CIS CHAPTER 3 QUIZ

strategic transitions

A movement from one level of sociotechnical system to another. Often required when adopting strategic systems that demand changes in the social and technical elements of an organization.

Which of the following options increases the strength of the market entrant​ force?

A reduction in government or local regulations that govern an industry

organization (technical definition)

A stable, formal, social structure that takes resources from the environment and processes them to produce outputs.

primary activities

Activities most directly related to the production and distribution of a firm's products or services.

support activities

Activities that make the delivery of a firm's primary activities possible. Consist of the organization's infrastructure, human resources, technology, and procurement.

core competency

Activity at which a firm excels as a world-class leader.

In most​ cases, a business ecosystem includes​ ________.

a few keystone firms

​A(n) ________ includes interdependent networks of​ suppliers, distributors, and outsourcing firms.

business ecosystem

A collection of routines for producing goods and services is called​ a(n) ________.

business process

Based on your​ reading, information systems help businesses compete​ ________.

but sustaining a competitive advantage is challenging

An innovation that dramatically changes the business environment is called​ a(n) ________.

disruptive technology

Information systems can​ ________ the organization by empowering​ lower-level employees.

flatten

The power of the customer​ ________ if they have an easy time switching from one company​ (e.g., not having to pay an exit​ fee) to another.

grows

The competitive rivalry force of the Internet is strong because it has​ ________.

made it easier for companies to compete on price alone

A virtual company uses​ ________ to link​ people, assets, and ideas.

networks

The observation that IT broadens the distribution of​ information, empowers​ lower-level employees, and increases management efficiency is an example of the​ ________ effect of information technology on organizations.

organizational and behavioral

The assumption that an MIS professor knows more about normalization than a student is an example of​ ________.

organizational culture

Because Walmart has an efficient inventory replenishing​ system, they are able to reduce​ ________ costs.

overhead

According to the value chain​ model, sales and marketing is considered a​ ________ activity of the firm.

primary

According to the value chain​ model, operations are considered a​ ________ of the firm.

primary activity

Nike sells customized sneakers through NIKEiD to establish​ ________.

product differentiation

Another name for standard operating procedures for creating goods and services is​ (are) ________.

routines

According to the value chain​ model, employee​ recruiting, hiring, and training are considered a​ ________ activity of the firm.

support

According to the value chain​ model, technology is considered a​ ________ of the firm.

support activity

A​ ________ consists of a networked system that can synchronize the value chains of business partners​ ________.

value​ web; within an industry

Companies that establish a competitive advantage by having the lowest prices in an industry are using a​ ________ approach.

​cost-leadership

In the music​ industry, ________ are considered a newer substitute for​ CD-based music stores.

Internet music sites

business ecosystem

Loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

Which of the following options is a challenge to the sustainability of strategically implementing an information​ system?

Managing strategic transitions

network economics

Model of strategic systems at the industry level based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gains.

value chain model

Model that 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.

competitive forces model

Model used to describe the interaction of external influences, specifically threats and opportunities, that affect an organization's strategy and ability to compete.

virtual company

Organization using networks to link people, assets, and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical location.

routines

Precise rules, procedures, and practices that have been developed to cope with expected situations.

benchmarking

Setting strict standards for products, services, or activities and measuring organizational performance against those standards.

​________ include two organizations sharing expertise.

Synergies

efficient customer response system

System that directly links consumer behavior back to distribution, production, and supply chains.

disruptive technologies

Technologies with disruptive impact on industries and businesses, rendering existing products, services, and business models obsolete.

mass customization

The capacity to offer individually tailored products or services using mass production resources.

switching costs

The expense a customer or company incurs in lost time and expenditure of resources when changing from one supplier or system to a competing supplier or system.

best practices

The most successful solutions or problem-solving methods that have been developed by a specific organization or industry.

platform

Business providing information systems, technologies, and services that thousands of other firms in different industries use to enhance their own capabilities.

transaction cost theory

Economic theory stating that firms grow larger because they can conduct marketplace transactions internally more cheaply than they can with external firms in the marketplace.

agency theory

Economic theory that views the firm as a nexus of contracts among self-interested individuals who must be supervised and managed.

According to your​ readings, ________ was able to link external​ suppliers, which allowed it to obtain more than 70 percent of parts from outside the organization.

Chrysler

product differentiation

Competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

value web

Customer-driven network of independent firms who use information technology to coordinate their value chains to collectively produce a product or service for a market.