OMIS 350 Final Exam

Why is MIS critical in the implementation of Six Sigma techniques?

During the Measure and Analyze steps of the Six Sigma procedure, collecting data and using data analytics are essential, particularly when measuring variances in products or processes.

Which is the best explanation of why technology is highlighted in a PESTEL analysis?

Failing to keep up with advances in technology can harm an organization's competitiveness.

What is a downfall to just-in-time manufacturing and inventory management?

When supply chain disruptions occur, a lack of sufficient inventory on hand can lead to widespread shortages.

What is the relationship of blue ocean strategy to price leadership versus product differentiation?

With a blue ocean strategy, an organization focuses on both differentiation and price leadership.

Creating an entirely new market is an example of a ________ ocean strategy.

blue

What does business-to-consumer (B2C) e-commerce replace?

brick-and-mortar store locations

Management information systems allow managers to build upon an organization's existing strengths to create

competitive advantages.

As e-commerce continues to develop, many retailers are likely to maintain some type of "brick-and-mortar" store or physical location primarily because

consumers expect integrated shopping experiences that include face-to-face options.

If an increase in price results in a relatively large decrease in demand for the product, the firm cannot easily increase its profit margin. This demonstrates which of Porter's 5 forces?

customers

Using technology to transform a market or to create an entirely new market is called creating a(n) ________ innovation.

disruptive

Sears revolutionized catalog (mail order) sales but failed to make the e-commerce leap. Amazon capitalized on this technology. What concept underlies Amazon's success?

disruptive innovation

Making use of the research and development conducted by the market innovator and then developing a competing product at a lower price is referred to as the ________ strategy.

fast-follower

Over 50 percent of all innovative products fail in the market, while over 80 percent of the successors to the products succeed. This is a key tenet of ________ strategy.

fast-follower

With the increasing presence of Internet e-commerce sites, the force of customers has

increased

Apple uses Corning's glass products for all its devices, such as the Gorilla Glass 6 used in the iPhone 11 series. To ensure that it continues to have a strong relationship with this glass industry leader, Apple has invested nearly $500 million toward Corning's advanced glass research division. By building up this relationship, Apple seeks to maintain some control over which of Porter's 5 forces?

suppliers

Which of Porter's 5 forces is countered by the barriers to entering a market?

the force of new competitors

M-commerce is a subset of

traditional e-commerce.

Manuel runs a small business that paints residential interiors. He has decided most of his current customers can best be reached by sending out a seasonal email newsletter. He will target new customers by placing ads on Facebook targeted at people located within 20 miles of his business who have searched for house painters. Where would he place this information on an e-commerce presence map?

type of presence

Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as

user-generated.

When a large number of buyers seek to purchase a firm's products even when prices increase, Porter's force of customers can be said to have

weakened.

To remain relevant in today's e-commerce landscape, many businesses use progressive ________ applications to undertake m-commerce.

web

On an e-commerce presence map, what is presence?

websites, email, social media sites, and offline media

Michelle runs an Etsy shop. In one month, she spends $2,800 promoting her shop on Etsy and other social media sites, gaining 50 new customers. Customers purchase products that cost $100, and the cost of her buying materials is 50% of the selling price. What is the actual profit (or loss) per customer, taking into account materials and promotional costs?

−$6.00

Which of the following scenarios represents a customer acquisition cost of $100?

A company spends $100,000 on advertising and marketing in one month. They gain 1,000 new customers in that month.

What is a key difference between business-to-government (B2G) transactions and other types of e-commerce?

B2G transactions involve prenegotiated contracts.

The e-commerce company with the highest revenue is based in which country?

The United States

Which statement best describes how managers use management information systems to develop SWOT analyses?

They use multiple management information systems to examine the key factors that influence the internal strengths and weaknesses of any business.

Saraiya runs a small café. She would like to start placing small ad buys on social media and hires an analytics firm to determine which platforms she should advertise on. What type of cost would this be considered?

customer acquisition cost

Rather than creating a new product, Chinese manufacturers have been notably successful at adopting a different strategy. They have been able to make and offer a competing product so rapidly that the majority of adopters have a choice when purchasing the product for the first time. This is referred to as a

fast-follower strategy.

Because employee education and training are so important to ensuring that all employees can participate in lean manufacturing processes, ________ systems play a key role in success.

human resources management

With a product differentiation strategy, a company charges more for its product than its competitors charge for theirs because:

its product is unique in a way that justifies the higher price.

An online photo printing company can temporarily lose its e-commerce ubiquity if

its website crashes due to a coding error or attack by hackers.

Under what type of system are employees encouraged to halt the manufacturing process in the event of a manufacturing error or safety risk?

lean manufacturing

Manufacturing practices that emphasize developing efficient and smooth supply lines and minimizing excess inventory, delays, and waste are

lean techniques.

An international automobile manufacturer is concerned about how its global operations will be impacted by changing government standards for auto emissions and fuel efficiency. Which component of a PESTEL analysis can best help the manufacturer evaluate any threats posed by these policy changes?

legal

Which of these is the "L" factor that managers examine while conducting a PESTEL analysis?

legal considerations

It is especially important for startup companies to create and follow a well-designed e-commerce strategy. Which of the following is the last phase in a well-designed strategy?

mobile platform planning and implementation

According to Professor Porter, a business must differentiate itself from its competitors. One method is to encourage customers to believe that an organization provides higher quality goods or better service, then the organization can charge a premium, or gain market share, or (ideally) both. For example, by placing a swoop icon on a sweatshirt, Nike is able to charge a higher price. This methodology is called

monopolistic competition.

E-commerce ________ includes creating marketing messages that contain the individual's name, appeal to his/her interests, and take their purchase behavior into account.

personalization

When conducting a SWOT analysis, an organization's human resource management system is used to evaluate the relative strength or weakness of its

personnel (workforce).

A branch manager for a national car rental company is in the process of conducting a SWOT analysis for her location. Which of the 5 Ps can she examine using the company's inventory management system for its rental fleet?

plant (physical attributes or resources)

When competitors seek to gain competitive advantage through price leadership or by making product improvements, Professors W. Chan Kim and Renee Mauborgne would say they are using a(n)

red ocean strategy.

A business must not only look at its direct competitors, but also must contend with those firms that offer a product that a consumer might alternatively choose. For example, McDonald's and Burger King can be considered competitors and if one firm raises prices the other firm might gain its customers. However, if both firms raise their prices, customers may choose to purchase pizza instead. Porter refers to this as the force of

substitutes

If McDonald's and Burger King raise prices too high, customers may switch from burgers to tacos. This illustrates Porter's force of

substitutes.