95) Internet technology
A) makes it easy for rivals to compete on price alone.
B) imposes a significant cost of entry, due to infrastructure requirements.
C) increases the difference between competitors because of the wide availability of information.
D) makes it easy to sustain operational advantages.
96) The Internet raises the bargaining power of customers by
A) creating new opportunities for building loyal customer bases.
B) making more products available.
C) making information available to everyone.
D) lowering transaction costs.
97) The value chain model
A) categorizes five related advantages for adding value to a firm’s products or services.
B) sees the supply chain as the primary activity for adding value.
C) categorizes four basic strategies a firm can use to enhance its value chain.
D) helps a firm identify points at which information technology can most effectively enhance its competitive position.
98) The primary activities of a firm include
A) inbound logistics, operations, outbound logistics, sales and marketing, and service.
B) inbound logistics, operations, outbound logistics, technology, and service.
C) procurement, inbound logistics, operations, technology, and outbound logistics.
D) procurement, operations, technology, sales and marketing, and services.
99) The secondary activities of a firm include
A) inbound logistics, technology, outbound logistics, sales and marketing, and service.
B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement.
C) organization infrastructure, human resources, sales and marketing, and technology.
D) organization infrastructure, human resources, technology, and procurement.
100) Benchmarking
A) compares the efficiency and effectiveness of your business processes against strict standards.
B) allows industry participants to influence industry-wide standards.
C) is used to measure the speed and responsiveness of information technology.
D) synchronizes the business processes of customers, suppliers, and trading partners.
101) The most successful solutions or methods for achieving a business objective are called
A) value activities.
B) best processes.
C) core competencies.
D) best practices.
102) A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)
A) industry value chain.
B) business ecosystem.
C) value web.
D) consortia.
103) How are information systems used at the industry level to achieve strategic advantage?
A) by building industry-wide, IT-supported consortia and symposia
B) by raising the bargaining power of suppliers
C) by encouraging the entry of new competitors
D) by enforcing standards that reduce the differences between competitors
104) If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating
A) a value web.
B) a value chain.
C) synergies.
D) core competencies.