Strategic Management and Value Chain Analysis

Topics: Strategic management, Porter five forces analysis, Management Pages: 171 (28627 words) Published: September 28, 2012
Chapter 01
Management Information Systems: Business Driven MIS

True / False Questions

1. Companies today are successful when they combine the power of the information age with traditional business methods.  True    False


2. Competitive intelligence is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making.  True    False


3. The information age is the present time, during which infinite quantities of facts are widely available to anyone who can use a computer.  True    False


4. Technology provides countless business opportunities, but can also lead to pitfalls and traps for a business.  True    False


5. Top managers use social intelligence to define the future of the business, analyzing markets, industries and economies to determine the strategic direction the company must follow to remain unprofitable.  True    False


6. A variable is a business intelligence characteristic that stands for a value that cannot change over time.  True    False

7. Companies update business strategies continuously as internal and external environments change.  True    False


8. For an organization to succeed, every department or functional area must work independently to be most effective.  True    False


9. Porter's Five Forces Model outlines the process for a sales strategy.  True    False


10. With the Five Forces Model, companies should watch the forces in the market. If the forces are strong competition generally increases and if the forces are weak competition typically decreases.  True    False


11. Successful companies today operate cross-functionally, integrating the operations of all departments.  True    False


12. An overview of systems thinking includes input, process, output, and finances.  True    False


13. MIS is a tool that is most valuable when it leverages the talents of people who know how to use and manage it effectively.  True    False


14. The chief technology officer is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks from hackers and viruses.  True    False


15. A leadership plan that achieves a specific set of goals or objectives is a business strategy.  True    False


16. When a company is the first to market with a competitive advantage, it gains a particular benefit known as competitive intelligence.  True    False


17. Over the past decade the United States has lost an estimated 2.4 million factory jobs to Nepal.  True    False


18. Two ways to reduce buyer power is through switching costs and loyalty programs.  True    False


19. Mark Peterson identified the Porter's Five Forces Model which analyzes the competitive forces within a business environment.  True    False


20. There are many challenges to changing doctors, including transferring medical records and losing the doctor patient relationship along with the doctor's knowledge of the patient's history. Changing doctors provides a great example of switching costs.  True    False


21. Supplier power is one of Porter's five forces and it measures the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).  True    False


22. Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter's threat of new entrants.  True    False


23. Product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand.  True    False


24. Buyer power is the ability of buyers to affect the price they must pay for an item. ...
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