Question 1

The difference between the total value added and the total costs incurred is called the ________ of the value chain.

Accepted Answer

A)  actual value
B)  total margin
C)  total revenue
D)  gross turnoverE) A) and B)
F) A) and C)

Question 2

In a manufacturing business, the materials ordering process transforms cash into a raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 3

An automobile company decides to improve the quality of its products and bring more variety into its entire product line. The company has decided to adopt ________.

Accepted Answer

A)  focused cost leadership
B)  industry-wide differentiation
C)  industry-wide cost leadership
D)  focused differentiationE) A) and D)
F) C) and D)

Question 4

Briefly explain product implementation in competitive strategies.

Accepted Answer

Organizations gain a competitive advanta...

Question 5

A large software manufacturer attempts to lock in customers by making it difficult for them to substitute their software with one from another company. The strategy used by the company is referred to as ________.

Accepted Answer

A)  switching costs strategy
B)  low cost operation strategy
C)  standardization strategy
D)  marketing strategyE) A) and C)
F) A) and B)

Question 6

Briefly explain process implementation in competitive strategies.

Accepted Answer

Organizations can use various process im...

Question 7

Organizations cannot gain a competitive advantage by enhancing existing products or services.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following principles of competitive advantage is related to process implementations?

Accepted Answer

A)  create new products
B)  enhance services
C)  differentiate services
D)  raise the barriers to market entryE) A) and D)
F) All of the above

Question 9

Which of the following statements is consistent with the central idea of business process design?

Accepted Answer

A)  Technology should be used to supplement the existing value chain.
B)  Business processes should focus on improving individual functional systems.
C)  Organizations should create new business processes instead of improving existing systems.
D)  Technology should be used to modify and improve standard business processes.E) All of the above
F) B) and C)

Question 10

The sales process involves sales and marketing as well as outbound logistics activities.

Accepted Answer

A) True 
 B)False

Question 11

FunText is a company that owns an app used for text messaging. It recently offered a six month membership extension, to its existing customers, without any additional charges. Which competitive strategy is FunText trying to implement in this scenario?

Accepted Answer

A)  creation of a new service
B)  product differentiation
C)  locking in customers
D)  locking in suppliersE) None of the above
F) A) and B)

Question 12

In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.

Accepted Answer

A) True 
 B)False

Question 13

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintaining and enhancing the products' value?

Accepted Answer

A)  inbound logistics
B)  customer service
C)  operations
D)  outbound logisticsE) B) and C)
F) C) and D)

Question 15

Which of the following principles of competitive advantage is related to process implementations?

Accepted Answer

A)  create new products
B)  enhance services
C)  reduce costs
D)  differentiate productsE) A) and B)
F) A) and D)

Question 16

The difference between the value that an activity generates and the cost of the activity is called the ________.

Accepted Answer

A)  margin
B)  turnover
C)  revenue
D)  profitE) All of the above
F) B) and C)

Question 17

Organizations can lock in customers by making it difficult or expensive for them to move to another product.

Accepted Answer

A) True 
 B)False

Question 18

The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

Accepted Answer

A) True 
 B)False

Question 19

The value chain of an organization determines its competitive strategy.

Accepted Answer

A) True 
 B)False

Question 20

A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________.

Accepted Answer

A)  outbound logistics
B)  inbound logistics
C)  operational management
D)  internal marketingE) A) and C)
F) B) and C)

Exam 3: Strategy and Information Systems

Organizations cannot gain a competitive advantage by enhancing existing products or services.

Correct AnswerverifiedShow Answer

The difference between the value that an activity generates and the cost of the activity is called the ________.

Correct AnswerverifiedShow Answer

Which of the following principles of competitive advantage is related to process implementations?

Correct AnswerverifiedShow Answer

Organizations can lock in customers by making it difficult or expensive for them to move to another product.

Correct AnswerverifiedShow Answer

FunText is a company that owns an app used for text messaging. It recently offered a six month membership extension, to its existing customers, without any additional charges. Which competitive strategy is FunText trying to implement in this scenario?

Correct AnswerverifiedShow Answer

Briefly explain process implementation in competitive strategies.

Correct AnswerverifiedOrganizations can use various process im...View AnswerShow Answer

A large software manufacturer attempts to lock in customers by making it difficult for them to substitute their software with one from another company. The strategy used by the company is referred to as ________.

Correct AnswerverifiedShow Answer

Which of the following statements is consistent with the central idea of business process design?

Correct AnswerverifiedShow Answer

A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________.

Correct AnswerverifiedShow Answer

In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.

Correct AnswerverifiedShow Answer

An automobile company decides to improve the quality of its products and bring more variety into its entire product line. The company has decided to adopt ________.

Correct AnswerverifiedShow Answer

Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintaining and enhancing the products' value?

Correct AnswerverifiedShow Answer

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

Correct AnswerverifiedShow Answer

The value chain of an organization determines its competitive strategy.

Correct AnswerverifiedShow Answer

The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

Correct AnswerverifiedShow Answer

In a manufacturing business, the materials ordering process transforms cash into a raw materials inventory.

Correct AnswerverifiedShow Answer

The sales process involves sales and marketing as well as outbound logistics activities.

Correct AnswerverifiedShow Answer

The difference between the total value added and the total costs incurred is called the ________ of the value chain.

Correct AnswerverifiedShow Answer

Which of the following principles of competitive advantage is related to process implementations?

Correct AnswerverifiedShow Answer

Briefly explain product implementation in competitive strategies.

Correct AnswerverifiedOrganizations gain a competitive advanta...View AnswerShow Answer

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Organizations can use various process im...
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Organizations gain a competitive advanta...
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