MIS Ch. 3
Which of the following statements about organizations is not true?
An informal group can be considered to be an organization.
The four major competitive strategies are:
low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.
The Internet increases the bargaining power of customers by:
making information available to everyone.
Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors.
market niche
A firm can be said to have competitive advantage when it has access to resources that others do not. (T/F)
true
Which of the following best illustrates the use of information systems to focus on market niche?
A department store creating specialized products for preferred customers.
Which of the following would a company employ to measure and compare its business processes to similar processes of other companies within their industry?
Benchmarking
Which of the following statements about business processes is not true?
Business processes are typically unaffected by changes in information systems.
Why does Amazon need to worry about competitors in online shopping?
Internet technologies are universal, and therefore usable by all companies.
All of the following are IT-enabled products and services providing competitive advantage except:
Nike's use of celebrities to market their products.
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
Which of the following substitute products would be of most concern for a cable TV distributor?
Satellite TV
Which of the following industries has the lowest barrier to entry?
Small retailer
Walmart's attempt to increase its online presence is an example of a firm using information systems to:
achieve low-cost leadership.
A(n) ________ is an activity for which a firm is a world-class leader.
core competency
Information systems enhance core competencies by:
encouraging the sharing of knowledge across business units.
All of the following are competitive forces in Porter's model except:
external environment.
Research has shown that a majority of firms are able to align their information technology with their business goals. (T/F)
false
The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly. (T/F)
false
The law of diminishing returns only applies to digital products. (T/F)
false
All of the following statements are true about information technology's impact on business firms except:
it helps firms expand in size.
A firm can exercise greater control over its suppliers by having:
more suppliers.
Walmart's continuous replenishment system allows it to do all of the following except:
provide mass customization.
According to research on organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are:
tasks, technology, people, and structure.
A virtual company:
uses networks to link people, assets, and ideas.
