Deck 2: Organizational Strategy, Competitive Advantage, and Information Systems

Question 1

The One Laptop per Child project aims to use technology to revolutionize how the world can educate its children.

Answer 1

True

Question 2

In mass production, a company produces a large quantity of identical items.

Answer 2

True

Question 3

According to Thomas Friedman, there are four eras of globalization.

Answer 3

True

Question 4

In mass customization, companies produce items in large quantity, but they tailor the items to meet the desires and needs of individual customers.

Question 5

Information technology is facilitating the entry of a wide variety of employees into the workforce.

Question 6

The digital divide is the gap between data and knowledge.

Question 7

Build-to-stock is a strategy of producing customized products and services.

Question 8

A Competitive advantage helps an organization to control a market and to accrue larger-than-average profits.

Question 9

Ethical issues are important because, if handled poorly, they can damage an organization's image.

Question 10

Customer intimacy is the process whereby a business learns as much as possible about its customers to better anticipate and address their needs.

Question 11

The business environment refers to the industry that a company is in.

Question 12

In general, labor costs are higher in developed countries than in developing countries.

Question 13

In general, government deregulation decreases competition.

Question 14

Internet access in the United States is not particularly related to household income.

Question 15

A growing IT initiative called green IT is enabling organizations to reduce their carbon footprint.

Question 16

Globalization is the integration and interdependence of many facets of life made possible by rapid advances in information technology.

Question 17

Acquiring competitive advantage is essential for your organization's survival. Organizations achieve competitive advantage only through the efforts of their employees.

Question 18

The information technology environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

Question 19

Developed countries usually provide greater fringe benefits than developing countries.

Question 20

Competitive advantage leads to control of a market.

Question 21

The workforce in developed countries is exhibiting all of the following trends except _____________.

A)It is becoming more diversified.
B)It includes more women.
C)It includes more single parents.
D)It includes fewer persons with disabilities.
E)It includes more minority-group members.

Question 22

An entry barrier is a long-term competitive advantage.

Question 23

Porter's value chain model is a variation of his competitive advantage framework.

Question 24

The primary activities in the value chain create the value for which customers are willing to pay.

Question 25

Which of the following statements is false?

A)Competitive advantage is based on some measurement such as cost, quality, or speed.
B)Competitive advantage enables a company to function effectively within a market.
C)Competitive advantage leads to higher-than-average profits.
D)Competitive advantage requires the use of technology.
E)Competitive advantage applies to companies of all sizes.

Question 26

Information-based industries face the greatest threat from substitutes.

Question 27

The Internet decreases customers' bargaining power.

Question 28

Business pressures on organizations are created when there are changes in ___________.

A)Social factors
B)Economic factors
C)Legal factors
D)Political factors
E)Changes in all of the above will create business pressures.

Question 29

The introduction of the ATM in the banking industry is an example of the innovation strategy.

Question 30

Michael Porter concludes that the overall impact of the Internet is to increase competition, which generally diminishes a firm's profitability.

Question 31

An information system that helps an organization gain a competitive advantage is called a competitive information system.

Question 32

Market pressures include which of the following?

A)The global economy
B)Weak competition
C)A homogeneous workforce
D)Weak customers
E)High-cost offshore labor

Question 33

The bargaining power of suppliers is low when their buyers have many choices.

Question 34

It's a good idea for a company to select two competitive advantage strategies.

Question 35

Every competitive organization is driven by the competitive forces identified by Michael Porter.

Question 36

The strategic impact of Information systems impacts small or medium-sized companies differently than it impacts a large firm.

Question 37

The music industry is a good example of the extremely low variable costs of digital products.

Question 38

The Internet increases traditional barriers to entry into a market.

Question 39

When there are many substitute products, a company can create a competitive advantage by increasing fees.

Question 40

Competitive advantage helps a company function effectively within a market and generate larger-than-average profits.

Question 41

The digital divide is an example of which type of societal pressure?

A)social responsibility
B)government regulations
C)protection against terrorism
D)ethics
E)information overload

Question 42

Refer to IT's About Business 2.1 - "Bring Your Own Device" Can Cause Problems: Hamilton Fraser uses Mobiletron to provide device management and security to manage devices employees want to connect to the corporate network. Which of the following is not a correct statement? HP uses Mobiletron to __________.

A)erase corporate data from personal devices if lost or stolen.
B)track how many employees were access corporate network.
C)track if employee is using network for shopping or playing games.
D)determine if the device being used is approved.
E)All of the choices are correct.

Question 43

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. Ted wants to build a Web site for the business that will allow customers to order cookies and cupcakes for later pickup. This idea represents ______________.

A)An organizational response to business pressures.
B)A technology response to business pressures.
C)A response to powerful customers
D)A response to globalization.
E)An effort to "go green."

Question 44

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. They've started making cupcakes but not frosting them. When a customer buys a cupcake, he/she specifies the flavor of frosting. This idea represents ___________.

A)Customer service
B)Mass-production
C)Made-to-order
D)Customization
E)Mass-customization.

Question 45

For most companies, the Web _____ the threat that new competitors will enter the market by _____ traditional barriers to entry.

A)decreases, increasing
B)increases, decreasing
C)increases, increasing
D)decreases, decreasing

Question 46

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies and cupcakes. At the end of each day, Ted drives the day old products to the local homeless shelter and donates them. This idea reflects __________.

A)An organizational response to business pressures.
B)A technology response to business pressures.
C)A response to powerful customers
D)A response to globalization.
E)Social responsibility.

Question 47

Which of the following statements concerning technology pressures on modern businesses is true?

A)Technology changes so rapidly that organizations should wait before they release new technology-based products.
B)New technologies offer alternative service options.
C)New technologies will never replace existing technologies.
D)The amount of information on the Internet remains stable from year to year.
E)The important information on the Internet is fee-based.

Question 48

Information-based industries are most susceptible to which one of Porter's five forces?

A)threat of entry of new competitors
B)bargaining power of suppliers
C)bargaining power of customers
D)threat of substitute products
E)rivalry among existing firms in an industry

Question 49

Which of the following is not an example of the growing initiative called green IT?

A)Designing an IT infrastructure to support sustainability.
B)Building systems that monitor carbon throughout the organization.
C)Asking vendors about compliance on environmental standards.
D)Building computer applications that use less energy
E)Designing energy-efficient data centers.

Question 50

Producing customized items in large quantities is called __________.

A)strategic systems.
B)customer focus.
C)continuous improvement.
D)mass production.
E)mass customization.

Question 51

Which one of the following statements is false?

A)Businesses tend to view government regulations as expensive constraints on their activities.
B)Government deregulation reduces competition.
C)IT support is essential for compliance with many new regulations.
D)IT has been used to identify patterns of behavior associated with terrorist activities.
E)Information ethics can destroy the morale of a company's employees.

Question 52

The acronym BOYD stands for what?

A)Backup Your Own Data
B)Buy Your own Device
C)Bring Your Own Data
D)Bring Your Own Device

Question 53

Which of the following is not a response by organizations to business pressures?

A)Delay releases of innovated products.
B)Build strategic systems that enable an organization to increase market share or profits.
C)Provide tools that satisfy customers so they don't go to a competitor.
D)Manufacture customized goods at a lower cost.
E)Conduct business electronically with customers and business partners.

Question 54

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start offering gluten free products. Customers have been asking for them and leaving when he tells them he doesn't have any. This idea reflects which one of Porter's five competitive forces?

A)threat of entry of new competitors
B)bargaining power of suppliers
C)bargaining power of customers
D)threat of substitute products
E)rivalry among existing firms in an industry

Question 55

Today's customers have ________.

A)less knowledge about products
B)less sophistication
C)difficulty in finding information about products
D)higher expectations
E)difficulty in comparing prices

Question 56

The Bodymetrics body scanner is best characterized as an example of _________.

A)mass production.
B)customer focus.
C)real-time customer input.
D)mass customization.
E)continuous improvement.

Question 57

Competitive advantage for an organization manifests itself as all of the following except __________.

A)Lower costs
B)Higher quality
C)Increased time to market
D)Increased profits
E)Increased speed

Question 58

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. Ted knows he needs to understand more about his customers to anticipate their needs. This is called __________.

A)Customer data
B)Customer knowledge
C)Customer intimacy
D)Customer information
E)Customer processing

Question 59

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start being able to ship an order that comes in from their Web site. This idea reflects:

A)An organizational response to business pressures.
B)A technology response to business pressures.
C)A response to powerful customers
D)A response to globalization.
E)An effort to "go green."

Question 60

Producing identical items in large quantities is called ____________.

A)strategic systems.
B)customer focus.
C)continuous improvement.
D)mass production.
E)mass customization.

Question 61

The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.

A)e-commerce, digital
B)digital, e-commerce
C)digital, physical
D)physical, financial
E)physical, digital

Question 62

How does the Internet affect the way you purchase your textbooks?

A)The Internet gives you fewer choices.
B)The Internet increases your bargaining power.
C)The Internet provides you with less information.
D)The Internet decreases your bargaining power.
E)The Internet increases your switching costs.

Question 63

Which of the following statements is False concerning Strategic Information Systems?

A)Strategic Information Systems provide a competitive advantage.
B)Strategic Information Systems help an organization implement its strategic goals.
C)Strategic Information Systems are only an information system that reduces a competitive disadvantage.
D)Strategic Information Systems improve an organization's performance and productivity

Question 64

IT will impact managers' jobs in all of the following ways except __________. 

A)Managers will have time to get into the field.
B)Managers can spend more time planning.
C)Managers can spend more time "putting out fires".
D)Managers can gather information more quickly.

Question 65

_____ activities create value for which customers are willing to pay, whereas _____ activities do not add value directly to the firm's products or services.

A)Support, primary
B)Human resource management, inbound logistics
C)Procurement, operations
D)Primary, support
E)Accounting, outbound logistics

Question 66

New technologies can produce new products very _____, which _____ the threat from substitute products.

A)slowly, decreases
B)slowly, increases
C)slowly, does not affect
D)quickly, increases
E)quickly, does not affect

Question 67

_____ is a feature that must be offered by a competing organization in order to survive in the marketplace.

A)Competitive advantage
B)An entry barrier
C)Strategic advantage
D)Rapid time-to-market
E)One-to-one marketing

Question 68

Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes?

A)cost leadership
B)differentiation
C)innovation
D)operational effectiveness
E)customer-orientation

Question 69

Southwest Airlines' low-cost, short-haul strategy is an example of which strategy for competitive advantage?

A)cost leadership
B)differentiation
C)innovation
D)operational effectiveness
E)customer-orientation

Question 70

Porter's competitive forces model helps organizations identify _____, whereas his value chain model helps organizations identify specific _____.

A)competitive opportunities, activities
B)general strategies, activities
C)activities, competitive opportunities
D)activities, general strategies
E)primary activities, support activities

Question 71

The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret. This is an example of which of Porter's five forces?

A)threat of entry of new competitors
B)bargaining power of suppliers
C)bargaining power of customers
D)threat of substitute products
E)rivalry among existing firms in an industry

Question 72

The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage?

A)cost leadership
B)innovation
C)differentiation
D)operational effectiveness
E)customer-orientation

Question 73

When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage?

A)cost leadership
B)differentiation
C)innovation
D)operational effectiveness
E)customer-orientation

Question 74

Walmart's automatic replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?

A)cost leadership
B)differentiation
C)innovation
D)operational effectiveness
E)customer-orientation

Question 75

Which strategy for competitive advantage involves introducing new products and putting new features in existing products?

A)cost leadership
B)differentiation
C)innovation
D)operational effectiveness
E)customer-orientation

Question 76

The threat of competitors' entering the automobile manufacturing industry is _____ because barriers to entry are so _____.

A)low, low
B)high, high
C)high, low
D)low, high

Question 77

The threat of competitors' entering a market is very high in industries that perform a(n)_____ role and in industries where the primary product or service is _____.

A)intermediation, physical
B)broker, physical
C)sales, financial
D)financial, digital
E)intermediation, digital

Question 78

If there are _____ substitutes for an organization's products or services, then the threat of substitutes is _____.

A)many, high
B)few, low
C)few, high
D)many, low
E)few, negligible

Question 79

Buyer power is _____ when buyers have many choices from whom to buy and _____ when buyers have few choices.

A)high, the same
B)high, low
C)low, low
D)low, high
E)low, the same

Question 80

Which strategy for competitive advantage involves offering different products, services, or product features?

A)cost leadership
B)differentiation
C)innovation
D)operational effectiveness
E)customer-orientation