BCIS / CH. 3

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An organization's goals and objectives are determined by its ___.

competitive strategy

Which of the following is incorrect with regard to the process of organizational strategy formulation?

organizational goals & objectives determine the competitive strategy

Organizational strategy begins with an assessment of the _____.

fundamental characteristics & structure of an industry

Which of the following represent the correct sequence of events in the value chain?

competitive strategy; value chain; business process; information systems

Porter's five forces model states that the intensity of the competitive forces determines all of the following except industry _____.

segmentation

KlenZing Services, a pest control firm, aims to increase customer loyalty by offering extra services like fumigation and window cleaning free for three months after an order. Which of the five forces in Porter's model is KlenZing addressing here?

bargaining power of customers

The threat of new entrants is low for _____.

corner latte shops

Which of the following has a high threat of substitution?

Darunavir, an anti-HIV treatment

Which of the following situations represents a strong bargaining power of suppliers?

coffee farmers during a frost season

An organization responds to the structure of its industry by choosing a ______.

competitive strategy

N-jol Ice Creams was facing competition to their flagship brand of "black sesame soft ice-cream." N-jol decides to counter the threat by bringing out five new variants at a reduced introductory price. Which competitive strategy is N-jol implementing?

cost differentiation in the segment

Porter defined _____ as the amount of money that a customer is willing to pay for a resource, product, or service.

value

The difference between the value that an activity generates and the cost of the activity is called the ___.

margin

A ____ is a network of value-creating activities.

value chain

Which of the following is not an example of primary activities in the value chain?

procurement

Mane manages deliver at a custom-kitchen outlet. Working on her customer's specifications, she contacts Gem Cabinets and places an order for full-motion type wall mount. Which of the following primary activities is Mae executing here?

inbound logistics

The net result of the difference between the total value added and the total costs incurred is the ____ of the chain.

total margin

The _____ activities in the generic value chain contribute indirectly to the production.

support

Which of the following is a support activity in the value chain?

setting up contractual arrangements for production

All of the following are examples of support activities except ______.

customer service

Porter's definition of firm infrastructure includes all of the following except ______.

employee evaluation

Which activity does ordering and receiving agreement-based materials belong to in the value chain?

inbound logistics

Which of the following is not part of Porter's definition of human resource management?

general management

According to Porter's model of business activities, ____ are interactions across value activities.

linkages

The central idea of business process design is that _____.

organizations should not automate or improve existing functional systems

The new discipline that evolved out of Porter's work on value chains is called ______.

business process design

_____ argues that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

business process design

Which of the following is true of value chain analysis in a service organization?

most of the value in a manufacturing company is generated by the operations, marketing and sales, and service activities

In a business process, each ____ transforms input resources into output resources.

activity

_____ can be considered resources at rest.

facilities

In a manufacturing business scenario, the _____ process transforms cash into raw material inventory and the _____ process transforms finished goods into cash.

materials ordering; sales

The sales process includes all of the following except _____.

promotions

Building competitive advantage through the streamlining of business processes to increase margin is known as _____.

business process management

All of the following is true of process design except that it requires ______.

people to work in new ways

The first three principles of competitive advantage include all of the following except _____.

locking in suppliers

Huen Software, an application provider in the gaming industry, decided to increase its portfolio by developing 3D graphics-supported games for the mobile gaming industry. By doing this, which competitive strategy is Huen Software implementing?

product differentiation

Synapz, a manufacturer of office automation products, recently received a patent for an advanced therapeutic ergonomics technology. By doing this, which principle of competitive strategy is Synapz following?

raise barriers to market entry

PowerCruise, a holiday cruise firm, recently offered its existing customers an extension of two years in their membership without any additional charges. By doing this, which competitive strategy is PowerCruise implementing?

lock in customers

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high _____.

switching costs

By establishing high switching costs, which of the forces in Porter's five forces model is being addressed?

bargaining power of suppliers

Organizations can lock in suppliers by making it difficult to switch to another organization or by _____.

making it easy to work with the organization

July Networks provides digital television services across the country. They have cutting-edge technology which gives clearer resolution. Customers are required to pay a fee amounting to three years' subscription charges. By doing this, which competitive strategy is July Networks implementing?

locking in customer

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