MIS Exam One (CH3)

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.
Business processes are collections of
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
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
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
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
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
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.