Question 1

Identify the three types of business pressures, and explain how organizations can use IT to respond to each one.

Accepted Answer

The answer of Identify the three types of business pressures,...

Question 2

Which of the following is not a characteristic of excellent alignment between IT and business?
A)Organizations create a vibrant and inclusive company culture.
B)Organizations ensure business and IT professionals communicate solely from their area of expertise.
C)Organizations ensure that IT employees understand how the company makes (or loses)money.
D)Organizations view their internal and external customers and their customer service function as supremely important.

Accepted Answer

Excellent alignment between IT and business requires effective communication and collaboration between professionals with different areas of expertise. Therefore, communication solely from their area of expertise is not a characteristic of excellent alignment.

Question 3

The rivalry among firms in an industry is __________ when there is fierce competition and ___________ when competition is among fewer firms.
A)high, high
B)high, low
C)low, low
D)low, high

Accepted Answer

The first blank should be filled with "high" as fierce competition means strong rivalry, and the second blank should be filled with "low" as fewer firms mean less competition, and therefore, weaker rivalry.

Question 4

The Internet ________ buyers' access to information, __________ buyer power.
A)decreases, decreasing
B)decreases, increasing
C)increases, decreasing
D)increases, increasing

Accepted Answer

The internet increases buyers' access to information, which in turn increases their buyer power. This is because with more information, buyers are better able to compare prices, quality, and features of products, and can make more informed purchasing decisions.

Question 5

The bargaining power of buyers is ___________ when buyers have many choices and ________ when buyers have few choices.
A)high, high
B)high, low
C)low, low
D)low, high

Accepted Answer

When buyers have many choices, they have the power to negotiate better prices and terms, hence their bargaining power is high. On the other hand, when buyers have few choices, they may have to accept the seller's terms to acquire the desired product, leading to low bargaining power.

Question 6

___________ is a website where potential donors can decide where their money can be directed, stating whether it goes to a particular disaster relief fund.
A)GiftFlow.org
B)RedCross.ca
C)Microsoft.ca
D)Kiva.org

Accepted Answer

RedCross.ca is associated with the Canadian Red Cross, which is involved in disaster relief and allows donors to specify where their contributions should be directed, including to specific disaster relief efforts.

Question 7

Which of the following is not an example of business-IT alignment?
A)The company goals are clear to every IT and business employee.
B)The company ensures that IT employees understand how the company makes money.
C)The company views IT as a way to support the business but not as a way to create new revenue streams.
D)IT professionals rotate into business departments.
E)The company views customer service as extremely important.

Accepted Answer

Business-IT alignment refers to the integration of information technology with the strategic goals and objectives of the business. Option C, where the company views IT as a way to support the business but not as a way to create new revenue streams, suggests a lack of alignment between business and IT, rather than an example of alignment. The remaining options (A, B, D, and E) all indicate alignment between business and IT.

Question 8

Alignment between IT and business is difficult because ________.
A)the objectives of business managers and IT managers are so comprehensive.
B)the business and IT departments know little of the other group's expertise.
C)managers communicate well but find it hard to implement projects that are discussed.
D)All of the above are reasons alignment is difficult.

Accepted Answer

Alignment is difficult because the business and IT departments often lack understanding of each other's expertise, leading to communication and collaboration challenges.

Question 9

When Amazon welcomes you by name back to its website on your second visit, it is employing which strategy for competitive advantage?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

Amazon is utilizing a customer-orientation strategy by personalizing the user's experience upon returning to the website, which can improve customer satisfaction and loyalty. This is not a cost leadership strategy as the focus is not on reducing prices or costs. It is also not a differentiation strategy as personalization is now a common practice among online retailers. Innovation and operational effectiveness are not applicable in this scenario.

Question 10

In the airline industry, ________ is an example of differentiation strategy as it offers regional service at low cost.
A)Air Canada
B)Air Quebec
C)WestJet
D)easyJet

Accepted Answer

WestJet is the only option that offers regional service at low cost, making it an example of differentiation strategy. Air Canada and Air Quebec are both full-service airlines, while easyJet is a low-cost carrier that primarily operates in Europe.

Question 11

IT will impact managers' jobs in all of the following ways except: 
A)Managers will have time to get into the field
B)Managers can spend more time planning
C)Managers can spend more time "putting out fires"
D)Managers can gather information more quickly
E)None of these

Accepted Answer

IT (Information Technology) enables managers to be more efficient and effective in their roles. It helps in quick information gathering (D) and provides tools for better planning (B), thus allowing managers more time to engage in strategic activities or fieldwork (A). The phrase "putting out fires" refers to dealing with emergencies or urgent problems, which ideally should decrease with the effective use of IT for planning and problem-solving, making option C the correct answer as it does not align with the positive impacts of IT on managerial jobs.

Question 12

The threat of substitute products or services is _______ when there are many substitutes for an organization's products or services and ________ when there are few substitutes.
A)high, high
B)high, low
C)low, low
D)low, high

Accepted Answer

When there are many substitutes for an organization's products or services, customers have more options to choose from, which increases the likelihood that they will switch to a substitute. This presents a high threat to the organization. On the other hand, when there are few substitutes, the organization has more control over pricing and demand, which presents a low threat. Therefore, the best choice is B, where the threat of substitute products or services is high when there are many substitutes and low when there are few substitutes.

Question 13

Using Porter's competitive forces model, contrast the bargaining power of suppliers and the bargaining power of customers (buyers).

Accepted Answer

The answer of Using Porter's competitive forces model, contrast the...

Question 14

Which of the following is not a cause of inadequate alignment between IT and business?
A)Lack of communication
B)Different objectives
C)Not understanding each group's expertise
D)Lack of IT knowledge on the part of the business executives
E)Lack of funds

Accepted Answer

While lack of funds can certainly be a challenge for IT and business alignment, it is not a cause of inadequate alignment in and of itself. The other options are all potential causes for this issue.

Question 15

Differentiate between Porter's competitive forces model and his value chain model.

Accepted Answer

The answer of Differentiate between Porter's competitive forces model and...

Question 16

Alignment between IT and business is characterized by a(n)__________ of the IT function with strategy, mission, and goals of the organization.
A)tight integration
B)loose integration
C)replacement
D)upgrade

Accepted Answer

Tight integration means that the IT function is closely aligned and integrated with the overall strategy, mission, and goals of the organization. This is the ideal state for alignment between IT and business, as it ensures that IT investments and activities are in line with the overall direction of the organization. Loose integration may result in misalignment and wasted resources. Replacement and upgrade are not relevant to this concept.

Question 17

IT governance aims to add value while ______:
A)balancing risk versus return over IT and its processes.
B)maximizing profit.
C)minimizing cost.
D)creating a friendly environment

Accepted Answer

IT governance focuses on balancing risk versus return over IT and its processes, in order to add value to the organization. Maximizing profit and minimizing costs are important goals for the business as a whole, but IT governance specifically aims to ensure that IT investments are aligned with business objectives and create value for the organization. Creating a friendly environment may also be a goal of IT governance, but it is not the primary focus.

Question 18

Porter's _______ help(s)companies identify general strategies, whereas his _______ help(s)to identify specific activities where companies can use the strategies for greatest impact.
A)value chain model, competitive forces model
B)primary activities, support activities
C)competitive forces model, primary activities
D)competitive forces model, value chain model
E)value chain model, support activities

Accepted Answer

Porter's competitive forces model helps companies identify general strategies by analyzing the competitive environment. His value chain model helps to identify specific activities within a company where strategies can be applied for the greatest impact, by breaking down the company's activities into strategically relevant categories.

Question 19

Which strategy for competitive advantage improves the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness

Accepted Answer

Operational effectiveness focuses on improving internal business processes to achieve better performance compared to competitors. Cost leadership emphasizes on cost reduction, while differentiation involves creating unique products or services. Innovation focuses on introducing new ideas and products to the market. Therefore, D is the correct answer.

Question 20

What are switching costs, and why would a company care about them?

Accepted Answer

The answer of What are switching costs, and why would...

Quiz 2: Organizational Strategy, Competitive Advantage, and Information Systems

Identify the three types of business pressures, and explain how organizations can use IT to respond to each one.

Which of the following is not a characteristic of excellent alignment between IT and business?

The rivalry among firms in an industry is when there is fierce competition and _ when competition is among fewer firms.

The Internet buyers' access to information, __ buyer power.

The bargaining power of buyers is ___ when buyers have many choices and when buyers have few choices.

___________ is a website where potential donors can decide where their money can be directed, stating whether it goes to a particular disaster relief fund.

Which of the following is not an example of business-IT alignment?

Alignment between IT and business is difficult because ________.

When Amazon welcomes you by name back to its website on your second visit, it is employing which strategy for competitive advantage?

In the airline industry, ________ is an example of differentiation strategy as it offers regional service at low cost.

IT will impact managers' jobs in all of the following ways except:

The threat of substitute products or services is _ when there are many substitutes for an organization's products or services and __ when there are few substitutes.

Using Porter's competitive forces model, contrast the bargaining power of suppliers and the bargaining power of customers (buyers).

Which of the following is not a cause of inadequate alignment between IT and business?

Differentiate between Porter's competitive forces model and his value chain model.

Alignment between IT and business is characterized by a(n) __________ of the IT function with strategy, mission, and goals of the organization.

IT governance aims to add value while ______:

Porter's _ help(s) companies identify general strategies, whereas his _ help(s) to identify specific activities where companies can use the strategies for greatest impact.

Which strategy for competitive advantage improves the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals?

What are switching costs, and why would a company care about them?

Quiz 2: Organizational Strategy, Competitive Advantage, and Information Systems

Identify the three types of business pressures, and explain how organizations can use IT to respond to each one.

Which of the following is not a characteristic of excellent alignment between IT and business?

The rivalry among firms in an industry is __________ when there is fierce competition and ___________ when competition is among fewer firms.

The Internet ________ buyers' access to information, __________ buyer power.

The bargaining power of buyers is ___________ when buyers have many choices and ________ when buyers have few choices.

___________ is a website where potential donors can decide where their money can be directed, stating whether it goes to a particular disaster relief fund.

Which of the following is not an example of business-IT alignment?

Alignment between IT and business is difficult because ________.

When Amazon welcomes you by name back to its website on your second visit, it is employing which strategy for competitive advantage?

In the airline industry, ________ is an example of differentiation strategy as it offers regional service at low cost.

IT will impact managers' jobs in all of the following ways except:

The threat of substitute products or services is _______ when there are many substitutes for an organization's products or services and ________ when there are few substitutes.

Using Porter's competitive forces model, contrast the bargaining power of suppliers and the bargaining power of customers (buyers).

Which of the following is not a cause of inadequate alignment between IT and business?

Differentiate between Porter's competitive forces model and his value chain model.

Alignment between IT and business is characterized by a(n) __________ of the IT function with strategy, mission, and goals of the organization.

IT governance aims to add value while ______:

Porter's _______ help(s) companies identify general strategies, whereas his _______ help(s) to identify specific activities where companies can use the strategies for greatest impact.

Which strategy for competitive advantage improves the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals?

What are switching costs, and why would a company care about them?

The rivalry among firms in an industry is when there is fierce competition and _ when competition is among fewer firms.

The Internet buyers' access to information, __ buyer power.

The bargaining power of buyers is ___ when buyers have many choices and when buyers have few choices.

The threat of substitute products or services is _ when there are many substitutes for an organization's products or services and __ when there are few substitutes.

Porter's _ help(s) companies identify general strategies, whereas his _ help(s) to identify specific activities where companies can use the strategies for greatest impact.