Question 1

Information systems enhance core competencies by:

Accepted Answer

Information systems enhance core competencies by encouraging the sharing of knowledge across business units, which helps in leveraging expertise and improving overall organizational performance.

Question 2

The Internet increases the bargaining power of customers by:

Accepted Answer

The Internet increases the bargaining power of customers primarily by making information available to everyone. This transparency allows customers to compare prices, quality, and services more easily, thus giving them more leverage in their purchasing decisions.

Question 3

Which of the following is an example of synergy in business?

Accepted Answer

Synergy refers to the combined and increased effectiveness of two or more entities working together. Bank of America acquiring Countrywide Financial Corporation is an example of synergy because it allowed Bank of America to tap into a new market of potential customers and expand its offerings, while Countrywide gained access to Bank of America's resources and customer base. This partnership allowed both companies to achieve more together than they could have on their own. The other options may be examples of innovation or using technology to improve business operations, but they do not necessarily demonstrate synergy between different entities.

Question 4

A virtual company:

Accepted Answer

A virtual company uses networks to link people, assets, and ideas, enabling it to operate without traditional physical boundaries.

Question 5

In network economics,the value of a commercial software vendor's software products:

Accepted Answer

In network economics, the value of a commercial software vendor's software products increases as more people use them due to network effects. This is because the value of the software increases with the size of the user network, as more users mean more opportunities for interaction and collaboration, and therefore greater utility for each individual user.

Question 6

The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

Accepted Answer

The value chain model highlights the primary and support activities that create value for a company's products or services. Information systems can be applied to these activities to improve their efficiency and effectiveness, leading to a competitive advantage. The other choices are all part of Porter's Five Forces model, which is not directly related to information systems and their application for competitive advantage.

Question 7

The idea that the more any given resource is applied to production,the lower the marginal gain in output,until a point is reached where the additional inputs produce no additional value,is referred to as:

Accepted Answer

The idea of the law of diminishing returns states that as more and more units of a variable input are added to a fixed input, the marginal product initially rises, reaches a maximum, and then subsequently decreases. This law holds true until a point is reached where the additional inputs produce no additional value.

Question 8

The most successful solutions or methods for achieving a business objective are called:

Accepted Answer

The term "best practices" refers to the most successful and effective solutions or methods for achieving a business objective. These practices are often developed through trial and error, experimentation, and study of successful companies in the same industry. Best practices can be used to improve efficiency, reduce costs, increase revenue, and improve overall performance.

Question 9

Which of the following would a company employ to measure and compare its business processes to similar processes of other companies within their industry?

Accepted Answer

Benchmarking is the process of measuring and comparing an organization's business processes to similar processes of other companies within the same industry. It helps the company to identify areas where improvements can be made and learn from the best practices of other successful organizations. Best practices, value chain analysis, strategic systems analysis, and secondary activities are all related concepts but are not specifically used for measuring and comparing business processes to those of other companies.

Question 10

The value chain model:

Accepted Answer

The value chain model highlights specific activities in the business where competitive strategies can best be applied. It provides a framework for analyzing a firm's activities and identifying ways to create more value for customers, while also reducing costs. The model categorizes a firm's primary and support activities and shows how they can be used to create a competitive advantage.

Question 11

Which of the following is a support activity in a firm's value chain?

Accepted Answer

Technology is a support activity in a firm's value chain as it helps in improving the efficiency and effectiveness of other activities such as inbound logistics, operations, sales and marketing, and service. It includes activities such as research and development, technology infrastructure, and data management.

Question 12

Which of the following is an example of a keystone firm within a business ecosystem?

Accepted Answer

Apple is a keystone firm within the mobile platform ecosystem, as it sets the standards, provides the platform, and drives innovation within the ecosystem.

Question 13

When two organizations pool markets and expertise that result in lower costs and generate profits,they are creating:

Accepted Answer

When two organizations pool markets and expertise and generate profits, they create synergies. Synergy is the interaction or cooperation of two or more organizations or entities to produce a combined effect greater than the sum of their separate effects. It results in lower costs, higher revenues, and increased profitability for the organizations involved. A value web refers to a networked system of businesses, suppliers, and customers that work together to deliver value to the end consumer. A value chain describes the step-by-step process through which a company delivers its products or services to the customers. Net marketplaces are online platforms where buyers and sellers come together to exchange goods and services. Core competencies refer to a company's unique strengths and capabilities that distinguish it from its competitors.

Question 14

Which of the following represent the primary activities of a firm?

Accepted Answer

Inbound logistics deals with receiving and storing inputs; operations involve transforming inputs into finished products; outbound logistics encompasses storing and distributing finished products to customers; sales and marketing focuses on promoting and selling products; and service deals with providing after-sales support to customers. These five activities are the primary activities of a firm according to Porter's value chain model. Option A includes all five of these activities, making it the correct choice.

Question 15

The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as:

Accepted Answer

Switching costs refer to the expenses incurred when changing from one supplier or system to another, including lost time and resources. Retention costs refer to the expenses incurred to retain customers or employees. Preservation costs refer to costs to maintain existing systems or products. Differentiation costs refer to costs associated with making a product or service unique from competitors. Variation costs refer to costs associated with differences in product or service offerings.

Question 16

Hilton Hotels uses its OnQ system for which of the following purposes?

Accepted Answer

Hilton Hotels uses its OnQ system to estimate each guest's profitability and give additional privileges to profitable customers. This helps the company to prioritize its services and resources towards those guests who are most likely to create higher revenue for the company.

Question 17

Which of the following statements about network economics is not true?

Accepted Answer

In network economics, the marginal cost of adding new members to the network is lower than the marginal gain. This is known as the network effect, where the value of a network increases as more people use it. Choice E states the opposite, making it the incorrect statement.

Question 18

________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

Accepted Answer

Product differentiation is a competitive strategy where a company develops unique products and services that are not easily replicated by competitors. This leads to brand loyalty as customers are drawn to the unique features and benefits offered by the product, setting it apart from other offerings in the market.

Question 19

Which of the following is a competitive force challenging the publishing industry?

Accepted Answer

The answer of Which of the following is a competitive...

Question 20

Information systems can be used at the industry level to achieve strategic advantage by:

Accepted Answer

Building industrywide, IT-supported consortia and symposia can help standardize practices, share knowledge, and create a unified approach to industry challenges, thereby achieving a strategic advantage.

Quiz 3: Information Systems,organizations,and Strategy