Question 1

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own-store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to build a web site for the business that will allow customers to order cookies and cupcakes for later pickup. Is this idea
A) A strategic information system
B) In alignment with the business.
C) in support of a cost leadership strategy
D) likely to provide long term competitive advantage
E) a support activity within the value chain

Accepted Answer

The idea is in alignment with the business because it allows customers to order cookies and cupcakes for later pickup, which is a service that the bakery currently offers.

Question 2

Discuss why the variable cost of digital products is extremely low.

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Question 3

Identify the five forces of Porter's competitive forces model, and explain how the Internet impacts each one.

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Question 4

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start a Cookie Club that gives each member (joining is free) a free cookie after they have purchased a dozen. This idea Reflects which one of Porter's five competitive forces?
A) threat of entry of new competitors
B) bargaining power of suppliers
C) bargaining power of customers
D) threat of substitute products
E) rivalry among existing firms in an industry

Accepted Answer

The idea of the Cookie Club reflects the bargaining power of customers as it is a tactic to incentivize customers to continue purchasing from the bakery by offering them a free cookie after they have purchased a dozen. Customers have the power to choose where they purchase their baked goods from, and this Cookie Club is a way to retain customers and increase their loyalty to the bakery business.

Question 5

Hyo runs an ice cream store with her family. Which of the following activities is a part of their procurement?
A) Send an order to a supplier.
B) Decide what to order.
C) Record daily sales revenue
D) Record goods received
E) Send a check to a supplier

Accepted Answer

The answer of Hyo runs an ice cream store with...

Question 6

Hyo runs an ice cream store with her family. Which of the following activities is a part of their fulfillment process?
A) Receiving goods from their supplier
B) Making ice cream
C) Recording daily sales revenue
D) Recording goods received
E) Making a custom-order ice cream cake

Accepted Answer

Making a custom-order ice cream cake is part of the fulfillment process as it involves completing a specific customer order.

Question 7

Explain what a business environment is and what factors within the environment put pressure on the business.

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Question 8

Differentiate between primary activities and support activities in Porter's value chain model.

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Question 9

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and have their own store-front where they sell breads, rolls, pastries, cookies, and cupcakes. Ted thinks he should put free Wi-Fi in the store front (which seats about 15 people). This idea reflects which one of Porter's five competitive forces?
A) threat of entry of new competitors
B) bargaining power of suppliers
C) bargaining power of customers
D) threat of substitute products
E) rivalry among existing firms in an industry

Accepted Answer

Offering free Wi-Fi is a strategy to enhance the customer experience and differentiate the bakery from competitors, reflecting rivalry among existing firms in an industry.

Question 10

Evaluate the assertion that an information system by itself can rarely provide a sustainable competitive advantage.

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Question 11

Explain how changes in social responsibility, government regulation/deregulation, social programs, protection against terrorism, and ethics put pressure on modern businesses.

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Question 12

Hyo runs an ice cream store with her family. Which of the following activities is a part of their procurement process?
A) Recording their daily sales revenue
B) Sending an order to their sugar supplier
C) Making the ice cream
D) Setting up an employee schedule
E) Taking an order for an ice cream cake

Accepted Answer

Procurement is the process of obtaining goods and services from external sources. In this case, sending an order to their sugar supplier is a part of their procurement process as they are procuring a raw material for their ice cream production. Recording sales revenue, making ice cream, setting up an employee schedule, and taking orders for ice cream cake are all important operational activities but they do not fall under the category of procurement.

Question 13

Provide an example of each of the five strategies for competitive advantage. (Do not use the examples provided in the book).

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