Question 1

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 statement mentions that Zara uses information technologies to support a continuous flow of information from stores to manufacturers to distributors, maintain a rich, centralized repository of customer data, bring new products quickly to market, meeting customer demands, and keep its inventory levels very low (relative to other retailers). However, it doesn't mention that Zara builds silos of responsibilities with limited interaction between store managers, designers, and market specialists. Therefore, the correct answer is D.

Question 2

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. The network effect refers to the value a product or service gains as more users join and use it. For example, Facebook becomes more valuable to its users as more of their friends and family also join the platform. However, network bandwidth does not become more valuable as more people use it. In fact, the more users there are on a network, the slower the bandwidth can become.

Question 3

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, especially digital photography.

Question 4

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 is a management framework that emphasizes the importance of an organization's internal resources and capabilities in achieving sustainable competitive advantage. It helps to 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. Therefore, the best choice is A) Resource-Based View.

Question 5

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 firm introduces a technology or product that prompts a competitor to respond with a superior product. In this case, the competitor implemented a similar technology with additional features, making it more valuable to the consumer. This can pose a significant threat to the firm's success and market share.

Question 6

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 are inbound logistics, operations, outbound logistics, marketing and sales, and service. Technology is usually considered a support activity that facilitates these primary activities.

Question 7

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 collaboration between competitors in which they work together to achieve mutual benefits while still competing in other areas. This type of partnership is becoming more common in today's business world as companies look for ways to leverage each other's strengths and expertise. Integrated supply chain, business process, strategic alliance, and value proposition all refer to different types of partnerships, but they do not specifically refer to collaboration with a competitor.

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

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 10

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 11

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

This relationship between Nike and Apple is a strategic alliance, meaning that two companies work together to achieve mutually beneficial goals, in this case, combining their existing technology to create a new product that appeals to both Nike and Apple's customer base.

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 included in the Operations part of the value chain, which involves the actual production of the product. Inbound Logistics refer to receiving and storing materials for production, Outbound Logistics refer to shipping and distributing finished products, Service refers to after-sales assistance, and Organization refers to the management and administration of all the other parts.

Question 13

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 14

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 highly regulated industries such as financial services or healthcare, there are strict laws and regulations that must be followed regarding the handling of sensitive information. Running afoul of the law can not only result in legal consequences but can also lead to reputational damage and loss of consumer trust. Therefore, it is important to ensure that the IS of a company in these industries are in compliance with applicable laws and regulations.

Question 15

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 16

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 17

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

The answer of This risk of using information resources must...

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

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 example given is of implementing an IS poorly, which resulted in a significant negative impact on the organization's operations and sales.

Question 20

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...

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

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

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 "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 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?

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

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:

Two automobile manufacturers are working together to develop hybrid technology.This type of relationship between the two automobile manufacturers 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?

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.

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:

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

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?

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

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:

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

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?

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?

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