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The effect of the Internet has been to raise bargaining power over suppliers.

A) True
B) False

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All of the following are major features of organizations that impact the use of information systems except for


A) business processes.
B) environments.
C) goals.
D) agency costs.

E) A) and B)
F) None of the above

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Customers are one of the competitive forces that affect an organization's ability to compete.

A) True
B) False

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How is the concept of core competency relevant to Smalltown computer, a local computer repair store that builds custom computers? Give examples.

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A core competency is an activity for whi...

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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.

E) None of the above
F) A) and B)

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A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.


A) product differentiation
B) traditional competitors
C) low number of suppliers
D) new market entrants

E) A) and B)
F) A) and C)

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The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

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Which of the following activities would you perform to measure and compare your business processes to similar processes of other companies within your industry?


A) benchmarking
B) best practices
C) value chain analysis
D) strategic systems analysis

E) None of the above
F) C) and D)

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The use of Internet technologies allows companies to more easily sustain competitive advantage.

A) True
B) False

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You are advising the owner of Smalltown Computer, a new, local computer repair store that also builds custom computers to order. What competitive strategies could Smalltown Computer exert? Which ones will it have difficulty exercising?

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Low-cost leadership: Smalltown Computer ...

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According to Leavitt's model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are


A) environment, organization, structure, and tasks.
B) technology, people, culture, and structure.
C) organization, culture, management, and environment.
D) tasks, technology, people, and structure.

E) A) and D)
F) C) and D)

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New technologies that radically change the business landscape and environment are referred to as ________.

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In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.

A) True
B) False

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The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as


A) the point of no return.
B) the law of diminishing returns.
C) supply and demand.
D) network inelasticity.

E) None of the above
F) All of the above

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The term business ecosystem describes the interplay between the various organizational forces within a firm.

A) True
B) False

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You are consulting with the owner of Better Bodies, a national chain of gyms. What strategies might Better Bodies use in applying information services to achieve a competitive advantage?

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Better Bodies could use computers to mon...

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The text describes Michael Porter's view of the Internet as somewhat negative. What negative influences does Porter see? Describe several positive influences the Internet has on business. Do these outweigh the negative influences?

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Answers will vary. An example of a possi...

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All organizations have bedrock, unassailable assumptions that define their goals and products.

A) True
B) False

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List three organizational factors that can prevent a firm in fully realizing the benefits of a new information system, and provide examples for each.

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Features of organizations include the or...

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A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors.

A) True
B) False

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