Deck 2: Strategic Uses of Information Systems

Question 1

An alliance can be created to enable customers to use the same technology for purchases from different companies.

Answer 1

True

Question 2

A barrier to potential new market entrants is the high expense of entering the particular market.

Answer 2

True

Question 3

Instead of differentiating a product or service,an organization can add to the product or service to increase its value to the consumer.

Answer 3

True

Question 4

In a highly competitive industry that traditionally has had a narrow profit margin,JetBlue managed to gain strategic advantage by reducing cost and therefore reducing the price to the customer.

Question 5

Companies raise barriers to entrants by obtaining legal protection of intellectual property.

Question 6

Which of the following is considered a strategic advantage of the first-mover?

A)Technological literacy
B)Superior brand name
C)High market value
D)Guaranteed long-term success

Question 7

In a___________ ,a market rarely remains the domain of one organization for long;thus,competition ensues almost immediately.

A)planned economy
B)mixed society
C)free-enterprise society
D)command economy

Question 8

The word "strategy" originates from the Greek word strategos,meaning "___________ ."

A)ahead
B)general
C)task
D)vision

Question 9

Strategic information systems are defined by their technical features per se,and not by how they are used.

Question 10

For an information system to be an strategic information,one of the conditions is that the information system must serve an organizational goal rather than simply provide information.

Question 11

Which of the following statements is true of explicit switching costs?

A)Explicit switching costs involve a penalty levied for terminating a deal or contract.
B)Explicit switching costs are recurring in nature.
C)Explicit switching costs are variable in nature.
D)Explicit switching costs are concerned with the indirect costs in time and money.

Question 12

The reengineering process makes it possible to determine how much each change contributed to the organization's improved position.

Question 13

Practically any mobile-based system that gives a company competitive advantage is a strategic information system.

Question 14

One way to lock in buyers in a free market is to create a situation in which customers fear high switching costs.

Question 15

One way to increase market share is to lower prices,and the best way to lower prices is to ___________.

A)reduce costs
B)outsource jobs
C)promote self-training
D)update to latest technologies

Question 16

The goal of reengineering is to gain small incremental cost savings.

Question 17

A firm gains bargaining power with a supplier when the firm has many competitors.

Question 18

Switching costs can be explicit or implicit.

Question 19

Being on the bleeding edge can mean that implementation costs are significantly higher than anticipated.

Question 20

The larger the number of companies competing within an industry,the better off each company is.

Question 21

___________use physical characteristics of people,such as fingerprints and retina scans,for authentication and access to physical places and online information systems.

A)Access codes
B)Biometrics
C)Object codes
D)Compilers

Question 22

Which of the following patents does Priceline.com hold that prevents competitors from entering its business space?

A)One-click online purchasing
B)Half-price product exchange plan
C)Online reverse auctioning
D)Zero processing fee

Question 23

Which of the following is a result of forming strategic alliances?

A)Organizations do not enjoy synergy.
B)The combined service is more expensive.
C)One-stop shopping is rendered inconvenient.
D)The same technology is used.

Question 24

___________refers to the competitive advantage that a company can achieve by persuading customers that its product or service is better than its competitors'.

A)Product segmentation
B)Product differentiation
C)Product validation
D)Product specification

Question 25

A ___________is a body of clients that is large enough to attract many other clients.

A)client subsystem
B)client set
C)critical alliance
D)critical mass

Question 26

A system can only help a company sustain competitive advantage if the company continuously modifies and enhances it,creating a(n) ___________for competitors.

A)alliance
B)bleeding edge
C)standard
D)moving target

Question 27

The most important metric in the airline industry is___________ ,which is how much it costs to fly a passenger one mile of the journey.

A)cost per available seat-mile (CASM)
B)cost per available seat (CAS)
C)cost per mile (CM)
D)cost per hour (CH)

Question 28

Which of the following conditions must exist for an information system to be a strategic information system?

A)The information system must simply provide information.
B)The organization's information system unit must only work with managers of the same unit.
C)The organization's top management must be involved only during the implementation stage.
D)The information system must serve an organizational goal.

Question 29

Companies that are first to adopt advanced systems that reduce labor enjoy___________ for as long as their competitors lag behind.

Question 30

On the web,an example of alliances is a(n)___________ .

A)affiliate program
B)online analytical agreement
C)object-oriented program
D)progressive task agreement

Question 31

___________are expenses incurred when a customer stops buying a product or service from one business and starts buying it from another.

A)Marginal costs
B)Standard costs
C)Opportunity costs
D)Switching costs

Question 32

The essence of strategy is innovation,so___________ is often gained when an organization tries a strategy that no one has tried before.

Question 33

___________refers to an organization's initiative of adding to a product or service to increase its value to the consumer.

A)Scaling value
B)Enhancement of existing products or services
C)Appreciation of existing products or services
D)Incrementing value

Question 34

___________provide customers with cheaper combined service and the convenience of one-stop shopping.

A)Alliances
B)Prototypes
C)Automations
D)Parameters

Question 35

___________are expenses incurred when a customer stops buying a product or service from one business and starts buying it from another.

Question 36

___________involves adoption of new machinery and elimination of management layers.

A)Prototyping
B)Reengineering
C)Debugging
D)Offshoring

Question 37

In a highly competitive industry that traditionally has had a narrow profit margin,JetBlue managed to gain strategic advantage by___________ .

A)reducing cost
B)hiring new employees
C)increasing the seating capacity
D)reducing the number of flights

Question 38

A company achieves___________ by using strategy to maximize its strengths,resulting in a competitive advantage.

Question 39

JetBlue obtained the strategic advantage of the___________ by implementing the latest available technologies of fast databases,VoIP,and a slick website.

A)first mover
B)late mover
C)source code
D)object code

Question 40

Indirect costs in time and money spent adjusting to a new product that competes with the old is an example of implicit___________ .

Question 41

Ford created a joint venture with General Motors Corp.and DaimlerChrysler to establish ___________,a website that serves as an electronic market for parts suppliers who can bid online on requests for proposals posted by the automakers.

Question 42

Provide an example of a company using the lock in buyers strategy successfully.

Question 43

Organizations can achieve competitive advantage if they are powerful enough to___________ suppliers to their mode of operation or buyers to their product.

Question 44

Why would you consider competitive advantage as a moving target?

Question 45

___________provide draws for customers that include combined services that are cheaper.

Question 46

___________combine ideas for making potentially winning business decisions and ideas for harnessing information technology to implement the decisions.

Question 47

Why is JetBlue considered to have gained a late mover advantage?

Question 48

eBay's success demonstrates the strategic advantage of the___________ ,an organization that is the first to offer a new product or service.

Question 49

List eight basic initiatives that companies can use to gain competitive advantage.

Question 50

Brand-name success is a perfect example of___________ .

Question 51

The goal of ___________is not to gain small incremental cost savings,but to achieve great efficiency leaps-of 100 percent and even 1000 percent.

Question 52

In an environment where most information technology is available to all,___________ that are originally developed to create a strategic advantage quickly become an expected standard business practice.

Question 53

When failure occurs because an organization tries to be on the technological leading edge,observers call it the _____.

Question 54

Give an example of companies establishing high switching costs to gain competitive advantage.

Question 55

Information systems that help seize opportunities are called ___________.

Question 56

___________is software that the developer gives to potential adopters for trial use.