IS CH 3 UTSA
Porter's 5 Competitive Forces Model 2. Existing or Traditional Competitors Existing firms that are producing the substitutes
- rivalry is high when competition is fierce in a market - rivalry is low when competition is not as fierce Who are those firms? What are they doing? Some industries experience more competition than others
Information systems and the Internet can help companies operate internationally by facilitating coordination of geographically dispersed units of the company and communication with faraway customers and suppliers. There are four ways of organizing business internationally: domestic exporter, multinational, franchiser, and transnational. In which strategy are nearly all the value-adding activities managed from a global perspective without reference to national borders, optimizing sources of supply and demand wherever they appear and taking advantage of any local competitive advantage
A transnational strategy
Information systems and the Internet can help companies operate internationally by facilitating coordination of geographically dispersed units of the company and communication with faraway customers and suppliers. There are four ways of organizing business internationally: domestic exporter, multinational, franchiser, and transnational. Which strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries?
A multinational strategy
Business process management uses a variety of tools and methodologies to understand existing processes, design new processes, and optimize those processes. Companies practicing BPM need to go through a set of steps. During which step of the BPM process are existing business processes modeled and documented, noting inputs, outputs, resources, and the sequence of activities, and then redundant steps, paper-intensive tasks, bottlenecks, and other inefficiencies identified?
Analyze existing processes.
_____ is the acronym related to a leading model for improving business processes to enhance competitiveness.
BPM
Broad Differentiation
Broad market place, and something special or added to it like product or packaging. Ex: Tide with Fabric Softener
__________ combines and streamlines the steps in a business process to eliminate repetitive and redundant work and to achieve dramatic improvements in quality, service, and speed.
Business Process Management
A bookstore redesigning the purchasing process so online orders are allowed is an example of a radical process change called __________________.
Business Process Re-Engineering (BPR)
____________ is a business process improvement model which is most known and used when dramatic change is needed to gain improvements in productivity and efficiency.
Business process reengineering
Which of the following is NOT a way that information systems provide a competitive advantage?
Collecting and storing large amounts of data
_________ is the final and ongoing step of the business process management model.
Continuous measurement
Procter & Gamble uses an intranet called InnovationNet to help people working on similar problems share ideas and expertise. InnovationNet connects those working in many different departments around the world. It uses a browser-based portal to access data and includes a directory of subject matter experts who can be tapped to give advice or collaborate on problem solving or product development. __________ are activities at which a firm excels as a world-class leader.
Core Competencies
______________ is the total time it takes a child to purchase lemonade ingredients, create the lemonade, and set up operations for a neighborhood lemonade stand.
Cycle Time
Which of the following is NOT an example of disruptive technologies?
Digital TV
If Koa's Puppy Food Corporation maintains a strategy to take advantage of local competitive advantages and avoids the notion of national boarders, it is said to have a ___________ global strategy.
Domestic Exporter
Which of the following is not one of the ways information systems help companies compete?
Focusing on appealing to a wide range of consumers
Focused Differentiation
Having something specific or unique features , sometimes more expensive Ex: Woolit for darks or cat food that you would buy from the vet because he's diabetic
Porter's 5 Competitive Forces Model 4. Bargaining Power of Customers
How much choice does the customer have? - Customer Power is high when buyers have many choices from whom to buy - Customer Power is low when their choices are few Firms want to reduce Customer Power - create switching costs - make product be different or at least look different - reward customer loyalty through loyalty programs
Porter's 5 Competitive Forces Model 5. Bargaining Power of Suppliers
How much power can a firm's suppliers exert? - Supplier Power is high when the firm (buyer) has few choices of suppliers to buy from - Supplier Power is low when the firm (buyer) has many choices of suppliers to buy from Firms (buyers) want Supplier Power to be low, so the firm has many choices and can negotiate/choose Suppliers want Supplier Power to be high, so they can dictate the price, quality, terms of the sale
Which of the following is NOT an example of a primary activity in the value chain?
Human resources management
The domestic exporter strategy
IS characterized by heavy centralization of corporate activities in the country of origin. Production, finance/accounting, sales/marketing, human resources, and strategic management are set up to optimize resources in the home country.
Business process management uses a variety of tools and methodologies to understand existing processes, design new processes, and optimize those processes. Companies practicing BPM need to go through a set of steps. During which step of the BPM process do managers need to determine what business processes are the most important and how improving these processes will help business performance?
Identify processes for change
Business process management uses a variety of tools and methodologies to understand existing processes, design new processes, and optimize those processes. Companies practicing BPM need to go through a set of steps. Once the new process has been thoroughly modeled and analyzed, it must be translated into a new set of procedures and work rules. This is done during which step of the BPM process?
Implement the new process.
A computer-aided design (CAD) system automates the creation and revision of designs, using computers and sophisticated graphics software. The software enables users to create a digital model of a part, a product, or a structure, and make changes to the design on the computer without having to build physical prototypes. If a company decides to use a CAD system, it is using which of the following strategies to promote quality?
Improving quality and precision in design and production
Which of the following is not one of the ways information systems can promote quality?
Increasing product development cycle time
Which of the following is FALSE regarding the description of business process management (BPM)?
It works on increasing process throughput and quality.
Porter's 5 Competitive Forces Model 3. Threat of New Market Entrants
Likelihood of new companies/competitors - Threat is high when it is easy for new competitors to enter a market (low entry barriers) - Threat is low when there are significant entry barriers to entering a market (high entry barriers)
If Koa's Puppy Food Corporation maintains a highly centralized operation with financial management, but decentralizes production and marketing to other countries, is said to have a ___________ global strategy.
Multinational
A networked system configuration supports which of the following international business strategies?
Multinational and transnational
Organizations using information systems to deal with competitive forces __________.
Organizations using information systems to deal with competitive forces __________.
How do new entrants in an industry affect established organizations?
Organizations' profits are affected as they lower prices to compete against new entrants.
Which type of activity within the value chain model is directly related to the production and distribution for a firm's products and services?
Primary activities
Inbound logistics (receiving and storing materials for distribution to production), operations (transforming inputs into finished products), outbound logistics (storing and distributing finished products), sales and marketing, and service, are all __________.
Primary activities (add value to the customer)
Best Practices
Procedures and processes that are widely accepted as being among the most effective and/or efficient; identified by consulting firms, research firms, others as the most successful solutions or problem-solving methods for achieving a business objective
______________ is a term, when described from a customer perspective, that involves demanding durability, safety, ease of use, as well as service effectiveness and responsiveness.
Quality
Which of the following is NOT an impact of the Internet on competitive forces and industry structure?
Reduces the price of products and services
Broad Cost Leadership
Sell to anyone, get attention by setting a value at a valued cost
Broad Market strategy
Sell to the overall, general marketplace, a broad range of buyers market-wide
The popular quality management technique that specifically calls for 3.4 defects per million opportunities is called ______________.
Six sigma
Which of Porter's competitive forces model would describe an organization that loses customers due to its product prices being too high?
Substitute products and services
__________ consists of information systems that enhance competitiveness at the industry level by promoting the use of standards and industry-wide consortia, and by enabling businesses to work more efficiently with their value partners.
The value web model
__________ consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input).
Support activities
__________ highlight(s) 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.
The value chain model
Which of the following is NOT part of the description of a value web?
They promote communication among units.
The acronym related to organizational improvements, TQM, stands for ____________________.
Total Quality Management
If Koa's Puppy Food Corporation maintains a highly centralized operation with all corporate operations taking place in its home country, it is said to have a ___________ global strategy.
Transnational
The ways information systems can promote quality?
Using customer demands to improve products and services is one of the ways information systems can promote quality. Improving customer service, and making customer service the number one priority, will improve the quality of the product itself. Facilitating benchmarking is one of the ways information systems can promote quality. Improving quality and precision in design and production is one of the ways information systems can promote quality.
Automobiles have the opportunity to use computer-aided design (CAD) to create virtual models of parts and even prototype vehicles. This use of information systems to improve quality is related to ______________________.
improving design quality and precision
Focused cost leadership
When cost is an issue, you want the generic or cheapest brand and that's where this focuses
value web
an industry value chain - a collection of independent firms that use information technology to coordinate their value chains to produce a product collectively
Porter's Five Forces Model states that the intensity of the competitive forces determines all of the following EXCEPT industry ________.
bargaining power
Companies often use information systems to improve quality by ______________ as a way to set standards for products and services against predefined standards.
benchmarking
Focused Market strategy
choose a narrow target and concentrate on serving its needs rather than those of the broad marketplace, "market niche"
A multinational strategy
concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. The products and services on sale in different countries are adapted to suit local market conditions.
When a firm does something in which they are a world-class leader, that activity would be considered to be a _____________ for the company.
core competency
Switching Costs
costs that can make customers reluctant to switch to another product or service - do not have to be $ costs
To help improve quality, Delta Airlines installed customer care systems at some of its airport gates. The goal of this information system is to improve ______________________.
customer service and the quality of the product
The competitive forces model is used to
describe the interaction of external influences, specifically threats and opportunities, that affect an organization's strategy and ability to compete.
Franchisers
have the product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources. Nonetheless, local production of some items, local marketing, and local recruitment of personnel are required.
The value chain 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.
Procter & Gamble uses an intranet called InnovationNet to help people working on similar problems share ideas and expertise. InnovationNet connects those working in many different departments around the world. It uses a browser-based portal to access data and includes a directory of subject matter experts who can be tapped to give advice or collaborate on problem solving or product development. This scenario is an example of __________.
how information systems help businesses use core competencies to achieve competitive advantage
Internet sites, like eBay (the giant online auction site) and iVillage (an online community for women), can be used by firms to build communities of users—like-minded customers who want to share their experiences. This builds customer loyalty and enjoyment, and builds unique ties to customers. This scenario is an example of __________.
how information systems help businesses use network-based strategies to achieve competitive advantage
Taking advantage of network economics, using the model of a virtual company, and creating a business ecosystem are all examples of __________.
how information systems help businesses use network-based strategies to achieve competitive advantage
Countrywide Financial enabled Bank of America to extend its mortgage lending business and to tap into a large pool of new customers who might be interested in its credit card, consumer banking, and other financial products. This scenario is an example of __________.
how information systems help businesses use synergies to achieve competitive advantage
Differentiation
make your product/service appear "different" to attract customers
Porter's 5 Competitive Forces Model 1. Threat of substitute products or services
substitutes the customer can purchase instead of your product or service - high when there are many alternatives the customer can choose from - low when there are few alternatives from which to choose
Entry barrier
something that would make it difficult for a new company to start up in your industry; a product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive; specialized skills/knowledge/facilities, etc.
In the Datacard Case, the company decided on a complete business process transformation. An example of a successful business process redesign described in the case included ________________.
the distribution of pricing to Datacard's partners
Value Chain
the set of activities or business processes through which a company transforms its inputs into outputs (products or services) Highlights specific activities in a business where competitive strategies can best be applied and where information systems are likely to have a strategic impact At each step, the firm has the potential to "add value" to the product/service
Cost Leadership
use cost as a way to attract customers; use information systems to achieve the lowest operational costs and the lowest prices