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| 1 | |
The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company major advantages over the competitive forces it faces in the marketplace. How is this accomplished? |
| | A) | Through a strategic information architecture. |
| | B) | Through competitive forces. |
| | C) | Through knowledge management. |
| | D) | All of the choices are correct. |
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| 2 | |
Your text outlines five competitive forces that shape the structure of competition in its industry. Which one of the following is NOT one of the five basic competitive forces discussed in your text? |
| | A) | Bargaining power of customers. |
| | B) | Threat of new entrants. |
| | C) | Threat of substitutes. |
| | D) | Strategic dominance. |
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| 3 | |
Which of the following is one of the competitive strategies a company can use to counter competitive forces? |
| | A) | Rivalry of competition. |
| | B) | Innovation. |
| | C) | Bargaining power of customers. |
| | D) | Bargaining power of suppliers. |
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| 4 | |
The value chain concept was developed by Michael Porter, where a firm is viewed as a series, or chain, or network of basic activities that add value to its products and services, and thus add a margin of value to the firm. One of the primary activities in a firm's "value chain" typically includes: |
| | A) | Administrative services. |
| | B) | Technology development. |
| | C) | Human resource management. |
| | D) | Marketing and sales. |
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| 5 | |
One of the most important implementations of competitive strategies is business process reengineering (BPR). What is BPR? |
| | A) | A customer's perception of a customer-focused business that offers the best value. |
| | B) | A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service. |
| | C) | Organizational operations and development. |
| | D) | A customer's perception that uses the Internet. |
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| 6 | |
Which of the following is a strategy of a virtual company? |
| | A) | Share infrastructure and risks with alliance partners. |
| | B) | Never manufacture a product. |
| | C) | Increase product concept to on the shelf for sale time. |
| | D) | None of the choices are correct. |
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| 7 | |
Knowledge creating companies exploit two kinds of knowledge—explicit and tacit knowledge. Tacit knowledge deals with: |
| | A) | Data, documents, things written down or stored on computers. |
| | B) | "How-tos" knowledge, which resides in workers. |
| | C) | Ability to use data mining techniques to capture external information. |
| | D) | All of the choices are correct. |
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| 8 | |
How could a business benefit from business process re-engineering? |
| | A) | BPR is future oriented. |
| | B) | BPR is typically cross functional. |
| | C) | BPR generates brand new processes. |
| | D) | All of the choices are correct. |
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| 9 | |
When a company can make a profit in markets with broad production ranges and short model lifetimes and can produce orders individually in an arbitrary lot size, it can be described as a(n): |
| | A) | Virtual company. |
| | B) | Differentiated company. |
| | C) | Agile company. |
| | D) | Cost leader. |
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| 10 | |
When a company makes investments in IT to improve its operations or promotes innovation, it can erect __________________ that would discourage or delay competitors from entering a market. |
| | A) | Switching costs. |
| | B) | Differentiation. |
| | C) | Barriers to entry. |
| | D) | None of the choices are correct. |
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