Deck 8: Value Creation With Information Systems

Question 1

The iPod's entrance into the music player-industry has caused the increased threat of which of the following:

A) Threat of substitutes or services for other music players
B) Increased bargaining power of other suppliers
C) Decreased rivalry amongst existing competitors
D) Decreased rivalry amongst all competitors - old and new

Answer 1

Threat of substitutes or services for other music players

Question 2

Which of the following is an example of mirroring capabilities?

A) Amazon.com monitoring customer behavior while shopping
B) Amazon.com's suggestive selling initiative
C) Your university library electronic reserves
D) Vending machines embedded with microchips

Answer 2

Your university library electronic reserves

Question 3

At what stage in the process of identifying data-driven strategic initiatives should an analysis of the upside potential and data availability occur?

A) Prioritize initiatives
B) Conceptualize initiatives
C) Identify relevant transaction processing systems
D) Inventory data currently available

Answer 3

Prioritize initiatives

Question 4

Which of the five competitive forces is related to whether or not a company can begin competing in a market different from the one they currently compete in?

A) Availability of substitutes
B) Threat of new entrants
C) Bargaining power of suppliers
D) Bargaining power of buyers
E) Rivalry among existing competitors

Question 5

Which of the five competitive forces is related to an automotive company being forced to change to a different tire supplier just to meet customer demands?

A) Availability of substitutes
B) Threat of new entrants
C) Bargaining power of suppliers
D) Bargaining power of buyers
E) Rivalry among existing competitors

Question 6

Which of the five competitive forces is influencing a passenger train line, when a new automobile manufacturer causes a reduction in the number of people that ride trains?

A) Availability of substitutes
B) Threat of new entrants
C) Bargaining power of suppliers
D) Bargaining power of buyers
E) Rivalry among existing competitors

Question 7

Which of the five competitive forces is related to the inability of a clothing manufacturer to influence the details of the contracts for their raw materials, such as denim or zippers?

A) Availability of substitutes
B) Threat of new entrants
C) Bargaining power of suppliers
D) Bargaining power of buyers
E) Rivalry among existing competitors

Question 8

Which of the five competitive forces is related to price wars between two gas stations on opposite sides of an intersection?

A) Availability of substitutes
B) Threat of new entrants
C) Bargaining power of suppliers
D) Bargaining power of buyers
E) Rivalry among existing competitors

Question 9

Which of the following is a support activity?

A) Mounting a tire on a new vehicle
B) Unloading new tires at the receiving dock of an automotive factory
C) Purchasing tires to be mounted on new vehicles
D) Loading vehicles with a new type of tire on a railcar for shipment
E) Replacing a tire on a vehicle under warranty

Question 10

Considering the role of information systems in value chain analysis requires which of the following?

A) Assuming that the value chain is comprised of only the movement and processing of material
B) Assuming that the value chain is comprise of only the movement of information, which can be accomplished with technology
C) Assuming that the value chain is comprised of both the movement and processing of material, which enables the firm's activities related to technology.
D) Assuming that the value chain is comprised of both the movement and processing of material, and the processing of information, which together enable the firm's activities
E) Assumes nothing, except that information can be used to track the movement of material in a value chain and has nothing to do with its process, nor with the information itself being of any intrinsic value.

Question 11

The CSLC should be viewed from which viewpoint?

A) Suppliers
B) Customers
C) The firm
D) Competitors
E) Any non-participant

Question 12

What is the first stage of the CSLC?

A) Acquisition
B) Ownership
C) Requirements
D) Retirement
E) Recycling

Question 13

The CSLC is broken down into thirteen stages. One of these involves making sure that the goods or services that have been purchased actually meet the applicable specifications. Which stage is this?

A) Specify
B) Select Source
C) Establish Requirements
D) Acquire
E) Evaluate and Accept

Question 14

Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an industry.

Question 15

Hypercompetition refers to industries in which fierce rivalries exist between existing competitors and innovation occurs at such a pace that any competitive advantage that may exist often disappears quickly..

Question 16

The two main parts of the Customer Service Life Cycle are the primary and support activities, which are then supported by the four stage of cycle

Question 17

The most innovative ideas are the most costly and resource-intensive, because they are based on the best understanding of how customer needs can effectively be satisfied.

Question 18

The virtual value chain (VVC) model is designed to map the set of sequential activities that enable a firm to transform data in input into some output information that, once distributed to the appropriate user, has higher value than the original data.

Question 19

The inbound logistics activities of your firm can be considered an extension of the outbound logistics activities of your supplier. This is an example of ___________.

Question 20

During which of the 13 stages of the CSLC does the customer acquire her new product and test it out to make sure it works correctly?

Question 21

How does a new digital value strategy differ from visibility and mirroring capabilities strategies?

Question 22

Define and describe what a value chain is. Make sure you include examples, along with key differences between virtual and physical value chains.

Question 23

Describe the five major competitive forces that influence a firm's ability to generate profits. Provide at least two examples of each.