Info Systems Exam 1 Review

Info Systems Exam 1 Review - Info Systems Exam 1 Review...

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Info Systems Exam 1 Review Chapter 1 Section 1: Introduction Contract manufacturing: outsourcing production to third-party firms o Firms that use contract manufacturers don’t own the plants or directly employ the workers who produce the requested goods o Leveraging cheap contract manufacturing in developing countries can keep cost of goods low o Global competition among contract firms has led to race-to-the-bottom cost-cutting measures Excess inventory in the retail apparel industry is the kiss of death o Long manufacturing lead times require executives to guess far in advance what customers will want. Guessing wrong can be disastrous, lowering margins through markdowns and write-offs Section 2 Vertical integration: when a single firm owns several layers in its value chain Value chain: the “set of activities through which a product or service is created and delivered to customers” Limited production run: o Allows the firm to cultivate the exclusivity of its offerings o Encourage customers to buy right away and at full price o Encourages customers to visit often o Allows firm to minimize the risk of making a mistake Information system (IS): an integrated solution that combines five components: hardware, o Getting the right mix of these five components is critical to executing a flawless information system rollout Return on investment (ROI): the amount earned from an expenditure Section 3 The holy grail for the strategist is to craft a sustainable competitive advantage that is difficult for competitors to replicate Operations: the organizational activities that are required to produce goods or services 1
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o Activities can involve the development, execution, control, maintenance, and improvement of an organizations service and manufacturing procedures A strategist must always scan the state of the market as well as the state of the art in technology, looking for new opportunities and remaining aware of impending threats Chapter 2: Strategy and Technology Section 1: Introduction Sustainable competitive advantage: financial performance that consistently outperforms industry averages o The world is so dynamic, with new products and new competitors rising seemingly overnight, that truly sustainable advantage might seem like an impossibility o New competitors and copycat products create a race to cut costs, cut prices, and increase features that may benefit consumers but erode profits industry-wide The reason so many firms suffer aggressive, margin-eroding competition is because they’ve defined themselves according to operational effectiveness rather than strategic positioning Operational effectiveness: performing the same tasks better than rivals perform them o Danger in operational effectiveness is “sameness” o Risk is particularly acute in firms that rely on technology for competitiveness o Usually not sufficient enough to yield sustainable dominance over the competition
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This note was uploaded on 03/14/2011 for the course BMGT 301 taught by Professor Wang during the Fall '08 term at Maryland.

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Info Systems Exam 1 Review - Info Systems Exam 1 Review...

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