MIS Exam One (CH3)

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What competitive force was the most dominant in preventing US Airways from success, as discussed in the chapter case?

Traditional competitors

What strategy to counter competitive forces does US Airways emphasize in the case study for this chapter?

Low-cost leadership

The interaction between information systems and organizations is

a complex, two-way relationship mediated by factors such as the environment and organizational structure.

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm

It sees the inputs and outputs, labor and capital, as being infinitely malleable

According to the __________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment.

microeconomic

Business processes are collections of

routines

Mintzberg's classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n):

professional bureaucracy.

The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as

transaction costs

According to agency theory, the firm is viewed as a(n):

"Nexus of contracts" among self-interested individuals

Amazon's use of the Internet as a platform to sell books illustrates a tactical use of information services for

low-cost leadership

The four major types of competitive strategy are

low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy

An organization is

a. a stable, formal social structure that takes resources from the environment and processes them to produce outputs.
b. a formal, legal entity with internal rules and procedures that must abide by laws.
c. a collection of social elements.
d. all of the above.

You are consulting for a beverage distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step

Perform a strategic systems analysis.

The ______________________ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete

competitive forces

Which of the following is not one of the competitive forces

external environment

A substitute product of most concern for a cable TV distributor is

satellite TV

A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force

New market entrants

Which of the following industries has a low barrier to entry

restaurant

Which of the following can force a business and its competitors to compete on price alone

transparent marketplace

A firm can exercise greater control over its suppliers by having

more suppliers

Wal-Mart's continuous replenishment system allows it to

provide an efficient customer response system

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a

market niche strategy

__________________________is the ability to offer individually tailored products or services using the same production resources as bulk production

mass customization

An information system can enable a company to focus on a market niche through

intensive customer data analysis

Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to

focus on market niche

Which competitive force did 7-Eleven determine as being its primary disadvantage, based on your reading of the chapter case

customers

Which of the four generic strategies to combat competitive forces did 7-Eleven implement?

customer and supplier intimacy

Which industries did the first wave of e-commerce transform

air travel, books, music

To what competitive force did the printed encyclopedia industry succumb

substitute products or services

Internet technology

makes it easy to compete on price alone

The Internet raises the bargaining power of customers by:

making the information available to everyone

The value chain model

helps a firm identify points at which information technology can most effectively enhance its competitive position

The primary activities of a firm include

inbound logistics, operations, outbound logistics, sales and marketing, and service

The secondary activities of a firm include

organization infrastructure, human resources, technology, and procurement

Benchmarking

compares the efficiency and effectiveness of your business processes against strict standards

The most successful solutions or methods for achieving a business objective are called

best practices

A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)

value web

How are information systems used at the industry level to achieve strategic advantage?

Building industry-wide, IT-supported consortia and symposia

When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating

synergies

An information system can enhance core competencies by

encouraging the sharing of knowledge across business units

An example of synergy in business is

JP Morgan Chase's merger with Bank One Corporation, which provided JP Morgan with a network of retail branches in new regions

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as

the law of diminishing returns

Network economics

sees the cost of adding new members as inconsequential

In network economics, the value of a commercial software vendor's software products

increases as more people use them

A virtual company

uses the capabilities of other companies without being physically tied to those companies

According to Leavitt's model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are

tasks, technology, people, and structure.

Blockbuster's move to include online movie rental as a part of its services illustrates the use of information systems for

survival

Which competitive force best categorizes the threat Netflix posed to Blockbuster?

Substitute products and services

Blockbuster's implementation of online movie rental is an example of using information technology to enhance which part of the value chain?

Sales and marketing

The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage?

Internet technologies are universal, and therefore usable by all companies.

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