
D) Transnational firms

Question 8

Strong linkages to customers and suppliers increase switching costs.

Accepted Answer

A) True 
 B)False

Question 9

The law of diminishing returns always applies to digital, as well as traditional products.

Accepted Answer

A) True 
 B)False

Question 10

The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

Accepted Answer

A) True 
 B)False

Question 11

You are consulting with the owner of Better Bodies, a national chain of gyms. How could the use of information systems help them exert each of the four generic strategies in achieving competitive advantage?

Accepted Answer

The answer of You are consulting with the owner of...

Question 12

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

Accepted Answer

A) Strengthen customer and supplier intimacy 
B) Focus on market niche 
C) Differentiate products 
D) Compete on employee loyalty

Question 13

A ________ is an activity at which a firm excels as a world-class leader.

Accepted Answer

A) best practice 
B) competitive advantage 
C) primary activity 
D) core competency

Question 14

Benchmarking:

Accepted Answer

A) compares the efficiency and effectiveness of your business processes against strict standards. 
B) allows industry participants to develop industry-wide standards. 
C) is used to measure the speed and responsiveness of information technology. 
D) synchronizes the business processes of customers, suppliers, and trading partners.

Question 15

The activities that measure the performance of your business processes against strict standards are called best practices.

Accepted Answer

A) True 
 B)False

Question 16

Customers are one of the competitive forces that affect an organization's ability to compete.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not an advantage for new companies entering the marketplace?

Accepted Answer

A) They can implement new systems and equipment. 
B) They are not locked into an existing brand image. 
C) They are more highly motivated. 
D) They can establish new relationships with suppliers.

Question 18

All of the following have been disruptive technologies except:

Accepted Answer

A) the PageRank algorithm. 
B) the flash drive. 
C) minicomputers. 
D) the iPod.

Question 19

The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.

Accepted Answer

A) True 
 B)False

Question 20

The reduction of errors to 3.4 defects per million opportunities is central to the concept of:

Accepted Answer

A) Six Sigma. 
B) TQM. 
C) benchmarking. 
D) cycle time reduction.

Exam 3: Achieving Competitive Advantage With Information Systems

In the strategy of product differentiation, information systems are used to enable new products and services.

A firm that locates all systems development and operations at its headquarters is using a ________ system configuration.

Why should a company engage in business process reengineering? How would a company know if it needed or would gain from BPR?

Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy?

An information system can enable a company to focus on a market niche through:

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.

________ typically develop a single information system, usually at the home base, and then replicate it around the world.

Strong linkages to customers and suppliers increase switching costs.

The law of diminishing returns always applies to digital, as well as traditional products.

The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

You are consulting with the owner of Better Bodies, a national chain of gyms. How could the use of information systems help them exert each of the four generic strategies in achieving competitive advantage?

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

A ________ is an activity at which a firm excels as a world-class leader.

Benchmarking:

The activities that measure the performance of your business processes against strict standards are called best practices.

Customers are one of the competitive forces that affect an organization's ability to compete.

Which of the following is not an advantage for new companies entering the marketplace?

All of the following have been disruptive technologies except:

The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.

The reduction of errors to 3.4 defects per million opportunities is central to the concept of: