Question 1

Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter's value chain activities?
A) Outbound Logistics
B) Marketing & Sales
C) Operations
D) Service
E) Human resources

Accepted Answer

The use of POS (Point of Sale) systems to capture sales data directly supports the Marketing & Sales activity in Porter's value chain by providing valuable information on customer purchases, preferences, and trends, which can be used to tailor marketing strategies and improve sales.

Question 2

Facebook has for some years offered services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself well from which competitive force since the beginning?
A) Bargaining power of suppliers
B) Threat of substitute products
C) Potential threat of new entrants
D) Bargaining power of buyers
E) Industry collaboration

Accepted Answer

C

Question 3

Zara strategically uses information technologies to do all of the following EXCEPT:
A) Bring new products quickly to market, meeting customer demands
B) Support a continuous flow of information from stores to manufacturers to distributors
C) Maintain a rich, centralized repository of customer data
D) Build silos of responsibilities with limited interaction between store managers, designers and market specialists
E) Keep its inventory levels very low (relative to other retailers)

Accepted Answer

The other options describe ways in which Zara strategically uses information technologies, but building silos of responsibilities with limited interaction between different areas of the company (such as store managers, designers, and market specialists) is not a way in which Zara strategically uses IT. In fact, Zara prides itself on its cross-functional teams that collaborate and communicate regularly to bring products to market quickly.

Question 4

Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage?
A) Porter's Competitive Forces
B) Porter's Value Chain
C) The Information Systems Strategy Triangle
D) The Network Effect
E) The Resource-Based View

Accepted Answer

The answer of Which model is best used to understand...

Question 5

The ____________ view considers activities that create, deliver, and support a company's product or service.
A) product and service
B) creation, delivery, and support model
C) Asset-based
D) Resource-based
E) Porter value chain

Accepted Answer

The Porter value chain is a framework that analyzes a company's activities that create, deliver, and support its product or service. It is a well-known and widely used model in business strategy.

Question 6

A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk?
A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Mobile-based alternative removes advantages
D) Running afoul of the law
E) Implementing IS poorly

Accepted Answer

This scenario is referring to a competitive risk where a competitor has developed a better technology, which can be seen as a "sleeping giant" that was awakened by the initial firm's release of their technology.

Question 7

Porter's value chain framework suggests that a competitive advantage can stem from:
A) Lowering costs and adding value
B) Reducing isolated costs
C) Disregarding customer data
D) Optimizing internal costs
E) Improving customer service

Accepted Answer

The answer of Porter's value chain framework suggests that a...

Question 8

Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as:
A) Co-opetition
B) Strategic alliance
C) Competition
D) Collaboration
E) Business strategy

Accepted Answer

The answer of Two automobile manufacturers are working together to...

Question 9

This risks of using information resources include all of the following except:
A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Implementing IS poorly
D) Missing cooperative opportunities
E) Failing to deliver what users want

Accepted Answer

The answer of This risks of using information resources include...

Question 10

The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as:
A) Strategic alliance
B) Co-opetition
C) Collaboration
D) Dependence
E) Competition

Accepted Answer

A strategic alliance is a long-term partnership between two organizations to achieve mutual benefits. In this case, Nike and Apple have come together to offer a product that combines both their technologies to gain a competitive advantage in the market.

Question 11

Partnering with a competitor is becoming more and more common in today's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as:
A) Co-opetition
B) Integrated supply chain
C) Business process
D) Strategic alliance
E) Value proposition

Accepted Answer

Co-opetition refers to the practice of collaborating with a competitor in order to achieve mutual benefits, while still competing in other areas. This is becoming increasingly common in industries such as technology, where companies may have complementary strengths and can work together on certain projects or initiatives.

Question 12

Which part of the value chain includes the manufacturing of goods?
A) Inbound Logistics
B) Outbound Logistics
C) Operations
D) Service
E) Organization

Accepted Answer

The manufacturing of goods is a part of the Operations stage of the value chain, which involves the actual production of goods or services.

Question 13

Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as:
A) Strategic alliance
B) Co-opetition
C) Collaboration
D) Dependence
E) Competition

Accepted Answer

The answer of Suppose Zara has a linked supply chain...

Question 14

While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk?
A) Awaking a sleeping giant
B) Implementing IS poorly
C) Demonstrating bad timing
D) Running afoul of the law
E) Mobile-based alternative removes advantages

Accepted Answer

The Hershey Foods example demonstrates the risks of implementing an IS system poorly. The complex system was not able to support the company's supply and inventory needs during its busiest season, leading to significant financial losses.

Question 15

All of the following benefit from the network effect EXCEPT:
A) Wikis
B) Twitter
C) Email
D) Facebook
E) Network bandwidth

Accepted Answer

Network bandwidth is a technological resource that does not benefit from the network effect. The network effect refers to the phenomenon where a product or service becomes more valuable as more people use it. Wikis, Twitter, Email, and Facebook all benefit from the network effect as they become more useful as more people use them.

Question 16

Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter's 5 competitive forces?
A) Bargaining power of suppliers
B) Threat of substitute products
C) Potential threat of new entrants
D) Bargaining power of buyers
E) Industry collaboration

Accepted Answer

Kodak failed to use IT to fend off the threat of substitute products, specifically digital cameras, which ultimately led to their decline.

Question 17

Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care?
A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Mobile-based alternative removes advantages
D) Running afoul of the law
E) Implementing IS poorly

Accepted Answer

Highly regulated industries such as financial services or health care have strict legal requirements that companies must follow to protect sensitive information. Running afoul of the law can pose a significant risk to the information systems of such companies.

Question 18

Which one of the following is not considered to be a primary activity of the value chain of a firm?
A) Inbound Logistics
B) Service
C) Sales & Marketing
D) Technology
E) Operations

Accepted Answer

Technology is not considered a primary activity of the value chain, but a support activity. The primary activities of the value chain are inbound logistics, operations, outbound logistics, marketing and sales, and service.

Question 19

Which "view," applied in the area of Information Systems, helps identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term?
A) Resource-Based View
B) Information-System View
C) Information-Resource View
D) System-Based View
E) Organization View

Accepted Answer

The Resource-Based View approach helps identify the two subsets of information resources mentioned in the question - those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term. This view emphasizes the importance of a firm's resources and capabilities in achieving and maintaining a competitive advantage.

Question 20

A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter's Five Competitive Forces?
A) Bargaining power of suppliers
B) Threat of substitute products
C) Potential threat of new entrants
D) Bargaining power of buyers
E) Industry competitors

Accepted Answer

The answer of A company that is in a market...

Quiz 3: Strategic Use of Information Resources

Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter's value chain activities?

Facebook has for some years offered services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself well from which competitive force since the beginning?

Zara strategically uses information technologies to do all of the following EXCEPT:

Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage?

The ____________ view considers activities that create, deliver, and support a company's product or service.

A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk?

Porter's value chain framework suggests that a competitive advantage can stem from:

Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as:

This risks of using information resources include all of the following except:

The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as:

Partnering with a competitor is becoming more and more common in today's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as:

Which part of the value chain includes the manufacturing of goods?

Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as:

All of the following benefit from the network effect EXCEPT:

Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter's 5 competitive forces?

Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care?

Which one of the following is not considered to be a primary activity of the value chain of a firm?

Which "view," applied in the area of Information Systems, helps identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term?

A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter's Five Competitive Forces?