Question 1

Define and describe a business ecosystem.Give an example of a business ecosystem.

Accepted Answer

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Question 2

You are consulting for a natural food products distributor who is interested in determining the benefits it could achieve from implementing new information systems.What will you advise as the first step?
A)Identify the business ecosystem the distributor is in
B)Implement a strategic transition to the new system
C)Perform a strategic systems analysis
D)Benchmark existing systems
E)Set up a strategic transition

Accepted Answer

Performing a strategic systems analysis is the first step in understanding the current capabilities and limitations of existing systems, identifying the needs, and determining how new information systems can provide benefits. This analysis helps in making informed decisions about technology investments.

Question 3

Smart products generally raise switching costs.

Accepted Answer

Smart products often require specific infrastructure or technologies to use, which can make it more difficult or costly for consumers to switch to a different product or brand. For example, a smart thermostat may require a compatible smart home system, making it more challenging for a consumer to switch to a different brand or type of thermostat.

Question 4

Mintzberg's classification identifies five forces in an industry's environment that affect the strategic position of a firm.

Accepted Answer

Mintzberg's classification does not identify five forces in an industry's environment; it is Michael Porter's Five Forces model that does this. Mintzberg is known for identifying ten schools of thought on strategy formation.

Question 5

You are advising the owner of ABC Computers,a small local computer shop that repairs and also builds custom computers to order.What competitive strategies could ABC Computers employ? Which ones may it have difficulty executing?

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Question 6

Select a popular product or company that you are familiar with,such as Apple's iPad.Apply Porter's competitive forces model to that product and/or company.Which of the four generic strategies is the company using?

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Question 7

The law of diminishing returns only applies to digital products.

Accepted Answer

The law of diminishing returns can also apply to physical products and services in certain situations.

Question 8

You are consulting with the owner of Better Fitness,a national chain of gyms.What strategies might Better Fitness use in applying information services to achieve a competitive advantage?

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Question 9

Value chain analysis is useful at the business level to highlight specific activities in the business where information systems are most likely to have a strategic impact.Discuss this model,identify the activities,and describe how the model can be applied to the concept of information technology.

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Question 10

Research has shown that a majority of firms are able to align their information technology with their business goals.

Accepted Answer

Many firms struggle with aligning their information technology (IT) with their business goals, often due to rapidly changing technology landscapes, evolving business models, and the complexity of integrating new IT systems with existing processes.

Question 11

Why are disruptive technologies "tricky"? Provide examples.

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Question 12

Research has shown that the more successfully a firm can align its IT with its business goals,the more profitable it will be.What practical steps should a firm use in aligning IT with its goals?

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Question 13

How is the concept of core competency relevant to ABC Computers,a local computer store that repairs and builds custom computers? Give examples.

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Question 14

Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered:
A)organizational adjustments.
B)strategic transitions.
C)systems alterations.
D)business goal transitions.
E)sociotechnical transitions.

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Question 15

The text describes Michael Porter's view of the Internet as somewhat negative.What negative influences does Porter see? Describe several positive influences the Internet has on business.Do these outweigh the negative influences?

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The answer of The text describes Michael Porter's view of...

Question 16

The inventors of a disruptive technology typically benefit the most from the technology;it is rare that fast followers catch up quickly.

Accepted Answer

Fast followers often capitalize on the initial inventors' shortcomings by improving the technology, reducing costs, or executing better marketing strategies, allowing them to catch up or even surpass the original inventors in market share and profitability.

Question 17

How is Internet technology useful from a network economics perspective? Give examples.

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Question 18

What are the major factors to consider when performing a strategic systems analysis?

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Question 19

Why has the Internet made competitive rivalry more intense?

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Question 20

The use of Internet technologies allows companies to more easily sustain competitive advantage.

Accepted Answer

While Internet technologies provide tools for companies to compete, they are widely accessible, making it difficult for any single company to sustain a competitive advantage solely through their use. Competitive advantage often requires unique strategies, innovations, or efficiencies beyond just the adoption of Internet technologies.

Quiz 3: Information Systems,organizations,and Strategy