Question 1

A customer-focused business can build customer value and loyalty by:

Accepted Answer

All of the choices are correct. Making loyal customers feel special with website personalization, allowing customers to place orders directly or through distribution partners, and allowing customers to check order history and delivery status are all effective ways to build customer value and loyalty. By providing these services, businesses can demonstrate their commitment to meeting their customers' needs and preferences, which can help to foster long-term relationships and repeat business.

Question 2

When customers become dependent on mutually beneficial inter-enterprise information systems,they become reluctant to switch to a company's competitors because they would incur all following costs except:

Accepted Answer

The following costs referred to in the question are those that a customer would incur if they switched to a company's competitor. Switching to a competitor would not result in incurring costs related to innovation. Therefore, the correct answer is C) Innovation.

Question 3

In addition to the five basic competitive strategies,the text describes several key strategies implemented with information technology.Which of the following is not one of those strategies?

Accepted Answer

Creating alliances is not one of the key strategies implemented with information technology, according to the text. The other options listed (locking in customers, building switching costs, and raising barriers to entry) are all discussed as strategies enabled or enhanced by IT.

Question 4

According to the Timex case,Timex has discovered that with consumer demand for new features in their watches,_______________ is key to the watch industry.

Accepted Answer

The Timex case states that consumer demand for new features in watches is driving the industry, indicating a need for innovation in order to meet this demand. Therefore, the best choice is D.

Question 5

A transaction database allows all of the following activities except:

Accepted Answer

The answer of A transaction database allows all of the...

Question 6

The real problem with competitive advantage is that:

Accepted Answer

Competitive advantage usually does not last very long as competitors quickly try to replicate successful strategies and innovations. This creates a constant need for companies to innovate and find new ways to stay ahead of the competition. Therefore, option C is the best choice. Options A and B are incorrect as they state the opposite of the real problem, and Option D is incorrect as it includes an incorrect statement (Option B).

Question 7

A serious problem of competitive advantage is that:

Accepted Answer

All of the choices are correct.  A competitive advantage may not last very long and may not be sustainable over time. Competitors could figure out how it was done and copy it. Additionally, a competitive advantage could become a necessity for the business to remain competitive in the market.

Question 8

Expanding a company's product offering into global markets is an example of a(n)_______________ strategy.

Accepted Answer

Expanding a company's product offering into global markets is a strategy for growth. This involves increasing the company's reach and customer base, which can lead to increased revenue and profitability. Cost leadership and differentiation are strategies for competing within a specific market, while alliances involve partnering with other companies to achieve mutual benefits.

Question 9

According to the Universal Orlando case,which of the following is not a way to contribute to informed decision making?

Accepted Answer

Hosting a Guitar Hero competition may be a fun and engaging event, but it does not necessarily contribute directly to informed decision making. The other options, such as thinking like customers and focusing on the company's markets, provide valuable insights that can help inform decision making.

Question 10

A sales company such as eBay would be most likely to use information technology to promote _______________.

Accepted Answer

eBay is an online marketplace that primarily focuses on facilitating online auctions, making it the most likely choice for a sales company such as eBay to use information technology to promote.

Question 11

The term competitive advantage suggests a single condition where:

Accepted Answer

A competitive advantage occurs when a firm is able to sustain profits that exceed the average for its industry. This means that the firm has a unique strength or advantage that allows it to outperform competitors and generate more profits. It is not necessarily tied to being the industry leader or simply making more profits than the previous year.

Question 12

According to the Universal Orlando case,which of the following is not a way for a CIO to become market savvy?

Accepted Answer

The Universal Orlando case suggests that a CIO should not focus only on technology if they want to become market savvy.

Question 13

When a firm develops ways to differentiate their products and services from their competitors',it is pursuing a _______________ strategy.

Accepted Answer

Pursuing a differentiation strategy involves developing ways to make a product or service stand out from competitors, whether it be through unique features, quality, design, or brand image. This can result in higher prices and increased customer loyalty. Alliance, innovation, and marketing strategies may also be pursued by a firm, but they are not necessarily focused on differentiation.

Question 14

When a supply firm sells a patented product that no other firm may sell and for which there is no substitute,it is following which strategy?

Accepted Answer

The answer of When a supply firm sells a patented...

Question 15

When a firm strives to find ways to help its suppliers and customers reduce their costs or to increase the costs of their competitors,it is pursuing a strategy of _______________.

Accepted Answer

Pursuing a strategy of helping suppliers and customers reduce their costs aligns with a cost leadership strategy, where a firm aims to have the lowest costs in the industry. By increasing competitors' costs, the firm is also working towards strengthening their own competitive advantage. Innovation and growth do not necessarily involve focusing on cost reduction. An alliance may or may not involve cost reduction for suppliers and customers.

Question 16

If a firm develops a new product and applies for a patent to protect themselves from others building the same product,the firm is following which strategy?

Accepted Answer

By applying for a patent, the firm is raising barriers to entry, making it difficult for competitors to create the same product and enter the market.

Question 17

If a supply firm offers an inventory management system to its customers along with the products it sells,and the customers cannot afford give up the inventory system to use other suppliers,the first firm is following which strategy?

Accepted Answer

Building switching costs means making it difficult for customers to switch to other suppliers. In this case, the customers cannot afford to give up the inventory system, so they are locked in to the first firm.

Question 18

A customer database allows all the following activities except:

Accepted Answer

Giving all customers a complete view of each employee is not a typical function of a customer database. The database is primarily used to store and organize customer information for the company's use. Providing employees with a complete view of each customer and making loyal customers feel special with web site personalization are common activities that can be accomplished with a customer database. Building a customer database is obviously a necessary activity to have a customer database in the first place.

Question 19

An example of a firm using a strategy where they _______________ would be developing corporate intranets and extranets,while drawing on their experience and previous investments in PCs,servers,and networks.

Accepted Answer

The answer of An example of a firm using a...

Question 20

A firm that focuses on customer value:

Accepted Answer

A firm that focuses on customer value anticipates future customer needs and responds to customer concerns. The other choices do not directly address the concept of customer value.

Quiz 2: Strategic Decision Making