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Which model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete?
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As discussed in the chapter opening case, which of the four generic strategies did T.J. Maxx employ to combat the competition offered by Target, Kohls, Walmart, Macy's and pure online stores like Rue La La and Gilt Groupe?
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Chapter 3
| Question | Answer |
|---|---|
| Which model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete? | Competitive forces model |
| As discussed in the chapter opening case, which of the four generic strategies did T.J. Maxx employ to combat the competition offered by Target, Kohls, Walmart, Macy's and pure online stores like Rue La La and Gilt Groupe? | Market niche focus |
| The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system are known as: | Switching costs |
| In environmental scanning, a firm may use information systems to: | Identify external events that may affect it |
| The Value Chain Model: | Highlights specific activities in the business where competitive . . . |
| A _________ is an activity at which a firm excels as a world-class leader. | Core competency |
| Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors. | Market niche |
| In the value chain model, support activities are most directly related to the production and distribution of the firm's products and services, which create value for the customer. | False |
| A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force. | New market entrants |
| The internet raises the bargaining power of customers by: | Making information available to everyone |
| Along with capital, _______ is the primary production input that the organization uses to create products and services. | Labor |
| 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. | Value chain |
| An example of a divisionalized bureaucracy is a: | Fortune 500 firm. |
| A substitute product of most concern for a cable TV distributor is: | Satellite TV |
| High product differentiation is a sign of a transparent marketplace. | False. |
| How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? | It sees the inputs and outputs, labor and capital, as being infinitely malleable |
| Walmart's continuous replenishment system allows it to: | Achieve low-cost leadership |
| Research has shown that a majority of firms are able to align their information technology with their business goals. | False |
| All of the following are competitive forces except: | External environment |
| Business processes are collections of: | Routines |
| A firm can exercise greater control over its suppliers by having: | More suppliers |
| The four major competitive strategies are: | Low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy |
| Routines are also called Standard Operating Procedures. | True |
| Network economics: | Sees the cost of adding new members as inconsequential. |
| An efficient customer response system directly links consumer behavior to distribution and production and supply chains. | True |
| A competitive force challenging the publishing industry is: | Substitute products or services |
| Mass customization offers individually tailored products or services using the same resources as mass productions | True |
| In demonstration of network economics, the more people that use eBay's site, the greater the value of the site. | True |
| The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as ______ activities. | Support |
| All of the following statements are true about information technology's impact on business firms except: | It helps firms expand in size. |
| Which of the following best illustrates the use of information systems to focus on market niche? | A department store creating specialized products for preferred customers. |
| Which of the following is not a major feature of organizations that impacts the use of information systems: | Agency costs |
| Under Mintzberg's classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of: | Professional bureaucracies |
| Amazon's use of the internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for: | Low-cost leadership |
| An activity businesses perform to measure and compare business processes to similar processes of other companies within their industry is: | Benchmarking |
| When two organizations pool markets and expertise that result in lower costs and generate profits, it is referred to as creating: | Synergies |
| A professional bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. | True |
| Switching costs increase when customers are strongly linked to products and platforms. | True |
| The term Business Ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers. | True |
| An organization is a: | Stable, formal social structure that takes resources from the environment and processes them to produce outputs, formal, legal entity that must abide by laws, and a collection of people and other social elements. |
| Nike's forays into information technology represent an effort to: | Achieve product differentiation |
| 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 output. This is referred to as: | The law of diminishing returns |
| Which of the following represent the primary activities of a firm: | Inbound logistics, outbound logistics, operations, services, sales and marketing |
| A ______ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce or service for a market. | Value web |
| You are consulting for a cosmetics distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step? | Perform a strategic systems analysis. |
| Which of the following is one of the support activities in a firm's value chain? | Technology |
| An organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment according to the _______ definition of organizations. | Microeconomic |
| The value chain model classifies all company activities as primary activities. | False |
| A collection of independent firms that uses information technology to coordinate their value chains to produce a product or service for a market collectively is called a: | Value web |
| Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a _______ bureaucracy. | Machine |
| The ability to offer individually tailored products or services using the same production resources as bulk production is known as: | Mass customization |
| All of the following are IT-enabled products and services providing competitive advantage except: | Walmart's RetailLink system |
| A company's competitive advantages ultimately translate into higher stock market valuations than its competitors. | True |
| The use of internet technologies allows companies to more easily sustain competitive advantage. | False |
| According to research on organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are: | Tasks, technology, people, and structure |
| Some organizations lack bedrock, unassailable assumptions that define their goals and products. | False |
| ______ technologies radically change the business landscape and environment. | Disruptive |
| Customers are one of the competitive forces that affect an organization's ability to compete. | True |
| An example of a keystone firm within a business ecosystem is: | Apple and software application writers in the mobile platform ecosystem. |
| 'Synergies' occur when the output of some units in a firm can be used as inputs to other units, lowering cost and generating profits. | True |
| All of the following industries have been disrupted by the internet except: | Clothing |
| The effect of the internet has been to decrease the bargaining power of customers. | False |
| Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered: | Strategic transitions |
| The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as: | Politics |
| According to agency theory, the firm is viewed as a: | "Nexus of contracts" among self-interested individuals |
| A virtual company: | Uses networks to connect people, assets, and ideas |
| Which of the following has a low barrier to entry: | Restaurant |
| The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms. | False |
| What are the most successful solutions or methods for achieving a business objective? | Best practices |
| Information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor from the viewpoint of economics. | True |
| How are information systems used at the industry level to achieve strategic advantage? | By building industry-wide, IT supported consortia and symposia |
| How do information systems enhance core competencies? | By encouraging the sharing of knowledge across business units |
Created by:
scottcampbell