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?

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?

a. Law of diminishing returns
b. Internet technologies are universal, and therefore usable by all companies.
c. Internet shopping produces cost transparency.
d. The Internet enables the production or sales of substitute products or services.

Answer: B

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

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

a. Inbound logistics
b. Operations
c. Sales and marketing
d. Procurement

Answer: C

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

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

a. Rivalry among traditional competitors
b. Threat of new market entrants
c. Substitute products and services
d. Bargaining power of customers

Answer: C

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

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

a. competitive advantage.
b. survival.
c. new products and services.
d. customer intimacy.

Answer: B

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:

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:

a. environment, organization, structure, tasks.
b. technology, people, culture, and structure.
c. organization, culture, management.
d. tasks, technology, people, and structure.

Answer: D

A virtual company:

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

Answer: A

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

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

Answer: A

Network economics:

Network economics:

a. applies the law of diminishing returns to communities of users.
b. applies traditional economics to networked users.
c. sees the cost of adding new members as inconsequential.
d. balances the high cost of adding new members to a community against the lower cost of using network infrastructure.

Answer: C

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 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:

a. the point of no return.
b. the law of diminishing returns.
c. supply and demand.
d. network inelasticity.

Answer: B

An example of synergy in business is:

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

Answer: B

An information system can enhance core competencies by:

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.

Answer: D

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:

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:

a. a value web.
b. a value chain.
c. synergies.
d. core competencies.

Answer: C

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

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

a. Building industry-wide, IT-supported consortia and symposia
b. By raising the bargaining power of suppliers
c. By encouraging the entry of new competitors
d. By enforcing standards that reduce the differences between competitors

Answer: A

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):

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):

a. industry value chain.
b. business ecosystem.
c. value web.
d. consortia.

Answer: C

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

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

a. value activities.
b. best processes.
c. core competencies.
d. best practices

Answer: D

Benchmarking:

Benchmarking:

a. compares the efficiency and effectiveness of your business processes against strict standards.
b. allows industry participants to influence industry-wide standards.
c. is used to measure the speed and responsiveness of information technology.
d. synchronizes the business processes of customers, suppliers, and trading partners.

Answer: A

The secondary activities of a firm include:

The secondary activities of a firm include:

a. inbound logistics, technology, outbound logistics, sales and marketing, and service.
b. inbound logistics, organization infrastructure, outbound logistics, technology, and procurement.
c. organization infrastructure, human resources, sales and marketing, and technology.
d. organization infrastructure, human resources, technology, and procurement

Answer: D

The primary activities of a firm include:

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.

Answer: A

The value chain model:

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.

Answer: D

The Internet raises the bargaining power of customers by:

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.

Answer: C