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5 Written Questions

5 Matching Questions

  1. In network economics, the value of a commercial software vendor's software products
    A) increases as more people use them.
    B) decreases as more people use them.
    C) increases due to higher marginal gain in output.
    D) decreases according to the law of diminishing returns.
  2. In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
  3. The ________ highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.
  4. The Internet raises the bargaining power of customers by
    A) creating new opportunities for building loyal customer bases.
    B) making more products available.
    C) making information available to everyone.
    D) lowering transaction costs.
  5. 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
  1. a C
  2. b value chain model
  3. c D
  4. d TRUE
  5. e A

5 Multiple Choice Questions

  1. FALSE
  2. strategic transitions
  3. B
  4. C
  5. primary

5 True/False Questions

  1. Business processes are collections of
    A) informal practices and behaviors.
    B) formalized and documented practices.
    C) routines.
    D) rights and privileges.


  2. A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.
    A) product differentiation
    B) traditional competitors
    C) low number of suppliers
    D) new market entrants


  3. The value chain model
    A) categorizes five related advantages for adding value to a firm's products or services.
    B) sees the supply chain as the primary activity for adding value.
    C) categorizes four basic strategies a firm can use to enhance its value chain.
    D) helps a firm identify points at which information technology can most effectively enhance its competitive position.


  4. A substitute product of most concern for a cable TV distributor is
    A) satellite TV.
    B) broadcast TV.
    C) satellite radio.
    D) the Internet.


  5. An example of synergy in business is
    A) Amazon's use of the Internet to sell books.
    B) JP Morgan Chase's merger with Bank One Corporation, which provided JP Morgan with a network of retail branches in new regions.
    C) Blockbuster combining traditional video rental with online video rental.
    D) Wal-Mart's order entry and inventory management system to coordinate with suppliers.


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