MIS Chapter 3 Quiz

entry barrier

A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival A weak barrier in an industry : is entry intoyour corner coffee house. It is not difficult at all. A strong (barrier) force for your industry would be a new football team. If this is your industry itis hard for new competitors to enter your market.

b.) Competitive Strategy

A statement identifying a business's approach to compete, it's goals, and the plans and policies required to attain those goals. a.) industry structure b.) competitive strategy c.) value chains d.) business processes e.) information systems

B. strategic position within its industry

According to the information presented in this​ video, Porter's five forces model is used to evaluate an​ organization's _____. A. value chain B. strategic position within its industry C. supply chain D. threats in industry E. distribution effectiveness

D. threat of substitutes

According to the information presented in this​ video, Walmart's decision to sell both online and through​ brick-and-mortar stores illustrates its efforts to counter which force in​ Porter's model? A. bargaining power of buyers B. bargaining power of suppliers C. external environment conditions D. threat of substitutes E. threat of new entrants

D. Raise barriers to market entry

Amazon's information system is​ massive, almost​ foolproof, simple to​ use, patented, and would be incredibly expensive for a new competitor to replicate. What type of competitive advantage does​ Amazon's information system​ represent? A. Establish alliances B. Reduce costs C. Lock in customer and buyers D. Raise barriers to market entry E. Lock in suppliers

D. weak bargaining power of suppliers

Walmart negotiates with manufacturers and wholesalers to keep their profit margins low so that Walmart can offer lower prices to its customers. This is an example​ of _____. A. weak rivalry within the industry B. strong bargaining power of suppliers C. strong rivalry within the industry D. weak bargaining power of suppliers E. strong threat of new entrants

C.support

With respect to value​ chains, if your job relates directly to design and maintenance of the organizational​ infrastructure, you would be involved in​ ________ activities. A. primary B. operations C.support D. manufacturing E. logistics

B. Modify and manage your existing business processes to maximize supplier lock in and to build alliances with consumers and suppliers.

You just heard that a​ well-known manufacturer in a different industry segment is going to enter your market with a product that will be a direct competitor in your existing industry. What should you​ do? A. Reduce costs across the board and build up your cash reserves so that you can make it through the hard times to come. B. Modify and manage your existing business processes to maximize supplier lock in and to build alliances with consumers and suppliers. C. Create a new product. D. Reduce costs across the board and reduce product price so you drive your competitor out of business. E. Create a new service.

A. Product differentiation across a specific industry segment

An examination of the industry in which you operate reveals that you have three successful competitors. One focuses on cost​ industry-wide. One focuses on​ industry-wide differentiation. One focuses on cost in a specific industry segment​ (the largest​ segment). Which competitive strategy should you​ adopt? A. Product differentiation across a specific industry segment B. ​Industry-wide cost differentiation C. Industry segment cost differentiation D. Industry-wide product differentiation E. A competitive strategy that reflects all of the possible alternatives and see how the other competitors react

C. bargaining power of buyers

As discussed in this​ video, tablet computers are sold by many​ retailers, both online and in​ brick-and-mortar stores, resulting in lower prices for consumers. Which of the five forces in​ Porter's model does this​ illustrate? A. threat of substitution B. bargaining power of suppliers C. bargaining power of buyers D. threat of lower prices E. threat of new entrants

A. high levels of rivalry

Based on the information in this​ video, which of the following describes the retail industry segment occupied by Amazon and​ Walmart? A. high levels of rivalry B. high bargaining power of suppliers C. low threat of substitutes D. high threat of new entrants E. low bargaining power of customers

supply chain

Consists of all parties involved in the procurement of a product or raw material

B. ​Industry-wide product differentiation

Kelsie told you her goal is to be one of the best overall programmers in the world. She​ doesn't care who she works​ for, or what systems she​ develops, she just wants to be the best. She feels with that​ level, and breadth of​ skill, she will be able to command the highest salary possible. On a personal​ level, Kelsie is embracing which of​ Porter's competitive​ strategies? A. Adopt a competitive strategy that reflects all of the possible alternatives and see how the other competitors react B. ​Industry-wide product differentiation C. Product differentiation across a specific industry segment D. Industry segment cost differentiation E. Industry-wide cost differentiation

a.) switching costs

Manipulating costs that make customers reluctant to switch to another product a.) switching costs b.) loyalty program

Principles of Competitive Advantage

Product Implementations: 1. Create a new product or service 2. Enhance products or services 3. Differentiate products or services Process Implementations: 4. Lock in customers and buyers 5. Lock in suppliers 6. Raise barriers to market entry 7. Establish alliances 8. Reduce costs

Buyer Power

The ability of buyers to affect the price of an item

A. five primary

The generic value chain consists of​ ________ activities and four support activities. A. five primary B. four logistic C. two customer service D. several marketing E. two operation

Supplier Power

The suppliers' ability to influence the prices they charge for supplies

C. Margin

Value - Total Cost​ = ________. A. Working capital B. Wholesale price C. Margin D. Overhead E. Net revenue

1. Bargaining power of customers 2. Threat of substitutions 3. Bargaining power of suppliers 4. Threat of new entrants 5. Rivalry Among Existing firms

What five forces determine industry structure? (Porter's Competitive Forces Model)

Porter's Value Chain Model

a sequence of activities through which the organization's inputs are transformed into valuable outputs

customer service

assisting customers' use of the products and thus maintaining and enhancing the products' value

outbound logistics

collecting, storing, and physically distributing the products to buyers

Porter's 4 competitive strategies

cost-industry-wide, Industry-wide- cost, cost-focus, differentiation-focus

sales and marketing

inducing buyers to purchase the products and providing a means for them to do so a.) inbound logistics b.) operations/Manufacturing c.) sales and Marketing d.) Outbound logistics e.) Customer Service

b.) inbound logistics

receiving, storing, and disseminating inputs to the products a.) Operations/ Manufacturing b.) Inbound Logistics c.) Sales and Marketing d.) Customer Service e.) Outbound Logistics

loyalty programs

reward customers based on the amount of business they do with a particular organization

Operations/Manufacturing

transforming inputs into the final products a.) inbound logistics b.) operations/ manufacturing c.) outbound logistics d.) sales and marketing e.) customer service

A. Yes, an​ organization's competitive strategy determines which activities in the value chain represent an opportunity for strategic advantage.

Does competitive strategy affect value chain​ structure? A. Yes, an​ organization's competitive strategy determines which activities in the value chain represent an opportunity for strategic advantage. B. ​Yes, competitive strategy may be designed as cost or differentiation. Either of these choices affects value chain activities in terms of the costs of required systems. C. Yes, it will force the organization to produce the highest quality product at the lowest cost. D. No, competitive strategy has no effect on value chain structure. E. Yes, each competitive strategy has a​ well-defined value chain structure that is determined by many decades of expert analysis and design.

e.) Rivalry among existing competitors

High when competition is fierce in a market and low when competitors are more complacent a.) threat of Entry of New Competitors b.) Bargaining Power of Suppliers c.) Bargaining Power of Customers/ Buyers d.) Threat of Substitute Products or Services e.) Rivalry Among Existing Competitors

b.) Threat of substitution

High when there are many alternatives to a product or service and low when there are few alternatives a.) Bargaining power of customers b.) Threat of substitutions c.) Bargaining power of suppliers d.) Threat of new entrants e.) Rivalry

C. Organizations design competitive strategy based on industry structure. Those competitive strategies determine value​ chains, which determine business​ processes, which determine IS requirements.

How does organizational strategy determine IS​ requirements? A. Bargaining power of the consumers and the suppliers in a given industry directly dictate the requirements for the IS department. B. New entrants in the given industry directly dictate the requirements for the IS department. C. Organizations design competitive strategy based on industry structure. Those competitive strategies determine value​ chains, which determine business​ processes, which determine IS requirements. D. Existing rivalries in the given industry determine organizational strategies that directly dictate requirements of the IS department. E. Porter's five forces directly dictate the structure of the IS department.

Differentiation

I am better because I am different

innovation

I am doing something new and you can't catch up

Operational Effectiveness

I can do the same thing more efficiently than you can

a.) Cost Leader

I can sell at a lower cost than you can a.) cost Leader b.) differentiation c.) Innovation d.) Operational Effectiveness e.) Customer Oriented

d.) customer orientation

I treat my customers better than you do. a.) Cost Leader b.) Differentiation c.) Innovation d.) Customer Oriented e.) Operational Effectiveness

C. Focused product differentiation in the canned vegetable industry

In a grocery​ store, you notice that one brand of canned​ vegetables, Excalibur green​ beans, indicates on the​ label, "Premium​ quality, exceptional​ color, texture and​ flavor! When only the best will​ do!" Excalibur green beans cost almost a dollar more than the second highest priced variety. In the canned vegetable​ industry, which of​ Porter's competitive strategies has Excalibur embraced​ (assuming Excalibur only sells green​ beans)? A. Industry-wide, low cost differentiation in the canned vegetable industry B. ​Industry-wide, product differentiation in the canned vegetable industry C. Focused product differentiation in the canned vegetable industry D. Focused, low cost differentiation in the canned vegetable industry E. You really​ can't make any reasonable conclusion based on such a simple observation. You need a lot more information to make any conclusions.

A. customer loyalty

Michel Porter developed the five forces model. Of the five​ forces, there were three that had to do with competitive forces and two that had to do with bargaining power forces. Two strength factors that relate to all three of the competitive forces are switching costs and​ ________. A. customer loyalty B. the size of the organization C. customer bargaining power D. availability of substitutes E. holding costs

B. Each of the three competitive forces concerns the danger of customers taking their business elsewhere.

Michel Porter developed the five forces model. Of the five​ forces, there were three that had to do with competitive forces and two that had to do with bargaining power forces. What is the primary danger regarding the three competitive​ forces? A. As strength of customer loyalty in the industry​ decreases, the strength of the competitive forces will also decrease. B. Each of the three competitive forces concerns the danger of customers taking their business elsewhere. C. The danger is that switching costs will be too high relative to the competitive force. D. The danger is that substitutes for your products will be easily available. E. Your organization will be​ "too big" to manage its supply chain efficiently.

New banks must offer an array of MIS-related services-ATM, Online Bill Pay, online services, etc. The original bank that started the online/ATM had first mover advantage for a short time

New Bank has significant (high) barriers to Entry. This is considered the threat of new entrants would be low. Why?

product differentiation

Occurs when a company develops unique differences in its products or services with the intent to influence demand

D. Existing​ rivalries, threat of new​ entrants, consumer bargaining​ power, supplier bargaining​ power, and threat of substitution

What five forces determine industry​ structure? A. Consumer​ loyalty, existing​ rivalries, threat of​ substitution, bargaining power of​ consumers, and bargaining power of suppliers B. Existing​ rivalries, threat of governmental regulation​ changes, bargaining power of​ consumers, bargaining power of​ suppliers, and threat of new entrants C. Operating​ costs, threat of​ substitution, bargaining power of​ consumers, bargaining power of​ suppliers, and threat of new entrants D. Existing​ rivalries, threat of new​ entrants, consumer bargaining​ power, supplier bargaining​ power, and threat of substitution E. Existing​ rivalries, threat of​ substitution, bargaining power of​ consumers, bargaining power of​ suppliers, and swings in the world economy

E. IS can help to generate customer loyalty by automating a loyalty rewards​ program, customizing the customer online​ experience, facilitating customer​ service, and assisting in maintaining an ongoing relationship.

What is one way an information system can provide competitive​ advantages? A. IS helps to lock in customers by making it easy for them to switch shippers without having to rekey their shipping information. B. IS can lock in customers by popularizing the idea that they are using less paper than other systems use. C. IS can reduce the amount of work customers must do by capturing and storing information about shippers. D. IS can enhance products by reducing shipping costs. E. IS can help to generate customer loyalty by automating a loyalty rewards​ program, customizing the customer online​ experience, facilitating customer​ service, and assisting in maintaining an ongoing relationship.

D. Value chain determines customer requirements. Business processes implement the activities needed to satisfy those requirements. IS structure supports each of those business process activities.

What is the relationship between the value chain and business processes and IS​ structure? A.Value chains supplies products for​ customers, and the business process fills customer orders. B. IS determines business​ processes, which in turn determine the value chain. C. There is no relationship among the three. D. Value chain determines customer requirements. Business processes implement the activities needed to satisfy those requirements. IS structure supports each of those business process activities. E. Business processes do the​ manufacturing, IS does the​ marketing, the value chains generates profit.

B. Inbound​ logistics, operations and​ manufacturing, outbound​ logistics, sales and​ marketing, and customer service

Which of the following is the correct order of primary activity components of a generic value​ chain? A. Sales and inbound​ logistics, outbound​ logistics, operations and​ manufacturing, marketing, and customer service B. Inbound​ logistics, operations and​ manufacturing, outbound​ logistics, sales and​ marketing, and customer service C. Inbound​ logistics, outbound​ logistics, operations and​ manufacturing, sales and​ marketing, and accounting D. Sales and​ marketing, inbound​ logistics, outbound​ logistics, operations and​ manufacturing, and customer service E. Inbound​ logistics, outbound​ logistics, operations and​ manufacturing, sales and​ marketing, and customer service