DSCI 320 Chapter 1

The chief technology officer is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks from hackers and viruses.

False

Tiffany & Company competes in the marketplace by offering high cost custom jewelry. Tiffany & Company is following a broad market and cost leadership strategy.

False

What is a competitive advantage?

A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.

Zappos is not a technology company; its primary business focus is to sell books.

False

Which of the following is not considered a category within the primary value activities in a value chain analysis?

Firm Infrastructure

Broad differentiation, broad cost leadership, and _________ create the three generic strategies identified by Porter.

Focused Strategy

Kevin Campbell is an incoming freshman at your college. Kevin is frustrated by the cost of books, tuition, and expenses and he also needs to purchase a rather expensive laptop. In an effort to save money, Kevin beings a Facebook group finding other college students who need to purchase laptops. Soon, Kevin's Facebook group has close to 100,000 students. Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount. What business strategy is Kevin using to purchase laptops?

Increasing buyer power.

What is business intelligence?

Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making.

Which of the following is considered a service?

Cutting Hair

Today's workers are referred to as _______________ and they use BI along with personal experience to make decisions based on both information and intuition, a valuable resource for any company.

Knowledge workers

Which of the following is considered a good?

Milk and eggs

What is data?

Raw facts that describe the characteristics of an event or object.

If you were thinking about a home theater system which of the following represents the process?

Spinning the disk to play, pause, rewind, or fast forward.

If you were thinking about a home theater system which of the following represents the inputs?

The DVD player, DVD movie, speakers, TV, and electricity.

Which of the following is included in Porter's Five Forces Model?

The power of competitors, suppliers. buyers, substitutes, new entrants

Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Sandy determines that the best value she can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Sandy adding value?

The primary value activity outbound logistics.

The chief security officer is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks from hackers and viruses.

True

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents buyer power in the soft drink industry?

Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.

Data is useful for understanding individual sales, but to gain deeper insight into a business data needs to be turned into information. Which of the following offers an example of turning data into information?

Who are my best customers? What is my best-selling product? What is my worst-selling product?

The chief privacy officer is responsible for ensuring the ethical and legal use of information within a company

True

Which of the following is considered information?

Best-selling item by month

If a supplier has high power what can it do to influence its industry?

Charge higher prices. Shift costs to industry participants. Limit quality or services.

Cheryl Steffan is the operations manager for Nature's Bread Company, which specializes in providing natural products for health conscious individuals. Cheryl is responsible for compiling, analyzing, and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day. Which of the following is an example of the type of information Cheryl would be using to successfully perform her job?

Compare the costs of supplies including energy over the last five years to determine the best-selling product by month.

Which of the following is not considered a core driver of the information age?

Competitive Intelligence.

Steve Jobs and Apple created a big advantage in the technology industry with the introduction of the iPod, iPhone, and iPad. What are these all examples of?

Competitive advantage Competitive intelligence First-mover advantage

Which of the following is considered a core driver of the information age?

Data

Which of the following is not a core driver of the information age?

Fact

Firm infrastructure and human resource management are part of the primary value activities.

False

Which of the following is not considered a category within the support value activities in a value chain analysis?

Outbound logistics.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents supplier power in the soft drink industry?

Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.

If you were thinking about a home theater system which of the following represents the outputs?

Playing the movie including the audio through the speakers and the video on the TV.

What are the two main categories in a value chain analysis?

Primary value activities & support value activities.

Callie Crystal owns and operates one of the most successful local coffee shops in Denver, called The Edgewater Café. Each time a customer purchases their 100th cup of coffee at The Edgewater Café they receive a free pound of coffee of their choice. What is Callie attempting to create with her unique "Free Pound of Coffee" marketing program?

Reducing buyer power with a loyalty program.

Which of the following represents a typical supply chain?

Suppliers - Company - Customers.

Identifying competitive advantages can be difficult and explains why they are typically ___

Temporary

Imagine you are creating a new product to sell in an up-and-coming market. Which of the below statements indicates that it would be easy for you as the new entrants to compete in this market?

The threat of new entrants force is high in the up-and-coming market.

A business process is a standardized set of activities that accomplish a specific task, such as processing a customer's order.

True

A fact is the confirmation or validation of an event or object. In the past, people primarily learned facts from books.

True

FedEx created a first-mover advantage by developing its customer self-service software, which allows people to request parcel pickups, print mailing slips, and track parcels online.

True

Firm infrastructure and human resource management are part of the support value activities.

True