Chapter 02 p
pCompeting with Information Technology
p p p
Truep/pFalsepQuestions
1. Whenpanporganizationpusespinformationptechnologyptopdeveloppproducts,pservicespandp
capabilitiespinporderptopgainpapstrategicpadvantagepoverpcompetitivepforcespinpthepglobalpm
arketplace,pitpispusingpinformationpsystemspinpapstrategicprole.
True False
2. Competitionpispapnegativepcharacteristicpinpbusinesspthatpcanprequirepsignificantpresourcesptop
overcome.
True False
3. Mostpproductspandpservicesphavepsomepsortpofpsubstitutepavailableptopthepconsumer.p
True False
4. InpthepInternetpworld,papfirm'spbiggestpcompetitorpmaypbeponepthatpispnotpyetpinpthep
marketplacepbutpcouldpemergepalmostpovernight.
True False
5. Thepthreatpofpnewpentrantspispoftenpatpitspstrongestpduringpperiodspofprisingpcostsporpi
nflation.
True False
6. Ifpapkeypsupplier'spbargainingppowerpgetsptoopstrong,pitpcanpforceptheppricepofpgoodspandps
ervicesptopunmanageablyphighplevels.
True False
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,Fullp filep atp http://testbankscafe.eu/Test-Bank-for-Management-Information-Systems-10th-Edition-OBrien
7. Anpinnovationpstrategypmaypallowpapfirmptopfocuspitspproductsporpservicespandpgainpanpa
dvantagepinpapparticularpsegmentporpnichepofpapmarket.
True False
8. Whenpapfirmpdevelopspwaysptopdifferentiatepitspproductspfrompapcompetitor's,pitpisppursuingpa
costpleadershippstrategy.
pTrue False
9. WhenpapfirmpusespITptopcreatepvirtualporganizationspofpbusinessppartners,pitpisppursuingpa
growthpstrategy.
pTrue False
10. Apgivenpactivitypcanpfallpintoponeporpmorepofpthepcategoriespofpcompetitivepstrategy.p
True False
11. Ifpanporganizationpofferspitsponlineppackageptrackingpsystempinpapmannerpthatpallowspitspcust
omersptopaccesspshipmentpinformationpnotponlypviapapcomputer,pbutpviapapmobilepphonepaspwell,p
thenpsuchpanpactionpcouldpfallpintopbothpthepdifferentiationpandpinnovationpstrategypcategories.
True False
12. Whenpapfirmpmakespsuchpradicalpchangesptopitspbusinesspprocessespforpproducingpproductspa
ndpservicespthatpitpalterspthepfundamentalpstructurepofpanpindustry,pitpisppursuingpanpinnovationpstr
ategy.
True False
13. Notpeverythingpinnovativepwillpserveptopdifferentiateponeporganizationpfrompanother.p
True False
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,Fullp filep atp http://testbankscafe.eu/Test-Bank-for-Management-Information-Systems-10th-Edition-OBrien
14. Investmentspinpinformationptechnologypcanpallowpapbusinessptoplockpinpcustomerspandps
uppliers,pandplockpoutpcompetitors,pbypbuildingpvaluablepnewprelationshipspwithpthem.pTru
e False
15. CompaniesplikepWal-
Martpusepinformationptechnologyptopimplementpcompetitivepstrategiespforpstrategicpadvantage.
True False
16. Whenpapbusinesspeffectivelypbuildspinpswitchingpcosts,pitspcustomerspand/orpsuppliersp
becomepreluctantptopswitchptopanotherpcompetitor.
True False
17. Apstrategicpusepofpinformationptechnologypwouldpbeptopleveragepinvestmentpinpinformationps
ystempspecialists,phardware,psoftware,pdatabases,pandpnetworkspfrompoperationalpusespintopstrat
egicpapplications.
True False
18. Apcompanypthatpplacespapstrategicpfocusponpcustomerpvalueprecognizespthatpquality,pratherpt
hanpprice,phaspbecomepapprimarypdeterminantpinpapcustomer'spperceptionpofpvalue.
True False
19. Companiespthatpconsistentlypofferpthepbestpvaluepfrompthepcustomer'spperspectivepmustppro
videptwopkeypservices:pkeepingptrackpofptheirpindividualpcustomers'ppreferencespandpsellingppro
ductsporpservicespatplowestpprice.
True False
20. Internetptechnologiespcanpmakepcustomerspthepfocalppointpofpcustomerprelationshipp
managementp(CRM)pandpotherpe-businesspapplications.
True False
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, Fullp filep atp http://testbankscafe.eu/Test-Bank-for-Management-Information-Systems-10th-Edition-OBrien
21. Thepvaluepchainpframeworkpcanpbepusedptopviewpapfirmpaspapseries,papchain,porpapnetworkpofpb
asicpactivitiespthatpaddpvalueptopitspproductspandpservices,pandpthuspaddpapmarginpofpvalueptopthepf
irm.
True False
22. Accordingptopthepvaluepchainpconcept,pprimarypprocessespincludepsuchpthingspasptheppro
curementpofpresourcespandphumanpresourcepmanagementpthatparepdirectlyprelatedptopthepman
ufacturingpofpproductsporpdeliverypofpservicesptopthepcustomer.
True False
23. Whenpusingpthepvaluepchainpconcept,pmanagerspshouldpseekptopdeveloppstrategicpinfor
mationpsystemspforpthosepactivitiespthatptheypviewpaspthep"weakestplink"pinpthepvaluepchain.
True False
24. Thepvaluepchainpconceptpcanphelppmanagerspdecidepwherepandphowptopapplypthepstrategicpc
apabilitiespofpinformationptechnology.
True False
25. Businesspprocesspreengineeringp(BPR)pispmostpoftenpcalledpstreamlining.p
True False
26. Althoughptheppotentialppaybackpofpreengineeringpisphigh,psopispthepriskpofpfailurepandplevelpo
fpdisruptionptoptheporganizationalpenvironmentpofpthepfirm.
True False
27. Businesspprocesspreengineeringp(BPR)pcombinespapstrategypofppromotingpbusinesspinno
vationpwithpapstrategypofpmakingpmajorpimprovementsptopbusinesspoperationspsopthatpapcomp
anypcanpbecomepapmuchpstrongerpandpmorepsuccessfulpcompetitorpinpthepmarketplace.pTrue
False
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