Question 1

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 is an example of synergies, where the two organizations combine resources to create results that are greater than the sum of their individual efforts. A value web refers to a network of suppliers, distributors, and customers who work together to improve efficiency and value for the end consumer. A value chain refers to the series of activities involved in creating and delivering a product or service to the customer. Core competencies refer to the unique skills and capabilities that give an organization a competitive advantage in the marketplace.

Question 2

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 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

How are information systems used at the industry level to achieve strategic advantage?
A) by building industry-wide, IT-supported consortia and symposia
B) by raising the bargaining power of suppliers
C) by encouraging the entry of new competitors
D) by enforcing standards that reduce the differences between competitors

Accepted Answer

The answer of How are information systems used at the...

Question 5

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 6

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 7

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 recommended first step as it involves evaluating the current information systems, identifying weaknesses, and determining the potential benefits of implementing new systems. This will provide a more informed basis for decision-making and selecting appropriate systems. Identifying the business ecosystem (A) and benchmarking existing systems (D) are important steps, but they should come after the strategic systems analysis. Implementing a strategic transition to the new system (B) can only be done once the appropriate systems have been identified and selected.

Question 8

________ 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 9

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 10

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 11

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 12

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 13

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) Wal-Mart's order entry and inventory management system to coordinate with suppliers.

Accepted Answer

Synergy in business refers to the concept where the combined value and performance of two companies will be greater than the sum of the separate individual parts. JP Morgan Chase's mergers with other banks to expand its network of retail branches exemplifies synergy, as the merger creates additional value and opportunities that were not available to the companies individually.

Question 14

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 description perfectly matches the law of diminishing returns, which states that adding more units of a variable factor of production (such as labor or capital) to a fixed factor of production (such as land or equipment) will eventually cause the marginal product of that variable factor to decline. This phenomenon is also known as the law of diminishing marginal productivity. The other options are not related to this concept.

Question 15

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 16

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 serves as a keystone firm within the mobile platform ecosystem by creating a platform for software application writers to build and sell their products, while also providing support, resources, and promotion for those products. Without Apple's platform, the application writers would not have access to the large customer base and revenue opportunities that Apple provides, and without the application writers, Apple's platform would have much less value to consumers.

Question 17

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 increased efficiency, innovation, and better decision-making by leveraging the collective knowledge and expertise of employees. Better reporting facilities (A) can be a benefit of information systems, but they alone may not enhance core competencies. Creating educational opportunities for management (B) may improve their skills, but it may not directly enhance core competencies. Allowing operational employees to interact with management (C) may improve communication and collaboration, but again, it may not directly enhance core competencies.

Question 18

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

The answer of Network economics
A) applies the law of diminishing...

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 leverages the capabilities of other companies without being physically tied to them, allowing for flexibility and agility in their business model. While B, C, and D may also be true of a virtual company, they do not fully capture the essential character of a virtual company as defined by option A.

Question 20

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

The answer of The emergence, for Amazon.com, of new competitors...

Quiz 3: Information Systems, Organizations, and Strategy

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

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.

________ 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.

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

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

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.

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?

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

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

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

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

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.

An example of synergy in business 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(n) ________ is an activity at which a firm excels as a world-class leader.

An example of a keystone firm within a business ecosystem is

An information system can enhance core competencies by

Network economics

A virtual company

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?