Question 1

In the value chain, the primary activity of customer service is concerned with inducing the buyers to purchase the product and providing a means for them to do so.

Accepted Answer

A) True 
 B)False

Question 2

What is a business process? How do you determine the cost and margin of a business process?

Accepted Answer

A business process is a network of activ...

Question 3

Operations refer to transforming inputs into the final product.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following value chain activities involves inducing buyers to get a product and providing a means for them to do so?

Accepted Answer

A)   inbound logistics
B)   operations
C)   sales and marketing
D)   outbound logistics

Question 5

An automobile company decides to improve the quality of all its products and bring more variety into its product line.The company has decided to adopt ________.

Accepted Answer

A)   focused cost-leadership
B)   industry-wide differentiation
C)   industry-wide cost leadership
D)   focused differentiation

Question 6

A group of manufacturing organizations purchases raw materials collectively to obtain better deals.This is an example of obtaining competitive advantage by ________.

Accepted Answer

A)   differentiating the industry
B)   establishing standards
C)   establishing alliances
D)   enhancing the products

Question 7

Identify the activity in the value chain that involves receiving, storing, and disseminating inputs to the product.

Accepted Answer

A)   inbound logistics
B)   procurement
C)   operations
D)   outbound logistics

Question 8

Focused cost leadership is observed when a product has the lowest cost ________.

Accepted Answer

A)   within an industry segment
B)   within the product range offered by a company
C)   within an industry
D)   within the supply chain of a company

Question 9

Porter defined value as the ________.

Accepted Answer

A)   amount of money that a customer is willing to pay for an offering
B)   extent of after-sale service provided to customers
C)   perceived satisfaction of the customers and sellers after a transaction
D)   actual money exchanged in return of a product/service

Question 10

Briefly describe the concepts of value, margin, and value chain.

Accepted Answer

Porter defined value as the amount of mo...

Question 11

What is the central idea of business process design?

Accepted Answer

The central idea of business process des...

Question 12

In a manufacturing business, the ________ process transforms finished goods into cash.

Accepted Answer

A)   inbound operations
B)   operations
C)   sales
D)   inbound logistics

Question 13

Which of the following is considered a support activity in the value chain of a business?

Accepted Answer

A)   operations
B)   customer service
C)   contract negotiation
D)   marketing

Question 14

A digital divide exists between ________.

Accepted Answer

A)   U.S.software companies and European software companies
B)   hardware companies and software companies
C)   those who have Internet access and those who do not
D)   employees of a software company and the managers of the company

Question 15

A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product.Identify the strategy used here.

Accepted Answer

A)   switching costs strategy
B)   low cost operation strategy
C)   differentiation strategy
D)   consumerist strategy

Question 16

The difference between the value that an activity generates and the cost of the activity is called the ________.

Accepted Answer

A)   margin
B)   turnover
C)   revenue
D)   value-addition

Question 17

Explain the concept of switching costs with an example.

Accepted Answer

Switching costs are the expenses that a ...

Question 18

Most process design initiatives require people to work in new ways and to follow different procedures.

Accepted Answer

A) True 
 B)False

Question 19

The cost of the business process is the cost of the inputs plus the cost of the outputs.

Accepted Answer

A) True 
 B)False

Question 20

The increasing reliance on the Web for information and commerce has created a digital divide between those who have Internet access and those who do not.

Accepted Answer

A) True 
 B)False

Exam 3: Strategy and Information Systems

Explain the concept of switching costs with an example.

Correct AnswerverifiedSwitching costs are the expenses that a ...View AnswerShow Answer

Which of the following value chain activities involves inducing buyers to get a product and providing a means for them to do so?

Correct AnswerverifiedShow Answer

In a manufacturing business, the ________ process transforms finished goods into cash.

Correct AnswerverifiedShow Answer

What is a business process? How do you determine the cost and margin of a business process?

Correct AnswerverifiedA business process is a network of activ...View AnswerShow Answer

The cost of the business process is the cost of the inputs plus the cost of the outputs.

Correct AnswerverifiedShow Answer

An automobile company decides to improve the quality of all its products and bring more variety into its product line.The company has decided to adopt ________.

Correct AnswerverifiedShow Answer

A digital divide exists between ________.

Correct AnswerverifiedShow Answer

Which of the following is considered a support activity in the value chain of a business?

Correct AnswerverifiedShow Answer

Focused cost leadership is observed when a product has the lowest cost ________.

Correct AnswerverifiedShow Answer

Operations refer to transforming inputs into the final product.

Correct AnswerverifiedShow Answer

The difference between the value that an activity generates and the cost of the activity is called the ________.

Correct AnswerverifiedShow Answer

The increasing reliance on the Web for information and commerce has created a digital divide between those who have Internet access and those who do not.

Correct AnswerverifiedShow Answer

Most process design initiatives require people to work in new ways and to follow different procedures.

Correct AnswerverifiedShow Answer

What is the central idea of business process design?

Correct AnswerverifiedThe central idea of business process des...View AnswerShow Answer

Porter defined value as the ________.

Correct AnswerverifiedShow Answer

A group of manufacturing organizations purchases raw materials collectively to obtain better deals.This is an example of obtaining competitive advantage by ________.

Correct AnswerverifiedShow Answer

Identify the activity in the value chain that involves receiving, storing, and disseminating inputs to the product.

Correct AnswerverifiedShow Answer

Briefly describe the concepts of value, margin, and value chain.

Correct AnswerverifiedPorter defined value as the amount of mo...View AnswerShow Answer

A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product.Identify the strategy used here.

Correct AnswerverifiedShow Answer

In the value chain, the primary activity of customer service is concerned with inducing the buyers to purchase the product and providing a means for them to do so.

Correct AnswerverifiedShow Answer

Correct Answer
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Switching costs are the expenses that a ...
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A business process is a network of activ...
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The central idea of business process des...
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Porter defined value as the amount of mo...
View Answer

Correct Answer
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Correct Answer
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