Question 1

Which strategy for competitive advantage involves introducing new products and putting new features in existing products?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

The strategy that involves introducing new products and putting new features in existing products is innovation, which allows companies to differentiate themselves from competitors and stay ahead of the curve. This can lead to a competitive advantage by offering unique value to customers that competitors cannot provide.

Question 2

The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret.This is an example of which of Porter's five forces?
A)Threat of entry of new competitors
B)Bargaining power of suppliers
C)Bargaining power of customers
D)Threat of substitute products
E)Rivalry among existing firms in an industry

Accepted Answer

The answer of The visibility of Internet applications on the...

Question 3

The bargaining power of suppliers is _______ when buyers have few choices and _________ when buyers have many choices.
A)High, high
B)High, low
C)Low, low
D)Low, high

Accepted Answer

The bargaining power of suppliers is high when buyers have few choices because suppliers can charge higher prices due to lack of competition. Conversely, when buyers have many choices, the bargaining power of suppliers is low because they are forced to offer competitive prices and better quality products in order to stay competitive.

Question 4

For most companies, the Web _____ the threat that new competitors will enter the market by _____ traditional barriers to entry.
A)Decreases, increasing
B)Increases, decreasing
C)Increases, increasing
D)Decreases, decreasing

Accepted Answer

The Web increases the threat of new competitors entering the market by decreasing traditional barriers to entry, such as the need for physical storefronts or large capital investments.

Question 5

Walmart's automatic inventory replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

The answer of Walmart's automatic inventory replenishment system, which enables...

Question 6

The threat of competitors' entering the automobile manufacturing industry is _____ because barriers to entry are so _____.
A)Low, low
B)High, high
C)High, low
D)Low, high

Accepted Answer

The threat of competitors entering the automobile manufacturing industry is low because the barriers to entry, such as high capital requirements, economies of scale, and brand loyalty, are high.

Question 7

Porter's competitive forces model helps organizations identify _____, whereas his value chain model helps organizations identify specific _____.
A)Competitive opportunities, activities
B)General strategies, activities
C)Activities, competitive opportunities
D)Activities, general strategies
E)Primary activities, support activities

Accepted Answer

The answer of Porter's competitive forces model helps organizations identify...

Question 8

Competitive advantage for an organization manifests itself as all of the following except:
A)Lower costs
B)Higher quality
C)Increased time to market
D)Increased profits
E)Increased speed

Accepted Answer

Increased time to market is not a manifestation of competitive advantage, but rather a potential outcome of achieving competitive advantage through other means such as lower costs, higher quality, increased speed, or innovation.

Question 9

Buyer power is _____ when buyers have many choices from whom to buy and _____ when buyers have few choices.
A)High, the same
B)High, low
C)Low, low
D)Low, high
E)Low, the same

Accepted Answer

When buyers have many choices, they have higher bargaining power as they can easily switch to another supplier if they are not satisfied with one. On the other hand, when buyers have few choices, they have lower bargaining power as they have to stick with the limited options available to them.

Question 10

Which strategy for competitive advantage involves offering different products, services, or product features?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

Offering different products, services, or product features is the strategy for differentiation, which focuses on competing through uniqueness and uniqueness value proposition.

Question 11

_____ activities create value for which customers are willing to pay, whereas _____ activities do not add value directly to the firm's products or services.
A)Support, primary
B)Human resource management, inbound logistics
C)Procurement, operations
D)Primary, support
E)Accounting, outbound logistics

Accepted Answer

Primary activities are directly involved in creating and delivering a product or service, adding direct value that customers are willing to pay for. Support activities, while essential to the organization, do not add direct value to the product or service but support the primary activities.

Question 12

_____ is a feature that must be offered by a competing organization in order to survive in the marketplace.
A)Competitive advantage
B)An entry barrier
C)Strategic advantage
D)Rapid time-to-market
E)One-to-one marketing

Accepted Answer

The answer of _____ is a feature that must be...

Question 13

How does the Internet affect the way you purchase your textbooks?
A)The Internet gives you fewer choices.
B)The Internet increases your bargaining power.
C)The Internet provides you with less information.
D)The Internet decreases your bargaining power.
E)The Internet increases your switching costs.

Accepted Answer

The Internet has increased our bargaining power when it comes to purchasing textbooks. With the ability to easily compare prices across various online retailers, we can choose the option that offers the best value for money. We can also take advantage of coupons, discounts, and free shipping offers, which helps to lower our overall cost.

Question 14

If there are _____ substitutes for an organization's products or services, then the threat of substitutes is _____.
A)Many, high
B)Few, low
C)Few, high
D)Many, low
E)Few, negligible

Accepted Answer

When there are many substitutes for an organization's products or services, the threat of substitutes is high. This is because customers have many other options to choose from, so they are less likely to be loyal to any one brand.

Question 15

The threat of competitors' entering a market is very high in industries that perform a(n)_____ role and in industries where the primary product or service is _____.
A)Intermediation, physical
B)Broker, physical
C)Sales, financial
D)Financial, digital
E)Intermediation, digital

Accepted Answer

The threat of competitors' entering a market is high in industries that perform an intermediation role, which refers to connecting buyers and sellers or facilitating transactions. This is particularly true in digital industries where barriers to entry are low. Additionally, in industries where the primary product or service is digital, such as software or online platforms, competition can easily arise as it is relatively easy to replicate or create similar offerings. Therefore, the best choice is E, Intermediation, digital.

Question 16

The threat of entry of new competitors is __________ when it is easy to enter a market and __________ when significant barriers to entry exist.
A)High, high
B)High, low
C)Low, low
D)Low, high

Accepted Answer

The answer of The threat of entry of new competitors...

Question 17

The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage?
A)Cost leadership
B)Innovation
C)Differentiation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

The introduction of ATM machines by Citibank was an innovative move that allowed them to differentiate themselves from competitors and ultimately gain a competitive advantage.

Question 18

Information-based industries are most susceptible to which one of Porter's five forces?
A)Threat of entry of new competitors
B)Bargaining power of suppliers
C)Bargaining power of customers
D)Threat of substitute products
E)Rivalry among existing firms in an industry

Accepted Answer

The answer of Information-based industries are most susceptible to which...

Question 19

The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A)E-commerce, digital
B)Digital, e-commerce
C)Digital, physical
D)Physical, financial
E)Physical, digital

Accepted Answer

Delivering products in the physical channel involves various costs such as transportation, warehousing, and inventory management which are higher compared to delivering products in the digital channel. On the other hand, delivering products in the digital channel involves lesser costs such as hosting and maintenance of the website, and payment gateway charges. Therefore, option E - Physical, digital is the correct answer.

Question 20

New technologies can produce new products very _____, which _____ the threat from substitute products.
A)Slowly, decreases
B)Slowly, increases
C)Slowly, does not affect
D)Quickly, increases
E)Quickly, does not affect

Accepted Answer

New technologies can produce new products quickly, which increases the threat from substitute products. When new technologies are introduced, they may create new substitutes for existing products, which can compete with the existing products and reduce their demand. Therefore, the faster new products can be developed with new technologies, the greater the threat from substitute products.

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

Which strategy for competitive advantage involves introducing new products and putting new features in existing products?

The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret.This is an example of which of Porter's five forces?

The bargaining power of suppliers is _ when buyers have few choices and ___ when buyers have many choices.

For most companies, the Web _ the threat that new competitors will enter the market by _ traditional barriers to entry.

Walmart's automatic inventory replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?

The threat of competitors' entering the automobile manufacturing industry is _ because barriers to entry are so _.

Porter's competitive forces model helps organizations identify _, whereas his value chain model helps organizations identify specific _.

Competitive advantage for an organization manifests itself as all of the following except:

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

Which strategy for competitive advantage involves offering different products, services, or product features?

_ activities create value for which customers are willing to pay, whereas _ activities do not add value directly to the firm's products or services.

_____ is a feature that must be offered by a competing organization in order to survive in the marketplace.

How does the Internet affect the way you purchase your textbooks?

If there are _ substitutes for an organization's products or services, then the threat of substitutes is _.

The threat of competitors' entering a market is very high in industries that perform a(n) _ role and in industries where the primary product or service is _.

The threat of entry of new competitors is when it is easy to enter a market and when significant barriers to entry exist.

The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage?

Information-based industries are most susceptible to which one of Porter's five forces?

The costs of delivering products in the _ channel are much higher than delivering products in the _ channel.

New technologies can produce new products very _, which _ the threat from substitute products.

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

Which strategy for competitive advantage involves introducing new products and putting new features in existing products?

The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret.This is an example of which of Porter's five forces?

The bargaining power of suppliers is _______ when buyers have few choices and _________ when buyers have many choices.

For most companies, the Web _____ the threat that new competitors will enter the market by _____ traditional barriers to entry.

Walmart's automatic inventory replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?

The threat of competitors' entering the automobile manufacturing industry is _____ because barriers to entry are so _____.

Porter's competitive forces model helps organizations identify _____, whereas his value chain model helps organizations identify specific _____.