MIS 301 EXAM 1 QUESTIONS AND ANSWER
sustainable competitive advantage - CORRECT ANSWER✅✅The ability to consistantly outperform
industry averages/peers
4 critical characteristics to maintain a sustainable advantage - CORRECT ANSWER✅✅1)Valuable
2)Rare
3)Imperfeclty imitable(tough to imitate)
4)Nonsubstitutable
*These also help create Barriers to Entry
Micheal E. Porters book "Competitive Advantage" - Porter's 5 Forces - CORRECT ANSWER✅✅1-
Barbaining power of customers
2- Threat of Substitues
3- Bargaining power of suppliers
4- Threat of new entrants
5- Rivarly
barriers to entry - CORRECT ANSWER✅✅Make it difficult for other firms to enter an industry and
compete - makes. profits more sustainable
examples of barriers to entry - CORRECT ANSWER✅✅- Brand
- Regulation
- Distribution Channels
- Captial Intensity
- Switching Costs
- Network Effects
,switching costs - CORRECT ANSWER✅✅A cost that a consumer incurs when switching from one product
to another
Network effects - CORRECT ANSWER✅✅exist if the value of a network increases with the number of
users (Facebook)
Porter's Value Chain Model (business structure) - CORRECT ANSWER✅✅(Support Functions)
infrastructure: GM, planning, finance, IS
HRM: recruiting, hiring, training and development
Technology: research and development
(Primary Functions)
1) Inbound Logistics
2) Operations
3) Outbound Logistics
4). Marketing and Sales
5) Service
Operational Effectiveness - CORRECT ANSWER✅✅performing the same tasks better than rivals perform
them
strategic positioning - CORRECT ANSWER✅✅performing different activities from those of rivals, or the
same activities in a different way
5 models for analyzing business(The Value Chain) - CORRECT ANSWER✅✅1)Examine Industry Structure-
Porter's 5 Forces Model
2)Choose our competitive Strategy- Porter's Model of Competitive Advantage
3)Link the parts of the value chain- Porter's Value chain model
4)streamline business processes- any business process diagram
5)Design IS - 5 Component IS Framework
- Enable business processes
, - improve value chain links to increase efficiency
- support competitive strategy
- influence industry structure
Inventory Turns - CORRECT ANSWER✅✅The number of times inventory is sold or used during a specific
period (such as a year or quarter). A higher figure means a firm is selling products quickly.
Straddling - CORRECT ANSWER✅✅Attempts to occupy more than one position, while failing to match
the benefits of a more efficient, singularly focused rival.
imitation-resistant value chain - CORRECT ANSWER✅✅A way of doing business that competitors
struggle to replicate and that frequently involves technology in a key enabling role.
Value Chain - CORRECT ANSWER✅✅The set of activities through which a product or service is created
and delivered to customers.
scale advantages - CORRECT ANSWER✅✅advantages related to size
economies of scale - CORRECT ANSWER✅✅factors that cause a producer's average cost per unit to fall
as output rises
Distributions Channels - CORRECT ANSWER✅✅The path through which products of services get to
customers
Non-Practicing Entities - CORRECT ANSWER✅✅Commonly known as patent trolls, these firms make
money by acquiring and asserting patents, rather than bringing products and services to market.
to go private - CORRECT ANSWER✅✅When a corporation is trying to go from a public corporation to a
private corporation, where a few shareholders buy back the shares from the other shareholders via a
self-tender offer
sustainable competitive advantage - CORRECT ANSWER✅✅The ability to consistantly outperform
industry averages/peers
4 critical characteristics to maintain a sustainable advantage - CORRECT ANSWER✅✅1)Valuable
2)Rare
3)Imperfeclty imitable(tough to imitate)
4)Nonsubstitutable
*These also help create Barriers to Entry
Micheal E. Porters book "Competitive Advantage" - Porter's 5 Forces - CORRECT ANSWER✅✅1-
Barbaining power of customers
2- Threat of Substitues
3- Bargaining power of suppliers
4- Threat of new entrants
5- Rivarly
barriers to entry - CORRECT ANSWER✅✅Make it difficult for other firms to enter an industry and
compete - makes. profits more sustainable
examples of barriers to entry - CORRECT ANSWER✅✅- Brand
- Regulation
- Distribution Channels
- Captial Intensity
- Switching Costs
- Network Effects
,switching costs - CORRECT ANSWER✅✅A cost that a consumer incurs when switching from one product
to another
Network effects - CORRECT ANSWER✅✅exist if the value of a network increases with the number of
users (Facebook)
Porter's Value Chain Model (business structure) - CORRECT ANSWER✅✅(Support Functions)
infrastructure: GM, planning, finance, IS
HRM: recruiting, hiring, training and development
Technology: research and development
(Primary Functions)
1) Inbound Logistics
2) Operations
3) Outbound Logistics
4). Marketing and Sales
5) Service
Operational Effectiveness - CORRECT ANSWER✅✅performing the same tasks better than rivals perform
them
strategic positioning - CORRECT ANSWER✅✅performing different activities from those of rivals, or the
same activities in a different way
5 models for analyzing business(The Value Chain) - CORRECT ANSWER✅✅1)Examine Industry Structure-
Porter's 5 Forces Model
2)Choose our competitive Strategy- Porter's Model of Competitive Advantage
3)Link the parts of the value chain- Porter's Value chain model
4)streamline business processes- any business process diagram
5)Design IS - 5 Component IS Framework
- Enable business processes
, - improve value chain links to increase efficiency
- support competitive strategy
- influence industry structure
Inventory Turns - CORRECT ANSWER✅✅The number of times inventory is sold or used during a specific
period (such as a year or quarter). A higher figure means a firm is selling products quickly.
Straddling - CORRECT ANSWER✅✅Attempts to occupy more than one position, while failing to match
the benefits of a more efficient, singularly focused rival.
imitation-resistant value chain - CORRECT ANSWER✅✅A way of doing business that competitors
struggle to replicate and that frequently involves technology in a key enabling role.
Value Chain - CORRECT ANSWER✅✅The set of activities through which a product or service is created
and delivered to customers.
scale advantages - CORRECT ANSWER✅✅advantages related to size
economies of scale - CORRECT ANSWER✅✅factors that cause a producer's average cost per unit to fall
as output rises
Distributions Channels - CORRECT ANSWER✅✅The path through which products of services get to
customers
Non-Practicing Entities - CORRECT ANSWER✅✅Commonly known as patent trolls, these firms make
money by acquiring and asserting patents, rather than bringing products and services to market.
to go private - CORRECT ANSWER✅✅When a corporation is trying to go from a public corporation to a
private corporation, where a few shareholders buy back the shares from the other shareholders via a
self-tender offer
