5 Written questions
3 Matching questions
- A virtual company
A) uses the capabilities of other companies without being physically tied to those companies.
B) uses Internet technology to maintain a virtual storefront.
C) uses Internet technology to maintain a networked community of users.
D) provides entirely Internet-driven services, or virtual products.
- 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.
- Strong linkages to customers and suppliers decrease switching costs.
- a B
- b A
- c FALSE
5 Multiple choice questions
5 True/False questions
________ is the ability to offer individually tailored products and services using the same production resources as mass production.
Answer → A
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?
A) Identify the business ecosystem the distributor is in.
B) Implement a strategic transition to the new system.
C) Perform a strategic systems analysis.
D) Benchmark existing systems.
Answer → FALSE
An information system can enable a company to focus on a market niche through
A) complex trend forecasting.
B) tailoring products to the client.
C) intensive product trend analysis.
D) intensive customer data analysis.
Answer → TRUE
The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as
A) switching costs.
B) transaction costs.
D) agency costs. → FALSE
When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy.
A) product differentiation
B) market niche
C) mass customization
D) process efficiency
Answer → D