Question 1

A virtual company:

Accepted Answer

A virtual company uses networks to leverage resources and collaborate with other companies, which allows it to operate without traditional boundaries or physical locations. This enables it to create and distribute products and services more efficiently and effectively. Virtual companies are not necessarily limited to Internet technology, which is the focus of options B and C. Option D is too narrow as virtual companies may also provide physical products. Option E is not applicable as the law of diminishing returns does not apply to virtual companies.

Question 2

The power of suppliers is one of the competitive forces that affect an organization's ability to compete.

Accepted Answer

The power of suppliers is one of the five competitive forces identified in Porter's Five Forces framework that can affect an organization's ability to compete. This force refers to the bargaining power that suppliers have on an organization in terms of price, quality, and availability of goods or services. The higher the supplier power, the less control an organization has over its supply chain and the more difficult it is to remain competitive.

Question 3

An information system can enhance core competencies by:

Accepted Answer

Encouraging the sharing of knowledge across business units can help create and enhance core competencies by promoting cross-functional collaboration and knowledge transfer within the organization. This can lead to more innovative products and services, as well as greater efficiency and effectiveness in delivering them.

Question 4

Which of the following statements about network economics is not true?

Accepted Answer

In network economics, the marginal cost of adding new members to the network is typically lower than the marginal gain. This is because the more members a network has, the more valuable it becomes, and therefore the more attractive it is for new members to join. Network effects generally create a positive feedback loop where more users produce more value, which in turn attracts even more users. Thus, the correct statement would be "In network economics, the marginal cost of adding new members to the network is lower than the marginal gain."

Question 5

The most successful solutions or methods for achieving a business objective are called:

Accepted Answer

The term "best practices" refers to the most successful and effective solutions or methods for achieving a specific business objective. These practices are often identified through research or analysis of companies that have achieved exceptional results in a particular area. By adopting best practices, a company can improve its performance and increase its chances of success.

Question 6

All of the following have been disruptive technologies except:

Accepted Answer

The answer of All of the following have been disruptive...

Question 7

The emergence of software as a web service has acted as a disruptive technology for:

Accepted Answer

The emergence of software as a web service has disrupted traditional boxed software companies, as more and more software is being delivered through the internet and web-based applications rather than through physical software installations.

Question 8

How are information systems used at the industry level to achieve strategic advantage?

Accepted Answer

Industry-wide, IT-supported consortia and symposia can help standardize practices, share knowledge, and create efficiencies that provide a strategic advantage across the industry.

Question 9

In network economics, the value of a commercial software vendor's software products:

Accepted Answer

In network economics, the value of a commercial software vendor's products increases as more people use them because the value of the product is linked to its network effects. As more people use the product, the network effect becomes stronger, increasing the value of the product.

Question 10

The power of customers is diminished in a transparent marketplace.

Accepted Answer

The power of customers is actually increased in a transparent marketplace because they have access to more information and can make more informed purchasing decisions. Transparency also allows customers to hold companies accountable for their actions and can lead to better product and service offerings.

Question 11

When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created.

Accepted Answer

Synergies are created when the output of some units can be used as inputs to other units or if two organizations pool markets and expertise that result in lower costs and generate profits. Value webs refer to a network of related products, services, and companies that support each other. Value chains refer to the sequence of activities that result in the production and delivery of a product or service. Core competencies refer to unique strengths or abilities that a company possesses and can use to gain a competitive advantage. Benchmarks refer to a standardized set of criteria used to measure and compare performance. Therefore, the best choice in this case is synergies (option C).

Question 12

Which of the following is not an advantage for new companies entering the marketplace?

Accepted Answer

The answer of Which of the following is not an...

Question 13

The support activities of a firm include:

Accepted Answer

Support activities in a firm's value chain include organization infrastructure, human resources, technology, and procurement. These are foundational elements that support the primary activities of the firm, such as inbound and outbound logistics, operations, marketing and sales, and service.

Question 14

Which of the following is not a true statement about value webs?

Accepted Answer

Value webs are known for their flexibility and ability to quickly adapt to changes in supply and demand. The other statements are true about value webs.

Question 15

All of the following are considered primary activities of a firm except:

Accepted Answer

Procurement is considered a support activity, not a primary activity, in the value chain model. Primary activities directly concern the creation, sale, maintenance, and support of a product or service, whereas procurement involves the purchasing of goods, services, or works from an external source.

Question 16

The idea that the more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output, is referred to as:

Accepted Answer

The law of diminishing returns describes the decrease in marginal output that results from increasing the application of a particular input, such as labor or capital, while keeping other inputs constant. Eventually, a point is reached at which the additional input produces no additional output, and this is known as the point of diminishing returns.

Question 17

Benchmarking:

Accepted Answer

Benchmarking is a process of comparing the efficiency and effectiveness of your business processes against strict standards or best practices followed by other companies in the same or different industries. This helps identify areas where your organization can improve and optimize its processes to lower costs, improve quality, and drive business growth.

B, C, D, and E are incorrect choices because they describe different concepts. B talks about industry-wide standards, C refers to measuring the speed and responsiveness of information technology, D describes synchronization of business processes, and E is about coordinating value chains among independent firms.

Question 18

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.

Accepted Answer

A value web is a networked system of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market. This contrasts with a traditional value chain, where the production process is linear.

Question 19

A firm can be said to have competitive advantage when it uses commonly available resources more efficiently.

Accepted Answer

Competitive advantage is achieved when a firm is able to perform better than its competitors in terms of cost, quality, or innovation. One way to achieve this is by using commonly available resources more efficiently, such as optimizing production processes or improving supply chain management. By doing so, the firm can reduce costs and improve its overall performance, giving it a competitive edge over its rivals.

Question 20

Studies show that more than 75% of a business firm's profits can be explained by alignment of IT with business.

Accepted Answer

The answer of Studies show that more than 75% of...

Quiz 3: Achieving Competitive Advantage With Information Systems