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Study Guide

Student Objectives

After completing this chapter, you will be able to:

  1. Demonstrate how Porter’s competitive forces model helps companies develop competitive strategies using information systems.
  2. Demonstrate how the value chain and value web models help businesses identify opportunities for strategic information systems applications.
  3. Assess how information systems help businesses use synergies, core competencies, and network-based strategies to achieve competitive advantage.
  4. Assess how competing on a global scale and promoting quality enhance competitive advantage.
  5. Evaluate the role of business process reengineering (BPR) in enhancing competitiveness.


This activity contains 35 questions.

Question 1.
Firms that have a competitive advantage do better in terms of all of the following except


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Question 2.
The type of competitive advantage that increases the switching costs for customers is called


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Question 3.
Under Porter's Competitive Forces Model, which of the following describes competitors who are continuously devising new, more efficient ways to introduce new products and services?


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Question 4.
Which information system strategy for dealing with competitive forces uses efficient customer response systems?


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Question 5.
The ability to offer individually tailored products or services using the same production resources as mass production is called


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Question 6.
Successfully using information systems to achieve a competitive advantage requires close coordination among organizations, people, and


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Question 7.
A model that highlights specific activities where competitive strategies can best be applied is known as the


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Question 8.
Which of the following is an example of a primary activity of a business?


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Question 9.
Comparing the efficiency and effectiveness of business processes against strict standard is part of


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Question 10.
A collection of independent firms that use technology to coordinate their value chains is called a


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Question 11.
An activity for which a firm is a world-class leader is known as


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Question 12.
In a ________ business organization, sales and production are managed from a global perspective without reference to national borders.


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Question 13.
A specific type of quality control that represents 3.4 defects per million opportunities is known as


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Question 14.
Automating the creation and revision of designs using sophisticated graphics software is the job of


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Question 15.
Reinventing business processes without regard to traditional responsibilities of workgroups, departments, or divisions is part of a program called


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Question 16.
A business can gain a competitive advantage if it can create more efficient production and service processes.


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Question 17.
New technologies cannot be used to create new substitute products, only substitute services.


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Question 18.
Businesses can use information systems to achieve lower operational costs but will experience higher prices.


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Question 19.
An efficient customer response system directly links consumer behavior to supply chains.


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Question 20.
The information system strategy known as product differentiation causes much higher production costs than normal.


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Question 21.
Firms can use information systems to tighten linkages with suppliers and allow them to decide how and when to ship supplies.


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Question 22.
Successfully using information systems to achieve a competitive advantage simply requires purchasing the right technology.


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Question 23.
The Internet has caused competitive rivalries to become much more intense.


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Question 24.
Support activities in the value chain model are those most directly related to the production and distribution of the firm's products and services.


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Question 25.
Best practices are usually identified by research organizations and industry associations.


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Question 26.
Synergy is created between two businesses when the output of some units can be used as inputs to other units.


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Question 27.
An information system that shares knowledge across business units does not enhance core competencies.


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Question 28.
A virtual company is not limited by traditional organization boundaries or physical locations.


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Question 29.
The Internet totally changes the traditional ideas of where work needs to take place and where customers are located.


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Question 30.
Companies that undergo business process reengineering require a good change-management strategy.


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Question 31.




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Question 32.




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Question 33.




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Question 34.




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Question 35.




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