A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors.
An information system can enhance core competencies by
A) providing better reporting facilities.
B) creating educational opportunities for management.
C) allowing operational employees to interact with management.
D) encouraging the sharing of knowledge across business units.
The primary activities of a firm include
A) inbound logistics, operations, outbound logistics, sales and marketing, and service.
B) inbound logistics, operations, outbound logistics, technology, and service.
C) procurement, inbound logistics, operations, technology, and outbound logistics.
D) procurement, operations, technology, sales and marketing, and services.
If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating
A) a value web.
B) a value chain.
D) core competencies.
The law of diminishing returns always applies to digital, as well as traditional companies.
5 Multiple Choice Questions
5 True/False Questions
To what competitive force did the printed encyclopedia industry succumb?
A) positioning and rivalry among competitors
B) low cost of entry
C) substitute products or services
D) customer's bargaining power
Answer → C
An example of a professional bureaucracy is a
A) small startup firm.
B) school system.
C) mid-size manufacturing firm.
D) consulting firm.
Answer → FALSE
AutoNation's analytic software that mines customer data with a goal of enabling the building of automobiles that customers actually want can be categorized as using information systems for which competitive strategy?
A) low-cost leadership
B) product differentiation
C) focus on market niche
D) customer intimacy
Answer → C
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)
A) entrepreneurial structure.
B) divisionalized bureaucracy.
C) professional bureaucracy.
D) adhocracy. → C
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
A) strengthen customer intimacy.
B) differentiate their service.
C) focus on market niche.
D) increase efficiency.
Answer → A