Information Technology for Mgt Midterm

1. Which area of corporate law is connected to technology? a. Privacy b. Patents c. Piracy d. Intellectual Property e. All of the above are true.

All of the above are true

1. How has social media emerged as a catalyst for global social change?

Can capture injustice, broadcast to the world, disseminate ideas, and rally the far-reaching

1.The Nation of _______ has more Internet users than any other country.

China

2. According to Porter, strategy is fundamentally about being_________. a. different b. efficient c. superior d. scalable e. profitable

Different

4. Elaborate customer surveys help Zara designers predict fashion trends months into the future and design products accordingly.(t/f)

False

4. Limited production runs ensure customers do not have to visit Zara's stores as often as they visit other stores, allowing the firm to save money through staff reductions when compared to peers. (t/F)

False

1. How are entrepreneurs in sub-Saharan Africa leveraging technologies to serve local needs? Give examples.

Fast/cheap tech, mobile phones, text message

2. _____________ hold intellectual property not with the goal of bringing novel innovations to market but instead in hopes that they can sue or extort large settlements from others.

Patent Trolls

1. Crowdsourcing tools and question-and-answer sites like _____ allow firms to reach out for expertise beyond their organizations. Quora Oculus VR Alibaba Twitter M-PESA

Quora

2. ______exist when consumers incur an expense to move from one product or service to another. a. Network effects b. Switching costs c. Economies of scale d. Competitive advantages e. Profit margins

Switching costs

4. Zara's IT expenditure is low by fashion industry standards and is also highly effective. Which of the following makes this possible? a. Targeting technology investment at points in the value chain where it has the most significant impact. b. Utilizing the money spent on IT infrastructure to improve the IT skills of its employees through training programs. c. Using the best and most expensive software and hardware in the market, as it lowers any maintenance costs later. d. Outsourcing IT management to third-party firms which provide IT services at lower costs. e. Investing IT funding in improving the infrastructure and cutting down employee overhead costs.

Targeting technology investment at points in the value chain where it has the most significant impact.

2.The paths through which products or services get to customers are known as _________. a. information pathways b. vertical markets c. distribution channels d. proxy networks e. horizontal markets

distribution channels

2. The degree to which complete information is available is known as . a. information assurance b. data proximity c. operational alertness d. price transparency e. data consolidation

price transparency

4. Outsourcing production to third-party firms is called __________.

Contact manufacturing

2. Apple operating systems run exclusively on Apple products which __________ their products from rivals.

Differentiates

1.The United States holds the number one ranking in Internet access speeds.(T/F)

False

1. Yahoo! was started by _____ and _____. a. Sergey Brin; Larry Page b. Jerry Yang; David Filo c. Steve Chen; Chad Hurley d. Kevin Rose; Mark Zuckerberg e. Catherine Cook; Shawn Fanning

Jerry Yang: David Filo

2. . A strong brand can be an exceptionally powerful resource for competitive advantage by lowering, proxying______and inspiring________. a. price; strategy; innovation b. switching costs; quantity; performance c. expenses; marketing; respect d. search costs; quality; trust e. customer concern; investment; profits

Search costs; quality; trust

2. A firm is said to be ________ when it attempts to match the benefits of a successful position while maintaining its existing position. a. switching b. straddling c. dovetailing d. streamlining e. vertically integrating

Straddling

2. The set of activities through which a product or service is created and delivered to customers is known as a(n)________. a. marketing plan b. value chain c. inventory turnover d. strategic position e. pure play

Value chain

4. What was considered the source of Mickey Drexler's inventory problems at Gap? a. He personally approved sweatshop-affiliated contract manufacturers. b. He wrote the code for Gap's disastrously broken inventory system. c. The firm guessed wrong about fashion, placing big bets on trends that consumers didn't want. d. He led a botched merger with Disney in the hopes that combining technology with the Disney Store would create a super-efficient set of shopping mall destination stores. e. All of the above are true.

. The firm guessed wrong about fashion, placing big bets on trends that consumers didn't want.

4. What were the problems encountered by Gap in the early part of the decade following the 1990s? What were the measures taken to overcome these problems?

According to our textbook, the problems that gap faced in the early part of the decade following the 1990's was the falling of sales which in turn forced him to make a wrong choice- to follow youth fashion and it backfired. The consumers were not interested in miniskirts and low rise jeans. Gap was ridiculed for its failed attempt to raise its sales. Ultimately, they let go of their CEO and the second for a new one. New CEO's brought new ideas on how much and what to advertise, and even vowed to safe working conditions for the manufacturers of clothing. People nowadays care about where their clothes come from and that it is not being made by a 10 year old in a third world country.

1. One contributor to the ease with which young entrepreneurs can have success is a low-cost distribution to massive markets worldwide. This is enabled by: legacy systems. big data and business analytics. Esoko and M-Pesa. App stores. Sproxil.

App stores

1. Tech firms are among the best-performing firms in the world. According to the chapter, which firm is the most valuable firm in the United States, and has also posted some of the most profitable quarters of any business in any industry? Amazon Apple Google IBM

Apple

1. How has technology changed the marketing landscape?

Being able to track customers, analyze campaign results, and modify tactics

1. Name at least three technology firms that were founded by people in their twenties or younger.

Bill Gates - Microsoft Mark Zuckerberg- Facebook Jeff Bezos - Amazon

1. The technology known as __________ _________ is helping to fuel the current age of fast-growing technology entrepreneurship. This technology means that a startup can rent the computing resources one previously had to buy at great expense.

Cloud Computing

1. Funding projects via online efforts such as Kickstarter are referred to by the term__________.

Crowdsourcing

2. In_______, the light inside fiber is split into different signal-carrying wavelengths in a way similar to how a prism splits light into different colors. a. polarization b. time-division multiplexing c. space-division multiplexing d. frequency hopping spread spectrum e. Dense wave division multiplexing

Dense wave division multiplexing

4. _______is a non-profit organization that shares audit information on contract manufacturers.

Fair factories clearing house

1. Founders should be wary of crowdfunding sites like Kickstarter because these efforts require founders to give up large ownership stakes to a large number of contributors before they can raise funds to bring products to market.(T/F)

False

1. SEO and SEM are key tech industry acronyms that have become vital parts of the accounting professional's operating toolkit. (T/F)

False

1. The founding technology entrepreneurs behind many leading firms, such as Apple, Microsoft, and Facebook, got their start in their early 30s, leveraging university study and knowledge from their first post-college jobs to create disruptive new firms.(T/F)

False

2. A firm's financial performance that consistently outperforms its industry's peers is known as operational effectiveness. (T/F)

False

2. A salesperson's ability to effectively bargain with his/her consumers is called viral Marketing. (t/f)

False

2. A trademark is the symbolic embodiment of all the information connected with a product or service of a firm. (t/f)

False

2. According to Michael Porter, the reason many firms suffer margin-eroding competition is because they have defined themselves according to strategic positioning rather than operational effectiveness. (t/f)

False

2. Businesses benefit from economies of scale when the cost of an investment can be used in serving a niche customer base. (t/f)

False

2. Market entry is the same as building a sustainable business. (t/f)

False

2. Firms like Blockbuster, Sotheby's, and Barnes & Noble were put at risk by operating under the following platitude: a. There is no "I" in team. b. Follow, don't lead. c. What's done is done. d. Better late than never. e. Work smarter, not harder.

Follow, don't lead.

2. How does FreshDirect leverage an imitation-resistant value chain to repel rivals?

FreshDirect leverage against its rivals is that their value chains are different among all their elements. By having different elements it makes it harder for their competitors to copy their value chain exactly. Incumbents would be straddled between two business models, unable to reap full advantages of either. Late-moving rivals struggle as FreshDirect's lead time allows it to develop brand, scale, data, and other advantages that newcomers lack.

1. Aspiring investment bankers should study the tech industry since tech firms represent a large portion of firms selling shares on public stock markets for the first time. This process is known as __________.

IPO (Initial Public Offering)

1. In two decades, the nation of _______ tech sector has grown from "almost nothing to a $200 billion industry, expanding even during the recent global recession.

India's

2. A decision situation where one party has more or better information than its counterparty is called____

Information Asymmetry

1. The _________ __________ department in an organization not only ensures that systems get built and keep running but also take on strategic roles targeted at proposing solutions for how technology can give the firm a competitive edge.

Information Technology

1. The phrase ______________ is often used to describe the trend of putting "smarts" (meaning computing and telecommunications technology) putting into everyday products such as lamps, watches, thermostats, and door locks; as well as embedding tech into industrial goods.

Internet of Things

4. Zara holds a competitive advantage over its rivals in spite of: a. refusing to implement technology in its operational model. b. conducting business only through online storefronts. c. its globally distributed contract manufacturing model. d. operating through fewer stores across the world than its closest rivals. e. Keeping large portions of its production processes in-house.

Keeping large portions of its production processes in-house.

1. _____ was just a sophomore when he began building computers in his dorm room at the University of Texas. His firm would one day claim the top spot among PC manufacturers worldwide. Bill Gates Steve Jobs Michael Dell Shawn Fanning Mark Zuckerberg

Michael Dell

1. A company uses radio frequency identification (RFID) tags to keep track of its inventory. This is an example of the impact of technology in the area of _____. accounting operations advertising human resources finance

Operations

1. Over the span of a decade, Apple was able to transition from washed up to industry leader by creating ________ instead of _________.

Platforms, Products

2. _______, also known as the Industry and Competitive Analysis, is a popular framework for examining a firm's competitive environment.

Porters five forces

2. How does the Internet typically impact price transparency and information asymmetry? a. Both price transparency and information asymmetry increase b. Both price transparency and information asymmetry decrease c. Price transparency increases while information asymmetry decreases d. Price transparency decreases while information asymmetry increases. e. None of the above are true.

Price transparency increases while information asymmetry decreases

4. The U.S. Justice Department initially reviewed the Fair Factories Clearinghouse but eventually approved the effort as described in readings and class. What was the government initially concerned about?

Price-fixing/price collusion

2. Diagram and label the value chain, listing all primary and secondary components.

Primary components → Inbound logistics, Operations, Outbound logistics, Marketing & sales, Support Secondary components → Firm infrastructure, human resources management, technology/research and development, Procurement

1. Provide a brief overview of the different careers in the area of information systems.

Programmers, Process design, data analytics, Chief information officer

4. Small chip-based tags that wirelessly emit a unique identifying code for the item that they are attached to are called________________. a. Personal Digital Assistants b. Smart adaptors c. Trackbacks d. Legacy labels e. RFID tags

RFID Tags

1. The _____ is a piece of U.S. legislation that raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations. a. Civil Rights Act b. Fair Labor Standards Act c. Sherman Antitrust Act d. Norris-LaGuardia Act e. Sarbanes-Oxley Act

Sarbanes-Oxley Act

2. Businesses benefit from economies of scale when the cost of an investment can be: a. spread across increasing units of production. b. used in serving a niche and loyal customer base. c. used to build a brand image for products through advertising. d. leveraged to recruit consumers to promote a product or service. e. diverted to implementing technology upgrades in the business model.

Spread across increasing units of production

1.Select the accurate statement(s). The world's most valuable retailer, China's Alibaba, also carries the world's largest product inventory. Uber, the world's largest taxi service, owns no vehicles for hire. Airbnb, the world's largest accommodation provider, owns several major hotel corporations. Facebook does not create media content. All are accurate Statements 2 and 4 are accurate Statement 4 is accurate Statement 1 is accurate

Statements 2 and 4 are accurate

2. A firm's financial performance that consistently outperforms its industry's peers is known as a. comparative advantage b. absolute advantage c. sustainable competitive advantage d. first mover advantage e. operational efficiency advantage

Sustainable competitive advantage

2. As a small business owner, you might use an affiliate to promote your products and services online. What is the potential challenge of working with a single affiliate? a. The affiliate may limit your ability to work with others. b. The affiliate may discontinue use of your product or service. c. The affiliate may increase traffic to your website. d. The affiliate might have a targeted audience for your brand. e. All of the above are true.

The affiliate many increase traffic to your website.

1. Some of the radical changes brought about by new technologies include: the stagnation of advertising. the proliferation of telecommunications into the hands of a few. an increase in computing costs owing to the growth of licensed software. a decrease in the standards of corporate ethics. the creation of an unprecedented set of security and espionage threats.

The creation of an unprecedented set of security and espionage threats.

4. . Zara's clothing lines are designed: a. by star designers like Stella McCartney. b. in collaboration with celebrities and pop artists. c. by design school graduates to suit customer demand. d. by designers who win talent shows sponsored by Zara.

by design school graduates to suit customer demand.

2. Moving first pays off when the time lead is used to create: a. the latest technology at a firm's production plant. b. operational effectiveness to harness maximum profitability. c. critical resources for competitive advantage. d. high stock value to generate funds for expansion. e. market entry to ensure sustainable competitive advantage.

critical resources for competitive advantage.

4. Which of the following is not a benefit achieved through Zara's integration of technology throughout the firm? a. limited product runs of many unique products b. higher markdowns c. fewer write-offs d. less need for advertising e. All of the above are true.

higher markdowns

2. Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that: a. fast-following smaller firms are always ready with newer and possibly superior products. b. customers of technology companies are becoming increasingly savvy and more demanding. c. the open source nature of technology ensures that no firm can expect to monopolize a market. d. firms need to employ increasingly stringent intellectual property norms to guard against infringements from smaller, competitive rivals. e. firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantages.

firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantages.

4. Personal digital assistants are: a. transaction processing systems that capture customer purchases. b. small chip-based tags that wirelessly emit a unique identifying code for the item that they are attached to. c. systems that provide rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity. d. handheld computing devices meant largely for mobile use outside an office setting. e. artificial intelligence systems that leverage rules or examples to perform a task in a way that mimics applied human expertise.

handheld computing devices meant largely for mobile use outside an office setting.

4. Zara's staff members regularly collect data from customers at its stores. This data is used to: a. decide the designs and styles of Zara's products for the next few seasons. b. determine the in-store soundtrack and layout. c. inform designers on customer preferences and staff on store sales results. d. determine where future Zara stores should be located. e. identify the products that customers would like to buy through discounted sales.

inform designers on customer preferences and staff on store sales results.

2. Law is said to be at play when the value of a product or service increases as its number of users expands. a. Amdahl's b. Turing's c. Zuckerberg's d. Metcalfe's e. Moore's

metcalf's

4. According to an independent study, Zara books some 85 percent of its products at full price compared to the industry average markdown ratio of 50 percent. This is made possible by: a. keeping a major part of the production processes under direct proprietary control. b. coordinating the outbound shipments of all Inditex brands with return legs loaded with return materials and half-finished items. c. applying data analytics to purchase trends. d. the practice of having limited production runs of its designs. e. leveraging contract manufacturers to produce only staple items with longer shelf-lives, which account for one-eighth of dollar volume.

the practice of having limited production runs of its designs.

2. Timing and technology alone will not yield a sustainable competitive advantage. (t/f)

true

4. Making seasonal apparel decisions is a challenge because it often involves making predictions on what customers will be interested in, months in advance of clothing appearing on store shelves.( t/f)

true

4. The U.S. Department of Justice needed to provide a special exemption to the Fair Factories Clearinghouse, and before doing so, had to be convinced that the effort wouldn't be used by buyers to collude and further squeeze prices from competitors. (t/f)

true

4. In an industry where nearly every major player outsources manufacturing to low-cost countries, Zara is highly_________, keeping huge swaths of its production process in-house. a. privatized b. vertically integrated c. publicly traded d. subsidized e. autonomous

vertically integrated

2. Which platform contributed to Apple and Google's domination of the mobile market? a. music services b. app stores c. social media d. video streaming e. All of the above are true.

video streaming

4. Due to limited production runs, Zara's customers: a. tend to delay their shopping until the products go on sale. b. visit the stores more often. c. buy products at discounted rates after a few weeks. d. visit stores less often. e. create a greater opportunity for increased markdowns and write-offs.

visit the stores more often.

1. Experts working in the area of _____ work to make sure systems are easy to use, while people working in the area of _____ work to leverage technology to make firms more efficient. user-interface design; process design process design; user-interface design strategy; process design process design; strategy strategy; user-interface design

User-interface design: Process design

1. Technology experts in the area of process design: work to make sure systems are easy to use. leverage technology to make firms more efficient. specialize in technology for competitive advantage. focus on systems dealing with critical business data. provide direction on technology-related security issues.

Work to make sure systems are easy to use.

4. A value chain is a set of: a. similarly profitable firms competing against each other in any given industry. b. large firms that are vertically integrated. c. activities through which a product or service is created and delivered to customers. d. a large number of small firms that dominate a given market. e. robotically controlled conveyor belts that deliver products quickly from manufacturing stations to shipping containers.

activities through which a product or service is created and delivered to customers.

1. Palmer Luckey, the founder of Oculus, was able to get early funding for his product via Kickstarter, exceeding the fundraising goal set by his campaign without giving up a share of equity from this campaign.(T/F)

True

1. Researchers in China and the US have shown an AI approach that performed better than major trading indices as well as traditional investment portfolio allocation strategies.(T/F)

True

1.Apple's growing business of consumer services brings in so much revenue that if they were a separate division from Apple, it would be ranked as a Fortune 100 firm.(T/F)

True

1.Many careers in marketing are highly tech-centric.(T/F)

True

1.Technology has proliferated in Kenya and Somaliland, with text messages used to replace cash, creating mobile money use that, on a population percentage basis, exceeds any nation in the West.(T/F)

True

2. The internet is largely seen as lowering the entry barrier for new entrants, but firms that enter may have little chance of success unless they have a competitive advantage over existing rivals. (t/f)

True

2. Uber is an example of a business model that has strengthened the bargaining power of suppliers (cab drivers) with respect to middlemen who took a cut of their services (e.g. cab companies). (t/f)

True

2. When firms see distribution partners as rivals, this is known as Channel Conflict. (t/f)

True

4. The Fair Factories Clearinghouse is subject to network effects. (t/f)

True

4. Zara's high fashion styles are inspired by customer tastes, with technology used to gather data on preferences at given store locations.(t/f)

True

2. Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supplier prices. FreshDirect buys direct from suppliers, eliminating any markup from a middleman. What else did FreshDirect offer suppliers in exchange for better pricing terms?

1.) Freshdirect will carry a greater selection of supplier products while eliminating the "slotting" fees (payments by suppliers for prime shelf space). 2.) They will cobrand with supplier products to help establish and strengthen supplier brands. 3.) They pay their suppliers in days rather than weeks. Freshdirect shares data to help improve supplier sales and operations.

1.A recent report in Forbes suggests that what percent of firms are failing at digital transformation? 89% 72% 40% 23%

72%

2. Apple's dominance of smartphone and tablet markets has allowed the firm to lock up 60 percent of the world's supply of advanced touch-screen displays, and to do so with better pricing than would be available to smaller rivals. This is an example of: a. network externalities that make Apple valuable. b. high switching costs for suppliers. c. a complex tech product establishing itself as a killer brand. d. a growing firm gaining bargaining power with its suppliers. e. low search costs associated with a famous brand.

A growing firm gaining bargaining power with its suppliers.

2. Suppose you are in the market for a new laptop. You already own three devices in the Apple ecosystem and your account information and content is synced across all devices. However, you have come across a great deal offering a $200 rebate from a rival. What are the potential switching costs if you move to the rival? How likely are you to stay with the incumbent?

The potential switching costs are that I will save $200 from the rebate but I won't be able to be a part of the Apple ecosystem so it will cost more money to sign up for new accounts.If I had any loyalty programs from having 3 devices with Apple that changes because I'm switching to a rival. Changing companies has new learning costs, search costs, financial commitments, and contractual commitments. I think it is highly unlikely I would stay with the incumbent because if my other three devices are all connected it is very simple to handle accounts and my information. If I have a laptop that is not connected to any of my other devices, especially my phone it will be difficult and time consuming to use so I would rather pay the extra 200 and stay with Apple because in the long run there's no other extra costs.

2. Assume you are the owner of a start-up firm and you obtained a patent for a new software. It was recently brought to your attention that a large firm introduced a software that appears to be a duplicate of your patented software. What protections are provided to you by the patent? What is the likely outcome if you take legal action against the large firm?

The protections provided by the patent include the protection from copycats and also cuts off paths to exploit an innovation. The likely outcome if one was to take legal action against the large firm would probably be that the large firm might want to disregard any legal actions brought upon them by a small firm as they might feel more powerful and more than likely have more capital for legal proceedings. However, if the small firm patented the software before, they could take it to court and probably could have a good case if the patent was made before the large firm patented theirs.

2. Which of the following is one of Porter's five forces? a. Availability of competitors in the market b. Total cost of ownership c. Purchasing power parity of consumers d. Threat of new entrants e. Strength of intellectual property laws

Threat of new entrants

2. Discuss the role of timing and technology as it relates to competitive advantage.

Timing and technology alone will not yield sustainable competitive advantage, but both can be enablers for competitive advantage. Moving first can pay off when a company has enough lead time and they use such lead time to create critical resources that are valuable, rare, tough to imitate, and are niche. Companies can also stay ahead of the game if they focus on building resources like brand, scale, network effects, or other key assets.

1. The number of U.S, patent applications awaiting approval has _______ in the past decade.

Tripled

1. As a testament to tech's global reach, China is home to several publicly traded Internet firms, as well as a firm that was considered the largest IPO of all time.(T/F)

True