Question 1

Which of the following is considered a bottom-line strategic point of view?
A) A focus on expenses
B) Low customer ratings
C) Legacy computer systems
D) Lack of strategic planning

Accepted Answer

A focus on expenses relates to the financial performance and profitability of a company, which is a bottom-line strategic point of view. B, C, and D do not necessarily relate to the financial performance of a company.

Question 2

Which of the following is considered a top-line strategic point of view?
A) High customer ratings
B) Efficient operational efforts
C) Cutting-edge technology
D) A focus on revenue

Accepted Answer

A focus on revenue is considered a top-line strategic point of view as it involves prioritizing revenue generation and growth for the company.

Question 3

When is rivalry among existing competitors high in the Five Forces Model?
A) When there are a large number of competitors in a market
B) When there are a small number of competitors in a market
C) When the competition in a market is fierce
D) When the competition in a market is more complacent allowing some businesses to excel

Accepted Answer

Rivalry among existing competitors is high when competition in a market is fierce. This means that competitors are constantly jostling for market share and are willing to engage in aggressive tactics to gain an edge over their rivals. In such a market, businesses may engage in price wars, engage in aggressive advertising, or seek to differentiate their products in order to stay ahead of the competition. Therefore, option C is the correct answer.

Question 4

How can information technology (IT) affect your cost leadership strategy?
A) IT can tighten supply chain systems
B) IT can capture and assimilate customer information
C) IT can help analyze and predict customer behavior
D) IT can help with all aspects of a business to reduce costs and analyze needed information

Accepted Answer

IT can help with all aspects of a business to reduce costs and analyze needed information. It can enable cost-cutting measures through automation, streamlining processes, and reducing manual labor. It can also provide real-time data analysis to help identify areas of inefficiency and improve decision-making. Additionally, IT can help reduce communication costs and improve collaboration within the organization.

Question 5

If your business had two strategic initiatives this year. One initiative focused on improving customer satisfaction. The second focused on providing customers with their purchase history from any Internet site in the world. If you were to allocate 15% of your IT budget to the first initiative and 25% to the second initiative, what type of strategy are you applying?
A) Tactical information planning (TIP)
B) Strategic technology planning (STP)
C) Transforming IS strategy (TISS)
D) Run-grow-transform (RGT) framework

Accepted Answer

The allocation of budget towards improving customer satisfaction and providing customers with their purchase history from any Internet site in the world aligns with the Run-Grow-Transform (RGT) framework. This framework focuses on maintaining current operations (Run), expanding capabilities (Grow), and creating new business opportunities or transformations (Transform), which is reflected in the strategic initiatives described.

Question 6

Using the RGT framework, which of the following strategies applies to a business that offers products and services faster and cheaper than the competition?
A) Rein
B) Run
C) Grow
D) Transform

Accepted Answer

The Run strategy in the RGT framework is about improving operational efficiency to offer products and services faster and cheaper than the competition. This strategy is suitable for businesses that operate in mature markets with established customer bases and stable industry dynamics. Therefore, offering faster and cheaper products and services aligns with the Run strategy.

Question 7

Using the RGT framework, which of the following strategies applies to a business that increases their customer base by taking it from the competition?
A) Grow
B) Grab
C) Transcend
D) Transform

Accepted Answer

The answer of Using the RGT framework, which of the...

Question 8

If you were to focus on developing new technology that allowed parents to track the movements of their teenagers by implanting a small chip under their skin, you would be utilizing a(n) _____ strategy.
A) Emergent
B) Top-line
C) Bottom-line
D) Sine qua non

Accepted Answer

The answer of If you were to focus on developing...

Question 9

What is it called when a business focuses its efforts on a small set of products and services compared to an extensive product or service line?
A) Differentiation
B) Loss leader
C) Product leader
D) Focus

Accepted Answer

When a business focuses its efforts on a small set of products and services, it is called a focus strategy. This can help the business differentiate itself from competitors by becoming known for being an expert in a specific area.

Question 10

The authors discussed Michael Porter's three strategies to beating the competition in any industry. Which of the following is not one of those three approaches?
A) Customer loyalty
B) Overall cost leadership
C) Focus
D) Differentiation

Accepted Answer

The three strategies discussed by Michael Porter are overall cost leadership, focus, and differentiation. Customer loyalty is not one of Porter's strategies.

Question 11

When you extend a transaction processing system so that customers can access the Web and place orders without customer assistance, you are creating a(n) _____ system.
A) Emerging
B) Operational
C) Customer self-service
D) Management information system

Accepted Answer

By allowing customers to access and place orders through the Web without the need for customer assistance, you are creating a customer self-service system. This type of system empowers customers to take charge of their interactions with the company and access the services they need without waiting for assistance. This can be a significant cost-saving measure for companies, as it reduces the need for customer service staff and enables them to focus on more complex tasks.

Question 12

If you were to develop a text messaging system that was able to piggy back messages onto other messages moving through the network, and, thereby allowing users to send more messages for less money, how would you be enhancing your competitive strategy?
A) Through focus
B) As a product leader
C) Through loyalty enhancement
D) Through overall cost leadership

Accepted Answer

By implementing a system that allows users to send more messages for less money by piggybacking onto other messages, the company is able to offer a lower cost option compared to competitors who do not have this feature. This aligns with an overall cost leadership strategy, which focuses on offering products or services at a lower cost than competitors in order to gain a broader customer base.

Question 13

Which term is used to describe the offering of equal or better quality products or services at a lesser price than your competitors?
A) Overall cost leadership
B) Price differentiation
C) Price separation
D) Product differentiation

Accepted Answer

Overall cost leadership refers to offering products or services at a lower cost than competitors while maintaining quality, which is the most accurate description of the scenario given in the question. Price differentiation refers to offering different prices for different quality levels of the same product or service. Price separation is not a commonly used term in marketing strategy. Product differentiation refers to creating unique and distinctive products or services that set a company apart from its competitors.

Question 14

What is differentiation in Porter's strategy to surpassing the competition?
A) Creating a unique culture with your customer base
B) Offering a product or service that is perceived as being "unique" in the marketplace
C) Providing purchasing history for individual customers and allowing them to compare their history to others
D) Developing a unique working environment; one that incorporates IT to allow for efficient and off-site working

Accepted Answer

Differentiation in Porter's strategy refers to offering a product or service that is perceived as being "unique" in the marketplace. This uniqueness can be achieved through various means such as superior quality, design, features, customer service, etc. By offering a unique product or service, a company can create a strong brand image, attract customers, and charge premium prices, thus surpassing the competition.

Question 15

If you were to develop a new text messaging system for college students that had a panic button so that, for instance, a message changed when a teacher were close by, how would you be enhancing your competitive strategy?
A) Through focus
B) Through overall cost leadership
C) Through loyalty enhancement
D) Through differentiation

Accepted Answer

The answer of If you were to develop a new...

Question 16

If you were to create a unique industry Web site for your customers that allowed them to build virtual communities with other customers by sharing knowledge, how would you be enhancing your competitive strategy?
A) Through focus
B) Through overall cost leadership
C) Through loyalty enhancement
D) Through differentiation

Accepted Answer

By creating a unique industry website that allows customers to build virtual communities and share knowledge, the company would be enhancing their competitive strategy through differentiation. This strategy would set them apart from their competitors and provide a value-added service to their customers, which can lead to increased customer loyalty and potentially attract new customers looking for a similar platform.

Question 17

What is the type of system that processes transactions within an organization?
A) Transaction processing system
B) Management information system
C) Business intelligent system
D) Decision support system

Accepted Answer

A transaction processing system (TPS) is a type of system that processes transactions within an organization. TPS is designed to collect, process, and store data generated during day-to-day transactions, such as purchases, sales, and payments. TPS is critical for organizations as it provides real-time data and enables decision-making at the operational level. Management information systems, business intelligence systems, and decision support systems all build on the data produced by TPS but are not the same type of system.

Question 18

What is a loss leader?
A) A failing business leader in a competitive market
B) A "first mover" in an emerging market
C) A Competitor who is able to differentiate themselves from opposition
D) A product that is sold at or below cost to entice customers into a store

Accepted Answer

A loss leader is a product that is sold at or below cost to entice customers into a store. The idea is that customers will come in for the discounted item and end up purchasing other products at full price, making up for the loss on the initial product.

Question 19

If you were to focus on developing management information systems that allowed you to reduce the number of employees in the company and, therefore, reduce the price of products offered to the customer, you would be utilizing a _____ strategy.
A) Focused
B) Bottom-line
C) Top-line
D) Cutting-edge

Accepted Answer

The strategy described in the question is a bottom-line strategy, which aims to reduce costs and increase profitability by reducing the number of employees in the company. This can lead to lower prices for customers and a more competitive position in the market. A focused strategy would involve targeting a specific market segment or niche, while a top-line strategy focuses on increasing revenue through sales growth. Cutting-edge strategy involves using innovative or advanced technologies to gain a competitive advantage.

Question 20

Which of the following is an approach to allocating a percentage of your IT budget to various projects based upon business strategies?
A) Tactical information planning (TIP)
B) Strategic technology planning (STP)
C) Run-grow-transform (RGT) framework
D) Transforming IS strategy (TISS)

Accepted Answer

The Run-Grow-Transform (RGT) framework is an approach used to allocate IT budget based on the impact of various projects on the business's ability to run its operations, grow its business, and transform its market offerings. This method aligns IT investments with business strategy by categorizing projects into these three critical areas.

Quiz 1: The Information Age in Which You Live

Which of the following is considered a bottom-line strategic point of view?

Which of the following is considered a top-line strategic point of view?

When is rivalry among existing competitors high in the Five Forces Model?

How can information technology (IT) affect your cost leadership strategy?

Using the RGT framework, which of the following strategies applies to a business that offers products and services faster and cheaper than the competition?

Using the RGT framework, which of the following strategies applies to a business that increases their customer base by taking it from the competition?

If you were to focus on developing new technology that allowed parents to track the movements of their teenagers by implanting a small chip under their skin, you would be utilizing a(n) _____ strategy.

What is it called when a business focuses its efforts on a small set of products and services compared to an extensive product or service line?

The authors discussed Michael Porter's three strategies to beating the competition in any industry. Which of the following is not one of those three approaches?

When you extend a transaction processing system so that customers can access the Web and place orders without customer assistance, you are creating a(n) _____ system.

If you were to develop a text messaging system that was able to piggy back messages onto other messages moving through the network, and, thereby allowing users to send more messages for less money, how would you be enhancing your competitive strategy?

Which term is used to describe the offering of equal or better quality products or services at a lesser price than your competitors?

What is differentiation in Porter's strategy to surpassing the competition?

If you were to develop a new text messaging system for college students that had a panic button so that, for instance, a message changed when a teacher were close by, how would you be enhancing your competitive strategy?

If you were to create a unique industry Web site for your customers that allowed them to build virtual communities with other customers by sharing knowledge, how would you be enhancing your competitive strategy?

What is the type of system that processes transactions within an organization?

What is a loss leader?

If you were to focus on developing management information systems that allowed you to reduce the number of employees in the company and, therefore, reduce the price of products offered to the customer, you would be utilizing a _____ strategy.

Which of the following is an approach to allocating a percentage of your IT budget to various projects based upon business strategies?