Question 1

Which of the following is a part of the materials ordering process?

Accepted Answer

Inbound logistics is the part of the materials ordering process that involves receiving and storing materials from suppliers. Outbound logistics refers to the delivery of finished products to customers. Marketing focuses on promotion and advertising, while operations handles the production process.

Question 2

Which of the following principles of competitive advantage is associated with product implementations?

Accepted Answer

The principle of differentiating service offerings is associated with product implementations. This involves offering unique or superior features that set the product apart from competitors, making it more desirable to customers.

Question 3

RedDart is a premium freight provider in the United States.The company offers premium shipment services to its customers.The company ships faster than its competitors and uses tamperproof containers to ship its products.RedDart company distinguishes itself from competitors by ________.

Accepted Answer

The statement mentions that RedDart offers premium shipment services that are faster than its competitors and uses tamperproof containers. This implies that the company provides an enhanced product, which distinguishes it from its competitors. The answer choice B is incorrect as there is no mention of the company locking in its suppliers. The answer choice C is also incorrect as there is no mention of the company locking in its customers. The answer choice D is incorrect as the statement mentions that RedDart provides premium shipment services, which suggest higher costs.

Question 4

July Networks provides digital television services across the country.They have a cutting-edge technology that provides high-resolution visuals.Customers are required to pay an up-front fee to cover the first two years of the subscription, when registering with July Networks.By doing this, which competitive strategy is July Networks implementing?

Accepted Answer

July Networks is implementing a locking-in customers strategy by requiring an up-front fee to cover the first two years of the subscription. By doing this, customers are less likely to switch to a competitor since they have already made a significant investment in July Networks.

Question 5

An organization wants to achieve competitive advantage through process implementations.Which of the following actions would help them do that?

Accepted Answer

The answer of An organization wants to achieve competitive advantage...

Question 6

In a manufacturing business, the ________ process transforms finished goods into cash.

Accepted Answer

The sales process involves the actual exchange of finished goods for cash, thus transforming them into revenue for the manufacturing business. Inbound operations and inbound logistics refer to the movement and handling of raw materials and components before they are transformed into finished goods, while operations involve the manufacturing process itself.

Question 7

PowerCruise, a holiday cruise firm, recently offered its existing customers an extension of six months to their membership without any additional charges.By doing this, which competitive strategy did PowerCruise implement?

Accepted Answer

PowerCruise implemented the 'locking in of customers' competitive strategy by offering an extension of six months to their existing customers without any additional charges, encouraging them to continue using their services and remain loyal to the brand. This is an example of customer retention and increasing the chances of repeat business.

Question 8

The cost of the business process is the sum of the cost of the inputs and the ________.

Accepted Answer

The cost of the business process is the sum of the cost of the inputs (materials, labor, etc.) and the cost of the activities (the actual process itself). The cost of the outputs is not factored into the cost of the process, as it represents the value of what the business has produced rather than the cost of creating it. The value of the product/service is also not the correct answer, as this refers to the price that the product or service is sold for, which is not directly related to the cost of the process.

Question 9

Which of the following statements is consistent with the central idea of business process design?

Accepted Answer

The answer of Which of the following statements is consistent...

Question 10

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.

Accepted Answer

Establishing high switching costs means that customers will have to face significant costs or challenges to move to another product, thus making it more likely that they will continue using the current product. This is a commonly used strategy to increase customer retention and reduce churn. Option A (entry barriers) refers to measures taken to prevent new competitors from entering the market, while Option C (product standards) and Option D (value differentiation) do not specifically relate to customer lock-in strategies.

Question 11

Huen Software, an application provider to the gaming industry, decided to increase its portfolio by developing 3-D graphics-supported games for the mobile gaming industry.By doing this, which competitive strategy is Huen Software implementing?

Accepted Answer

Huen Software is implementing a product differentiation strategy by developing 3-D graphics-supported games for the mobile gaming industry, thus setting themselves apart from their competitors.

Question 12

Which of the following statements is true of business process designs?

Accepted Answer

Business process designs often involve rethinking and optimizing workflows, which can require employees to change how they work. This can lead to resistance to change and a need for training and support to help employees adjust to new procedures.

Question 13

A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product.Identify the strategy used here.

Accepted Answer

The strategy used here is the switching costs strategy. By making it difficult for customers to switch to another product, the software manufacturer is increasing the costs and effort associated with changing to another product or service, hence making it less attractive for customers to switch to another product. This can help to increase customer loyalty and decrease customer churn.

Question 14

RAC Associates is a car rental company.The company rents cars to customers in the United States.The company uses controls and procedures to prevent car theft.Such procedures are examples of ________.

Accepted Answer

The procedures used by RAC Associates to prevent car theft are supporting business processes, as they support the primary business process of renting cars to customers.

Question 15

A(n)________ is a network of activities that generate value by transforming inputs into outputs.

Accepted Answer

A business process is a network of activities that generate value by transforming inputs into outputs. It is a systematic approach to accomplishing a specific organizational goal or objective. Business processes involve the coordination of people, resources, and technology to achieve efficient and effective outcomes.

Question 16

Which of the following principles of competitive advantage is related to process implementations?

Accepted Answer

Locking in suppliers is related to process implementations as it involves establishing processes that make it difficult for suppliers to switch to competitors, thereby securing a competitive advantage.

Question 17

Synapz, a manufacturer of office automation products, recently received a patent for an advanced therapeutic ergonomics technology.By doing this, Synapz has ________.

Accepted Answer

By receiving a patent for an advanced therapeutic ergonomics technology, Synapz has created entry barriers for its competitors as they cannot use the technology without legally infringing on Synapz's rights. This can help Synapz to protect its market share and maintain a competitive edge.

Question 18

________ argues that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

Accepted Answer

The statement describes the concept of business process design, which focuses on improving efficiency by optimizing the workflows of the different departments involved in the value chain. Option A (internal supply chain design) may involve some of the same principles, but it is a more specific term referring to the internal logistics and movement of goods within a company. Options B and C (product/market differentiation) are unrelated to the concept described in the statement.

Question 19

A database is an example of a(n)________.

Accepted Answer

A database is a repository of organized data that can be easily accessed, managed, and updated. It is not a software application or a linkage between systems, nor is it part of a value chain.

Question 20

A(n)________ is a collection of something, such as data and raw materials.

Accepted Answer

A repository is a centralized location where data and other resources are stored and managed. It can be used for anything from keeping track of code and software to managing scientific data or collections of art. A value chain is a series of businesses or steps involved in producing a product or service, while a cache is a temporary storage location for frequently accessed data. Linkage refers to the connections or relationships between different elements or components.

Quiz 3: Strategy and Information Systems