1. Your text discusses the strategic role of information systems, and how organizations are using information technology to develop products, services, and capabilities in order to gain strategic advantages over the competitive forces they face in the global marketplace. These strategic information systems support or shape the competitive position and strategies of an enterprise.
A.True
B.False


2. According to your text, a firm can survive and succeed in the long run if it successfully develops strategies to confront five competitive forces that shape the structure of competition in its industry. These forces include: rivalry of competitors, bargaining power of customers, bargaining power of suppliers, threat of substitute products/services, and threat of new entrants.
A.True
B.False


3. Your text describes five competitive strategies that organizations use to confront the threat of competitive forces they face in the global marketplace. When a firm seeks ways to help its suppliers or customers reduce their costs or to increase the costs of their competitors, they are pursuing innovation strategy.
A.True
B.False


4. Your text describes five competitive strategies that organizations use to confront the threat of competitive forces they face in the global marketplace. When a firm seeks to become a low-cost producer of products and services in their industry, they are pursuing a cost leadership strategy.
A.True
B.False


5. Your text describes five competitive strategies that organizations use to confront the threat of competitive forces they face in the global marketplace. When a firm seeks ways to help its suppliers or customers reduce their costs or to increase the costs of their competitors, they are pursuing an alliance strategy.
A.True
B.False


6. Your text describes five competitive strategies that organizations use to confront the threat of competitive forces they face in the global marketplace. When a firm seeks to significantly expand their capacity to produce goods and services, expand into global markets, diversify into new products and services or integrate into related products and services, they are pursuing differentiation strategy.
A.True
B.False


7. Differentiation strategy is a way that businesses can counter the threats of competitive forces that confront them. This strategy involves developing ways to differentiate a firm's products and services from its competitors.
A.True
B.False


8. In the automobile industry, the distribution and sales of cars and parts and the sharing of vital business data have been substantially improved by using the Internet, extranets, and other networks that electronically connect an automobile manufacturer's distribution facilities with car dealers.
A.True
B.False


9. An interorganizational information system is a system in which companies are using the Internet, extranets, and other networks electronically to link the computers of their businesses with those of their customers and suppliers. The result is new business alliances and partnerships.
A.True
B.False


10. The value chain concept enables a manager to identify opportunities for strategic information systems. The value chain concept views a firm as a series, or chain, of basic activities that add value to its products and services and thus add a margin of value to the firm.
A.True
B.False


11. The value chain concept views a firm as a series, or chain, of basic activities that add value to its products and services and thus add a margin of value to the firm. Personnel recruitment and training is one of the primary activities in the value chain of most firms.
A.True
B.False


12. Business process reengineering (BPR) is defined as the fundamental rethinking and radical redesign of business processes in order to achieve dramatic improvements in cost, quality, speed, and service.
A.True
B.False


13. Business process reengineering seeks to improve an organization through small incremental, continuous improvements.
A.True
B.False


14. In the concept of total quality management, quality is emphasized from the customer's viewpoint, rather than the producer's. Thus, quality is defined as exceeding the requirements and expectations of customers for a product or service.
A.True
B.False


15. Agility in competitive performance is the ability of a business to prosper in rapidly changing, continually fragmenting global markets for high-quality, high-performance, customer-configured products and services.
A.True
B.False


16. Your text outlines four fundamental strategies of agile competition. One of these basic strategies is for an agile company to organize so that it thrives on change and uncertainty. It uses flexible, multiple organizational structures keyed to the requirements of different and constantly changing customer opportunities.
A.True
B.False


17. A virtual company (also called a virtual corporation or virtual organization) can be defined as an organization that uses information technology in order to link people, assets, and ideas.
A.True
B.False


18. A virtual organization is a network of independent organizations linked together by IT to exploit market opportunities by sharing skills.
A.True
B.False


19. The concept of a knowledge-creating company means consistently creating new business knowledge, disseminating it widely throughout the company, and quickly building the new knowledge into their products and services.
A.True
B.False


20. KMS are sometimes called adaptive learning systems because they create cycles of organizational learning called learning loops, where the creation, dissemination, and application of knowledge produces an adaptive learning process within a company.
A.True
B.False


21. Sustained success in using information technology strategically seems to depend on three sets of factors. Antitrust laws, patents, and government intervention are environmental factors that may affect the strategic success and sustainability of strategic information systems in an organization.
A.True
B.False



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