Question 1

The threat of new competitors will enter your market is high when entry is _________ and low when there are _________ barriers to entry.
A) easy; few
B) easy; significant
C) hard; few
D) hard; significant

Accepted Answer

The threat of new competitors entering a market is high when entry is easy and low when there are significant barriers to entry. This is because significant barriers can deter new competitors due to the high costs or difficulties associated with entering the market.

Question 2

Supplier power is _________ when buyers have few choices from whom to buy and _________ when buyers have many choices.
A) high; high
B) high; low
C) low; high
D) low; low

Accepted Answer

Supplier power is high when buyers have few choices (because suppliers can exert more influence on terms and prices), and low when buyers have many choices (because buyers can easily switch to another supplier if they are not satisfied).

Question 3

If there are _________ alternatives to an organization's products or services, then the threat of substitutes is high; if there are _________ alternatives, then the threat is low.
A) few; few
B) few; many
C) many; few
D) many; many

Accepted Answer

When there are many alternatives to an organization's products or services, the threat of substitutes is high because customers have more options to choose from. Conversely, if there are few alternatives, the threat is low because customers have fewer options, making it less likely they will switch to a substitute product.

Question 4

Supplier power is high when buyers have _________ choices from whom to buy and low when buyers have _________ choices.
A) few; few
B) few; many
C) many; few
D) many; many

Accepted Answer

Supplier power is high when buyers have few choices from whom to buy, indicating limited alternatives and potentially higher dependency on those suppliers. It is low when buyers have many choices, suggesting a competitive market where suppliers have less leverage.

Question 5

You have to offer online banking if you want to operate a bank. This is a(n) ________.
A) buyer power
B) entry barrier
C) substitute product
D) supplier power

Accepted Answer

Requiring online banking to operate a bank represents an entry barrier, as it is a condition or requirement that must be met in order to enter the banking industry, potentially limiting the ability of new competitors to enter the market.

Question 6

Buyer power is _________ when buyers have many choices from whom to buy and _________ when buyers have few choices.
A) high; high
B) high; low
C) low; high
D) low; low

Accepted Answer

Buyer power is high when there are many choices from whom to buy because buyers can easily switch to another seller if they are not satisfied with the price, quality, or service. Conversely, buyer power is low when there are few choices, as buyers have limited alternatives and are more dependent on the sellers available.

Question 7

Which is not a piece of new technology that cruises lines are implementing on their boats?
A) Facial recognition
B) VR simulations
C) Drone service
D) Radio-frequency identification wristbands

Accepted Answer

Drone service is not currently a widespread technology implemented by cruise lines. Facial recognition is used for easier boarding processes, VR simulations for entertainment and excursions, and RFID wristbands for payments and tracking on the ship.

Question 8

__________ uses machine learning to analyze passenger behavior and provide personalized recommendations.
A) Carnival Corporation
B) JetBlue Cruises
C) MSC Cruises
D) Royal Caribbean Cruises

Accepted Answer

Carnival Corporation uses machine learning to analyze passenger behavior and provide personalized recommendations.

Question 9

Which of the following reduces buyer power?
A) Globalization
B) Loyalty programs
C) Intermediation
D) Internet searching

Accepted Answer

Loyalty programs reduce buyer power by incentivizing customers to stay with a particular company, thereby reducing their inclination to switch to competitors regardless of price or other factors. This creates a form of lock-in, diminishing the buyer's leverage.

Question 10

Porter's competitive forces model identifies _________ major forces that can endanger or enhance a company's position in a given industry.
A) 3
B) 4
C) 5
D) 6

Accepted Answer

Porter's competitive forces model identifies five major forces that shape the competitive landscape and can affect a company's strategic positioning. These forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry.

Question 11

The threat of new competitors will enter your market is _________ when entry is easy and _________ when there are significant barriers to entry.
A) high; high
B) high; low
C) low; high
D) low; low

Accepted Answer

The threat of new competitors entering a market is high when entry is easy due to few barriers, and low when there are significant barriers to entry, making it difficult for new competitors to enter the market.

Question 12

If there are many alternatives to an organization's products or services, then the threat of substitutes is _________; if there are few alternatives, then the threat is ______.
A) high; high
B) high; low
C) low; high
D) low; low

Accepted Answer

When there are many alternatives to an organization's products or services, the threat of substitutes is high because customers can easily switch to a different product or service. Conversely, if there are few alternatives, the threat is low because customers have fewer options to switch to.

Question 13

Buyer power is high when buyers have _________ choices from whom to buy and low when buyers have _________ choices.
A) few; few
B) few; many
C) many; few
D) many; many

Accepted Answer

Buyer power is high when buyers have many choices from whom to buy, indicating a competitive market, and low when buyers have few choices, indicating a lack of alternatives and potentially a monopolistic or oligopolistic market.

Question 14

The threat from rivalry is _________ when there is intense competition among many firms in an industry and _________ when competition is not as intense.
A) high; high
B) high; low
C) low; high
D) low; low

Accepted Answer

The threat from rivalry is high when there is intense competition among many firms in an industry because firms are aggressively vying for market share and profits. It is low when competition is not as intense, as firms are not as aggressively competing against each other, leading to a more stable market environment.

Question 15

The best-known framework for analyzing competitiveness is ________'s competitive forces model.
A) Job
B) Gates
C) Mintzberg
D) Porter

Accepted Answer

The best-known framework for analyzing competitiveness is Michael Porter's competitive forces model, which outlines five forces that determine the competitive intensity and attractiveness of a market.

Question 16

Bank of America retired more than _________ applications after the financial crisis of 2007-2008.
A) 100
B) 5,000
C) 18,000
D) 100,000

Accepted Answer

Bank of America retired more than 18,000 applications after the financial crisis of 2007-2008 as part of its efforts to streamline operations and reduce complexity within its technology infrastructure.

Question 17

Which is not a benefit for the companies behind cruises in terms of implementation of various customer-centered technologies?
A) Some technology incorporates machine learning that provides the cruise providers with valuable information about their customers and the customer experience.
B) Technology can replace previously needed manpower to perform certain tasks, such as taking food and drink orders.
C) Most of the technology used on cruise ships has eliminated the concern over security breeches that previously existed on cruise ships.
D) Technology enables some cruise lines to be able to offer enhanced experiences that increase cost to customers, therefore increasing profits.

Accepted Answer

Most technologies implemented on cruise ships aim to enhance customer experience and operational efficiency, but they do not eliminate concerns over security breaches. Security remains a critical issue, and while technology can help mitigate risks, it doesn't completely remove such concerns.

Question 18

__________ uses RFID to allow guests to make onboard purchases and access staterooms.
A) Carnival Corporation
B) Celebrity Cruises
C) JetBlue Cruises
D) Royal Caribbean Cruises

Accepted Answer

Royal Caribbean Cruises uses RFID technology in the form of wristbands called WOW Bands, which allow guests to make purchases and access their staterooms.

Question 19

Which of the following increases supplier power?
A) Globalization
B) Integrated supply chains
C) Intermediation
D) Internet searching

Accepted Answer

Integrated supply chains can increase supplier power by making it more difficult for buyers to switch to alternative suppliers, thereby giving suppliers more leverage.

Question 20

One negative aspect of Celebrity Cruises installation and implementation of various technologies on its boats and for its customers' use is __________.
A) the automatically unlocking cabin door locks all had to be replaced, which was quite expensive.
B) that customers largely responded in a negative way to the need to utilize various devices for optimal experiences.
C) that to implement the optimized wayfinding, the cruise ships all had to build new infrastructures.
D) customers were unwilling to pay more for VR views of the sea and the cruise line has ended up with many empty rooms on its voyages.

Accepted Answer

The answer of One negative aspect of Celebrity Cruises installation...

Quiz 2: Organizational Strategy, Competitive Advantage, and Information Systems

The threat of new competitors will enter your market is high when entry is _ and low when there are _ barriers to entry.

Supplier power is _ when buyers have few choices from whom to buy and _ when buyers have many choices.

If there are _ alternatives to an organization's products or services, then the threat of substitutes is high; if there are _ alternatives, then the threat is low.

Supplier power is high when buyers have _ choices from whom to buy and low when buyers have _ choices.

You have to offer online banking if you want to operate a bank. This is a(n) ________.

Buyer power is _ when buyers have many choices from whom to buy and _ when buyers have few choices.

Which is not a piece of new technology that cruises lines are implementing on their boats?

__________ uses machine learning to analyze passenger behavior and provide personalized recommendations.

Which of the following reduces buyer power?

Porter's competitive forces model identifies _________ major forces that can endanger or enhance a company's position in a given industry.

The threat of new competitors will enter your market is _ when entry is easy and _ when there are significant barriers to entry.

If there are many alternatives to an organization's products or services, then the threat of substitutes is ___; if there are few alternatives, then the threat is .

Buyer power is high when buyers have _ choices from whom to buy and low when buyers have _ choices.

The threat from rivalry is _ when there is intense competition among many firms in an industry and _ when competition is not as intense.

The best-known framework for analyzing competitiveness is ________'s competitive forces model.

Bank of America retired more than _________ applications after the financial crisis of 2007-2008.

Which is not a benefit for the companies behind cruises in terms of implementation of various customer-centered technologies?

__________ uses RFID to allow guests to make onboard purchases and access staterooms.

Which of the following increases supplier power?

One negative aspect of Celebrity Cruises installation and implementation of various technologies on its boats and for its customers' use is __________.