Question 1

Refer to IT's About Business 2.3 - The Internet Facilitates Generosity: Sociologists argue that posting experiences on message boards can actually improve a person's

Accepted Answer

Sociologists argue that sharing experiences and receiving positive feedback on message boards can boost a person's self-esteem.

Question 2

Refer to Closing Case - Two Financial Giants Merge: When Wells Fargo acquired Wachovia, it faced all of the following issues except:

Accepted Answer

Wells Fargo and Wachovia did not face the issue of merging two similar IT cultures, as their IT cultures were not necessarily similar. The other options were challenges they had to address during the merger.

Question 3

Identify the three types of business pressures, and explain how organizations can use IT to respond to each one.

Accepted Answer

The answer of Identify the three types of business pressures,...

Question 4

Using Porter's competitive forces model, contrast the bargaining power of suppliers and the bargaining power of customers (buyers).

Accepted Answer

The answer of Using Porter's competitive forces model, contrast the...

Question 5

The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret. This is an example of which of Porter's five forces?

Accepted Answer

The answer of The visibility of Internet applications on the...

Question 6

Porter's _____ help(s) companies identify general strategies, whereas his _____ help(s) to identify specific activities where companies can use the strategies for greatest impact.

Accepted Answer

Porter's competitive forces model helps companies identify general strategies by examining the external environment and determining how to compete effectively, while the value chain model helps to identify specific activities where companies can use the strategies for greatest impact by examining the internal operations of a company. Therefore, the correct answer is D.

Question 7

Refer to IT's About Business 2.4 - Progressive: Progressive's Name Your Price application is aimed at which of Porter's five competitive forces?

Accepted Answer

The answer of Refer to IT's About Business 2.4 -...

Question 8

Walmart's automatic replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?

Accepted Answer

The answer of Walmart's automatic replenishment system, which enables the...

Question 9

Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes?

Accepted Answer

Operational effectiveness involves improving internal processes to achieve better efficiency, productivity, and quality, which can lead to better competitive advantage. Cost leadership focuses on achieving the lowest costs in the industry, differentiation focuses on offering unique and valued products/services, innovation focuses on creating new products or processes, and customer-orientation focuses on meeting customer needs and preferences.

Question 10

Which of the following is not an example of business - IT alignment?

Accepted Answer

Option C states that the company views IT as a way to support the business but not as a way to create new revenue streams. However, business-IT alignment is about ensuring that IT strategies and activities are aligned with the overall business goals and objectives, which may include exploring ways to create new revenue streams. Therefore, option C is not an example of business-IT alignment.

Question 11

Which of the following is not a cause of inadequate alignment between IT and business?

Accepted Answer

Lack of funds is not a cause of inadequate alignment between IT and business. The other options (A-D) all relate to issues with communication and understanding between the IT and business sides.

Question 12

When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage?

Accepted Answer

The strategy used by Amazon is a customer-oriented approach focused on providing personalized experiences to customers. By using personalized greetings and recommendations, Amazon attempts to build customer loyalty and provide a better shopping experience. This is a form of differentiation where Amazon stands out from other retailers by providing a personalized touch.

Question 13

Refer IT's About Business 2.1 - Before the Stores: What was Before the Store's competitive advantage?

Accepted Answer

Before the Store's competitive advantage was that it made it easy for people to find the products they remembered from TV. The company used search engine optimization and ad campaigns to target keywords related to products advertised on TV, making it easier for customers to find and buy them online.

Question 14

Which strategy for competitive advantage involves introducing new products and putting new features in existing products?

Accepted Answer

Introducing new products and putting new features in existing products is a strategy for competitive advantage known as innovation. This can help a company differentiate itself from competitors and offer unique products or features to customers.

Question 15

The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage?

Accepted Answer

The introduction of ATM machines by Citibank was an innovation strategy as it introduced a new technology that allowed customers to access their money beyond traditional banking hours and increased convenience for customers.

Question 16

Which strategy for competitive advantage involves offering different products, services, or product features?

Accepted Answer

Differentiation involves offering unique products, services, or product features that set a company apart from its competitors. This can lead to increased customer loyalty and the ability to charge higher prices.

Question 17

Refer to IT's About Business 2.2 - Sleek Audio: Which of Friedman's flatteners applies to Sleek Audio's decision to bring its manufacturing back to the United States?

Accepted Answer

Supply chaining is the correct answer because it refers to the process of managing the flow of goods and services from suppliers to customers. In this case, Sleek Audio is bringing its manufacturing back to the United States, which means that it will be managing the flow of goods from its suppliers in the United States to its customers in the United States.

Question 18

New technologies can produce new products very _____, which _____ the threat from substitute products.

Accepted Answer

New technologies can allow for the production of new products at a faster pace, which increases the threat from substitute products. As companies are able to produce new products quickly, it is easier for competitors to enter the market and offer similar products, increasing the threat of substitutes.

Question 19

IT will impact managers' jobs in all of the following ways except:

Accepted Answer

IT (Information Technology) generally streamlines processes, automates routine tasks, and improves information flow, which allows managers to focus more on strategic planning and less on reactive problem-solving or "putting out fires."

Question 20

Southwest Airlines' low-cost, short-haul strategy is an example of which strategy for competitive advantage?

Accepted Answer

The answer of Southwest Airlines' low-cost, short-haul strategy is an...

Quiz 2: Organizational Strategy, Competitive Advantage, and Information Systems