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

Question 1

_________ describes the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

A) E-business
B) E-commerce
C) E-entrepreneurship
D) E-innovation

Answer 1

B

Question 2

Globalization is a type of __________ pressure.

A) Economic
B) Market
C) Technology
D) Societal

Answer 2

B

Question 3

____ percent of people in Bangladesh have regular internet connections.

A) 3
B) 25
C) 57
D) 89

Answer 3

A

Question 4

Which of the following is NOT a major type of business pressure?

A) Global
B) Market
C) Technology
D) Societal

Question 5

____________ refers to the wide gap between those individuals who have access to information and communications technology and those who do not.

A) BYOD
B) Digital divide
C) HIPAA
D) Internet divide

Question 6

Which of the following is a disadvantage of BYOD?

A) Cost
B) Productivity
C) Satisfaction
D) Security

Question 7

The Hyperion software used to make Big Hero 6 focused on making digital _______ more realistic.

A) Fire
B) Hair
C) Light
D) Water

Question 8

Which of the following is NOT a market pressure?

A) Globalization
B) Information overload
C) Powerful customers
D) The changing nature of the workforce

Question 9

Labor costs are ________ in developed countries. IT has made it ____________ to move operations to countries with low labor costs.

A) higher; easier
B) higher; harder
C) lower; easier
D) lower; harder

Question 10

Which of the following is FALSE of illegal logging?

A) It accounts for 25 to 50 percent of all trees harvested.
B) It causes about 17 percent of greenhouse gas emissions.
C) It costs the global industry $10 billion every year.
D) It reduces world timber prices by about 15 percent.

Question 11

Green IT is a type of ______ pressure.

A) Economic
B) Market
C) Technology
D) Societal

Question 12

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

A) Customization
B) Identification
C) Production
D) Quantification

Question 13

It took ________ to develop Hyperion, Disney's new animation software.

A) 2 months
B) 6 months
C) 1 year
D) 2 years

Question 14

BYOD is a phenomenon associated with __________ pressures.

A) Global
B) Market
C) Technology
D) Societal

Question 15

Your company's target market is located in China, India, Russia, and the US. This means your business is engaged in ____________.

A) Digital divide management
B) Globalization
C) Government compliance
D) Innovation

Question 16

Which of the following is NOT a societal pressure?

A) Ethical issues
B) Government regulation
C) Powerful customers
D) Terrorism

Question 17

The animation software Hyperion was used to produce _________.

A) Big Hero 6
B) Cars
C) Frozen
D) The Incredibles

Question 18

The amount of information on the Internet _________ approximately every year.

A) Doubles
B) Triples
C) Quadruples
D) Stays about the same

Question 19

Globalization ____________ competition.

A) has no effect on
B) has nothing to do with
C) is decreasing
D) is increasing

Question 20

The Rainforest Connection uses _____________ to help stop illegal logging.

A) Facebook's Aquila drones
B) Google's Project Loon balloons
C) GPS trackers
D) old smartphones

Question 21

Organizations use Porter's ___________ model to design general strategies and use Porter's _______ model to identify specific activities where they can use competitive strategies for greatest impact.

A) competitive forces; strategic categories
B) competitive forces; value chain
C) value chain; competitive forces
D) value chain; strategic categories

Question 22

For most businesses, __________ is a support activity according to Porter's value chain model.

A) Customer service
B) IT
C) Logistics
D) Operations

Question 23

____________ is a biometric system to confirm passenger identity.

A) Digital Way
B) Safran
C) Thales
D) Walkbase

Question 24

Entry barriers impact the ___________ in Porter's competitive forces model.

A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question 25

Internet is available in rural Bangladesh because of ___________.

A) Facebook's Aquila drones
B) Google's Project Loon balloons
C) Infoladies cycling to villages with the technology
D) the Rainforest Connection delivering old smartphones

Question 26

___________ uses airport visitors' smartphone Wi-Fi to track their movements in the Helsinki airport.

A) Digital Way
B) Safran
C) Thales
D) Walkbase

Question 27

___________ asks for measurements of a favorite piece of clothing to create a comparison silhouette on the website.

A) Clothes Horse
B) LoveThatFit
C) Virtusize
D) Zappos

Question 28

You want to open a bank, so you know you have to offer online banking at a minimum. This is an example of the __________ in Porter's competitive forces model.

A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question 29

The best-known framework for analyzing competitiveness is Michael Porter's ________.

A) Business-IT alignment model
B) Competitive forces model
C) Strategic categories model
D) Value chain model

Question 30

Loyalty programs reduce _________.

A) Buyer power
B) Entry barriers
C) Substitute products
D) Supplier power

Question 31

Porter concludes that the overall impact of the web is to _________ competition, which generally ___________ a firm's profitability.

A) decrease; diminishes
B) decrease; improves
C) increase; diminishes
D) increase; improves

Question 32

You want to start a lawn care business in the town of Rural, USA with only 100 residents. There are currently no other lawn care businesses, so homeowners will have no other choice but to use your service. You have evaluated the ________ in Porter's competitive forces model.

A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question 33

___________ provides a "body scanner" to capture more than 150 measurements so customers can have made-to-measure jeans and swimsuits.

A) Bodymetrics
B) Clothes Horse
C) LoveThatFit
D) Virtusize

Question 34

In your industry, the businesses compete essentially on price. This is an example of the _______ in Porter's competitive forces model.

A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question 35

You want to open your own restaurant. You know you will be able to purchase foods from many different distributors. You have evaluated the _________ in Porter's competitive forces model.

A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question 36

___________ has set the industry standard on returns, pioneering no-cost shipping and handling for returns.

A) Clothes Horse
B) LoveThatFit
C) Virtusize
D) Zappos

Question 37

_____________ allows consumers to upload a full body image taken in tightly fitting clothing so they can "see" themselves in the clothes before purchasing.

A) Clothes Horse
B) LoveThatFit
C) Virtusize
D) Zappos

Question 38

Information-based industries experience the greatest threat from the _________ in Porter's competitive forces model.

A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question 39

For most businesses, _________ is a primary activity according to Porter's value chain model.

A) HR
B) IT
C) Marketing
D) Procurement

Question 40

__________ has developed software to analyze the large amount of data being collected on airline passengers to identify potential terrorists or organized criminals.

A) Digital Way
B) Safran
C) Thales
D) Walkbase

Question 41

"I can sell at a lower cost than you can" is a strategy for ___________.

A) Cost leadership
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Question 42

In general, the internet has made customers more powerful.

Question 43

"I am better because I am different" is a strategy for ___________.

A) Cost leadership
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Question 44

Professional, college, and high school football programs are using ___________ to enhance their training regimens.

A) ERP systems
B) green IT
C) RFID
D) virtual reality

Question 45

____________ received $45 billion in bailout funds during the financial crisis of 2007-2008 and later paid a further $17 billion to settle charges of mortgage fraud stemming from poor lending practices leading up to the financial crisis.

A) Bank of America
B) Citibank
C) SunTrust
D) Wells Fargo

Question 46

Globalization is decreasing competition.

Question 47

It takes STriVR and EON ___________ to deliver VR footage to the teams.

A) Hours
B) Days
C) Weeks
D) Months

Question 48

Any information system can be strategic if it is used properly.

Question 49

Which of the following is the correct order of primary activities for manufacturing companies according to Porter's value chain model?

A) inbound logistics, operations, marketing and sales, outbound logistics, services
B) inbound logistics, operations, outbound logistics, marketing and sales, services
C) operations, inbound logistics, outbound logistics, marketing and sales, services
D) operations, inbound logistics, marketing and sales, outbound logistics, services

Question 50

"I treat my customers better than you do" is a strategy for ___________.

A) Cost leadership
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Question 51

JIT [reduces inventory costs, so it] is part of a _________ strategy. [NOTE: the brackets can be removed if the students have been exposed to the concept. It is in Chapter 13.]

A) Cost leadership
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Question 52

Bank of America implemented a ______ cloud as part of its IT infrastructure standardization procedure.

A) Google
B) Hybrid
C) Private
D) Public

Question 53

"I'm doing something new and you can't catch up" is a strategy for ___________.

A) Cost leadership
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Question 54

Since technology is so expensive, entrepreneurs won't be able to leverage technology for competitive advantage in the early stages of their business.

Question 55

Disney used a supercomputer composed of three server farms and developed Hyperion to produce Big Hero 6.

Question 56

_________ is NOT part of Bank of America's innovative customer service.

A) Account information and transactional capabilities
B) Cloud computing for credit card security
C) Mobile payments and commerce
D) Travel notifications via mobile device

Question 57

BYOD is a challenge for IT departments.

Question 58

BYOD is not desirable for employees.

Question 59

"I can do the same thing more efficiently than you can" is a strategy for ___________.

A) Cost leadership
B) Customer oriented
C) Differentiation
D) Innovation
E) Operational effectiveness

Question 60

STriVR Labs and EON Sports started with the __________ position in _________ for their virtual reality software.

A) pitcher; baseball
B) quarterback; football
C) short stop; baseball
D) wide receiver; football

Question 61

E-business is a broader concept than e-commerce.

Question 62

The Rainforest Connection uses old smartphones placed in high trees with solar panels on them to pick up the sound of chainsaws cutting down trees illegally.

Question 63

Primary activities do not add value directly to the firm's products or services.

Question 64

The digital divide is decreasing over time.

Question 65

Business and IT managers have similar objectives, so it makes business-IT alignment simple.

Question 66

When shopping for clothes online, the biggest problem for retailers is keeping credit card numbers secure.

Question 67

Loyalty programs are designed to reduce buyer power and rivalry.

Question 68

The Infoladies earn more money than most farmers in Bangladesh.

Question 69

Many organizations fail to achieve close business-IT alignment.

Question 70

While virtual reality software is available to football teams, no professional teams are currently using it because it is too risky.

Question 71

Mass production is an attempt to perform make-to-order on a large scale.

Question 72

Porter concludes that the overall impact of the web is to increase competition.

Question 73

Competitive ______________________ refers to any assets that provide an organization with an edge against its competitors in some measure such as cost, quality, or speed.

Question 74

Bank of America laid off many employees as part of their IT transformation.

Question 75

The only goal of a competitive strategy is to plan your own moves.

Question 76

Customers are willing to pay for primary activities but not support activities.

Question 77

Porter's competitive forces model applies to local governments.

Question 78

Porter's competitive forces model has four main forces.

Question 79

The innovative technologies for airlines and airports are examples of strategic information systems.

Question 80

E-business and e-commerce are synonymous.