Question 1

Organizations use Porter's ___________ model to design general strategies and use Porter's _______ model to identify specific activities where they can use competitive strategies for greatest impact.

Accepted Answer

Organizations use Porter's competitive forces model to design general strategies and use Porter's value chain model to identify specific activities where they can use competitive strategies for greatest impact.

Question 2

For most businesses, __________ is a support activity according to Porter's value chain model.

Accepted Answer

In Porter's value chain model, IT is considered a support activity because it enables other primary and support activities to function more efficiently. Customer service and logistics are both considered primary activities, while operations can be either a primary or support activity depending on the industry.

Question 3

____________ is a biometric system to confirm passenger identity.

Accepted Answer

The answer of ____________ is a biometric system to confirm...

Question 4

Entry barriers impact the ___________ in Porter's competitive forces model.

Accepted Answer

Entry barriers directly impact the threat of new entrants into the industry, as high barriers make it difficult for new competitors to enter the market. This is one of the five forces in Porter's model, which also includes the bargaining power of customers and suppliers, rivalry among existing firms, and the threat of substitute products or services.

Question 5

Internet is available in rural Bangladesh because of ___________.

Accepted Answer

Infoladies cycling to villages with the technology played a crucial role in bringing internet connectivity to rural Bangladesh.

Question 6

___________ uses airport visitors' smartphone Wi-Fi to track their movements in the Helsinki airport.

Accepted Answer

Walkbase uses airport visitors' smartphone Wi-Fi to track their movements in the Helsinki airport.

Question 7

___________ asks for measurements of a favorite piece of clothing to create a comparison silhouette on the website.

Accepted Answer

Virtusize asks users to measure a favorite piece of clothing and then compares these measurements to the dimensions of an item on a retailer's website, creating a visual comparison to help customers understand how a garment will fit them.

Question 8

You want to open a bank, so you know you have to offer online banking at a minimum. This is an example of the __________ in Porter's competitive forces model.

Accepted Answer

The threat of entry of new competitors refers to how easy or difficult it is for new firms to enter the market and compete with existing firms. In this case, the decision to offer online banking is a response to the potential threat of new competitors who already offer this service. Therefore, this aligns with the threat of entry of new competitors in Porter's competitive forces model.

Question 9

The best-known framework for analyzing competitiveness is Michael Porter's ________.

Accepted Answer

Michael Porter's best-known framework for analyzing competitiveness is the Competitive forces model, also known as Five Forces Analysis.

Question 10

Loyalty programs reduce _________.

Accepted Answer

Loyalty programs give customers incentives to remain loyal to a company, reducing their power to easily switch to a competitor. This decreases their bargaining power and increases the company's power by creating a pool of loyal customers who are more likely to continue purchasing from the company.

Question 11

Porter concludes that the overall impact of the web is to _________ competition, which generally ___________ a firm's profitability.

Accepted Answer

Porter argues that the web increases competition among firms, which typically leads to lower profitability due to factors like price wars, increased bargaining power of buyers, and lower barriers to entry for new competitors.

Question 12

You want to start a lawn care business in the town of Rural, USA with only 100 residents. There are currently no other lawn care businesses, so homeowners will have no other choice but to use your service. You have evaluated the ________ in Porter's competitive forces model.

Accepted Answer

Bargaining power of customers is the correct answer because in a town with only 100 residents and no other lawn care businesses, the customers have no other choice but to use the new business's service.

Question 13

___________ provides a "body scanner" to capture more than 150 measurements so customers can have made-to-measure jeans and swimsuits.

Accepted Answer

Bodymetrics is the only company mentioned that provides a "body scanner" to capture over 150 measurements, which is necessary for custom-made clothing. Clothes Horse, LoveThatFit, and Virtusize do not offer this specific service.

Question 14

In your industry, the businesses compete essentially on price. This is an example of the _______ in Porter's competitive forces model.

Accepted Answer

The fact that businesses compete on price indicates intense rivalry among existing firms in the industry, as they try to win customers over each other by offering lower prices. Bargaining power of customers would refer to how much influence the customers have over the prices of the products or services. Bargaining power of suppliers would refer to how much influence suppliers have over the prices of the products or services. Threat of entry of new competitors would refer to the ease or difficulty of new businesses entering the market. Threat of substitute products or services would refer to how much influence alternative products or services have over the prices and demand of the industry's products or services.

Question 15

You want to open your own restaurant. You know you will be able to purchase foods from many different distributors. You have evaluated the _________ in Porter's competitive forces model.

Accepted Answer

Evaluating the bargaining power of suppliers is important when opening a restaurant because food and supplies are essential to the business. By assessing the power of suppliers, the restaurant owner can determine if they will be able to negotiate favorable prices and terms with their distributors.

Question 16

___________ has set the industry standard on returns, pioneering no-cost shipping and handling for returns.

Accepted Answer

Zappos was the first retailer to offer free shipping and returns as a standard practice, setting the industry standard for others to follow.

Question 17

_____________ allows consumers to upload a full body image taken in tightly fitting clothing so they can "see" themselves in the clothes before purchasing.

Accepted Answer

LoveThatFit is the only option that specifically allows consumers to upload a full body image in tightly fitting clothing to see how clothes will fit before purchasing. Clothes Horse is a fashion recommendation service, Virtusize provides sizing information for specific brands, and Zappos is an online retailer that offers free shipping and returns, but does not offer a feature to see how clothes will fit before purchasing.

Question 18

Information-based industries experience the greatest threat from the _________ in Porter's competitive forces model.

Accepted Answer

Information-based industries are highly susceptible to the threat of substitute products or services because technological advancements can easily lead to new and innovative alternatives that fulfill the same needs.

Question 19

For most businesses, _________ is a primary activity according to Porter's value chain model.

Accepted Answer

According to Porter's value chain model, the primary activities that add value to a business are inbound logistics, operations, outbound logistics, marketing and sales, and service. While HR, IT and procurement are important support activities for a business, they are not considered primary activities in this model. As Marketing and sales are responsible for creating demand for a product or service, it is considered a primary activity in Porter's value chain model.

Question 20

__________ has developed software to analyze the large amount of data being collected on airline passengers to identify potential terrorists or organized criminals.

Accepted Answer

Safran has developed software for analyzing data on airline passengers to identify potential threats.

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

Organizations use Porter's _____ model to design general strategies and use Porter's _ model to identify specific activities where they can use competitive strategies for greatest impact.