Deck 3: Strategic Use of Information Resources

Question 1

The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as:

A) Strategic alliance
B) Co-opetition
C) Collaboration
D) Dependence
E) Competition

Answer 1

A

Question 2

The ___________ view considers activities that create, deliver, and support a company's product or service.

A) product and service
B) creation, delivery, and support model
C) Asset-based
D) Resource-based
E) Porter value chain

Answer 2

Porter value chain

Question 3

Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter's 5 competitive forces?

A) Bargaining power of suppliers
B) Threat of substitute products
C) Potential threat of new entrants
D) Bargaining power of buyers
E) Industry collaboration

Answer 3

B

Question 4

Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage?

A) Porter's Competitive Forces
B) Porter's Value Chain
C) The Information Systems Strategy Triangle
D) The Network Effect
E) The Resource-Based View

Question 5

Which "view," applied in the area of Information Systems, helps identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term?

A) Resource-Based View
B) Information-System View
C) Information-Resource View
D) System-Based View
E) Organization View

Question 6

Partnering with a competitor is becoming more and more common in today's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as:

A) Co-opetition
B) Integrated supply chain
C) Business process
D) Strategic alliance
E) Value proposition

Question 7

A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk?

A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Mobile-based alternative removes advantages
D) Running afoul of the law
E) Implementing IS poorly

Question 8

Which part of the value chain includes the manufacturing of goods?

A) Inbound Logistics
B) Outbound Logistics
C) Operations
D) Service
E) Organization

Question 9

While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk?

A) Awaking a sleeping giant
B) Implementing IS poorly
C) Demonstrating bad timing
D) Running afoul of the law
E) Mobile-based alternative removes advantages

Question 10

Porter's value chain framework suggests that a competitive advantage can stem from:

A) Lowering costs and adding value
B) Reducing isolated costs
C) Disregarding customer data
D) Optimizing internal costs
E) Improving customer service

Question 11

All of the following benefit from the network effect EXCEPT:

A) Wikis
B) Twitter
C) Email
D) Facebook
E) Network bandwidth

Question 12

Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as:

A) Co-opetition
B) Strategic alliance
C) Competition
D) Collaboration
E) Business strategy

Question 13

Which one of the following is not considered to be a primary activity of the value chain of a firm?

A) Inbound Logistics
B) Service
C) Sales & Marketing
D) Technology
E) Operations

Question 14

Facebook has for some years offered services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself well since the beginning from which competitive force?

A) Bargaining power of suppliers
B) Threat of substitute products
C) Potential threat of new entrants
D) Bargaining power of buyers
E) Industry collaboration

Question 15

Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as:

A) Strategic alliance
B) Co-opetition
C) Collaboration
D) Dependence
E) Competition

Question 16

Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care?

A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Mobile-based alternative removes advantages
D) Running afoul of the law
E) Implementing IS poorly

Question 17

Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter's value chain activities?

A) Outbound Logistics
B) Marketing & Sales
C) Operations
D) Service
E) Human resources

Question 18

This risks of using information resources include all of the following EXCEPT:

A) Demonstrating bad timing
B) Awakening a sleeping giant
C) Implementing IS poorly
D) Missing cooperative opportunities
E) Failing to deliver what users want

Question 19

Zara strategically uses information technologies to do all of the following EXCEPT:

A) Bring new products quickly to market, meeting customer demands
B) Support a continuous flow of information from stores to manufacturers to distributors
C) Maintain a rich, centralized repository of customer data
D) Build silos of responsibilities with limited interaction between store managers, designers and market specialists
E) Keep its inventory levels very low (relative to other retailers)

Question 20

A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter's Five Competitive Forces?

A) Bargaining power of suppliers
B) Threat of substitute products
C) Potential threat of new entrants
D) Bargaining power of buyers
E) Industry competitors

Question 21

The supply chain:

A) Points out the concept of weak link in an ordering process
B) Helps us understand how value is built inside a single firm.
C) Is composed of several value chains linked into a larger chain (a chain within a chain).
D) All of the above
E) None of the above

Question 22

Salesforce.com is an example of SAAS (software as a service).

Question 23

The IT asset known as__________________ is business data that has been captured, organized, and made available to an organization.

Question 24

A strategy where companies cooperate and compete at the same time with companies in its value net is called:

A) Co-opetition
B) Teamwork
C) Classwork
D) Strategic Alliance
E) Risk

Question 25

Porter's five "Forces," used so often in the text for analysis of IT applications, include all of the following except:

A) Threat of substitute products
B) Bargaining power of suppliers
C) Bargaining power of customers
D) New entrants
E) Switching costs

Question 26

Which is not a competitive force:

A) Bargaining power of buyers
B) Bargaining power of competitors
C) Threat of substitute products or services
D) Rivalry among existing firms
E) Threat of entry of new competition

Question 27

In order to maximize the effectiveness of an organization's business strategy, the manager must be able to identify and use information resources.

Question 28

Supply Chain Management (SCM) consists of technological components as well as a process that brings together information about customers, sales, and marketing.

Question 29

Which is not a prescribed area of focus for gaining competitive advantage?

A) Strongholds
B) Cost/Quality
C) Deep Pockets
D) Timing/Know-how
E) Insider Information

Question 30

An inter-organizational relationship that affords one or more companies in the relationship a strategic advantage is in:

A) Co-opetition
B) Customer Relationship Management (CRM)
C) Supply Chain Management (SCM)
D) Information Resources
E) Strategic Alliance

Question 31

Which of the following is a support activity of the Value Chain Model?

A) Operations
B) Facilities
C) Organization
D) Informatics
E) Outbound Logistics

Question 32

__________________is a collection of firms that, using technology, extend their business relationships and connect their value chains.

Question 33

Unlike most assets, information resources do not lose value over time.

Question 34

A link between a firm's IS strategy and business strategy focuses more on its external requirements than internal requirements.

Question 35

A link between a firm's IS strategy and organizational strategy focuses more on its external requirements than internal requirements.

Question 36

Which of the following is NOT a primary activity of the Value Chain model?

A) Inbound Logistics
B) Operations
C) Outbound Logistics
D) Purchasing
E) Marketing and Sales

Question 37

SCM stands for ________________.

Question 38

Zara's use of information resources has given it a substantial advantage over its competitors.

Question 39

A firm that acquires a supplier is looking to reduce the "bargaining power of suppliers" force.

Question 40

The three major categories of IT capabilities are technical skills, management skills, and relationship skills.

Question 41

For a company whose main product is information (like a financial services company), the company must co-create its ________ strategy and ________ strategy.

Question 42

Provide an example of two companies that have built an effective co-opetition. Briefly explain the benefit of the relationship.

Question 43

Explain why relationship skills are becoming more important to IS managers in today's economy.

Question 44

List one externally managed IT resource a company may use and how it provides a strategic advantage.

Question 45

Match an organization's activity with the competitive force it has successfully influenced.
$$\begin{array} { | l | l | } \hline \text { Threat of new entrants } & \begin{array} { l } \text { Walmart's massive, complex inventory } \\\text { control system is hard for others to } \\\text { replicate and gain the same economies of } \\\text { scale. }\end{array} \\\hline \text { Bargaining power of the buyer } & \begin{array} { l } \text { Amazon's One Click ordering systern } \\\text { makes buying online easy, enticing the } \\\text { custorner to return for other purchases. }\end{array} \\\hline \text { Threat of substitute product } & \begin{array} { l } \text { Apple's ability to create new products } \\\text { even at the risk of carnibalizing existing } \\\text { products. }\end{array} \\\hline \text { Bargaining power of suppliers } & \text { Arnazon's purchase of Whole Foods. } \\\hline\end{array}$$

Question 46

Explain how Zara has aligned its information systems strategy with its business strategy

Question 47

Starbucks allows customers in the U.S. to use smartphones to pay for their purchases in an effort to drive sales. While this use of information resources may be used to gain a strategic advantage, there are possible risks. Match the potentially harmful experience below with the IT risk it represents:
$$\begin{array} { | l | l | } \hline \text { Implementing Is poorly } & \begin{array} { l } \text { Someone reported that the use } \\\text { of the mobile payment } \\\text { application was causing longer } \\\text { lines at the cash register. }\end{array} \\\hline \text { Demonstrate bad timing } & \begin{array} { l } \text { A very mmall percentage of } \\\text { customers use the service } \\\text { because few have mobile } \\\text { devices and even fewer are able } \\\text { to download and use the } \\\text { application. }\end{array} \\\hline \text { Awaking a sleeping giant } & \begin{array} { l } \text { A large credit card processing } \\\text { agency deploys a smartphone } \\\text { application for mobile pannents } \\\text { that car be used in ary retail } \\\text { erviromment. }\end{array} \\\hline\end{array}$$

Question 48

List a Web 2.0 technology and how it benefits from the network effect.

Question 49

Social capital is a valuable resource for businesses. Match the category of social capital with the questions is seeks to answer.
$$\begin{array} { | l | l | } \hline \text { Structural } & \text { Who is connected to whom? } \\\hline \text { Relational } & \text { How do connected people interact? } \\\hline \text { Copritive } & \text { How do the connected individuals think? } \\\hline\end{array}$$

Question 50

Match Zara's primary activity to the Porter's value chain activity it represents.
$$\begin{array} { | l | l | } \hline \text { Inbound logistics } & \text { Zara receives fabric from a supplier. } \\\hline \text { Outbound logisties } & \begin{array} { l } \text { Using autornated conveyer belts, finished } \\\text { clothes are sorted and shipped to stores }\end{array} \\\hline \text { Operations } & \begin{array} { l } \text { Fabric is cut and sewn and the finished } \\\text { clothes are packaged }\end{array} \\\hline \text { Marketing \& Sales } & \text { POS capture what has been sold } \\\hline\end{array}$$

Question 51

Provide an example of two companies that have built a strategic alliance. Briefly explain the benefits of the relationship.

Question 52

Match Zara's use of IT to the competitive force it influences.
$$\begin{array} { | l | l | } \hline \text { Threat of new entrants } & \begin{array} { l } \text { Zara has a highly collaborative proup of } \\\text { desipners, sales people, and } \\\text { maruffacturing plarners who are } \\\text { supported by a unique IT that is hard for } \\\text { any retailer to replicate. }\end{array} \\\hline \text { Threat of substitute product } & \begin{array} { l } \text { IT enables Zara to turn around new } \\\text { products, reacting within } 3 \text { weeks to } \\\text { custoner's likes and dislikes. }\end{array} \\\hline \text { Bargaining power of suppliers } & \begin{array} { l } \text { Zara cuts and dyes much of its fabric, } \\\text { making it less dependent on those that } \\\text { provide fabric. }\end{array} \\\hline\end{array}$$

Question 53

Match the technology with the era it dominated.
$$\begin{array} { | l | l | } \hline \text { Era I 1960s } & \text { Centralized mainfrarne } \\\hline \text { Era II 1970s } & \text { Centralized minicomputers } \\\hline \text { Era III 1980s } & \begin{array} { l } \text { Decentralized minicomputers and personal } \\\text { computers }\end{array} \\\hline \text { Era IV 1990s } & \text { Client server } \\\hline \text { Era V 2000s } & \text { The Internet } \\\hline \text { Era VI 2010+ } & \text { Social networks, mobility and cloud computing } \\\hline\end{array}$$

Question 54

Give an example of a company whose switching costs are too high, effectively keeping its customer captive. How is this company using technology to maintain high switching costs?

Question 55

IT resources consist of IT assets and IT _______.

Question 56

Identify each resource below as an IT asset or an IT capability.
$$\begin{array} { | l | l | } \hline \text { IT asset } & \text { Information repository } \\\hline \text { IT asset } & \text { IT infrastructure } \\\hline \text { IT asset } & \text { Software } \\\hline \text { IT asset } & \text { Network } \\\hline \text { IT capability } & \text { Ability to desipn, develop and irmplement Is } \\\hline \text { IT capability } & \text { Project marnagernent } \\\hline \text { IT capability } & \text { Relationship skills } \\\hline\end{array}$$

Question 57

Information resources are defined as the available data, technology, people, and ______ available in an organization to be used by managers to complete business tasks.

Question 58

List the four support activities of the value chain.

Question 59

Why is it that more and more firms need to co-create their business and IS strategy?

Question 60

Over the different eras, organizations have adapted their information systems strategy as technologies have matured. Place these different needs satisfied by information systems in order of maturity. In other words, which need is most likely the first need to be satisfied by an organization?
$$\begin{array} { | l | l | } \hline \text { First } & \text { Need to lower existing transaction costs } \\\hline \text { Second } & \text { Need to irnovate and create opporturities } \\\hline \text { Third } & \begin{array} { l } \text { Need to use social IT platforms to collaborate } \\\text { and engage stakeholders }\end{array} \\\hline\end{array}$$

Question 61

Match the methodology used to align a firm's business strategy with its information strategy.
$$\begin{array} { | l | l | } \hline \text { Porter's } 5 \text { Competitive Forces } & \begin{array} { l } \text { Information resources should be used to } \\\text { strategically alter the marketplace while } \\\text { benefiting the firm's position in the } \\\text { industry. }\end{array} \\\hline \text { Porter's Value Chain Frarnework } & \begin{array} { l } \text { Information can lower cost of business } \\\text { and strategically adds value to the firm's } \\\text { intemal operations. }\end{array} \\\hline \text { Resource-Based View } & \begin{array} { l } \text { Leverage IT resources that are identified } \\\text { to create and sustain a strategic advartage } \\\text { for the firm. }\end{array} \\\hline\end{array}$$