MIS 301 EXAM 1 QUESTIONS AND ANSWERS
/. sustainable competitive advantage - Answer-✅The ability to consistantly outperform
industry averages/peers
/.4 critical characteristics to maintain a sustainable advantage - 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 - 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 - Answer-✅Make it difficult for other firms to enter an industry and
compete - makes. profits more sustainable
/.examples of barriers to entry - Answer-✅- Brand
- Regulation
- Distribution Channels
- Captial Intensity
- Switching Costs
- Network Effects
/.switching costs - Answer-✅A cost that a consumer incurs when switching from one
product to another
/.Network effects - Answer-✅exist if the value of a network increases with the number of
users (Facebook)
/.Porter's Value Chain Model (business structure) - 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 - Answer-✅performing the same tasks better than rivals
perform them
/.strategic positioning - Answer-✅performing different activities from those of rivals, or
the same activities in a different way
/.5 models for analyzing business(The Value Chain) - 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 - 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 - 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 - Answer-✅A way of doing business that competitors
struggle to replicate and that frequently involves technology in a key enabling role.
/.Value Chain - Answer-✅The set of activities through which a product or service is
created and delivered to customers.
/.scale advantages - Answer-✅advantages related to size
/.economies of scale - Answer-✅factors that cause a producer's average cost per unit
to fall as output rises
/.Distributions Channels - Answer-✅The path through which products of services get to
customers
/. sustainable competitive advantage - Answer-✅The ability to consistantly outperform
industry averages/peers
/.4 critical characteristics to maintain a sustainable advantage - 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 - 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 - Answer-✅Make it difficult for other firms to enter an industry and
compete - makes. profits more sustainable
/.examples of barriers to entry - Answer-✅- Brand
- Regulation
- Distribution Channels
- Captial Intensity
- Switching Costs
- Network Effects
/.switching costs - Answer-✅A cost that a consumer incurs when switching from one
product to another
/.Network effects - Answer-✅exist if the value of a network increases with the number of
users (Facebook)
/.Porter's Value Chain Model (business structure) - 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 - Answer-✅performing the same tasks better than rivals
perform them
/.strategic positioning - Answer-✅performing different activities from those of rivals, or
the same activities in a different way
/.5 models for analyzing business(The Value Chain) - 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 - 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 - 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 - Answer-✅A way of doing business that competitors
struggle to replicate and that frequently involves technology in a key enabling role.
/.Value Chain - Answer-✅The set of activities through which a product or service is
created and delivered to customers.
/.scale advantages - Answer-✅advantages related to size
/.economies of scale - Answer-✅factors that cause a producer's average cost per unit
to fall as output rises
/.Distributions Channels - Answer-✅The path through which products of services get to
customers
