MIS Ch. 3 example #8913

The primary activities in the generic value chain contribute indirectly to the production, sale and service of the product. a) True b) False

According to Porter's five forces model, the intensity of each of the forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be. a) True b) False

By establishing high switching costs, which of the forces in Porter's five forces model is being addressed? a) Industry rivalry b) Threat of new entrants c) Threat of substitution d) Bargaining power of customers

Streamlining of business processes to increase margin is key to competitive advantage. a) True b) False

Which of the following represent the correct sequence of events in the value chain? a) Competitive Strategy; Value Chain; Business Process; Information Systems b) Information Systems; Business Process; Competitive Strategy; Value Chain c) Value Chain; Competitive Strategy; Information Process; Business Process d) Business Processes; Information Systems; Value Chain; Competitive Strategy

Each stage of the generic value chain accumulates costs and adds value to the product. The net result of this process is the total margin of the chain. a) True b) False

Porter's five forces model states that the intensity of the competitive forces determines all the following except industry ________. a) profitability b) competition c) segmentation d) characteristics

According to Porter's model of business activities, _________ are interactions across value activities. a) Linkages b) Value-additions c) Support activities d) Cross-functionalities

The competitive strategy of locking in customers is sometimes called establishing high switching costs. a) True b) False

Synapz, a manufacturer of office automation products, recently received a patent for an advanced therapeutic ergonomics technology. By doing this, which principle of competitive strategy is Synapz following? a) Lock in suppliers b) Raise barriers to market entry c) Reduce Costs d) Lock in buyers and customers

Porter defined _______ as the amount of money that a customer is willing to pay for a resource, product, or service. a) Markup b) Price c) Value d) Premium

The value chain of an organization determines its competitive strategy. a) True b) False

A generic value chain consists of five primary activities and four support activities. a) True b) False

Porter's five forces model that is used to assess an industry structure is also referred to as the value chain model. a) True b) False

________ argues that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain. a) Business process design b) Value chain model c) Business process reengineering d) Five forces model

The _______ activities in the generic value chain contribute indirectly to the production. a) Direct b) Primary c) Support d) Marginal

Each activity in a business process transforms input resources into output resources. a) True b) False

Building competitive advantage through the streamlining of business processes to increase margin is known as _________. a) Value chain managment b) Business process managment c) Business reengineering d) Competitive reengineering

In Porter's model of business activities, business processes are interactions across value activities. a) True b) False

Business processes that span value-generating activities determine the scope and requirements of each organization's information systems. a) True b) False

The threat of new entrants is low for _______. a) Used car dealerships b) Ivy league universities c) corner latte shops d) convenience stores

Which of the following is not an example of primary activities in the value chain? a) Procurement b) Operations c) Marketing d) Customer service

Which activity does ordering and receiving agreement-based materials belong to in the value chain? a) Procurement b) Outbound logistics c) Operations d) Inbound logistics

In a manufacturing business scenario, the _______ process transforms cash into a raw material inventory and the _______ process transforms finished goods into cash. a) Manufacturing; Outbound logistics b) Sales; Inbound logistics c) Materials ordering; Sales d) Inbound logistics; Materials ordering

A business that selects a differentiation strategy would necessarily structure itself around least-cost activities. a) True b) False