Question 1

The iPod's entrance into the music player-industry has caused the increased threat of which of the following:

Accepted Answer

The iPod, by offering a unique and high-quality alternative to existing music players, increased the threat of substitutes. It provided consumers with a new option that could potentially replace other music players, thereby intensifying the competition in the market.

Question 2

Which of the following is an example of mirroring capabilities?

Accepted Answer

Mirroring capabilities refer to the ability to replicate or provide access to digital versions of physical resources, such as electronic reserves in a library.

Question 3

At what stage in the process of identifying data-driven strategic initiatives should an analysis of the upside potential and data availability occur?

Accepted Answer

Prioritizing initiatives requires an understanding of their potential benefits (upside potential) and the feasibility of their execution, which includes the availability of necessary data. This helps in determining which initiatives should be pursued first based on their expected impact and the resources required.

Question 4

Which of the five competitive forces is related to whether or not a company can begin competing in a market different from the one they currently compete in?

Accepted Answer

The threat of new entrants refers to the potential for new companies to enter an industry or market, which directly relates to a company's ability to start competing in a new market different from their current one. This force assesses how easy or difficult it is for companies to start competing in a particular industry, influenced by barriers to entry such as capital requirements, access to distribution channels, and government policies.

Question 5

Which of the five competitive forces is related to an automotive company being forced to change to a different tire supplier just to meet customer demands?

Accepted Answer

The bargaining power of buyers influences a company to change suppliers to meet customer demands, as customers (buyers) have the power to demand higher quality or specific features in products, including tires for vehicles.

Question 6

Which of the five competitive forces is influencing a passenger train line, when a new automobile manufacturer causes a reduction in the number of people that ride trains?

Accepted Answer

The introduction of a new automobile manufacturer provides consumers with more transportation options, making cars a substitute for train travel. This increases the availability of substitutes, influencing the passenger train line by potentially reducing its customer base as people may opt for personal or new car travel over trains.

Question 7

Which of the five competitive forces is related to the inability of a clothing manufacturer to influence the details of the contracts for their raw materials, such as denim or zippers?

Accepted Answer

The bargaining power of suppliers affects a company's ability to influence the terms of their raw materials procurement. If suppliers have significant power, they can dictate terms, prices, and availability, limiting the company's control over these aspects.

Question 8

Which of the five competitive forces is related to price wars between two gas stations on opposite sides of an intersection?

Accepted Answer

Rivalry among existing competitors is the force related to price wars between two gas stations on opposite sides of an intersection, as it directly involves competition between existing businesses in the same market.

Question 9

Which of the following is a support activity?

Accepted Answer

Purchasing tires is considered a support activity as it involves procurement, which is part of the support activities in the value chain that help facilitate the primary activities.

Question 10

Considering the role of information systems in value chain analysis requires which of the following?

Accepted Answer

The value chain involves both the physical aspects of operations (movement and processing of material) and the informational aspects (processing of information), which together support the firm's activities. This comprehensive view acknowledges the critical role of information systems in optimizing and integrating these processes.

Question 11

The CSLC should be viewed from which viewpoint?

Accepted Answer

The CSLC (Customer Service Life Cycle) should be viewed from the customer's perspective to ensure that their needs and experiences are prioritized throughout the service process.

Question 12

What is the first stage of the CSLC?

Accepted Answer

The first stage of the CSLC (Cyber Security Life Cycle) is Requirements. This stage involves identifying and defining the security needs and requirements of the system.

Question 13

The CSLC is broken down into thirteen stages. One of these involves making sure that the goods or services that have been purchased actually meet the applicable specifications. Which stage is this?

Accepted Answer

The stage "Evaluate and Accept" involves checking the goods or services that have been purchased to ensure they meet the specified requirements or standards. This is a critical step in the Contracting and Procurement Lifecycle to ensure quality and compliance with the contract terms.

Question 14

Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an industry.

Accepted Answer

While rivalry amongst competitors is a significant factor, the importance of each of the five forces (rivalry among existing competitors, threat of new entrants, threat of substitute products or services, bargaining power of buyers, and bargaining power of suppliers) varies by industry and over time. No single force is always the most important, as the context and dynamics of each industry determine which forces are most influential on profitability.

Question 15

Hypercompetition refers to industries in which fierce rivalries exist between existing competitors and innovation occurs at such a pace that any competitive advantage that may exist often disappears quickly..

Accepted Answer

Hypercompetition is characterized by rapid and aggressive moves by firms in an industry to gain advantage, leading to a situation where advantages are quickly eroded by the actions of competitors, reflecting the intense rivalry and fast-paced innovation described.

Question 16

The two main parts of the Customer Service Life Cycle are the primary and support activities, which are then supported by the four stage of cycle

Accepted Answer

The Customer Service Life Cycle typically refers to the stages through which a customer goes when interacting with a company, including reach, acquisition, development, and retention, rather than being divided into primary and support activities.

Question 17

The most innovative ideas are the most costly and resource-intensive, because they are based on the best understanding of how customer needs can effectively be satisfied.

Accepted Answer

Innovation does not necessarily correlate with high costs or resource intensity; many innovative ideas are simple and cost-effective, focusing on creative solutions rather than extensive resources.

Question 18

The virtual value chain (VVC) model is designed to map the set of sequential activities that enable a firm to transform data in input into some output information that, once distributed to the appropriate user, has higher value than the original data.

Accepted Answer

The Virtual Value Chain (VVC), introduced by John Sviokla and Jeffrey Rayport, is a business model that describes how businesses can turn data collected from their operations, through various stages of processing and analysis, into valuable information products. This process involves transforming raw data into information that is more useful and valuable to the end user, aligning with the description provided.

Question 19

The inbound logistics activities of your firm can be considered an extension of the outbound logistics activities of your supplier. This is an example of ___________.

Accepted Answer

The answer of The inbound logistics activities of your firm...

Question 20

During which of the 13 stages of the CSLC does the customer acquire her new product and test it out to make sure it works correctly?

Accepted Answer

The answer of During which of the 13 stages of...

Quiz 8: Value Creation With Information Systems