19 August, 2011

Chapter 2: Competing with Information Technology (MCQ)




Chapter 2

  1. To survive and succeed, a business must develop and implement strategies to effectively counter all of the following except:
A)      Rivalry of competitors within its industry                               
B)       Imposing new taxes
C) Threat of new entrants into an industry and its markets
D) Threat posed by substitute products which might capture market share
E)  Bargaining power of customers & Suppliers

  1. Business can counter the threats of competitive forces by implementing the five basic competitive strategies. Which of the following is not one of them?           
A)   Quality compromise                                                    B) Differentiation & Innovation
C)  Growth & Alliance                                                                          D) Cost Leadership

  1. Your text outlines five competitive forces that shape the structure of competition in its industry. Which one of the following is NOT one of the five basic competitive forces discussed in your text?
  A) The bargaining power of customers.                         B) Threat of new entrants.
  C) Threat of substitutes.                                                    D) Strategic dominance.

  1. The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company major advantages over the competitive forces it faces in the marketplace. How is this accomplished?
  A) Through a strategic information architecture.       B) Through competitive forces.
  C) Through knowledge management.                                            D) All of the above.

  1. IT means
A)      Hardware that mediates and manages human knowledge or information
B)       Hardware plus the software that mediates and manages human knowledge or information
C)       Software that mediates and manages human knowledge or information
D)      Paper-pencil methods mediates and manages human knowledge or information

  1. The value chain concept was developed by Michael Porter, where a firm is viewed as a series, or chain, or network of basic activities that add value to its products and services, and thus add a margin of value to the firm. One of the primary activities in a firm's "value chain" typically include:
  A) Administrative services.                                                              B) Technology development.
  C) Human resource management.                                                  D) Marketing and sales.

  1. Which one of the following statements would not apply to the concept of business process reengineering (BPR).
  A) BPR is used to achieve improvements in the quantity offered of products and services.
  B) BPR is used to achieve improvements in the cost of products and services.
  C) BPR is used to achieve improvements in the quality of products and services.
  D) BPR is used to achieve improvements in the speed of delivery of products and services.

  1. For many companies, becoming a knowledge-creating company (or learning organization) is one way that they seeking to develop lasting competitive advantages. To become a knowledge-creating company or learning organization means:
  A) Consistently creating new business knowledge, disseminating knowledge widely throughout the company and quickly build the new knowledge into products and services.
  B) Focusing primarily on the needs of the customers.
  C) Building information into products and services.
  D) None of the above.


  1. Knowledge-creating companies exploit two kinds of knowledge—explicit and tacit knowledge. Tacit knowledge deals with:
  A) Data, documents, things written down or stored on computers.
  B) "How-tos" knowledge, which resides in workers.
  C) Ability to use data mining techniques to capture external information.
  D) All of the above.

  1. You should also view information systems strategically, that is, by all of the following except:
A)      as vital competitive networks,                   B)  as a means of organizational renewal, and
B)       as a necessary investment in technologies             D)  as a means of manual system

  1. Technology is usually an afterthought in forming business strategy. The real cause and driver of forming business strategy is the customer.              A) True                   B) False

  1. The strategic role of information systems involves using manual system to develop products, services, and capabilities that give a company major advantages over the competitive forces it faces in the marketplace.                                                           A) True                   B) False

  1. When a strategy or an action becomes a competitive necessity, it means that instead of it creating an advantage, the strategy or action becomes necessary simply to compete and do business in the industry.                                                                     A) True                   B) False

  1. The value chain framework can be used to view a firm as a series, or chain, or network of basic activities that reduce value to its products and services, and thus add a margin of cost to the firm.
A) True                   B) False

  1. Your text defines a virtual company as an organization that uses local area networks and other information technologies to link the people, assets, and ideas of a variety of business partners, no matter where they may be located, in order to exploit a business opportunity.
A) True                    B) False

  1. Many companies are building knowledge management systems to manage organizational learning and business know-how. The goal of knowledge management systems is to help knowledge workers create, organize, and make available important business knowledge, wherever and whenever it's needed in an organization.      
                                                                                                A) True                   B) False

  1. Agility is the inability of a company to prosper in rapidly changing, continually fragmenting global markets for high-quality, high performance, customer-configured products and services.
A) True                                B) False

  1. According to your text, a firm can survive and succeed in the long run if it successfully develops strategies to confront five competitive forces that shape the structure of competition in its industry. When a firm strives to find ways to help its suppliers and customers reduce their costs or to increase the costs of their competitors, they are pursuing an alliance strategy.
  A) True                             B) False

  1. Using information technology as an innovation strategy involves finding new ways of doing business.                                                                                                 A) True                                B) False

  1. A firm can erect barriers to entry that would discourage or delay other companies from entering a market by making investments in manual system to improve its operations or promote innovation.                                                                                                                           A) True                                   B) False


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