Deck 3: Is for Competitive Advantage

Question 1

Porter's model of the value chain and its linkages started a movement to create ____________, cross- departmental business systems.

A) supporting
B) linked
C) primary
D) complex
E) integrated

Answer 1

integrated

Question 2

Business____________ is centered on the idea that businesses should not automate existing systems, but should create new ones instead.

A) process design
B) replacement design
C) process replacement
D) process integration

Answer 2

process design

Question 3

The ____________of a process is the expense of inputs plus activities.

A) margin
B) cost
C) value
D) flow

Answer 3

cost

Question 4

A manufacturing system will use____________ to extrapolate sales forecasts to plan production.

A) production
B) chains
C) linkages
D) just- in- time

Question 5

____________may store physical items like inventory, or hold data.

A) Margins
B) Activities
C) Facilities
D) Resources

Question 6

When a stock trading firm opens a new site for online stock transactions they might gain competitive advantage by:

A) establishing alliances.
B) product enhancement.
C) creating barriers to entry.
D) creating new products or services.
E) reducing costs.

Question 7

The ____________consists of both primary and support activities.

A) supply chain
B) industry differentiation
C) five forces model
D) value chain

Question 8

Which of the following activities is not considered part of the primary activities in the value chain?

A) distribution
B) receiving product
C) manufacturing
D) service
E) negotiating prices

Question 9

The basic idea of the digital divide is that:

A) computer memory is divided.
B) IT divides people.
C) a CPU is divided into different areas for digital processing.
D) access to the Internet is limited to rich countries.

Question 10

If you stay in touch with fellow students after you graduate, which principle of competitive advantage are you mainly demonstrating?

A) lock in customers or buyers
B) establish alliances
C) create a new product or service
D) lock in suppliers
E) raise barriers to market entry

Question 11

An iPod would be an example of how Apple gained competitive advantage by:

A) creating new products or services.
B) establishing alliances.
C) creating barriers to entry.
D) product differentiation.
E) reducing costs.

Question 12

Businesses seek to use IT in order to gain ____________over other businesses seeking the same customers.

A) competitive advantage
B) dominance
C) relative advantage
D) sway

Question 13

When a company in the auto industry uses robots to work on the assembly lines they are trying to gain competitive advantage by:

A) switching costs.
B) product differentiation.
C) establishing alliances.
D) reducing costs.

Question 14

Which of the following is not an example of a strong password?
A) B!ow123

A) Bl0w123
B) B!0w123
B) Blow123
C) none of the above

Question 15

Streamlining business processes will:

A) increase margin.
B) decrease cost.
C) decrease margin.
D) increase flow.

Question 16

In comparing Wal- mart to Macy's, Wal- mart has chosen which competitive strategy?

A) low- cost
B) best- of- breed
C) differentiation
D) business process redesign

Question 17

Streamlining business process is a key to:

A) competitive advantage.
B) stabilizing margins.
C) decreasing value.
D) getting data resources to a database.

Question 18

Cell phone providers charge large fees if you cancel or transfer your service during the first two years, thus _____________ customers.

A) switching costs
B) creating entry barriers
C) locking out
D) locking in

Question 19

Which of the following is not included in support activities for a value chain?

A) training
B) accounting
C) Service
D) compensation
E) research and development

Question 20

One of the most effective ways of finding a job is by forming an alliance with others, called____________ .

A) socializing
B) job hunts
C) aligning
D) networking

Question 21

Jaguar has chosen what competitive strategy?

A) best- of- breed
B) business process redesign
C) differentiation
D) low- cost

Question 22

The amount of money that a customer is willing to pay for a service is its _____________.

A) value
B) margin
C) cost
D) differentiation

Question 23

During a job search, how could you demonstrate the competitive advantage, "Reduce costs?" (Besides taking a lower salary!)

A) build a case that an employer would save money by hiring you because of your expertise
B) take the bus to all your job interviews
C) look for jobs in your field
D) network with fellow students as well as potential employers
E) get more training

Question 24

The ____________of a business process is the value of outputs minus costs.

A) cost
B) margin
C) flow
D) value

Question 25

An example of a barrier to entry would be the cost of setting up a(n):

A) babysitting business.
B) automobile manufacturing plant.
C) home computer repair business.
D) web design business.

Question 26

____________is not a principle describing how a product or service can be used to gain competitive advantage.

A) Differentiation of a product or service
B) Innovation of a new product or service
C) Enhancement of a product or service
D) Speed of a product or service

Question 27

A company gains a competitive advantage due to differentiation in their industry when they convince customers that their product is ____________than their competitors.

A) better
B) nicer
C) bigger
D) older

Question 28

A company that develops and uses an information system that is expensive to duplicate can gain a competitive advantage by:

A) product enhancement.
B) creating barriers to entry.
C) creating new products or services.
D) establishing alliances.
E) reducing costs.

Question 29

Coke and Pepsi are constantly doing taste tests to prove which is a more popular drink. They spend a great deal on advertisements every year, as well. This is an example of which of the five forces?

A) bargaining power of customers
B) threat of new entrants
C) bargaining power of suppliers
D) rivalry among existing firms
E) threat of substitution

Question 30

Kelly goes into a restaurant and orders a cup of coffee, only to find that they are out of coffee, but have decaf, which she buys instead. This would be an example of which of the five forces?

A) bargaining power of suppliers
B) rivalry among existing firms
C) bargaining power of customers
D) threat of substitution
E) threat of new entrants

Question 31

In the future, what will probably happen to those who do not have Internet access?

A) They will have greater access to information.
B) They will advance in a competitive information market.
C) They will have equal access to information.
D) They will fall further and further behind those with access.

Question 32

_____________ is an initiative a company uses to gain advantage if it can sell more units at a lower price while providing quality and maintaining or increasing its profit margin.

A) Locking in suppliers or buyers
B) Establishing high switching costs
C) Establishing alliances
D) Reducing costs

Question 33

The business processes that are selected by an organization determine the scope of the organization's____________ .

A) strategy
B) margin
C) value
D) information system

Question 34

Bob's firm makes it easy for its suppliers to connect and work with his company, thus____________ the supplier.

A) creating entry barriers
B) locking in
C) locking out
D) switching costs

Question 35

Organizations must design _____________ that span value- generating activities.

A) margins
B) computer systems
C) business processes
D) strategies

Question 36

Linda is in the computer repair businesses. Mark and Jill, two recent university graduates are unemployed, but are thinking of doing computer repairs at their homes. This is an example of which of the five forces?

A) rivalry among existing firms
B) threat of substitution
C) bargaining power of suppliers
D) bargaining power of customers
E) threat of new entrants

Question 37

Locking in customers and suppliers to your company's product or service is an example of:

A) competitive advantage.
B) switching costs.
C) product differentiation.
D) establishing alliance.

Question 38

Ordering goods is considered part of which activity in the value chain?

A) inbound logistics
B) procurement
C) operations
D) infrastructure

Question 39

A barrier to entry can be constructed by:

A) obtaining a patent.
B) getting cell phones.
C) setting up a web site.
D) reducing employee pay.

Question 40

General management is considered part of which activity in the value chain?

A) procurement
B) service
C) human Resources
D) infrastructure

Question 41

Every stage of the value chain accumulates ____________and adds value to the product.

Question 42

The intensity of the five forces determine how sustainable the _____________ of the industry will be.

Question 43

Employees usually____________ the change that comes with business process redesign.

Question 44

The intensity of each of the five forces will determine how _____________ the industry will be.

Question 45

Which is not a way for a company to achieve a competitive advantage?

A) creating new products or services
B) raising prices
C) creating barriers to entry
D) reducing costs
E) establishing alliances

Question 46

The intensity of each of the five forces determines:

A) the bargaining power of the customers.
B) how long the company will be in business.
C) how high the barrier to entry will be.
D) how profitable the industry is.

Question 47

The fact that rich countries have better access to the intellectual capital stored on the Internet is known as:

A) the poor access problem.
B) the digital divide.
C) the haves vs. the have- nots problem.
D) the Internet inequality problem.

Question 48

When a company copyrights new programs and products they are trying to gain a competitive advantage by:

A) reducing costs.
B) establishing alliances.
C) increasing switching costs.
D) product differentiation.
E) creating barriers to entry.

Question 49

It is difficult to calculate the ____________of a lot of support activities.

A) margin
B) cost
C) value
D) None of the above; they can all be calculated.

Question 50

____________flow between activities.

A) Business processes
B) Resources
C) Transformations
D) Margins

Question 51

When they first started, EBay gained a competitive advantage by:

A) establishing alliances.
B) product differentiation.
C) creating barriers to entry.
D) creating new products or services.
E) reducing costs.

Question 52

An organization must determine its____________________________________ before designing business processes.

A) competitive strategy
B) information system
C) margins
D) activities

Question 53

An organization's goals and objectives must be consistent with its ____________.

Question 54

High ____________make it difficult for customers to change to another product or service.

A) expectations
B) switching costs
C) elevations
D) differentiations

Question 55

A team running a relay race is an example of a____________ process.

Question 56

An organization's____________ is based on the structure of the industry.

Question 57

Porter's five forces model states that the competitive forces determine ____________.

A) industry profitability
B) industry sustainability
C) industry characteristics
D) industry standards
E) industry competition

Question 58

Support activities include all of the following, EXCEPT ____________.

A) finance
B) lobbying
C) negotiating prices
D) sales
E) evaluation

Question 59

The shipping information system for ABC Shipping helps to____________ its package delivery service from competitors that do not have a similar system.

Question 60

According to Porter's value chain model, the firm's _____________ includes training, compensation, and hiring.

Question 61

The county planning office tried to solve the problem of lengthy reviews by going to a____________permitting process.

Question 62

Support activities in the value chain contribute____________ to the primary activities.

Question 63

When companies make it difficult or expensive for customers to change to another product this is an example of establishing high _____________ _ costs to gain a competitive advantage.

Question 64

Effective computer _____________ includes strong password use.

Question 65

When ABC developed the package tracking application, they were trying to gain competitive advantage by creating a new IT____________ .

Question 66

____________flow between the input and output activities in the value chain.

Question 67

Because the ABC shipping system stored all customer information, customers were____________by the system, and would have to reenter recipient information if they wanted to ship with someone else.

Question 68

A system that reduces____________ for a company can give significant competitive advantage.

Question 69

The____________ separates those who have easy access to the Internet from those who do not.

Question 70

There is a very low threat of ____________into the aircraft manufacturing market.

Question 71

Ford gains a competitive advantage by ____________their vehicles from other trucks by advertising how tough they are.

Question 72

If a business wants to be a____________ , then it must structure itself to provide essential functions at the least possible cost.

Question 73

McDonald's and Pixar establish a(n) _____________ so that a toy character from the new animation film distributed will be distributed with every child's meal.

Question 74

A strategic____________ with other organizations might be used to establish standards, reduce purchasing costs, and jointly promote products.

Question 75

The new ABC shipping information system____________ an existing system.

Question 76

Organizations gain____________ by creating new products.

Question 77

Porter started a movement to create integrated business systems by describing value chains and their____________ .

Question 78

____________are interactions across value activities in Porter's value chain.

Question 79

Jaguar Motors has selected a____________ strategy.

Question 80

Organizations design business processes that span____________ activities.