pts
A high-level IS manager has his firm utilize sophisticated information systems to digitally design its
products so that design defects can be detected and removed early in the process, reducing development
cost. What business strategy does this represent?
high standards
cost leadership
differentiation
focus
Boeing employs sophisticated information systems that enable the digital
design of various aircraft-related systems. These systems allow early
detection and removal of design defects and reduce development cost and
time.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the same value as
competitors but at a lower price (cost leadership), (2) by charging higher prices for providing products
that are perceived by the customer as being better (differentiation), or (3) by understanding and servicing
a target market better than anyone else (focus). Boeing employs sophisticated information systems that
enable the digital design of various aircraft-related systems. These systems allow early detection and
removal of design defects and reduce development cost and time.
Question 2
pts
A senior IS manager decides to invest in an information system that will reduce subcontractor labor costs
for her organization by facilitating relocation of tools and materials to more optimal locations while
rearranging workflows. What business strategy does this represent?
high standards
cost leadership
differentiation
focus
Skanska USA, a construction firm, employs an information system to track
and analyze the movement and tasks of subcontractors on the job. With this
, system, Skanska can relocate tools and materials to more optimal locations
and rearrange workflows to speed up the building process and to reduce
labor costs.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the same value as
competitors but at a lower price (cost leadership), (2) by charging higher prices for providing products
that are perceived by the customer as being better (differentiation), or (3) by understanding and servicing
a target market better than anyone else (focus). Skanska USA, a construction firm, employs an
information system to track and analyze the movement and tasks of subcontractors on the job. With this
system, Skanska can relocate tools and materials to more optimal locations and rearrange workflows to
speed up the building process
and to reduce labor costs.
Question 3
pts
A senior IS manager implements a vendor-managed inventory system that reduces both the administrative
costs of managing inventory and inventory holding costs. What business strategy does this represent?
high standards
cost leadership
differentiation
focus
Walmart, well known for its cost leadership, employs a vendor-managed
inventory system to streamline product flow and better manage its store
inventories. This system reduces the administrative costs of managing
inventory, lowers inventory holding costs, and increases sales through
reductions of out-of-stock situations in its stores.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the same value as
competitors but at a lower price (cost leadership), (2) by charging higher prices for providing products
that are perceived by the customer as being better (differentiation), or (3) by understanding and servicing
a target market better than anyone else (focus). Walmart employs a vendor-managed inventory system to
streamline product flow and better manage its store inventories. This system reduces the administrative
costs of managing inventory, lowers inventory holding costs, and increases sales through reductions of
out-of-stock situations in its stores.
Question 4
pts