Study Guide Ch. 1

Which of the following is not a typical way that a company would duplicate a competitive advantage?

Carrying large product inventories.

What is information?

Data converted into a meaningful and useful context.

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces model. Which of the following represents supplier power in the music industry?

Established record labels like EMI, Sony, Universal.

What are tasks performed by people that customers will buy to satisfy a want or need?

Services

What includes support value activities and primary value activities and is used to determine how to create the greatest possible value for customers?

The Value Chain analysis.

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?

Product differentiation.

In the center of Porter's Five Forces model is competition. Which of the below represents the four outer boxes?

Buyer power, supplier power, threat of new entrants, and threat of substitute products or services

How are the majority of companies today typically organized?

By departments or functional areas

Which of the following is not considered a core driver of the information age?

Competitive Intelligence.

A __________ advantage features a product or service on which customers place a greater value than they do on similar offerings from competitors.

Competitive advantage

All of the following are common tools used in industry to analyze and develop competitive advantages, except:

Competitive analysis model

Which of the following is considered a service?

Teaching Waiting tables Cutting hair

Which of the following is considered information?

Best-selling item by month

Which of the following represents the core drivers of the information age?

Data, Information, Business Intelligence, Knowledge.

The Victory Wireless store in Denver is currently offering a fabulous marketing strategy for potential new iPhone customers. Victory Wireless offers customers who purchase an iPhone with a 2-year subscription, a free Otter phone case, car charger, ear phones, and speakers. In terms of Porter's Five Forces what is Victory Wireless attempting to achieve with this marketing strategy?

Decrease buyer power.

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Entry barrier

When a company is the first to market with a competitive advantage, this is called a first-mover advantage. All of the following companies were first-movers except ____________.

Microsoft - Bing Search Engine.

What is the confirmation or validation of an event or object?

Fact

Shelby Black runs a very successful hair salon in downtown Los Angeles. One of Shelby's tasks is to input positive and negative customer reviews into her computer system. What type of information is Shelby gathering?

Feedback

Greg Provenzo owns and runs a Blockbuster video store. Greg is implementing a drive-thru rental process that is the same as you would find at a fast food restaurant. Customers can pick-up and drop-off their videos without leaving their cars. Greg's new system has become so popular that Videos Plus, a competitor down the street, is attempting to recreate Greg's video drive-thru rental process. Greg's system is an example of a _________.

First-mover advantage.

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces model. Which of the following represents the threat of substitute products or services in the music industry?

Game systems like Wii, social networks like Facebook.

What are material items or products that customer's will buy to satisfy a want or need?

Goods

When buyer power is low, supplier power is typically ______.

High

What does IT do?

IT enables business success and innovation.

What is business intelligence?

Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making.

Which four elements are included in systems thinking?

Input, Process, Output, and Feedback.

Which of the following represents the relationship between functional areas in a business?

Interdependent

How does the text recommend that a company operate if it wants to be successful in the information age?

Interdependently between departments

Which of the following demonstrates a company that has implemented a low cost, broad market strategy?

Walmart

Which of the following represents the types of data commonly found in the accounting department?

Monetary data

Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented. Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers. What would Jennifer determine The Museum Company is using as its generic strategy?

Narrow market, high cost.

How can a company reduce the threat of substitute products or services?

Offer additional value through wider product distribution.

Greg works for Geneva Steel Corporation. Greg's duties include managing the overall processes for the company and transforming the steel resources into goods. Which department would Greg most likely work in?

Operations

Which of the following is considered data?

Quantity sold

Updating business strategies is a continuous undertaking as internal and external environments ________.

Rapidly change

What is data?

Raw facts that describe the characteristics of an event or object.

Callie Crystal owns and operates one of the most successful local coffee shops in Denver, called The Edgewater Café. Each time a customer purchases their 100th cup of coffee at The Edgewater Café they receive a free pound of coffee of their choice. What is Callie attempting to create with her unique "Free Pound of Coffee" marketing program?

Reducing buyer power with a loyalty program

Which of the below represents a company in a supply chain?

Supplier and customer

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?

Supplier cost differentiation.

Shawn McGill is on the executive board for ABC pharmaceuticals. The company produces the number one selling cancer fighting drug on the market. Due to its incredible success ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which force is ABC pharmaceutical using to increase its drug price?

Supplier power

Business intelligence is information collected from multiple sources. Which of the following provides an example of a source that would be included in business intelligence?

Suppliers Customers Compeititors

Which of the following represents a typical supply chain?

Suppliers - Company - Customers.

What includes all parties involved, directly or indirectly, in obtaining raw materials or a product?

Supply chain

What are costs that make customers reluctant to switch to another product or service?

Switching costs

What is a way of monitoring the entire system in a company, by viewing the multiple inputs being processed to produce outputs?

Systems thinking

Which of the following represents a reason why competitive advantages are typically temporary?

The competitor will hire away your key employees. The competitor quickly seeks ways to duplicate your business operations. The competitor will purchase new technology

A system is a collection of parts that link to achieve a common purpose. Systems thinking is a way of monitoring

The entire system

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?

The three generic strategies

Information is data converted into useful, meaningful context. What are data characteristics that change or vary over time?

Variables

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces model. Which of the following represents buyer power in the music industry?

Walmart, Target, iTunes.