Question 1

Which of the following statements is true about the value chain?

Accepted Answer

The value chain includes both internal and external components, including suppliers and distributors. Option A is incorrect because the value chain includes post-purchase activities such as customer support. Option C is incorrect because the value chain encompasses both primary and support activities. Option D is incorrect because intermediaries such as retailers and wholesalers are part of the value chain.

Question 2

Which of the following is a support activity of a consumer goods manufacturer?

Accepted Answer

Research is considered a support activity as it helps in developing new products and improving existing ones, supporting the primary activities of the business.

Question 3

Which of the following is a primary activity of an automobile manufacturer?

Accepted Answer

Procurement management is a primary activity for an automobile manufacturer as it involves acquiring the raw materials and components necessary for production.

Question 4

Which of the following is an example of a disruptive innovation?

Accepted Answer

Disruptive innovation refers to an innovation that significantly alters the way that consumers, industries, or businesses operate. LCD monitors replacing CRT monitors in televisions is an example of disruptive innovation because it fundamentally changed the television industry by introducing a new technology that was superior in many ways (e.g., size, power consumption, image quality) to the existing technology, leading to the eventual obsolescence of CRT monitors.

Question 5

Which of the following can be achieved by introducing anti-trust laws in a market?

Accepted Answer

Anti-trust laws are aimed at preventing dominant players from abusing their power, such as engaging in monopolistic practices or anti-competitive behavior. This promotes fair competition in the market and can benefit consumers. Choices A, C, and D are not typical effects of anti-trust laws.

Question 6

In cloud computing, employees use information systems that are ________.

Accepted Answer

Cloud computing refers to the practice of using remote servers hosted by a vendor in a data center to store, manage, and process data over the internet. This means that the information systems used by employees are hosted on these remote servers rather than being installed locally within an organization. Therefore, option C is the correct choice.

Question 7

Which of the following is an example of a sustaining technology?

Accepted Answer

Sustaining technologies improve existing products or services without disrupting the market. Airbags enhance car safety without changing the fundamental nature of cars, making them a sustaining technology.

Question 8

Which of the following is commonly used by organizations to influence how the Porter's five forces operate?

Accepted Answer

Organizations often use lobbying to influence how the Porter's five forces operate, particularly in relation to governmental action. Lobbying involves trying to influence policymakers and legislators to create regulations that are beneficial to the organization's interests. By doing this, organizations can attempt to reduce the power of suppliers and buyers, reduce the threat of new entrants, and limit the intensity of competitive rivalry in the industry. Evasion of taxes, selling at prices below or above market price, may have short-term impacts, but they do not directly influence how the Porter's five forces operate.

Question 9

A disruptive innovation is ________.

Accepted Answer

A disruptive innovation is a new product or service that has the potential to reshape an industry by introducing a different approach to delivering value to customers. It often starts at the lower end of the market but has the potential to eventually overtake established companies as it gains acceptance among consumers. It is not harmful to society or the people, nor is it related to environmental concerns or an immediate response to a difficulty or threat.

Question 10

Why were innovations like Apple's iTunes considered to be disruptive innovations?

Accepted Answer

Apple's iTunes was considered a disruptive innovation because it had a negative impact on existing market players like record stores and music distributors. It completely changed the way music was consumed and distributed, causing major disruptions in the industry.

Question 11

Which of the following is most closely associated with sustaining technologies?

Accepted Answer

Sustaining technologies are those that improve and optimize existing products or processes. Therefore, improvements that streamline existing processes are most closely associated with sustaining technologies.

Question 12

The activities that are directly related to the process by which products and services are created, marketed, sold, and delivered are called ________ activities.

Accepted Answer

Primary activities are those that are directly involved in the creation, marketing, sale, and delivery of a product or service. These include inbound logistics, operations, outbound logistics, marketing and sales, and service.

Question 13

Which of the following governmental actions will increase the threat of new entrants in a market?

Accepted Answer

By reducing interest rates on credit for small businesses, the Federal Reserve is making it easier and more affordable for new entrepreneurs to obtain funding to start a business, thus increasing the threat of new entrants in the market.

Question 14

Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?

Accepted Answer

When market growth slows down, companies often compete more aggressively for the existing market share, increasing rivalry among the dominant players.

Question 15

The ecosystem in which a company is embedded is a(n) ________.

Accepted Answer

The ecosystem in which a company is embedded is an economic community that includes related industries. This includes not only the company's immediate competitors but also suppliers, customers, and other businesses that are part of the value chain. It is important for a company to understand its ecosystem in order to identify opportunities and threats, and to develop strategies that enable it to compete effectively.

Question 16

Which of the following is based on the cloud computing concept?

Accepted Answer

Google Docs is a cloud-based document management system that allows users to create, edit, and store documents online.

Question 17

Which of the following is the most accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Accepted Answer

The Internet reduced entry barriers for newcomers and empowered buyers with more information, leading to increased competition and disruption in various industries. This has been particularly evident in the retail, media, and communication sectors, among others, where traditional players have had to adapt to the changing market conditions brought about by the Internet. The other options do not adequately capture the disruptive nature of the Internet in terms of creating new opportunities and challenging established norms.

Question 18

Which of the following pairs of products are complimentary to each other?

Accepted Answer

Computer and software are complementary products because they are used together. A computer is useless without software, and software is useless without a computer.

Question 19

Creative destruction occurs when ________.

Accepted Answer

Creative destruction occurs when disruptive innovations threaten established players, leading to the destruction of old industries and the creation of new ones. This process can be painful for companies and workers in the short term, but it is seen as a necessary part of long-term economic and technological progress.

Question 20

What impact will patents have on a business with respect to Porter's five forces?

Accepted Answer

Patents provide legal protection for inventions and innovations, which make it difficult for new competitors to enter the market. This reduces the threat of new entrants to the industry, which is one of the five forces in Porter's model.

Answer: B
 Patents can also create barriers to entry and limit the availability of resources and technologies for new companies. This results in increased rivalry among existing players in the industry, which is another one of the five forces in Porter's model.

Therefore, the best choices are C and B.

Quiz 2: Information Systems and Strategy