Chapter 3 Quiz

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Mintzberg's classification identifies five forces in an industry's environment that affect the strategic position of a firm.

False

Research has shown that a majority of firms are able to align their information technology with their business goals.

False

The law of diminishing returns only applies to digital products.

False

Which of the following statements about disruptive technologies is not true?

Firms that invent disruptive technologies as first movers always become market leaders.

You are consulting for a natural food products 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

An efficient customer response system directly links consumer behavior to distribution and production and supply chains.

True

Mass customization offers individually tailored products or services using the same resources as mass production.

True

Along with capital, ________ is the primary production input that the organization uses to create products and services.

labor

A virtual company:

uses networks to link people, assets, and ideas.

Which of the following is an example of synergy in business?

Bank of America acquiring Countrywide Financial to reach a large pool of new customers


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