Q&A Hero

Q: A(n) _____ is a company that offers start-up companies a physical location with offices, accounting and legal assistance, computers, and Internet connections at a very low monthly cost.a. public relations firm b. incubatorc. distributor d. venture capital firm

Q: Steps involved in driving forces analysis include: A. developing a comprehensive list of all the potential causes of changing industry conditions. B. predicting which new driving forces will emerge next. C. determining which of the five competitive forces is the biggest driver of industry change. D. identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes are needed to prepare for the impact of the driving forces. E. All of these choices are correct.

Q: In _____, a company identifies specific portions of the project that can be completely designed, developed, implemented, and operated by another firm that specializes in a particular function.a. partial outsourcing b. late outsourcingc. insourcing d. onshoring

Q: Industry conditions change A. because of such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. B. because of newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. C. because new industry key success factors emerge. D. because forces create pressures or incentives for industry participants (competitors, customers, suppliers) to alter their actions in important ways. E. chiefly because of changes in the barriers to entry and the degree of competition from substitute products.

Q: The "driving forces" in an industryA. are usually triggered by changing technology or stronger learning/experience curve effects.B. are usually spawned by growing demand for the product, an outbreak of price-cutting, and big reductions in entry barriers.C. are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions.D. appear when an industry begins to mature but are seldom present during early stages of the industry life cycle.E. are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

Q: The approach in which an outsourcing team trains a company's information systems professionals in a new technology before handing theoperation of a site over to them is known as _____.a. partial outsourcing b. late outsourcingc. full outsourcing d. early outsourcing

Q: Finding acontractor who can handle an entire project for a company is known as _____.a. outsourcing b. liaisingc. coaching d. lobbying

Q: As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces, the A. stronger are the industry's driving forces. B. lower the combined profitability of industry members. C. fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. D. larger the number of competitive advantage opportunities for industry members. E. greater the number of industry key success factors.

Q: A competitive environment in which there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customersA. is competitively unattractive from the standpoint of earning good profits.B. offers little ability to build a sustainable competitive advantage.C. is highly conducive to achieving strong product differentiation and high brand loyalty.D. offers moderate to good prospects for achieving low costs and building a sustainable competitive advantage.E. requires that industry members have a strongly differentiated product offering in order to be profitable.

Q: _____ is an example of a return on investment technique.a. Downstream strategy b. Revenue analysisc. Total cost of ownership d. Net present value

Q: Which of the following techniques measures the amount of income that will be provided by a specific current expenditure?a. Optimal Inventory Analysis b. Cost analysisc. Total cost of ownership d. Return on Investment

Q: A competitive environment in which there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers A. lacks powerful driving forces. B. gives each industry competitor the best potential for building sustainable competitive advantage. C. makes it hard for industry members to pursue a differentiation strategy. D. is conducive to industry members earning attractive profits. E. requires that industry members have low costs.

Q: Identify a true statement about opportunity cost.a. It excludes the value of customers never obtained. b. It includes cost reductions not achieved in the company's supply chain.c. It excludes the costs of sales not made. d. It includes the benefits that a company obtains from an electronic commerce initiative.

Q: Rivalry among competing firms tends to be more intense when A. demand for the product is growing slowly, one or maybe several industry members become dissatisfied with their market position, buyers have low switching costs, and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share. B. the products/services of rival sellers are strongly differentiated, and buyer demand is strong. C. rivals are relatively content with their market position. D. there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. E. there are fewer firms in the industry that have unequal market shares.

Q: The _____ of an electronic commerce implementation includes the costs of hardware, software, Internet connections, design work outsourced, salaries and benefits for employees involved in the project, and the cost of maintaining the site once it is operational.a. total cost of ownership b. change management costc. top line cost d. opportunity cost

Q: Rivalry among competing sellers is generally more intense whenA. buyer demand is growing rapidly.B. the industry's driving forces are strong, and rivals have strongly differentiated products.C. barriers to entry are moderately high, and the pool of likely entry candidates is small.D. industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume.E. barriers to entry are high, and buyer switching costs are high.

Q: Rivalry among competing sellers tends to be less intense when A. industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. B. buyer demand is weak, and many sellers have excess capacity and/or inventory. C. industry rivals are not particularly aggressive in drawing sales and market share away from rivals. D. rivals have diverse strategies and objectives, and are located in different countries. E. rival sellers have weakly differentiated products.

Q: _____ focus on reducing costs or generating value by working with suppliers or inbound shipping and freight service providers.a. Horizontal integration strategies b. Vertical integration strategiesc. Downstream strategies d. Upstream strategies

Q: _____ can be used to improve the value that the business provides to its customers by working with the customers.a. Cost reduction strategies b. Downstream strategiesc. Upstream strategies d. Purchasing strategies

Q: Which one of the following does not cause the rivalry among competing sellers to be weak? A. high buyer switching costs B. rapid growth in buyer demand C. Industry members aren't aggressive in drawing sales and market share away from rivals. D. one or more competitors become dissatisfied with their market position E. strongly differentiated products among rival sellers

Q: Factors that cause the rivalry among competing sellers to be weak include A. low buyer switching costs and rival sellers that are relatively equal in size and capability. B. rapid growth in buyer demand and high buyer switching costs. C. a recent acquisition of a weak rival by an industry outsider with the intent of turning the acquisition into a major contender. D. low barriers to entry and weakly differentiated products among rival sellers. E. slow growth in buyer demand and strongly differentiated products.

Q: A postimplementation audit should result in a comprehensive report that analyzes the project's overallperformance. a. True b. False

Q: The most powerful of the five competitive forces is usually the A. competitive pressures that stem from the ready availability of attractively priced substitute products. B. competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. C. benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. D. competitive pressures associated with the potential entry of new competitors. E. bargaining power and leverage that large customers are able to exercise.

Q: The internal team of an organization must determine the staffing needs of the electronic commerceinitiative. a. True b. False

Q: Electronic commerce initiatives are, in general, more successful than other types of information systems implementations. a. True b. False

Q: The best test of whether potential entry is a strong or weak competitive force is A. the strength of buyer loyalty to existing brands. B. whether the industry's driving forces make it harder or easier for new entrants to be successful. C. whether the strategies of industry members are well matched to the industry's key success factors. D. whether the industry offers an opportunity for a blue ocean strategy. E. to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.

Q: Which of the following is generally not considered as a barrier to entry? A. rapid market growth B. sizable capital requirements and an array of regulatory requirements C. strong buyer loyalty to existing brands D. sizable economies of scale in production E. difficulties in gaining access to distribution and securing adequate space of retailers' shelves

Q: The development times for all electronic commerce projects are relatively long. a. True b. False

Q: Project management software is limited to managing the people and tasks of an internal team and does not extend to external stakeholders. a. True b. False

Q: The competitive threat that outsiders will enter a market is weaker when A. financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. B. the pool of entry candidates is large, and some have resources that would make them formidable market contenders. C. the industry's market growth is rapid. D. newcomers can be expected to earn attractive profits. E. buyers have little loyalty to the brands and product offerings of existing industry members.

Q: Project managementsoftware tracks the details of how each project is accomplishing its specific goals. a. True b. False

Q: Which one of the following increases the competitive pressures associated with the threat of entry? A. Incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers. B. Buyers have a high degree of loyalty to the brands and product offerings of existing industry members. C. Buyer demand for the product is growing fairly slowly. D. Few outsiders have the expertise and resources to hurdle whatever entry barriers exist. E. Newcomers can expect to earn attractive profits.

Q: Which one of the following does not intensify the competitive pressures associated with the threat of entry?A. Incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers.B. Industry members are struggling to earn good profits.C. Entry barriers are relatively low.D. Existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence.E. Newcomers can expect to earn attractive profits, and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist.

Q: The information used in project portfolio management differssomewhat from the information used to manage specific projects. a. True b. False

Q: Which one of the following is not a reason industry members are often motivated to enter into collaborative partnerships with key suppliers? A. to reduce the costs of switching suppliers B. to speed the availability of next-generation components C. to enhance the quality of parts and components being supplied and reduce defect rates D. to squeeze out important cost savings for both themselves and their suppliers E. to reduce inventory and logistics costs

Q: If the benefits exceed the costs of a project by acomfortable margin, the company invests in the project. a. True b. False

Q: Which one of the following is not a factor that affects the strength of supplier bargaining power? A. whether needed inputs are in short or ample supply B. whether industry members are a strong threat to integrate backward into the business of suppliers C. whether industry members are struggling to make good profits because of slow-growing market demand D. whether the costs of industry members to switch their purchases to alternative suppliers or substitutes are high or low E. whether the item being supplied is a commodity that is readily available from many suppliers

Q: The internal team of an organization decides which parts of a project to outsource. a. True b. False

Q: Companies hire content creators to create content that is specific for their Web sites. a. True b. False

Q: In which one of the following instances is supplier bargaining power and leverage not weakened? A. when industry members pose a credible threat of backward integration into the business of suppliers B. when the cost of switching from one supplier to another is low C. when the buying firms purchase in large quantities and thus are important customers of the suppliers D. when the item being supplied is a commodity E. when the items purchased from suppliers are in short supply

Q: Old-style technology development incubators have yielded much better results than strategic partner incubators. a. True b. False

Q: The bargaining leverage of suppliers is greater when A. only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes. B. industry members incur low costs in switching their purchases from one supplier to another. C. industry members purchase in large quantities and thus are important customers of the suppliers. D. it makes good economic sense for industry members to vertically integrate backward. E. the supplier industry is composed of a large number of relatively small suppliers.

Q: Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of A. whether the profits of suppliers are relatively high or low. B. the number of suppliers that each seller/industry member purchases from on average. C. how aggressively rival industry members are trying to differentiate their products. D. the extent to which suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry. E. whether the prices of the items being furnished by the suppliers are rising or falling.

Q: The first step in determining which parts of an electronic commerce project to outsourceis to create an internal team that is responsible for the project. a. True b. False

Q: When measuring the achievements of the internal team of an electronic commerce project, measurements must be monetary. a. True b. False

Q: In which of the following instances are industry members not subject to stronger competitive pressures from substitute products? A. The costs to buyers of switching over to the substitutes are low. B. Buyers are dubious about using substitutes. C. The quality and performance of the substitutes is well matched to what buyers need to meet their requirements. D. Buyer brand loyalty is weak. E. Substitutes are readily available at competitive prices.

Q: An online business initiative'ssuccess depends on it being integrated into the activities in which the business is alreadyengaged. a. True b. False

Q: Which of the following is not a good example of a substitute product that triggers stronger competitive pressures? A. artificial sweetener as a substitute for sugar B. wireless phone service as a substitute for a landline telephone C. Coca-Cola as a substitute for Pepsi D. digital cameras as substitutes for film cameras E. video-on-demand services as a substitute for renting movies from a movie rental store

Q: Just how strong the competitive pressures are from substitute products depends on A. whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. B. whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. C. whether the available substitutes are products or services. D. whether the producers of substitutes have ample budgets for new product R&D. E. the speed with which buyer needs and expectations are changing.

Q: A weakness of return on investment is that it tends to emphasize short-run benefits overlong-run benefits. a. True b. False

Q: Return on investment focuses on benefits that cannot be predicted. a. True b. False

Q: The competitive pressures from substitute products tend to be stronger when A. buyers are relatively comfortable with the quality and performance of substitutes, and the costs to buyers of switching over to the substitutes are low. B. there are more than 10 sellers of substitute products. C. substitutes exhibit the latest in technological innovation. D. buyers have high psychic costs in severing existing brand relationships and establishing new ones. E. demand for the industry's product is not very price sensitive.

Q: Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak? A. The number of buyers is small, or a customer is particularly important to the seller. B. Buyers are relatively well informed about sellers' products, prices, and costs. C. Buyer needs and expectations are changing slowly or rapidly. D. Buyer demand is weak or strong and slowly or rapidly growing. E. Buyers pose a credible threat of integrating backward into the business of sellers.

Q: Return on investment measurements can be biased in a waythat gives undue weight to costs because it is usually easier to quantify costs than benefits. a. True b. False

Q: In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong? A. when buyer demand is growing rapidly B. when buyers are relatively well informed about sellers' products, prices, and costs C. when buyers pose a major threat to integrate backward into the product market of sellers D. when sellers' products are weakly differentiated, making it easy for buyers to switch to competing brands E. when buyers have considerable discretion over whether and when they purchase the product

Q: Total cost of ownership techniques measure the amount of income that will be provided by a specific current expenditure. a. True b. False

Q: Which of the following is not a factor that causes buyer bargaining power to be stronger? A. Some buyers are a threat to integrate backward into the business of sellers. B. The industry is composed of a few large sellers, and the customer group consists of numerous buyers that purchase in fairly small quantities. C. Buyers have considerable discretion over whether and when they purchase the product. D. Buyers are well informed about sellers' products, prices, and costs. E. The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

Q: In the context of assessing the benefits of electronic commerce, auction sites can set goals for the number of bidders and sellers. a. True b. False

Q: Which of the following conditions acts to weaken buyer bargaining power? A. when buyers are unlikely to integrate backward into the business of sellers B. when buyers are well informed about sellers' products, prices, and costs C. when the costs incurred by buyers in switching to competing brands or to substitute products are relatively low D. when buyers have the ability to postpone purchases if they don't like the prices offered by sellers E. when buyers are few in number and/or often purchase in large quantities

Q: Increased customer satisfaction is a tangible benefit of electronic commerce. a. True b. False

Q: Opportunity costs show up in the accounting records of a firm. a. True b. False

Q: Competitive pressures stemming from buyer bargaining power tend to be weaker when A. the number of buyers is small, such that each customer's business tends to be particularly important to a seller. B. buyer demand is growing slowly or maybe even declining. C. the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. D. buyers are well informed about sellers' products, prices, and costs. E. the buyer group consists of a few large buyers, and the seller group consists of numerous small firms.

Q: The rapid changes in hardware and software technologies simplify the estimation of information technology project costs. a. True b. False

Q: Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on A. whether most buyers possess roughly equal or varying degrees of bargaining power. B. how many buyers are engaged in collaborative partnerships with sellers. C. whether entry barriers are high or low. D. whether the overall quality of the items being furnished by industry members is rising or falling. E. whether buyer demand is strong or declining.

Q: Organizations of different sizes will have different objectives for their electronic commerce initiatives. a. True b. False

Q: Which of the following is not one of the five typical sources of competitive pressures? A. the power and influence of industry driving forces B. the bargaining power of suppliers and seller-supplier collaboration C. the threat of new entrants into the market D. the attempts of companies in other industries to win customers over to their own substitute products E. the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry

Q: A successful business plan for an electronic commerce initiative should include activities that identify the initiative's specific objectives and link those objectives to business strategies. a. True b. False

Q: The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the A. pressures associated with rivalry among sellers to attract buyer patronage. B. threats that firms outside the industry will decide to enter the market. C. attempts of companies in other industries to win buyers over to their own substitute products. D. pressures stemming from the bargaining power of both suppliers and buyers. E. All of these choices are correct.

Q: The keys to successful implementation of any information technology project are planning and execution. a. True b. False

Q: The state of competition in an industry is a function of A. competitive pressures associated with rivalry among competing sellers to attract customers. B. competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. C. competitive pressures associated with the threat of new entrants into the marketplace. D. competitive pressures associated with the bargaining power of suppliers and customers. E. All of these choices are correct.

Q: How are phishing attacks used for identity theft?

Q: Which of the following is not a relevant consideration in identifying an industry's dominant economic features? A. market size and growth rate, geographic scope of competitive rivalry, and demand-supply conditions B. number of strategic groups in the industry as well as which groups are most or least profitable C. number and sizes of buyers, number of rivals, and pace of product innovation D. pace of technological change E. current industry position in its life cycle pertaining to the industry's growth prospects

Q: Which of the following is not a factor to consider in identifying an industry's dominant economic features? A. market size, growth rate, and prospects B. scope of competitive rivalry including geographic area C. market demand-supply conditions D. strength of both driving forces and competitive forces E. role and pace of technological change

Q: What are the disadvantages of using paper checks?

Q: Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as A. cultural, lifestyle, and demographic changes. B. the birth of new industries, new knowledge, and disruptive technologies. C. weather, climate change, and water shortages. D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth. E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Q: Processing a payment card transaction online involves two general processes. Describe these processes.

Q: Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry? A. How many companies in the industry have good track records for revenue growth and profitability? B. What strategic moves are rivals likely to make next? C. What are the key factors for future competitive success? D. Does the outlook for the industry offer good prospects for profitability? E. What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability?

Q: What are the advantages and disadvantages of payment cards?

Q: Which one of the following is not part of a company's broad macro-environment? A. conditions in the economy at large B. population demographics, and societal values and lifestyles C. technological and ecological factors D. governmental regulations and legislation E. the company's resource strengths, resource weaknesses, and competitive capabilities

Q: What is the difference between a credit card and a charge card?