In class discussion chapter 2 organizational strategy, competiti
1. In-Class Discussion
Chapter 2: Organizational Strategy, Competitive Advantage, and
Information Systems
1. Consider the student registration business process at CSUSB,
and describe how information technology is used in each step of
the process (or is not used). Evaluate the process performance.
Is it efficient? Is it effective? Why or why not?
2. Describe the five forces in Porter’s competitive forces model,
and explain how the Internet has affected each one.
3. What does a flat world mean to you in your choice of a
major? In your choice of a career? Will you have to be a
“lifelong learner”? Why or why not?
Reply to the views of two questions.
Trisha Brook
The term “flat world” refers to the globalization of business,
and how opportunities are now widespread, compared to being
geographically confined like they might have been a few
decades ago. For my major in Business Management, I think
this is a good thing. It allows me to connect with more diverse
people and gain different perspectives on business. Business
majors now have the opportunity to gain knowledge from across
the globe compared to only learning the “American” way of
business. The same goes for career opportunities. Due to
advances in IT, I could now apply for jobs anywhere in the
world and create effective teams even if I am not there in
person.
I do think we will all have to be lifelong learners in the
business arena. These advances in IT create opportunity, but
only to those who keep up with the advances. If you do not
learn new practices or new systems, you will surely fall behind
the pack and become obsolete.
2. Alejandra Guerrero
In a given industry, companies is always looking to be more
competitive. These competitive companies utilize Porter's
competitive forces model that recognizes five main forces that
could ultimately increase their competitive edge or endanger
their companies position in the competitive market if necessary
actions are not properly taken. The five forces describes in this
model are as follows: (1) the threat of entry of new competitors,
(2) the bargaining power of suppliers, (3) the bargaining power
of customers, (4) the threat of substitute products or services,
and (5) the rivalry among existing firms in the industry.
Ultimately, the ever increasing use of the internet has affected
every one of these fundamental forces. For example, the internet
ultimately makes it easier for new competitors to enter the
market as there are less traditional entries barriers such as
physical sales. Now people are able to sell products online
through Etsy, eBay, etc. thus the threat increases where as
otherwise high entry barriers would reduce this threat.
Bargaining power of suppliers varies depending on the choices
available to the buyers, with the internet, consumers are able to
stream the web for a large number of alternatives thus reducing
the suppliers bargaining power. At the same time, this increase
in choices for the consumer due to the internet increases the
bargaining power of customers. However, this power is reduce
in loyalty programs where individuals will be more likely to
purchase for a single company as a way to receive points or
other benefits. For the threat of substitute products, the threat is
high when consumers are exposed to many alternatives, which
the new technology often creates. For example, students are
able to purchase and/or view eBook versions of a text that they
would otherwise be forced to go to a bookstore in order to
obtain. Lastly, rivalry among existing firms is high when there
is intense competition in a specific industry. The internet has
affected this by making more information available to the
consumers which reduces the firms advantage of holding
3. propriety information making them less competitive. In
addition, the internet is reducing the variable cost of products
with the creation and distribution of digital products, therefore,
costs will be cut and prices will drop for consumers making the
company more competitive.
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