1. Chapter 3: Organizational Strategy, Information Systems, and Competitive Advantage
Multiple Choice
1) Business processes are determined by:
A) the structure of the industry
B) competitive strategy
C) value chains
D) Michael Porter's Five Forces
2) An organization's goals are determined by its ________.
A) competitive strategy
B) objectives
C) five forces
D) industry structure
3) An organization will respond to the ________ by choosing a competitive strategy.
A) customer bargaining power
B) threat of new entrants
C) substitution of vendors
D) structure of its industry
4) Which of the following is NOT one of Porter's competitive strategies?
A) Focusing on differentiating product from that of competitors
B) Employing a cost strategy within a niche
C) Being a cost leader
D) Globalizing
5) E-mart's competitive strategy is to be a ________.
A) Cost leader in an industry segment
B) Cost leader across an industry
C) Differentiation across an industry
D) Differentiation within an industry segment
6) A ________ is a network of value creating activities.
A) value chain
B) primary activity
C) linkage
D) competitive advantage
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2. 7) Which of the following is NOT a primary activity in Porter's value chain?
A) Operations
B) Procurement
C) Sales
D) Customer service
8) Which of the following is NOT a support activity on Porter's value chain?
A) Human resources
B) Technology development
C) Customer service
D) Procurement
9) Organizations can lock in customers by:
A) offering great customer service
B) creating new products
C) establishing high switching costs
D) creating barriers to entry
10) Reducing costs can cause businesses to:
A) gain a competitive advantage
B) lose customers
C) establish alliances
D) switching costs
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