MIS CH 3

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Focused differentiation occurs when ________. A) a better product is provided within an industry segment B) there is limited competition in an industry C) the customers are highly price sensitive D) product quality improves across an entire industry

A) a better product is provided within an industry segment

In which of the following situations would the bargaining power of suppliers be highest? A) a single vendor providing raw materials to many department stores B) a fashion outlet catering to a niche market C) a bank liquidating during a fire sale D) a large retailer buying goods from many small suppliers

A) a single vendor providing raw materials to many department stores

RedDart is a premium freight provider in the United States. The company offers premium shipment services to its customers. The company ships faster than its competitors and uses tamperproof containers to ship its products. RedDart company distinguishes itself from competitors by ________. A) providing an enhanced product B) locking in its suppliers C) locking in its customers D) offering low-cost operations and services

A) providing an enhanced product

Focused cost leadership is observed when a product has the lowest cost ________. A) within an industry segment B) within the product range offered by a company C) within an industry D) within the supply chain of a company

A) within an industry segment

A(n) ________ is a network of activities that generate value by transforming inputs into outputs. A) business process B) competitive strategy C) linkage D) information system

A, business process design

A group of grain farmers in a surplus year will have reduced ________. A) bargaining power B) threat of substitutes C) risk of rivalry D) threat of new entrants

A. bargaining power

Which of the following factors determines the structure, features, and functions of the information system used in a company? A) the competitive strategy B) the brand value of its brands C) the size of the company

A. competitive strategy

The cost of the business process is the sum of the cost of the inputs and the ________. A) cost of the activities B) cost of the outputs C) value of the outputs D) value of the product/service

A. cost of activites

Synapz, a manufacturer of office automation products, recently received a patent for an advanced therapeutic ergonomics technology. By doing this, Synapz has ________. A) created entry barriers B) introduced product differentiation C) locked in its suppliers D) reduced the cost of operations

A. created entry barriers

An organization wants to achieve competitive advantage through process implementations. Which of the following actions would help them do that? A) establishing alliances B) creating new products C) enhancing products D) differentiating services

A. establishing alliances

Identify the activity in the value chain that involves receiving, storing, and disseminating inputs to the product. A) inbound logistics B) procurement C) operations D) outbound logistics

A. inbound logistics

Mae manages delivery at a custom-kitchen outlet. Working with her customer's specifications, she contacts Gem Cabinets and places an order for a full-motion wall mount. Which of the following primary activities is Mae performing here? A) inbound logistics B) operations C) customer service D) marketing

A. inbound logistics

In a manufacturing business, the ________ process transforms finished goods into cash. A) inbound operations B) operations C) sales D) inbound logistics

A. inbound operations

) Porter's five forces model is used to assess ________. A) industry structure B) market share C) internal competition D) lifecycles of products

A. industry structure

The difference between the value that an activity generates and the cost of the activity is called the ________. A) margin B) turnover C) revenue D) value-addition

A. margin

Which of the following value chain activities involves transforming raw materials into a finished product or service? A) operations B) inbound logistics C) marketing D) maintenance

A. operations

Which of the following is a primary activity in the value chain? A) receiving and disseminating inputs to the product B) negotiating prices with vendors C) finding suitable vendors to supply raw materials D) setting up contractual arrangements with various suppliers

A. receving and disseminating inputs to the product

A database is an example of a(n) ________. A) repository B) software C) linkage D) value chain

A. repository

A(n) ________ is a collection of something, such as data and raw materials. A) value chain B) cache C) linkage D) repository

A. repository

A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. Identify the strategy used here. A) switching costs strategy B) low cost operation strategy C) differentiation strategy D) consumerist strategy

A. switching costs strategy

) Bargaining power of customers is likely to be the highest for markets involving ________. A) public transportation B) industrial products C) patented drugs D) luxury goods

B industrial products

Which of the following principles of competitive advantage is associated with product implementations? A) locking in customers B) differentiating service offerings C) locking in suppliers D) establishing alliances

B) differentiating service offerings

ABC Motors is the largest manufacturer of cars. The company purchases raw materials from many small-sized sellers across the globe. In this case, ABC Motors ________. A) faces very low threat of substitute products B) has high bargaining power over its suppliers C) faces very low threat of new entrants to market D) has very high bargaining power over its customers

B) has high bargaining power over its suppliers

An automobile company decides to improve the quality of all its products and bring more variety into its product line. The company has decided to adopt ________. A) focused cost-leadership B) industry-wide differentiation C) industry-wide cost leadership D) focused differentiation

B) industry-wide differentiation

Huen Software, an application provider to the gaming industry, decided to increase its portfolio by developing 3-D graphics-supported games for the mobile gaming industry. By doing this, which competitive strategy is Huen Software implementing? A) creation of entry barriers B) product differentiation C) reduction of cost D) locking in of suppliers

B) product differentiation

N-joi Ice Cream was facing competition to their flagship brand of "black currant ice cream". The competitor began offering three varieties of "black currant ice cream." N-joi decided to counter the threat by introducing five new varieties of ice creams. Which competitive strategy is N-joi implementing? A) cost leadership B) product differentiation C) cost differentiation in the segment D) service focus

B) product differentiation

Which of the following value chain activities involves assisting users to handle the product after sale, thus maintaining and enhancing the product's value? A) inbound logistics B) customer service C) operations D) outbound logistics

B. customer service

A retail marketing company sells such products as agricultural produce and consumer products. The company procures materials from farmers and local producers. This process of obtaining the inputs needed for a business is called ________. A) outbound logistics B) inbound logistics C) operations D) internal marketing

B. inbound logistics

An organization implements an information system to optimize its supply chain. The system helps the organization reduce wastages and inventory charges. Hence, the system provides a competitive advantage to the organization. Here, the information system helped the organization achieve competitive advantage by ________. A) locking in customers B) reducing costs C) locking in suppliers D) differentiating the products

B. reducing costs

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________. A) entry barriers B) switching costs C) product standards D) value differentiation

B. switching costs

The net result of the difference between the total value added and the total costs incurred is the ________ of the value chain. A) actual value B) total margin C) gross revenue D) gross turnover

B. total margin

Which of the following statements is consistent with the central idea of business process design? A) Technology should be used to supplement the existing value chain. B) Business processes should not focus on the core competencies of organizations. C) Organizations should create new business processes rather than improving existing systems. D) Technology should be used to modify and improve standard business processes.

C) Organizations should create new business processes rather than improving existing systems.

According to Porter's model of business activities, interactions across value activities are called ________. A) support activities B) models C) linkages D) cross-functionalities

C. Linkages

Which of the following is considered a support activity in the value chain of a business? A) operations B) customer service C) contract negotiation D) marketing

C. contract negotiation

A group of manufacturing organizations purchases raw materials collectively to obtain better deals. This is an example of obtaining competitive advantage by ________. A) differentiating the industry B) establishing standards C) establishing alliances D) enhancing the products

C. establishing alliances

The automobile industry is characterized by many manufacturers and intense competition among them. This statement refers to ________. A) low threat of substitutions B) high bargaining power of suppliers C) high levels of rivalry D) low bargaining power of customers

C. high levels of rivalry

PowerCruise, a holiday cruise firm, recently offered its existing customers an extension of six months to their membership without any additional charges. By doing this, which competitive strategy did PowerCruise implement? A) creation of a new service B) product differentiation C) locking in of customers D) locking in of suppliers

C. locking in of customers

Organizations can lock in suppliers by making it difficult to switch to another organization or by ________. A) making it easy for the customers to switch products B) reducing investments in their supply chain C) making it easy to work with the organization D) reducing the bargaining power of consumers

C. making it easy to work with the organization

Which of the following value chain activities involves inducing buyers to get a product and providing a means for them to do so? A) inbound logistics B) operations C) sales and marketing D) outbound logistics

C. sales and marketing

According to Porter's five forces model, which of the following would be most affected by the threat of substitutes? A) Microsoft Windows OS B) Boeing jets C) Southwest Airlines' services D) Google Adwords

C. southwest airlines

________ argues that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain. A) Internal supply chain design B) Product differentiation model C) Market differentiation model D) Business process design

D) Business process design

Which of the following is a support activity in the value chain? A) receiving inputs to operationalize the production B) distributing the products to retailers or buyers directly C) assisting customers in using the product or service D) setting up contractual arrangements for procurement

D) setting up contractual arrangements for procurement

RAC Associates is a car rental company. The company rents cars to customers in the United States. The company uses controls and procedures to prevent car theft. Such procedures are examples of ________. A) primary business processes B) core activities C) strategic activities D) supporting business processes

D) supporting business processes

Which of the following is a part of the materials ordering process? A) outbound logistics B) marketing C) operations D) inbound logistics

D. inbound logistics

Lynn, the manager of a transportation company, is going through this week's delivery schedule. She calls her team and assigns territories for each executive. She contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing? A) inbound logistics B) marketing C) customer service D) outbound logistics

D. outbound logistics

Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers? A) inbound logistics B) operations C) customer service D) outbound logistics

D. outbound logistics

A new drug that has shown promise in curing lung cancer has been discovered by a famous chemical laboratory. This is the only drug effective for treatment of this disease. The laboratory obtains a patent for the product and decides to sell it. This situation is characterized by ________.

Low threat of substitutes


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