Question 1

What is a loss leader?
A)A failing business leader in a competitive market
B)A "first mover" in a emerging market
C)A Competitor who is able to differentiate themselves from opposition
D)A product that is sold at or below cost to entice customers into a store

Accepted Answer

A loss leader is a product that is sold at or below cost to entice customers into a store with the hope that they will also buy other profitable products. This strategy is commonly used by retailers to drive foot traffic and increase sales.

Question 2

Which of the following is an approach to allocating a percentage of your IT budget to various projects based upon business strategies?
A)Tactical information planning (TIP)
B)Strategic technology planning (STP)
C)Run-grow-transform (RGT)framework
D)Transforming IS strategy (TISS)

Accepted Answer

The Run-Grow-Transform (RGT) framework is an approach used to allocate IT budget based on the impact of various projects on the business's ability to run its operations, grow its business, and transform its market offerings. This method aligns IT investments with business strategy by categorizing projects into these three critical areas.

Question 3

What is differentiation in Porter's strategy to surpassing the competition?
A)Creating a unique culture with your customer base
B)Offering a product or service that is perceived as being "unique" in the marketplace
C)Providing purchasing history for individual customers and allowing them to compare their history to others
D)Developing a unique working environment; one that incorporates IT to allow for efficient and off-site working

Accepted Answer

Differentiation in Porter's strategy means offering a product or service that is perceived as being "unique" in the marketplace. This can be achieved by features, performance, design, brand image, technology, or customer service. By doing so, a company can charge premium prices, gain customer loyalty, and reduce the threat of substitutes. Creating a unique culture (A), providing purchasing history (C), and developing a unique working environment (D) may have some benefits, but they are not directly related to differentiation as a competitive advantage.

Question 4

If your business had two strategic initiatives this year.One initiative focused on improving customer satisfaction.The second focused on providing customers with their purchase history from any Internet site in the world.If you were to allocate 15% of your IT budget to the first initiative and 25% to the second initiative,what type of strategy are you applying?
A)Tactical information planning (TIP)
B)Strategic technology planning (STP)
C)Transforming IS strategy (TISS)
D)Run-grow-transform (RGT)framework

Accepted Answer

The allocation of IT budget to the two initiatives indicates that the business is applying the Run-Grow-Transform (RGT) framework. The first initiative aimed at improving customer satisfaction falls under the "run" category, which focuses on maintaining the current operations efficiently. The second initiative aimed at providing customers with their purchase history from any Internet site in the world falls under the "transform" category, which focuses on creating new business models and disrupting the existing ones. The allocation of 25% of IT budget to the "transform" initiative indicates that the business is making a significant investment in transforming its operations.

Question 5

When you extend a transaction processing system so that customers can access the Web and place orders without customer assistance,you are creating a(n)_____ system.
A)Emerging
B)Operational
C)Customer self-service
D)Management information system

Accepted Answer

A customer self-service system allows customers to access and perform transactions on a system without the assistance of a customer service representative. This can be achieved by extending a transaction processing system to the web, allowing customers to place orders online without needing to interact with an employee. Therefore, the best choice for this scenario is C - customer self-service.

Question 6

If you were to develop a text messaging system that was able to piggy back messages onto other messages moving through the network,and,thereby allowing users to send more messages for less money,how would you be enhancing your competitive strategy?
A)Through focus
B)As a product leader
C)Through loyalty enhancement
D)Through overall cost leadership

Accepted Answer

By developing a text messaging system that can piggyback messages onto other messages, the company is able to offer its users a more cost-effective solution. This positions the company as an overall cost leader in the market, which is a competitive strategy that focuses on offering products or services at lower prices than competitors in order to attract price-sensitive customers.

Question 7

If you were to develop a new text messaging system for college students that had a panic button so that,for instance,a message changed when a teacher were close by,how would you be enhancing your competitive strategy?
A)Through focus
B)Through overall cost leadership
C)Through loyalty enhancement
D)Through differentiation

Accepted Answer

The answer of If you were to develop a new...

Question 8

If you were to create a unique industry Web site for your customers that allowed them to build virtual communities with other customers by sharing knowledge,how would you be enhancing your competitive strategy?
A)Through focus
B)Through overall cost leadership
C)Through loyalty enhancement
D)Through differentiation

Accepted Answer

By creating a unique industry website that allows customers to build virtual communities and share knowledge, the company is differentiating itself from its competitors. This can enhance its competitive strategy by attracting customers who value the ability to connect with like-minded individuals and gain insights from them. It can also lead to increased customer loyalty as customers become invested in the community they have helped build.

Question 9

Which term is used to describe the offering of equal or better quality products or services at a lesser price than your competitors?
A)Overall cost leadership
B)Price differentiation
C)Price separation
D)Product differentiation

Accepted Answer

Overall cost leadership refers to offering equal or better quality products or services at a lesser price than your competitors. This involves minimizing costs and increasing efficiency to provide competitive pricing. Price differentiation and separation involve setting different prices for different segments of customers based on their willingness to pay or other factors, and product differentiation involves creating unique and distinct products or services to stand out from competitors.

Question 10

What is it called when a business focuses its efforts on a small set of products and services compared to an extensive product or service line?
A)Differentiation
B)Loss leader
C)Product leader
D)Focus

Accepted Answer

When a business focuses its efforts on a small set of products and services, it is known as focus or niche strategy. This allows the business to specialize in a particular area and cater to a specific target market, rather than spreading their resources and efforts across a wide range of products or services.

Question 11

Which of the following is considered a bottom-line strategic point of view?
A)A focus on expenses
B)Low customer ratings
C)Legacy computer systems
D)Lack of strategic planning

Accepted Answer

A focus on expenses is a bottom-line strategic point of view, as it involves minimizing costs and maximizing profits, which is essential for the long-term success of a business. The other options do not necessarily represent a strategic point of view.

Question 12

Which of the following is considered a top-line strategic point of view?
A)High customer ratings
B)Efficient operational efforts
C)Cutting-edge technology
D)A focus on revenue

Accepted Answer

A focus on revenue is considered a top-line strategic point of view, as it involves setting goals and making decisions that prioritize generating income for the organization.

Question 13

How can technology affect your cost leadership strategy?
A)IT can tighten supply chain systems
B)IT can capture and assimilate customer information
C)IT can help analyze and predict customer behavior
D)IT can help with all aspects of a business to reduce costs and analyze needed information

Accepted Answer

IT can help with all aspects of a business to reduce costs and analyze needed information. Implementing technology can streamline processes and automate tasks, reducing labor costs and increasing efficiency. This can also aid in data analysis and decision-making, helping businesses identify areas where they can cut costs without sacrificing quality or production. IT can also improve communication and collaboration, reducing errors and delays that can drive up costs. Overall, technology can be a powerful tool for cost leadership strategies.

Question 14

If you were to focus on developing new technology that allowed parents to track the movements of their teenagers by implanting a small chip under their skin,you would be utilizing a(n)_____ strategy.
A)Emergent
B)Top-line
C)Bottom-line
D)Sine qua non

Accepted Answer

The answer of If you were to focus on developing...

Question 15

If you were to focus on developing management information systems that allowed you to reduce the number of employees in the company and,therefore,reduce the price of products offered to the customer,you would be utilizing a _____ strategy.
A)Focused
B)Bottom-line
C)Top-line
D)Cutting-edge

Accepted Answer

The strategy described focuses on reducing costs (bottom-line) by reducing the number of employees through the use of information systems. This would lead to lower prices for customers. Focused, top-line, and cutting-edge strategies do not specifically address reducing costs through employee reduction.

Question 16

The authors discussed Michael Porter's three strategies to beating the competition in any industry.Which of the following is not one of those three approaches?
A)Customer loyalty
B)Overall cost leadership
C)Focus
D)Differentiation

Accepted Answer

The three strategies outlined by Michael Porter are overall cost leadership, differentiation, and focus. Customer loyalty is not one of the three strategies.

Question 17

What is the type of system that processes transactions within an organization?
A)Transaction processing system
B)Management information system
C)Business intelligent system
D)Decision support system

Accepted Answer

A transaction processing system (TPS) is a type of information processing system that collects, stores, modifies, and retrieves transaction data of an organization. It is commonly used to process business transactions, such as sales, inventory, payroll, and accounting transactions. TPSs are designed to process a large number of transactions efficiently and accurately in real-time or near-real-time. Therefore, it is the best choice for the system that processes transactions within an organization.

Question 18

Using the RGT framework,which of the following strategies applies to a business that increases their customer base by taking it from the competition?
A)Grow
B)Grab
C)Transcend
D)Transform

Accepted Answer

The answer of Using the RGT framework,which of the following...

Question 19

When is rivalry among existing competitors high in the Five Forces Model?
A)When there are a large number of competitors in a market
B)When there are a small number of competitors in a market
C)When the competition in a market is fierce
D)When the competition in a market is more complacent allowing some businesses to excel

Accepted Answer

Rivalry among existing competitors is high when there is already competition in a market and it is fierce. This can lead to price wars, aggressive advertising tactics, and companies fighting for market share. When there are a small number of competitors, there may be less competition and rivalry, and when there are a large number of competitors, it may be more difficult for any one company to stand out and create a strong competitive advantage. When competition in a market is more complacent, it may lead to some businesses excelling, but it does not necessarily indicate high rivalry among competitors.

Question 20

Using the RGT framework,which of the following strategies applies to a business that offers products and services faster and cheaper than the competition?
A)Rein
B)Run
C)Grow
D)Transform

Accepted Answer

The Run strategy is the most appropriate for a business that offers products and services faster and cheaper than the competition. This strategy focuses on maximizing efficiency and minimizing costs while maintaining the current business model. The Run strategy is ideal for businesses that want to maintain their competitive advantage by continuously improving and optimizing their operations.

Quiz 1: The Information Age in Which You Live: Changing

What is a loss leader?

Which of the following is an approach to allocating a percentage of your IT budget to various projects based upon business strategies?

What is differentiation in Porter's strategy to surpassing the competition?

When you extend a transaction processing system so that customers can access the Web and place orders without customer assistance,you are creating a(n) _____ system.

If you were to develop a text messaging system that was able to piggy back messages onto other messages moving through the network,and,thereby allowing users to send more messages for less money,how would you be enhancing your competitive strategy?

If you were to develop a new text messaging system for college students that had a panic button so that,for instance,a message changed when a teacher were close by,how would you be enhancing your competitive strategy?

If you were to create a unique industry Web site for your customers that allowed them to build virtual communities with other customers by sharing knowledge,how would you be enhancing your competitive strategy?

Which term is used to describe the offering of equal or better quality products or services at a lesser price than your competitors?

What is it called when a business focuses its efforts on a small set of products and services compared to an extensive product or service line?

Which of the following is considered a bottom-line strategic point of view?

Which of the following is considered a top-line strategic point of view?

How can technology affect your cost leadership strategy?

If you were to focus on developing new technology that allowed parents to track the movements of their teenagers by implanting a small chip under their skin,you would be utilizing a(n) _____ strategy.

If you were to focus on developing management information systems that allowed you to reduce the number of employees in the company and,therefore,reduce the price of products offered to the customer,you would be utilizing a _____ strategy.

The authors discussed Michael Porter's three strategies to beating the competition in any industry.Which of the following is not one of those three approaches?

What is the type of system that processes transactions within an organization?

Using the RGT framework,which of the following strategies applies to a business that increases their customer base by taking it from the competition?

When is rivalry among existing competitors high in the Five Forces Model?

Using the RGT framework,which of the following strategies applies to a business that offers products and services faster and cheaper than the competition?