Question 1

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

Accepted Answer

The answer of A(n) ________ is an activity at which...

Question 2

If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating
A) a value web.
B) a value chain.
C) synergies.
D) core competencies.

Accepted Answer

The scenario described in the question is an example of creating synergies. Synergies occur when two or more organizations combine resources or expertise to achieve greater results than either could alone, resulting in lower costs and increased profits. A value web refers to a network of relationships between companies that work together to provide value to the customer. A value chain refers to the process by which a company adds value to its products or services. Core competencies refer to the unique strengths and strategic advantages that a company has over its competitors.

Question 3

________ are the expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system.

Accepted Answer

The answer of ________ are the expenses incurred by a...

Question 4

New technologies that radically change the business landscape and environment are referred to as ________.

Accepted Answer

The answer of New technologies that radically change the business...

Question 5

A(n) ________ activity is a part of the organization's infrastructure, human resources, technology, and procurement that makes the delivery of the firm's products or services possible.

Accepted Answer

The answer of A(n) ________ activity is a part of...

Question 6

Capital and ________ are the primary production inputs that the organization uses to create products and services.

Accepted Answer

The answer of Capital and ________ are the primary production...

Question 7

Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered ________.

Accepted Answer

The answer of Sociotechnical changes affecting a firm adopting new...

Question 8

A(n) ________ 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

The answer of A(n) ________ is a collection of independent...

Question 9

Organizational ________ describes the divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences.

Accepted Answer

The answer of Organizational ________ describes the divergent viewpoints about...

Question 10

An example of synergy in business is
A) Amazon's use of the Internet to sell books.
B) JP Morgan Chase's mergers with other banks that provided JP Morgan with a network of retail branches in new regions.
C) Blockbuster combining traditional video rental with online video rental.
D) Walmart's order entry and inventory management system to coordinate with suppliers.

Accepted Answer

JP Morgan Chase's mergers with other banks allowed them to expand their network of retail branches into new regions, giving them a greater market presence and customer base. This synergy allowed JP Morgan to increase their revenue and profitability through increased access to customers and new markets.

Question 11

An information system can enhance core competencies by
A) providing better reporting facilities.
B) creating educational opportunities for management.
C) allowing operational employees to interact with management.
D) encouraging the sharing of knowledge across business units.

Accepted Answer

An information system can enhance core competencies by encouraging the sharing of knowledge across business units. This can lead to better collaboration and innovation, ultimately improving the organization's competitive advantage. Providing better reporting facilities, creating educational opportunities for management, and allowing operational employees to interact with management may be beneficial, but they are not directly related to enhancing core competencies.

Question 12

________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

Accepted Answer

The answer of ________ is a competitive strategy for creating...

Question 13

You are consulting for a beverage distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step?
A) Identify the business ecosystem the distributor is in.
B) Implement a strategic transition to the new system.
C) Perform a strategic systems analysis.
D) Benchmark existing systems.

Accepted Answer

Performing a strategic systems analysis is the first step in determining the benefits of implementing new information systems. This analysis will help identify areas where information systems can increase efficiency and effectiveness, and provide insight into how the new systems can be integrated into the existing business processes. This analysis considers the organization's strategic goals, the ecosystem, and the existing systems. Once this analysis is done, an effective strategy can be planned and executed, including benchmarking, a strategic transition to the new system, and more.

Question 14

The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage?
A) E-commerce is affected by the law of diminishing returns.
B) Internet technologies are universal, and therefore usable by all companies.
C) Internet shopping produces cost transparency.
D) The Internet enables the production or sales of substitute products or services.

Accepted Answer

Internet technologies are accessible to all companies, which means competitors can easily adopt similar systems, reducing the uniqueness of any competitive advantage gained through information systems.

Question 15

A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)
A) industry value chain.
B) business ecosystem.
C) value web.
D) consortia.

Accepted Answer

A value web is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively. The other choices are not accurate definitions for this concept.

Question 16

The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

Accepted Answer

The answer of The ________ model highlights the primary or...

Question 17

An example of a keystone firm within a business ecosystem is
A) Apple and software application writers in the mobile platform ecosystem.
B) GUESS and the fashion ecosystem.
C) Citibank and the ATM ecosystem.
D) American Airlines and the computerized reservation ecosystem.

Accepted Answer

Apple is the keystone firm in the mobile platform ecosystem as it provides the operating system and hardware for mobile devices, while software application writers rely on the platform to distribute their products.

Question 18

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as
A) the point of no return.
B) the law of diminishing returns.
C) supply and demand.
D) network inelasticity.

Accepted Answer

The scenario described is an example of the law of diminishing returns. This law states that as more and more of a production factor is added to the production process, output will increase at a decreasing rate until a point is reached where the additional factor has no effect on output. This is also known as the point of diminishing marginal returns. None of the other options listed describe this phenomenon.

Question 19

A virtual company
A) uses the capabilities of other companies without being physically tied to those companies.
B) uses Internet technology to maintain a virtual storefront.
C) uses Internet technology to maintain a networked community of users.
D) provides entirely Internet-driven services, or virtual products.

Accepted Answer

A virtual company is a company that uses the capabilities of other companies without being physically tied to those companies, which allows them to be more flexible and cost-effective. This means that they can operate without owning physical assets or a brick-and-mortar store, and instead rely on partnerships and technology to conduct business. While choices B, C, and D also involve the use of Internet technology, they do not fully capture the defining characteristic of a virtual company, which is its reliance on external capabilities rather than internal resources.

Question 20

Network economics
A) applies the law of diminishing returns to communities of users.
B) applies traditional economics to networked users.
C) sees the cost of adding new members as inconsequential.
D) balances the high cost of adding new members to a community against the lower cost of using network infrastructure.

Accepted Answer

In network economics, the cost of adding new members is often considered inconsequential because the value of the network increases with each additional user, leading to network effects.

Quiz 3: Information Systems, Organizations, and Strategy

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

If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating

________ are the expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system.

New technologies that radically change the business landscape and environment are referred to as ________.

A(n) ________ activity is a part of the organization's infrastructure, human resources, technology, and procurement that makes the delivery of the firm's products or services possible.

Capital and ________ are the primary production inputs that the organization uses to create products and services.

Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered ________.

A(n) ________ 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.

Organizational ________ describes the divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences.

An example of synergy in business is

An information system can enhance core competencies by

________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

You are consulting for a beverage distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step?

The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage?

A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)

The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

An example of a keystone firm within a business ecosystem is

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as

A virtual company

Network economics