Omis Ch. 3 practice quiz

Which model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete? Select one: a. Network economics model b. Agency costs model c. Demand control model d. Competitive forces model e. Competitive advantage model

Competitive forces model

Which of the following statements about disruptive technologies is not true? Select one: a. Disruptive technologies may put entire industries out of business. b. Disruptive technologies may be substitute products that perform better than other products currently being produced. c. Disruptive technologies may sometimes simply extend the marketplace. d. Firms that invent disruptive technologies as first movers always become market leaders. e. Disruptive technologies radically change the business landscape and environment

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

Which of the following statements about the technical view of organizations is not true? Select one: a. It sees the organization as a social structure similar to a machine. b. It sees the firm as being infinitely malleable. c. It focuses on how inputs are combined to create outputs when technology changes are introduced into a company. d. It emphasizes group relationships, values and structures. e. It sees capital and labor as being easily substituted for one another.

It sees the firm as being infinitely malleable.

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates which of the following strategies? Select one: a. Low-cost leadership b. Developing synergies c. Focusing on market niche d. Strengthening supplier intimacy e. Marketing effectiveness

Low-cost leadership

All of the following are IT-enabled products and services providing competitive advantage except: Select one: a. PayPal's online person-to-person payment system. b. Amazon's one-click shopping. c. Apple's iTunes. d. Ping's golf club customization. e. Nike's use of celebrities to market their products.

Nike's use of celebrities to market their products.

Which of the following substitute products would be of most concern for a cable TV distributor? Select one: a. Streaming music services b. Broadcast TV c. Satellite radio d. Terrestrial radio e. On-demand Internet television

On-demand Internet television

Which of the following industries has the lowest barrier to entry? Select one: a. Solar energy b. Computer chip c. Small retailer d. Automotive e. Airline

Small retailer

As discussed in the chapter opening case, which of the following statements about Starbucks is not true? Select one: a. Starbucks plans to use IT innovations to enhance the customer experience. b. Starbucks is trying to create a unique customer experiences in stores. c. Starbucks plans to increase its online sales of coffee products using new technology. d. Starbucks strives to offer customers high-quality coffee, friendly servers, and customer friendly stores. e. Starbucks is planning to sell coffee, branded mugs, and espresso machines on its website.

Starbucks is planning to sell coffee, branded mugs, and espresso machines on its website.

Which of the following is a competitive force challenging the publishing industry? Select one: a. Positioning and rivalry among competitors b. Suppliers' bargaining power c. Low cost of entry d. Substitute products or services e. Customers' bargaining power

Substitute products or services

Which of the following is a support activity in a firm's value chain? Select one: a. Technology b. Inbound logistics c. Sales and marketing d. Operations e. Service

Technology

Hilton Hotels uses its OnQ system for which of the following purposes? Select one: a. To lower its operating costs b. To take advantage of network economics c. To create synergies with its suppliers d. To estimate each guest's profitability and give additional privileges to profitable customers e. To benchmark its progress against competitors

To estimate each guest's profitability and give additional privileges to profitable customers

Walmart's continuous replenishment system is an example of a firm using information systems to: Select one: a. focus on market niche. b. develop synergies. c. simplify the industry value chain. d. achieve low-cost leadership. e. strengthen ties to its customers.

achieve low-cost leadership

The most successful solutions or methods for achieving a business objective are called: Select one: a. best practices. b. benchmarks. c. core competencies. d. best processes. e. value activities.

best practices.

Information systems can be used at the industry level to achieve strategic advantage by: Select one: a. encouraging the entry of new competitors. b. building industrywide, IT-supported consortia and symposia. c. raising the bargaining power of suppliers. d. enforcing standards that reduce the differences between competitors. e. decreasing switching costs.

building industrywide, IT-supported consortia and symposia.

The interaction between information technology and organizations is influenced: Select one: a. by many factors, including structure, politics, culture, and environment. b. by two main macroeconomic forces: capital and labor. c. by the rate of growth of the organization. d. solely by the decision making of middle and senior managers. e. by the development of new information technologies.

by many factors, including structure, politics, culture, and environment.

A ________ is an activity for which a firm is a world-class leader. Select one: a. growth driver b. expertise area c. efficiency d. core competency e. competitive advantage

core competency

All of the following are competitive forces in Porter's model except: Select one: a. disruptive technologies. b. suppliers. c. new market entrants. d. substitute products. e. customers.

disruptive technologies

Information systems enhance core competencies by: Select one: a. creating educational opportunities for management. b. allowing operational employees to interact with management. c. fostering synergies among departments. d. encouraging the sharing of knowledge across business units. e. providing better reporting facilities.

encouraging the sharing of knowledge across business units.

The value chain model: Select one: a. categorizes five related advantages for adding value to a firm's products or services. b. sees the supply chain as the primary activity for adding value. c. enables more effective product differentiation. d. categorizes four basic strategies a firm can use to enhance its value chain. e. highlights specific activities in the business where competitive strategies can best be applied.

highlights specific activities in the business where competitive strategies can best be applied.

In environmental scanning, a firm may use information systems to: Select one: a. identify external events that may affect it. b. analyze the performance of its intranet. c. develop a unified organizational culture. d. transform inputs into products and services. e. keep track of the temperature within its data centers.

identify external events that may affect it.

All of the following statements are true about information technology's impact on business firms except: Select one: a. it helps reduce agency costs. b. it helps reduce internal management costs. c. it helps reduce transaction costs. d. it helps firms lower the cost of market participation. e. it helps firms expand in size.

it helps firms expand in size.

Along with capital, ________ is the primary production input that the organization uses to create products and services. Select one: a. labor b. politics c. feedback d. structure e. culture

labor

The four major competitive strategies are: Select one: a. new market entrants, substitute products and services, customers, and suppliers. b. low-cost leadership, new market entrants, product differentiation, and focus on market niche. c. customers, suppliers, new market entrants, and substitute products. d. low-cost leadership, substitute products and services, customers; and suppliers. e. low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.

low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.

The Internet increases the bargaining power of customers by: Select one: a. lowering transaction costs. b. creating new opportunities for building loyal customer bases. c. making information available to everyone. d. making more products available. e. enabling the development of new services.

making information available to everyone.

Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors. Select one: a. process efficiency b. product differentiation c. low-cost leadership d. market niche e. mass customization

market niche

The ability to offer individually tailored products or services using the same production resources as bulk production is known as: Select one: a. mass customization b. micro customization. c. micromarketing. d. niche customization. e. mass marketing.

mass customization.

According to the ________ definition of organizations, an organization is seen as a means by which capital and labor are transformed by the organization into outputs to the environment. Select one: a. microeconomic b. psychological c. macroeconomic d. behavioral e. sociotechnical

microeconomic

The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as organizational: Select one: a. culture. b. structure. c. politics. d. environments. e. business processes.

politics.

Under Mintzberg's classification of organizational structure, knowledge-based organizations fall under the category of: Select one: a. adhocracies. b. entrepreneurial structures. c. professional bureaucracies. d. machine bureaucracies. e. divisionalized bureaucracies

professional bureaucracies.

Walmart's continuous replenishment system allows it to do all of the following except: Select one: a. transmit orders to restock directly to its suppliers. b. fine-tune merchandise availability. c. better meet customer demands. d. keep costs low. e. provide mass customization

provide mass customization

Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered: Select one: a. systems alterations. b. business goal transitions. c. sociotechnical transitions. d. organizational adjustments. e. strategic transitions.

strategic transitions.

A ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market. a. net marketplace b. value chain c. consortium d. value web e. support web

value web

Which of the following best illustrates the use of information systems to focus on market niche? Select one: a. A car manufacturer's website that lets you customize the features on the car you are purchasing. b. A restaurant chain analyzing local sales figures to determine which menu items to serve. c. A clothes manufacturer expanding its offerings to new styles. d. A department store creating specialized products for preferred customers. e. A bookseller selling an e-book reader that reads only the bookseller's books.

A department store creating specialized products for preferred customers.

Which of the following is an example of synergy in business? Select one: a. Blockbuster combining traditional video rental with online video rental b. Amazon's use of the Internet to sell books c. Bank of America acquiring Countrywide Financial Corporation to reach a large pool of new customers d. Nike's use of technology to improve its product offerings e. Walmart's order entry and inventory management system to coordinate with suppliers

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

Which of the following statements about business processes is not true? Select one: a. Business processes are a collection of standard operating procedures. b. Business processes influence the relationship between an organization and information technology. c. A business firm is a collection of business processes. d. Business processes are usually ensconced in an organization's culture. e. Business processes are typically unaffected by changes in information systems.

Business processes are typically unaffected by changes in information systems.