Deck 1: Competing in the Information Age

Question 1

A leadership plan that achieves a specific set of goals or objectives is a business strategy.

Answer 1

True

Question 2

Porter's Five Forces Model outlines the process for a sales strategy.

Answer 2

False

Question 3

According to Porter's three generic strategies,Hyundai is following a business strategy that focuses on 'broad market and low cost'.

Answer 3

True

Question 4

Successful companies today operate cross-functionally,integrating the operations of all departments.

Question 5

Tiffany & Company competes in the marketplace by offering high cost custom jewellery.Tiffany & Company is following a broad market and cost leadership strategy.

Question 6

Two ways to reduce buyer power is through switching costs and loyalty programs.

Question 7

The information age is the present time,during which infinite quantities of facts are widely available to anyone who can use a computer.

Question 8

Companies update business strategies continuously as internal and external environments change.

Question 9

Competitive intelligence is information collected from multiple sources such as suppliers,customers,competitors,partners and industries that analyses patterns,trends and relationships for strategic decision making.

Question 10

There are many challenges to changing doctors,including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history.Changing doctors provides a great example of switching costs.

Question 11

Companies today are successful when they combine the power of the information age with traditional business methods.

Question 12

A variable is a business intelligence characteristic that stands for a value that cannot change over time.

Question 13

Technology provides countless business opportunities,but can also lead to pitfalls and traps for a business.

Question 14

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence.The firm went bankrupt when people began taking digital pictures.Polaroid provides a great example of Porter's threat of new entrants.

Question 15

With the Five Forces Model,companies should watch the forces in the market.If the forces are strong,competition generally increases; and,if the forces are weak,competition typically decreases.

Question 16

Product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand.

Question 17

For an organisation to succeed,every department or functional area must work independently to be most effective.

Question 18

An overview of systems thinking includes input,process,output and finances.

Question 19

When a company is the first to market with a competitive advantage,it gains a particular benefit known as competitive intelligence.

Question 20

Supplier power is one of Porter's five forces,and it measures the suppliers' ability to influence the prices they charge for supplies (including materials,labour and services).

Question 21

Cheryl Steffan is the operations manager for Nature's Bread Company,which specialises in providing natural products for health conscious individuals.Cheryl is responsible for compiling,analysing and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day.Which of the following is an example of a piece of data Cheryl would be using to successfully perform her job?

A) Craig Newmark is customer number 15467.
B) Compare the costs of supplies including energy over the last five years to determine the best-selling product by month.
C) Best-selling product by day.
D) Best-selling product changes when Tony the best baker is working.

Question 22

Information technology can enable departments to more efficiently and effectively perform their core ____________.

A) Facts
B) Feedback mechanisms
C) Business operations
D) Media issues

Question 23

Which of the following provides an example of taking data and turning it into information?

A) Who is customer number 12345XX?
B) What is product number 12345XX?
C) What customer number is Bob Smith?
D) What is my worst-selling product?

Question 24

Jeremy Bridges is an executive for Green Web Designs,where his primary role is to ensure the security of business systems and develop strategies and safeguards to protect the company from online viruses and hackers.What is Jeremy's role within the company?

A) Chief Executive Officer (CEO).
B) Chief Security Officer (CSO).
C) Chief Procurement Officer (CPO).
D) Chief Technology Officer (CTO).

Question 25

The value chain groups a company's activities into two categories: primary value activities and support value activities.

Question 26

Knowledge includes the skills,experience and expertise coupled with information and _________ that creates a person's intellectual resources.

A) Resources.
B) Intelligence.
C) Expectations.
D) Enterprise information.

Question 27

Data is useful for understanding individual sales,but to gain deeper insight into a business data needs to be turned into information.Which of the following offers an example of turning data into information?

A) Who are my best customers?
B) What is my best-selling product?
C) What is my worst-selling product?
D) All the answers are correct

Question 28

Which of the following is considered information?

A) Quantity sold
B) Date sold
C) Best selling item by month
D) All the answers are correct

Question 29

Which role within a company is responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals and objectives?

A) Chief knowledge officer (CKO).
B) Chief privacy officer (CPO).
C) Chief information officer (CIO).
D) Chief security officer (CSO).

Question 30

A system is a collection of parts that link to achieve a common purpose.Systems thinking is a way of monitoring _______________.

A) The entire system
B) A division within the sales role
C) The executive team
D) The company's competitors

Question 31

Which of the following statements is true?

A) IT equals business success.
B) IT equals business innovation.
C) IT represents business success and innovation.
D) IT enables business success and innovation.

Question 32

What is a way of monitoring the entire system in a company by viewing the multiple inputs being processed or transformed to produce outputs?

A) Feedback thinking.
B) Systems thinking.
C) Output management.
D) Operational thinking.

Question 33

Value chain analysis views a firm as a series of business processes that each adds value to the product or service.

Question 34

Business intelligence is information collected from multiple sources.Which of the following provides an example of a source that would be included in business intelligence?

A) Suppliers.
B) Customers.
C) Competitors.
D) All the answers are correct.

Question 35

A system is a collection of parts that link together to __________.

A) Monitor the company
B) Gather experience
C) Achieve a common purpose
D) Implement solutions

Question 36

Which of the following represents the definition of a variable?

A) A data characteristic that is collected through competitive intelligence and cannot change over time.
B) A data characteristic that stands for a value that changes or varies over time.
C) A data characteristic that stands for a value that does not change or vary over time.
D) A data characteristic that is collected only through competitive intelligence and can change over time.

Question 37

How does the text recommend that a company operate if it wants to be successful in our current business environment today?

A) Functionally independent between departments.
B) Interdependently between departments.
C) Together as one department with little or no independence.
D) Each department acting as its own individual business unit.

Question 38

Cheryl Steffan is the operations manager for Nature's Bread Company,which specialises in providing natural products for health conscious individuals.Cheryl is responsible for compiling,analysing and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day.Which of the following is an example of knowledge that Cheryl would be using to successfully perform her job?

A) Craig Newmark is customer number 15467.
B) Compare the costs of supplies including energy over the last five years to determine the best-selling product by month.
C) Best-selling product by day.
D) Best-selling product changes when Tony the best baker is working.

Question 39

Cheryl Steffan is the operations manager for Nature's Bread Company,which specialises in providing natural products for health conscious individuals.Cheryl is responsible for compiling,analysing and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day.Which of the following is an example of the type of information Cheryl would be using to successfully perform her job?

A) Craig Newmark is customer number 15467.
B) Compare the costs of supplies,including energy,over the last five years to determine the best-selling product by month.
C) Best-selling product by day.
D) Best-selling product changes when Tony the best baker is working.

Question 40

Which of the following is considered data?

A) Quantity sold
B) Best customer by month
C) Best-selling item by month
D) Worst-selling item by month

Question 41

What is one of the most common ways a company can decrease supplier power?

A) Charge lower prices.
B) Charge higher prices.
C) Use MIS to find and create alternative products.
D) Companies cannot impact supplier power.

Question 42

Competitive intelligence is the process of gathering information about the competitive environment,including ________.

A) Competitors' employees
B) Competitors' differentiated processes
C) Competitors' plans
D) All the answers are correct

Question 43

What is a competitive advantage?

A) A product that an organisation's customers place a lesser value on than similar offerings from a competitor.
B) A feature of a product or service on which customers place a lesser value than they do on similar offerings from a supplier.
C) A service that an organisation's customers place a lesser value on than similar offerings from a supplier.
D) A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.

Question 44

How can a company reduce the threat of substitute products or services?

A) Market the product to less than ten customers.
B) Ignore competitive forces.
C) Offer additional value through wider product distribution.
D) Offer less value making the product far more generic and similar to the competition.

Question 45

Amazon.com uses a customer profiling system whenever a customer visits its website.Using this system,Amazon can offer products tailored to that particular customer's profile and buying pattern.What is Amazon using to achieve this competitive advantage?

A) Rivalry.
B) Buyer power.
C) Product differentiation.
D) Substitute product.

Question 46

Kevin Campbell is an incoming student at your college.Kevin is frustrated by the cost of books,tuition and expenses,and he also needs to purchase a rather expensive laptop.In an effort to save money,Kevin begins a Facebook group finding other college students who need to purchase laptops.Soon,Kevin's Facebook group has close to 100,000 students.Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount.What business strategy is Kevin using to purchase laptops?

A) Collecting business intelligence.
B) Decreasing entry barriers.
C) Purchasing a substitute product.
D) Increasing buyer power.

Question 47

Which of the following offers an example where Porter's Five Forces are mostly weak and competition is low?

A) An international hotel chain purchasing milk.
B) A coffee shop.
C) A single consumer purchasing milk.
D) A dog-walking business.

Question 48

What are costs that make customers reluctant to switch to another product or service?

A) Support activities.
B) Switching costs.
C) Loyalty rewards.
D) Value chain activities.

Question 49

Updating business strategies is a continuous undertaking as internal and external environments _______.

A) Become less competitive
B) Remain stagnant
C) Rapidly change
D) Become more consistent

Question 50

Shawn McGill is on the executive board for ABC pharmaceuticals.The company produces the number one selling cancer fighting drug on the market.Due to its incredible success ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill.Which force is ABC pharmaceutical using to increase its drug price?

A) Supplier power.
B) Buyer power.
C) Threat of false entrants.
D) Business power.

Question 51

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?

A) Suppliers can drive down profits by charging more for supplies.
B) New market entrants can steal potential investment capital.
C) Substitute products can steal customers.
D) Competition can steal customers.

Question 52

Which of the following is not a typical way that a company would duplicate a competitive advantage?

A) Acquiring the new technology.
B) Copying the business operations.
C) Hiring away key employees.
D) Carrying large product inventories.

Question 53

The Victory Wireless store in Denver is currently offering a fabulous marketing strategy for potential new iPhone customers.Victory Wireless offers customers who purchase an iPhone with a two-year subscription a free Otter phone case,car charger,ear phones and speakers.In terms of Porter's five forces,what is Victory Wireless attempting to achieve with this marketing strategy?

A) Increase buyer power.
B) Increase substitute products.
C) Decrease supplier power.
D) Decrease buyer power.

Question 54

Steve Jobs and Apple created a big advantage in the technology industry with the introduction of the iPod,iPhone and iPad.What are these all examples of?

A) Competitive advantage
B) Competitive intelligence
C) First-mover advantage
D) All the answers are correct

Question 55

Paula Logston is the owner and operator of a high-end online custom clothing company.Paula has never heard of Porter's Five Forces Model and she wants to understand why she would perform an analysis using it.If you were tasked with explaining Porter's Five Forces Model to Paula,what would be the primary reason she would want to use this type of analysis?

A) To help Paula choose a clothing business focus.
B) To help Paula evaluate the attractiveness of the clothing industry.
C) To help Paula evaluate and execute business goals.
D) All the answers are correct.

Question 56

Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented.Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.What would Jennifer determine The Museum Company is using as its generic strategy?

A) Broad market,low cost.
B) Narrow market,high cost.
C) Broad market,high cost.
D) Narrow market,low cost.

Question 57

Which of the following represents a reason why competitive advantages are typically temporary?

A) The competitor will hire away your key employees.
B) The competitor quickly seeks ways to duplicate your business operations.
C) The competitor will purchase new technology.
D) All the answers are correct.

Question 58

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

A) Broad differentiation.
B) Supplier cost differentiation.
C) Focused strategy.
D) Broad cost leadership.

Question 59

According to Porter,companies that wish to dominate broad markets should operate using a ________ strategy.

A) Cost leadership with a low cost
B) Differentiation with a low cost
C) Cost leadership with a high cost
D) All the answers are correct

Question 60

When analysing Porter's three generic strategies for entering a market,if you have a focused strategy what market should you target?

A) A niche market.
B) A broad market.
C) Neither niche nor broad markets.
D) Both niche and broad markets.

Question 61

What includes support value activities and primary value activities and is used to determine how to create the greatest possible value for customers?

A) Supplier power.
B) Operations management.
C) Porter's Five Forces Model.
D) The Value Chain analysis.

Question 62

Demonstrate how a company can add value by using Porter's value chain analysis.

Question 63

Compare Porter's three generic strategies.

Question 64

Identify the different departments in a company and why they must work together to achieve success.

Question 65

Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company.She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue.Sandy determines that the best value she can add is by creating a service that offers free next day shipping on any order over $50.Where in the value chain is Sandy adding value?

A) The primary value activity outbound logistics.
B) The primary value activity inbound logistics.
C) The primary value activity marketing and sales.
D) The primary value activity operations.

Question 66

Describe Porter's Five Forces Model and explain each of the five forces.

Question 67

Explain systems thinking and how management information systems (MIS)enable business communications.

Question 68

If a business is following a focused strategy,its competitive scope is _______.

A) Broad market
B) Narrow market
C) Broad range products
D) Broad range of services

Question 69

Describe the information age and the differences between data,information,business intelligence and knowledge.

Question 70

When reviewing Porter's value chain analysis,which of the below provides customer support after the sale of goods and services?

A) Inbound logistics.
B) Outbound logistics.
C) Operations.
D) Service.

Question 71

Explain why competitive advantages are temporary.

Question 72

Which of the following is not considered a category within the primary value activities in a value chain analysis?

A) Inbound logistics.
B) Firm infrastructure.
C) Operations.
D) Service.