Question 1

In a manufacturing business, which of the following transforms finished goods into cash?

Accepted Answer

The sales process involves selling manufactured goods to customers, which is how the finished goods are transformed into cash. Warehouse operations and outbound logistics deal with the storage and transportation of goods, while the manufacturing process involves the production of goods but not necessarily their sale.

Question 2

Neil creates an application which facilitates the easy storage and access of employee information like name, age, experience, and qualification for his organization. The application is an example of a(n)________.

Accepted Answer

The application created by Neil is a repository because it stores and provides access to employee information. It is not a program, linkage or activity as it does not execute any specific task, connect different systems, or perform a dedicated function.

Question 3

The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

Accepted Answer

The primary activity of sales and marketing is to identify, anticipate, and satisfy customer's needs and wants through the creation, promotion, and pricing of products or services. The collection, storage, and physical distribution of products is more closely related to the logistics and operations functions.

Question 4

Distinguish between the primary and support activities of a value chain.

Accepted Answer

The answer of Distinguish between the primary and support activities...

Question 5

In the value chain, customer service is concerned with inducing buyers to purchase the product and providing a means for them to do so.

Accepted Answer

Customer service in the value chain is primarily concerned with enhancing customer satisfaction and assisting customers in using products or services effectively, rather than inducing buyers to purchase the product, which is more closely related to marketing and sales activities.

Question 6

The total margin of the value chain is the difference between the total value added and the total costs incurred.

Accepted Answer

The total margin is calculated as the difference between the total value added and the total costs.

Question 7

A(n)________ is a network of activities that generate worth by transforming inputs into outputs.

Accepted Answer

A business process is a network of activities that generate worth by transforming inputs into outputs.

Question 8

Which of the following defines a repository?

Accepted Answer

A repository is a collection of something, such as data or raw materials. It can be a place where information or items are stored or managed for future use.

Question 9

The difference between the value that an activity generates and the cost of the activity is called revenue.

Accepted Answer

The difference between the value that an activity generates and the cost of the activity is called profit, not revenue. Revenue is the total amount of money earned from sales or services.

Question 10

Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service.

Accepted Answer

Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service.

Question 11

Explain the concept of business process design.

Accepted Answer

The answer of Explain the concept of business process design....

Question 12

In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.

Accepted Answer

Inbound logistics involve the receiving, storing, and disseminating of inputs to a product by the manufacturer.

Question 13

A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

Accepted Answer

A differentiation strategy focuses on providing unique and superior value to customers, which may involve adding costs to certain activities such as product features, customer service, or design. However, this is only done if the activity has a positive margin, meaning that the additional cost can be offset by the increased customer demand and higher prices that come with the differentiated product or service. Therefore, in a differentiation strategy, cost is only added if it can be justified by increased profitability.

Question 14

Briefly describe the concepts of value, margin, and value chain as defined by Porter.

Accepted Answer

The answer of Briefly describe the concepts of value, margin,...

Question 15

The cost of the business process is the sum of the cost of the inputs and the ________.

Accepted Answer

The cost of a business process includes the cost of the inputs (raw materials, labor, equipment, etc.) as well as the cost of the activities (tasks performed in the process). The cost of the outputs or products is not included in the cost of the process itself. Therefore, choice A is the best answer.

Question 16

What are the various support activities in a value chain?

Accepted Answer

The answer of What are the various support activities in...

Question 17

A linkage is a network of activities that generate value by transforming inputs into outputs.

Accepted Answer

A linkage refers to the connection between different components or parts, often in the context of mechanical systems or genetics, rather than a network of activities transforming inputs into outputs, which describes a process or value chain.

Question 18

Define the primary activities in a generic value chain.

Accepted Answer

The answer of Define the primary activities in a generic...

Question 19

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

Accepted Answer

Support activities in a value chain do include finding vendors, setting up contracts, and negotiating prices. These activities are important to ensure that a business can efficiently and effectively carry out its primary activities, such as manufacturing or marketing.

Question 20

Explain linkages with an example.

Accepted Answer

The answer of Explain linkages with an example....

Quiz 3: Strategy and Information Systems

In a manufacturing business, which of the following transforms finished goods into cash?

Neil creates an application which facilitates the easy storage and access of employee information like name, age, experience, and qualification for his organization. The application is an example of a(n) ________.

The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

Distinguish between the primary and support activities of a value chain.

In the value chain, customer service is concerned with inducing buyers to purchase the product and providing a means for them to do so.

The total margin of the value chain is the difference between the total value added and the total costs incurred.

A(n) ________ is a network of activities that generate worth by transforming inputs into outputs.

Which of the following defines a repository?

The difference between the value that an activity generates and the cost of the activity is called revenue.

Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service.

Explain the concept of business process design.

In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.

A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

Briefly describe the concepts of value, margin, and value chain as defined by Porter.

The cost of the business process is the sum of the cost of the inputs and the ________.

What are the various support activities in a value chain?

A linkage is a network of activities that generate value by transforming inputs into outputs.

Define the primary activities in a generic value chain.

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

Explain linkages with an example.