Question 1

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.

Accepted Answer

The answer of Network economics:
A)applies the law of diminishing returns...

Question 2

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.

Accepted Answer

An information system can enhance core competencies by encouraging the sharing of knowledge across business units. This allows for better collaboration and coordination, which can improve processes and ultimately lead to a competitive advantage. Providing better reporting facilities, creating educational opportunities for management, and allowing operational employees to interact with management can also contribute to enhancing core competencies, but they may not be as effective as encouraging knowledge sharing.

Question 3

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

Accepted Answer

The answer of How are information systems used at the...

Question 4

In a ________ system configuration,separate information systems are designed and managed by each foreign unit.
A)duplicated
B)centralized
C)decentralized
D)networked

Accepted Answer

Decentralized system configuration means that separate information systems are designed and managed by each foreign unit.

Question 5

Which of the following best describes business globalization?
A)Businesses whose suppliers are located overseas
B)Businesses selling their products worldwide
C)Businesses moving manufacturing overseas
D)All of the above.

Accepted Answer

The answer of Which of the following best describes business...

Question 6

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.

Accepted Answer

In network economics, the value of a commercial software vendor's software products increases as more people use them. This is because as more people use the software, the network effects become stronger, creating higher value for all users on the network.

Question 7

The ________ strategy concentrates financial management and control out of a central home base while decentralizing production,sales,and marketing operations to units in other countries.
A)domestic exporter
B)multinational
C)franchise
D)transnational

Accepted Answer

The answer of The ________ strategy concentrates financial management and...

Question 8

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.

Accepted Answer

A virtual company is a company that uses the capabilities of other companies without being physically tied to those companies. This means that a virtual company operates through partnerships and collaborations with other businesses to offer a variety of products or services without having physical locations or employees.

Question 9

________ systems are those in which development occurs at the home base but operations are handed over to autonomous units in foreign locations.
A)Transnational
B)Decentralized
C)Duplicated
D)Networked

Accepted Answer

The answer of ________ systems are those in which development...

Question 10

Benchmarking:
A)compares the efficiency and effectiveness of your business processes against strict standards.
B)allows industry participants to develop 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.

Accepted Answer

Benchmarking compares a company's business processes against industry standards in order to improve efficiency and effectiveness. It does not focus on developing industry-wide standards, measuring technology, or synchronizing with partners.

Question 11

The most successful solutions or methods for achieving a business objective are called:
A)core processes.
B)best processes.
C)benchmarks.
D)best practices.

Accepted Answer

The term used to describe the most successful solutions or methods for achieving a business objective is "best practices." This refers to the most effective and efficient processes or strategies that have been identified through experience, research, and analysis as the most effective way of achieving a particular goal. Best practices are often used as benchmarks for evaluating the performance of an organization or industry and for improving its overall competitiveness.

Question 12

The support 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.

Accepted Answer

The answer of The support activities of a firm include:
A)inbound...

Question 13

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 is referred to as:
A)the point of no return.
B)the law of diminishing returns.
C)supply and demand.
D)inelasticity.

Accepted Answer

The law of diminishing returns states that as more of a resource is applied to production, the marginal gain in output will eventually decrease and reach a point where additional inputs produce no additional output. This is because resources have a limited ability to contribute to production and after a certain point, adding more resources does not result in increased productivity.

Question 14

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 service.

Accepted Answer

The primary activities of a firm include inbound logistics (activities related to receiving, storing, and distributing inputs), operations (transforming inputs into finished products or services), outbound logistics (activities related to collecting, storing, and distributing finished products to customers), sales and marketing (promoting and selling products and services), and service (providing customer support and after-sales service). Choice A matches all of these primary activities.

Question 15

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.
A)value chain
B)business network
C)value web
D)consortia

Accepted Answer

The answer of A ________ is a collection of independent...

Question 16

A firm's value chain is linked to the:
A)value webs of its industry.
B)value chains of its suppliers,distributors,and customers.
C)value webs of its suppliers and distributors.
D)value chains of its suppliers and customers.

Accepted Answer

A firm's value chain is not only influenced by its own internal activities, but also by the value chains of its suppliers, distributors, and customers. These external value chains can have a significant impact on a firm's overall performance and competitiveness. Therefore, B is the best choice as it highlights the importance of both suppliers and customers in a firm's value chain.

Question 17

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)value webs.
B)value chains.
C)synergies.
D)core competencies.

Accepted Answer

When units or organizations collaborate in a way that results in lower costs and increased profits, it's creating synergies. Value webs refer to the complex network of connections between different businesses and industries, while value chains specifically refer to the sequence of activities that lead to the production and delivery of a product or service. Core competencies are specific strengths and skills that a company possesses, which gives them a competitive advantage. However, none of these terms accurately describe the given scenario as well as synergies.

Question 18

The greatest impact the Internet has had on globalization is in lowering the costs of:
A)labor.
B)telecommunications.
C)network infrastructure.
D)entry to global-scale operations.

Accepted Answer

The answer of The greatest impact the Internet has had...

Question 19

The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin.
A)domestic exporter
B)multinational
C)franchise
D)transnational

Accepted Answer

The domestic exporter strategy involves heavy centralization of corporate activities in the home country of origin.

Question 20

The emergence of the World Wide Web acted as a disruptive technology for:
A)the typewriter industry.
B)print publishing.
C)PC manufacturers.
D)microprocessor firms.

Accepted Answer

The World Wide Web disrupted and significantly impacted the print publishing industry. With the ease of access to digital content, many print publishers struggled to adapt to the new digital landscape, leading to a decline in print circulation and revenue. The emergence of the World Wide Web did not have a significant impact on the other industries listed in the choices.

Quiz 3: Achieving Competitive Advantage With Information Systems

Network economics:

An information system can enhance core competencies by:

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

In a ________ system configuration,separate information systems are designed and managed by each foreign unit.

Which of the following best describes business globalization?

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

The ________ strategy concentrates financial management and control out of a central home base while decentralizing production,sales,and marketing operations to units in other countries.

A virtual company:

________ systems are those in which development occurs at the home base but operations are handed over to autonomous units in foreign locations.

Benchmarking:

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

The support activities of a firm include:

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 is referred to as:

The primary activities of a firm include:

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.

A firm's value chain is linked to the:

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:

The greatest impact the Internet has had on globalization is in lowering the costs of:

The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin.

The emergence of the World Wide Web acted as a disruptive technology for: