Question 1

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

A

Question 2

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 failure of Hershey Foods' IS system to support its supply and inventory needs during peak production season is an example of implementing IS poorly. This resulted in the company experiencing a significant loss in sales during Halloween.

Question 3

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

E

Question 4

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

The relationship between Nike and Apple is a strategic alliance, which involves two or more organizations working together to achieve a common goal or mutual benefit. In this case, Nike benefits from the integration of its sensor technology with Apple's popular iPod, while Apple benefits from the added value of incorporating fitness tracking capabilities into its device.

Question 5

The Resource-Based View helps determine whether a firm's strategy has created value. Unlike Porter's Competitive Forces framework,this view maintains that competitive advantage comes from the ________________ and other resources of the firm.
A) data
B) technology
C) information
D) systems
E) people

Accepted Answer

The answer of The Resource-Based View helps determine whether a...

Question 6

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 7

This risk of using information resources must be carefully considered by managers due to the rapid spread of applications on smartphones and tablet devices.
A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Delivering a strategic coup
D) Mobile-based alternatives remove advantages
E) Equal access competition

Accepted Answer

Mobile-based alternatives can erode competitive advantages by making similar services widely accessible, thus reducing differentiation.

Question 8

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 is the term used to describe a situation in which two or more companies collaborate with each other despite being competitors. In today's interconnected business world, it is often necessary for companies to work together to achieve common goals, especially with the rise of technology and global markets. Co-opetition can lead to benefits such as increased market share, lower costs, and improved innovation.

Question 9

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 describes the risk of awakening a sleeping giant, where a competitor with more resources and capabilities enters the market and outperforms the firm with its similar technology.

Question 10

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 adapt to the threat of substitute products, such as digital cameras and smartphones, which eventually replaced traditional film photography.

Question 11

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 does not benefit from the network effect because it refers to the capacity of a network to transmit data, and its value does not increase as more people use it.

Question 12

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. The primary activities of the value chain include inbound logistics, operations, outbound logistics, marketing and sales, and service. Technology is considered a support activity that enables the primary activities to be carried out more efficiently and effectively.

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

A company that is in a market with few buying options for the consumer is experiencing 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...

Question 15

Facebook offers 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 from which competitive force?
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

The answer of Facebook offers services that many individuals have...

Question 16

Zara's 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 options A, B, C, and E are all examples of how Zara strategically uses information technologies. However, building silos of responsibilities with limited interaction between store managers, designers, and market specialists goes against Zara's philosophy of collaboration and responsiveness to customer demands. Zara's success is largely attributed to its ability to quickly respond to changes in customer preferences, which would be hindered by the presence of silos within the company. Therefore, option D is the correct answer as it goes against Zara's business strategy.

Question 17

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 section of the value chain, which also includes activities such as production, testing, and packaging. Inbound Logistics involves the sourcing and transportation of raw materials and components, Outbound Logistics involves the delivery of finished goods to customers, Service involves post-sale support, and Organization includes administrative and support functions.

Question 18

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 19

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

In a highly regulated industry such as financial services or health care, running afoul of the law can pose a serious threat to the IS of a company. Non-compliance with governmental regulations can result in fines, legal action, and damage to the company's reputation.

Question 20

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 (RBV) 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. RBV emphasizes the importance of a firm's unique resources and capabilities in achieving sustained competitive advantage.

Quiz 2: Strategic Use of Information Resources in a Global Economy

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

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?

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 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:

The Resource-Based View helps determine whether a firm's strategy has created value. Unlike Porter's Competitive Forces framework,this view maintains that competitive advantage comes from the ________________ and other resources of the firm.

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

This risk of using information resources must be carefully considered by managers due to the rapid spread of applications on smartphones and tablet devices.

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 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?

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?

All of the following benefit from the network effect EXCEPT:

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

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

Facebook offers 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 from which competitive force?

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

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

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?

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 "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?