Question 1

How are information systems used at the industry level to achieve strategic advantage?

Accepted Answer

Industry-wide, IT-supported consortia and symposia can help standardize practices, share knowledge, and create efficiencies that provide a strategic advantage across the industry.

Question 2

The Internet raises the bargaining power of customers by

Accepted Answer

The Internet increases the bargaining power of customers by providing them with access to a wealth of information, allowing them to compare products, prices, and reviews easily, thus making more informed purchasing decisions.

Question 3

The value chain model

Accepted Answer

The value chain model highlights specific activities in the business where competitive strategies can best be applied. It consists of primary activities such as inbound logistics, operations, outbound logistics, marketing and sales, and service, as well as support activities such as procurement, technology development, human resource management, and firm infrastructure. This model helps firms identify areas where they can create value and differentiate themselves from their competitors. Therefore, D is the best answer.

Question 4

All of the following industries have been disrupted by the Internet except

Accepted Answer

The clothing industry has not been fundamentally disrupted by the Internet in the same way as the other industries listed, which have seen significant changes in distribution and consumption due to digital advancements.

Question 5

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 are known as

Accepted Answer

Switching costs refer to 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. Retention costs refer to the expenses incurred in retaining existing customers, while preservation costs and variation costs are not relevant to this concept. Differentiation costs are the expenses incurred in creating unique features or products to differentiate from competitors.

Question 6

An activity businesses perform to measure and compare business processes to similar processes of other companies within their industry is

Accepted Answer

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries.

Question 7

A virtual company

Accepted Answer

The answer of A virtual company
...

Question 8

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 value chain model identifies the key business activities - primary and support - that add value to a firm's products or services. Information systems can be applied to these activities to achieve a competitive advantage. The other options - competitive forces, bargaining power, new entrant, and rivalry - are all concepts related to Porter's Five Forces model, which analyzes the competitive environment in which a firm operates.

Question 9

How do information systems enhance core competencies?

Accepted Answer

Information systems enable the sharing of knowledge and information across different business units, which fosters collaboration and ultimately enhances the core competencies of the organization. This is because when different departments can share information and expertise, they can work together more efficiently and effectively, leading to improved overall performance.

Question 10

Which of the following is one of the support activities in a firm's value chain?

Accepted Answer

Technology is one of the support activities in a firm's value chain, along with procurement, human resource management, and infrastructure. Support activities are necessary for the primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) to function effectively and efficiently. Technology support activities can include hardware and software systems, data storage and analysis, and system maintenance and upgrades.

Question 11

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

Accepted Answer

When two organizations pool their markets and expertise, they can leverage each other's strengths and create synergies. Synergies refer to the combined efforts of the two organizations resulting in greater efficiency, lower costs, and increased profits. The other options are not relevant to the concept of pooling resources and creating synergies. A value web refers to a network of business relationships that work together to deliver value to customers. A value chain refers to the steps involved in delivering a product or service to customers. Net marketplaces refer to online platforms where buyers and sellers can transact business. Core competencies refer to unique capabilities or skills that a company possesses and that distinguish it from its competitors.

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

Product differentiation is the strategy of creating unique products or services that set a company apart from its competitors, thus creating brand loyalty among customers. This strategy can be difficult for competitors to replicate, leading to a sustainable competitive advantage.

Question 13

An example of a keystone firm within a business ecosystem is

Accepted Answer

Apple serves as a keystone firm within the mobile platform ecosystem, as its products (iPhones, iPads, etc.) are the foundation for the ecosystem and enable other software application writers to develop and sell their products. Without Apple's hardware, the ecosystem would not exist in the same way.

Question 14

An example of synergy in business is

Accepted Answer

Synergy in business refers to the idea that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Bank of America's acquisition of Countrywide Financial is an example of synergy as it allowed the bank to expand its customer base and leverage Countrywide's resources and expertise.

Question 15

Which of the following represent the primary activities of a firm?

Accepted Answer

The primary activities of a firm according to Porter's Value Chain Model are inbound logistics, operations, outbound logistics, sales and marketing, and service. Option A includes all of these primary activities.

Question 16

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)

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. This differs from a traditional industry value chain, which is a linear sequence of activities that eventually lead to the final product or service. A business ecosystem refers to the network of organizations that collaborate and compete in a particular industry or market. Consortia are groups of organizations that come together for a specific purpose, usually to address a common challenge or opportunity. Synergy chain is not a commonly used term in business.

Question 17

What are the most successful solutions or methods for achieving a business objective?

Accepted Answer

Best practices involve adopting proven methods or processes that have been successful in achieving similar business objectives in a particular industry or sector. This approach allows businesses to streamline their operations, reduce costs, and achieve their objectives more efficiently. Best practices can be identified through research, benchmarking, and analysis of competitors or industry leaders.

Question 18

Network economics

Accepted Answer

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

Question 19

A competitive force challenging the publishing industry is

Accepted Answer

Substitute products or services challenge the publishing industry as digital media and online content provide alternatives to traditional publishing.

Question 20

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

Accepted Answer

The situation described in the question is known as the law of diminishing returns. This law states that as more and more of a resource is applied to production, the marginal gain in output eventually decreases until it reaches a point where additional inputs produce no additional output. This can be due to a variety of factors such as limited space, equipment, or labor. Therefore, the best choice is option B, the law of diminishing returns.

Quiz 3: Information Systems, Organizations, and Strategy