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Information Technology Management (BUS 101) Does Competitive Strategy

Sandra Watson
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MyMISLab Quiz #3 (Chapter 4)

1. What is the relationship between the value chain and business processes and IS structure?

2. With respect to value chains, if your job relates directly to design and maintenance of the
organizational infrastructure, you would be involved in

3. What is one way an information system can provide competitive advantages?

4. Amazon’s information system is massive, almost foolproof, simple to use, patented, and would be
incredibly expensive for a new competitor to replicate. What type of competitive advantage does
Amazon’s information system represent?

5. The generic value chain consists of

6. An examination of the industry in which you operate reveals that you have three successful
competitors. One focuses on cost industry-wide. One focuses on industry-wide differentiation. One
focuses on cost in a specific industry segment (the largest segment). Which competitive strategy
should you adopt?

7. How does organizational strategy determine IS requirements?

8. Michel Porter developed the five forces model. Of the five forces, there were three that had to do with
competitive forces and two that had to do with bargaining power forces. Two strength factors that
relate to all three of the competitive forces are switching costs and

9. Does competitive strategy affect value chain structure?

10. What five forces determine industry structure?

11. Your organization can choose one of

12. What is the definition of competitive strategy?

13. In a grocery store, you notice that one brand of canned vegetables, Excalibur green beans, indicates
on the label, “Premium quality, exceptional color, texture and flavor! When only the best will do!”
Excalibur green beans cost almost a dollar more than the second highest priced variety. In the canned
vegetable industry, which of Porter’s competitive strategies has Excalibur embraced (assuming
Excalibur only sells green beans)?

14. Your company has a cost differentiation strategy regarding its products. There are several new
entrants into your saturated market that make the margins so slim on the product line you manage,
profits are almost non-existent. What should you recommend to management?

15. You are the IS department director, and you design and implement a feature that makes it very easy
for customers to customize their purchase, enter their shipping and payment information, track their
shipped packages, and automatically register warranty information with manufacturers. The principle
of competitive strategy you are implementing is

16. A business with a differentiation strategy

17. You just heard that a well-known manufacturer in a different industry segment is going to enter your
market with a product that will be a direct competitor in your existing industry. What should you do?

18. Michel Porter developed the five forces model. Of the five forces, there were three that had to do with
competitive forces and two that had to do with bargaining power forces. What is the primary danger
regarding the three competitive forces?

19. Kelsie told you her goal is to be one of the best overall programmers in the world. She doesn’t care
who she works for, or what systems she develops, she just wants to be the best. She feels with that
level, and breadth of skill, she will be able to command the highest salary possible. On a personal
level, Kelsie is embracing which of Porter’s competitive strategies?

20. Value – Total Cost =


Information Technology Management (BUS 101) Does Competitive Strategy Affect Value Chain​ Structure?


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