Question 1

Expanding a company's product offering into global markets is an example of a(n) _______________ strategy.
A) cost leadership
B) differentiation
C) growth
D) alliance

Accepted Answer

Expanding a company's product offering into global markets is an example of a growth strategy.

Question 2

A transaction database allows all of the following activities except:
A) Linking employees and distribution partners to customers
B) Letting customers check order history
C) Giving employees a complete view of each customer
D) None of these activities are supported by a transaction database.

Accepted Answer

The answer of A transaction database allows all of the...

Question 3

A customer-focused business can build customer value and loyalty by:
A) Making a loyal customer feel special with website personalization
B) Letting customers place orders directly, or through distribution partners
C) Letting customers check order history and delivery status
D) All of the choices are correct.

Accepted Answer

All of the choices are correct. A customer-focused business should make every effort to provide excellent customer service and exceed customer expectations. This can be achieved by implementing strategies such as website personalization, allowing customers to place orders through various channels, and providing them with access to order history and delivery status. Implementing all of these strategies will help to build customer value and loyalty.

Question 4

According to the textbook case, innovation in information systems at Universal Orlando comes from thinking like a:
A) Customer
B) Competitor
C) Employee
D) IT specialist

Accepted Answer

The textbook case explains that Universal Orlando's innovation in information systems was triggered by analyzing customer behavior and needs, such as optimizing ride wait times and enhancing the overall customer experience. Thus, the best choice is A, thinking like a customer.

Question 5

Which of the following is a primary business process?
A) Collaborative workflow intranet
B) Targeted marketing
C) Technology development
D) Procurement of resources

Accepted Answer

Targeted marketing is a primary business process as it involves identifying and selecting specific target markets, developing marketing strategies to reach those markets, and executing campaigns to promote products or services to those markets. Collaborative workflow intranet, technology development, and procurement of resources are all support processes that facilitate the primary business processes but are not primary processes themselves.

Question 6

A company that places a strategic focus on customer value recognizes that __________, rather than __________, has become a primary determinant in a customer's perception of value.
A) service, price
B) price, quality
C) quality, service
D) quality, price.

Accepted Answer

While both quality and price are important factors in a customer's perception of value, research shows that quality has become the primary determinant. Customers are willing to pay higher prices for products and services that are of high quality and meet their needs, rather than choosing a cheaper option that may be of lower quality. Therefore, a company that focuses on customer value should prioritize delivering high-quality products and services to meet customer needs and expectations.

Question 7

All of the following are primary business processes, except:
A) Customer relationship management
B) Targeted marketing
C) Technology development
D) Just-in-time warehousing

Accepted Answer

Customer relationship management, targeted marketing, and just-in-time warehousing are all primary business processes because they directly relate to the company's interactions with its customers and suppliers as well as the management of its resources. Technology development, while important, is not a primary business process as it is more focused on the internal workings of the company and the development of its products and services.

Question 8

When a firm develops ways to differentiate their products and services from their competitors', it is pursuing a _______________ strategy.
A) differentiation
B) alliance
C) innovation
D) marketing

Accepted Answer

The question specifically mentions that the firm is developing ways to differentiate their products and services from their competitors. This aligns with a differentiation strategy, which focuses on offering unique or superior products or services that can command higher prices or greater customer loyalty. The other choices are not relevant to the information provided in the question.

Question 9

When customers become dependent on mutually beneficial inter-enterprise information systems, they become reluctant to switch to a company's competitors because they would incur all following costs except:
A) Time
B) Money
C) Innovation
D) Effort

Accepted Answer

Customers become dependent on mutually beneficial inter-enterprise information systems because they have invested time, money and effort into integrating these systems with their own. Switching to a competitor would therefore incur all of these costs. However, innovation is not a cost that would be incurred when switching to a competitor. Therefore, the correct answer is C - innovation.

Question 10

Companies like Wal-Mart extend their networks to their customers and suppliers in order to build innovative continuous inventory replenishment systems that would lock in their business. This creates a(n) _______________ information system.
A) leveraged
B) inter-enterprise
C) intra-enterprise
D) locked-in

Accepted Answer

Inter-enterprise information systems are established between different companies to enable sharing of information and collaboration. Wal-Mart's network with their customers and suppliers is an example of an inter-enterprise information system.

Question 11

All of the following are support processes, except:
A) Customer relationship management
B) Procurement of resources
C) Technology development
D) Employee benefits intranet

Accepted Answer

Customer relationship management is a core business process, focusing on interactions with customers to improve sales and customer satisfaction, rather than a support process which aids the core processes.

Question 12

The value chain framework can be used to view a firm as a series, a chain, or a network of basic activities that:
A) Add value to its products and services, and thus add a margin of value to the firm.
B) Lower costs along the product development chain.
C) Create the perception of value and goodwill to employees.
D) Create a smooth-flowing chain of events between the supplier and the customer.

Accepted Answer

The value chain framework is used to analyze a firm's primary and support activities that add value to its products and services, which in turn adds a margin of value to the firm. Lowering costs along the product development chain, creating goodwill with employees, and creating a smooth-flowing chain of events are all potential benefits of optimizing the value chain, but they are not the primary objective.

Question 13

Companies that consistently offer the best value from the customer's perspective do all the following, except:
A) Keep track of their customers' individual preferences
B) Keep up with market trends
C) Supply products, services, and information anytime, anywhere
D) Offer lowest prices and fastest delivery

Accepted Answer

Offering the lowest prices and fastest delivery is not always the best way to provide value to customers. Value can also be provided through quality products, excellent customer service, personalized experiences, and other factors. While it is important to remain competitive in terms of pricing and delivery, companies that focus solely on these factors may overlook other important aspects of providing value to their customers.

Question 14

In addition to the five basic competitive strategies, the text describes several key strategies implemented with information technology. Which of the following is not one of those strategies?
A) Locking in customers
B) Building switching costs
C) Creating alliances
D) Raising barriers to entry

Accepted Answer

Creating alliances is not one of the key strategies implemented with information technology according to the text. The other strategies mentioned include locking in customers, building switching costs, and raising barriers to entry.

Question 15

Investments in information technology that build valuable new relationships allow a firm to:
A) Lock in the supplier
B) Lock in the customer
C) Lock out competition
D) All the above

Accepted Answer

Investments in information technology that build valuable new relationships can lock in the supplier by providing them with efficient communication and ordering systems, lock in the customer by providing personalized experiences and improving their satisfaction with the company, and lock out competition by having an advantage in the market with these valuable relationships. Therefore, all of the above choices are correct.

Question 16

Which of the following is a support process?
A) Collaborative workflow intranet
B) Targeted marketing
C) Customer relationship management
D) Just-in-time warehousing

Accepted Answer

The answer of Which of the following is a support...

Question 17

A serious problem of competitive advantage is that:
A) It normally doesn't last very long and it isn't sustainable over the long term
B) Competitors figure out how it was done and do the same thing
C) A competitive advantage can become a competitive necessity
D) All of the choices are correct.

Accepted Answer

All of the choices are correct.

A) It normally doesn't last very long and it isn't sustainable over the long term - Competitive advantages can be short-lived as competitors can quickly catch up or new technologies can make the advantage irrelevant.

B) Competitors figure out how it was done and do the same thing - This is a common problem as competitors analyze successful strategies and attempt to replicate them.

C) A competitive advantage can become a competitive necessity - As competitors adopt successful strategies, what was once a competitive advantage becomes a necessity to remain competitive.

Question 18

Using an information system to make customers and/or suppliers reluctant to change to another competitor is called:
A) Growth strategy
B) Building switching costs
C) Creating alliances
D) Raising barriers to entry

Accepted Answer

Building switching costs refers to using an information system to make it difficult and undesirable for customers and/or suppliers to switch to another competitor. This can include loyalty programs, exclusive deals, and personalized experiences that make the customer feel invested in the company and less likely to leave.

Question 19

A sales company such as eBay would be most likely to use information technology to promote _______________.
A) online stock trading
B) point-of-sale inventory tracking
C) online auctions
D) virtual manufacturing alliances

Accepted Answer

eBay is an online marketplace that specializes in online auctions. Therefore, it is most likely to use information technology to promote online auctions.

Question 20

When a firm strives to find ways to help its suppliers and customers reduce their costs or to increase the costs of their competitors, it is pursuing a strategy of _______________.
A) innovation
B) alliance
C) cost leadership
D) growth

Accepted Answer

The strategy described in the question is known as cost leadership. This strategy involves a firm finding ways to reduce its own costs and/or the costs of its suppliers and customers. Additionally, the firm may also try to increase the costs of its competitors in order to gain a competitive advantage. This strategy is focused on achieving the lowest possible costs in the industry, which can help the firm to offer lower prices and/or higher profit margins.

Quiz 2: Competing With Information Technology

Expanding a company's product offering into global markets is an example of a(n) _______________ strategy.

A transaction database allows all of the following activities except:

A customer-focused business can build customer value and loyalty by:

According to the textbook case, innovation in information systems at Universal Orlando comes from thinking like a:

Which of the following is a primary business process?

A company that places a strategic focus on customer value recognizes that , rather than , has become a primary determinant in a customer's perception of value.

All of the following are primary business processes, except:

When a firm develops ways to differentiate their products and services from their competitors', it is pursuing a _______________ strategy.

When customers become dependent on mutually beneficial inter-enterprise information systems, they become reluctant to switch to a company's competitors because they would incur all following costs except:

Companies like Wal-Mart extend their networks to their customers and suppliers in order to build innovative continuous inventory replenishment systems that would lock in their business. This creates a(n) _______________ information system.

All of the following are support processes, except:

The value chain framework can be used to view a firm as a series, a chain, or a network of basic activities that:

Companies that consistently offer the best value from the customer's perspective do all the following, except:

In addition to the five basic competitive strategies, the text describes several key strategies implemented with information technology. Which of the following is not one of those strategies?

Investments in information technology that build valuable new relationships allow a firm to:

Which of the following is a support process?

A serious problem of competitive advantage is that:

Using an information system to make customers and/or suppliers reluctant to change to another competitor is called:

A sales company such as eBay would be most likely to use information technology to promote _______________.

When a firm strives to find ways to help its suppliers and customers reduce their costs or to increase the costs of their competitors, it is pursuing a strategy of _______________.