Question 1

The increasing reliance on the web for information has created a digital divide between those who have Internet access and those who do not.

Accepted Answer

The statement is true. Access to the internet has become a major factor in determining one's access to information and resources, and those without internet access are at a disadvantage in today's society. This creates a digital divide between those who have access to information and those who do not.

Question 2

Porter's concept of a business chain is crucial for developing a competitive strategy.

Accepted Answer

False

Question 3

According to Porter's model,four competitive forces determine industry profitability.

Accepted Answer

Porter's model, known as Porter's Five Forces, identifies five competitive forces that shape every industry and determine its intensity and profitability. These forces are the threat of new entrants, the threat of substitute products or services, the bargaining power of customers (buyers), the bargaining power of suppliers, and the intensity of competitive rivalry.

Question 4

In a large city,the threat of new entrants for the sandwich shop business is probably high.

Accepted Answer

In a large city, there are likely already many established sandwich shops, but there is still potential for new entrants to enter the market and compete. Additionally, the demand for sandwiches could be high, making it an attractive business opportunity for newcomers.

Question 5

Sustaining technologies are changes in technology that maintain the rate of improvement in customer value.

Accepted Answer

Sustaining technologies are designed to improve existing products or services, with the goal of maintaining or slightly improving customer value. They typically do not disrupt or fundamentally change the market, but rather build upon and improve what already exists.

Question 6

One way of assessing the structure of the adventure travel industry is to apply Porter's Five Forces Model.

Accepted Answer

The statement is true as Porter's Five Forces Model is a commonly used framework for analyzing the structure of an industry, including the adventure travel industry. It assesses the five forces of competition: the bargaining power of suppliers, the bargaining power of buyers, the potential threat of new entrants, the threat of substitutes, and the intensity of competitive rivalry.

Question 7

Porter identified five fundamental competitive strategies.

Accepted Answer

The answer of Porter identified five fundamental competitive strategies....

Question 8

The productivity paradox suggests IT investments do not create business value.

Accepted Answer

The productivity paradox is a well-known observation that the massive investment in IT and automation of processes in businesses does not always lead to increased productivity or business value. Despite the significant investments, there is sometimes no tangible result in terms of increased efficiency, cost savings, or revenue growth.

Question 9

Threat of government regulation is one of the five forces in Porter's model.

Accepted Answer

The answer of Threat of government regulation is one of...

Question 10

An organization responds to the structure of its industry by choosing a competitive strategy.

Accepted Answer

An organization's competitive strategy is influenced by the structure of its industry. Different industry structures may require different strategies in order to compete effectively.

Question 11

Primary activities are activities where value is added directly to the product.

Accepted Answer

Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service, which all add value directly to the product.

Question 12

Disruptive technologies introduce a very new package of attributes to the accepted mainstream products.

Accepted Answer

Disruptive technologies fundamentally change the way products are designed, produced, marketed, delivered, and serviced. They often introduce a new set of characteristics and features that are not found in the existing mainstream products, thus creating a new market or disrupting the existing one.

Question 13

As defined by Porter,a value chain is a network of value creating activities.

Accepted Answer

Porter's definition of a value chain is indeed a network of value creating activities. This concept is used extensively in business management to identify all the activities involved in creating and delivering a product or service to customers, and to analyze how these activities add value and contribute to competitive advantage.

Question 14

A value chain is a network of activities that improve the effectiveness of a good or service.

Accepted Answer

A value chain is a set of activities that a company performs to deliver a valuable product or service to its customers. The activities include primary activities such as inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as support activities such as procurement, technology development, human resource management, and infrastructure. The value chain framework helps companies identify areas where they can create additional value and optimize their operations.

Question 15

The bargaining power of customers is one of the competitive forces identified by Porter.

Accepted Answer

The bargaining power of customers is indeed one of the competitive forces identified by Porter in his Five Forces Framework.

Question 16

Sales and service would be examples of supporting activities in Porter's value chain model.

Accepted Answer

In Porter's value chain model, sales and service are considered primary activities, not supporting activities. Primary activities directly concern the creation, sale, maintenance, and support of a product or service, whereas supporting activities help to enhance the efficiency and effectiveness of primary activities.

Question 17

The bargaining power of customers is one of the competitive strategies identified by Porter.

Accepted Answer

The bargaining power of customers is one of the five forces in Porter's Five Forces model, not a competitive strategy. Porter's competitive strategies include cost leadership, differentiation, and focus.

Question 18

An organization's goals and objectives are determined by the structure of its value chain.

Accepted Answer

An organization's goals and objectives are typically determined by its strategic planning process, which considers various factors including market demand, competitive environment, and internal capabilities, rather than being directly determined by the structure of its value chain. The value chain is a tool for identifying key activities that create value and competitive advantage, not for setting goals and objectives.

Question 19

Accounting functions like accounts receivables would be an example of a supporting activity in Porter's value chain model.

Accepted Answer

According to Porter's value chain model, primary activities are those that are directly involved in the creation and delivery of a product or service, while supporting activities are those that facilitate the primary activities. Accounts receivables would be considered a supporting activity because it supports the primary activity of sales, which is involved in the creation and delivery of a product or service.

Question 20

Among its suppliers,Wal-Mart is famous for not having much bargaining power.

Accepted Answer

Wal-Mart is actually known for having a significant amount of bargaining power over its suppliers due to its large size and ability to buy in bulk. This allows Wal-Mart to negotiate lower prices than smaller retailers can obtain.

Quiz 3: Productivity, innovation and Strategy