IS 290 Exam 1

What type of system did Kaiser Permanente implement in order to improve and prolong the lives of diabetics?

Customer relationship management.

What is measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer?

Customer satisfaction

When evaluating the value chain, whites not included in the primary value activities?

MIS development.

Which of the following is typically performed by the sales or marketing department?

Maintain transactional data.

What includes support-value activities and primary-value activities and is used to determine how to create the greatest possible value for customers?

Value chain analysis.

Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers?

Value chain analysis.

Which of the following demonstrates a company that has implemented a low-cost, broad-market strategy?

Walmart

What is a business-facing process?

An invisible process to the external customer but essential to the effective management of the business which includes goal setting, day-to-day planning, performance feedback, rewards, and resource allocation.

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a differentiation strategy?

British Airways, Singapore Airlines, and Virgin Atlantic.

What is an example of a business-facing process?

Budget forecasting

What type of metrics includes number of prospective customers, number of new customers, and number of retained customers?

CRM metrics

What is an incorrect statement about CRM's?

CRM predicting technologies help organizations identify their customers across other applications

What is another term that represents CRM reporting technologies that help organizations identify their customers across other applications?

Customer identification

According to Peter Drucker, what are managers who do the right things addressing?

Effectiveness

What types of metrics measure customer satisfaction?

Effectiveness MIS metrics

Which of the following offers an example where Porter's five forces are mostly weak and competition is low?

An international hotel chain purchasing milk

MIS can add value to both primary and support activities within a business. Which of the following is not an example of a company adding value by the use of MIS in a support activity?

Netflix creating a business strategy for the video rental market that delivers videos via the mail.

MIS can add value to both primary activities and support activities in the value chain. Which of the following is not an example of a company adding value by using MIS in a primary activity?

Scottrade Corp. creating an online system for employees to track paychecks, benefits, the wellness-rewards program, and other employee benefit items.

According to Porter's value chain analysis, which of the following provides customer support after the sale of goods and services?

Service.

Which of the following represents procurement as part of the support value activities in a value chain analysis?

Purchases inputs, such as raw materials, resources, equipment, and supplies.

What type of metrics includes number of marketing campaigns, new customer retention rates, and number of feedbacks by marketing campaign?

CRM metrics

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

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. What is an example of a piece of data Cheryl would be using to successfully perform her job?

Craig Newmark customer number is 15467

Which of the following is considered information?

Best-selling item by month

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

Outbound logistics.

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. What is an example of the type of information Cheryl would be using to successfully perform her job?

Best-selling product by day.

What is a standardized set of activities that accomplishes a specific task?

Business process

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

Buyer power, supplier power, threat of new entrants, and threat of substitute products or services

What is an example where Porter's five forces are mostly strong and competition is high?

Dog Walking business

According to Peter Drucker, what are managers who do things right addressing?

Efficiency

What type of metrics measure throughput, speed, and availability?

Efficiency MIS metrics

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents supplier power in the music industry?

Established record labels like EMI, Sony, and Universal.

What is not considered a category within the primary value activities in a value chain analysis?

Firm infrastructure.

When evaluating the value chain, which of the following is included in the support value activities?

Firm infrastructure.

Greg Provenzo owns and runs a Blockbuster video store. Greg is implementing a drive-thru rental process that is the same as you would find at a fast-food restaurant. Customers can pick up and drop off their videos without leaving their cars. Greg's new system has become so popular that Videos Plus, a competitor down the street, is attempting to re-create Greg's video drive-thru rental process. Greg's system is an example of a _________.

First-mover advantage

Feedback is information that returns to its original transmitter and modifies the transmitter's actions. What would the original transmitter include?

Input, Transform, Output.

Which of the following represents the relationship between functional areas in a business?

Interdependent

How does the text recommend that a company operate if it wants to be successful in the information age?

Interdependently between departments

John Cleaver is the CEO of Tech World, which is a retail store that sells computers, monitors, cameras, televisions, and many other electronic products. John and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic the product of a competitor that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, John determines that all of the forces are high in this new industry. What should John do?

Not introduce the product. Because all five forces are strong, introducing the product would be a highly risky business strategy.

Which of the following offers an example of a company operating in a narrow, focused market operating as the low-cost provider?

Payless Shoes.

Amazon.com uses a customer-profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?

Product Differentiation

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 is not a type of effectiveness MIS metric?

Response time

___________ make customers reluctant to switch to another product or service.

Switching costs

Which of the following is not included as one of Friedman's 10 forces that flattened the world?

Systems thinking.

What decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

Target high value-adding activities to further enhance their value. Target low value-adding activities to increase their value. Perform some combination of the two.

The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives. What is not one of the four perspectives in the balanced scorecard?

The leading perspective

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.

Paula Logston is the owner and operator of a high-end online custom clothing company. Paula has never heard of Porter's Five Forces Model, and she wants to understand why she should perform an analysis using it. If you were tasked with explaining Porter's Five Forces Model to Paula, what would be the primary reason she would want to use this type of analysis?

To help Paula evaluate the attractiveness of the clothing industry

What is the purpose of business process reengineering?

To make all business processes the best-in-class.

What is not a question asked during the reporting phase of CRM?

Who are our Customers?

The banking industry has implemented several competitive advantages, including ATMs, online bill-pay services, and electronic statements. Of course, these competitive advantages were quickly duplicated by any competitor that wanted to remain in the banking industry. These are examples of ___________.

acquiring new technology products and services

The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or ________________.

cost advantage, product differentiation

The process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed is the definition of ___________.

feedback

A __________ advantage features a product or service on which customers place a greater value than they do on similar offerings from competitors.

power