Chap002 - Chapter 02 Competing with Information Technology...

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Chapter 02 - Competing with Information Technology Chapter 02 Competing with Information Technology True / False Questions 1. (p. 44) When an organization uses information technology to develop products, services and capabilities in order to gain a strategic advantage over competitive forces in the global marketplace, it is using information systems in a strategic role. TRUE AACSB: Technology Bloom: Knowledge Difficulty: Easy Learning Objective: 1 2. (p. 27) According to Nicholas Carr, the author of "IT Doesn't Matter," the primary risk linked to information technology is not using it correctly. FALSE According to Carr, the primary risk linked to IT is overspending on it. AACSB: Technology Bloom: Knowledge Difficulty: Medium Learning Objective: 2 2-1
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Chapter 02 - Competing with Information Technology 3. (p. 47) Competition is a negative characteristic in business that can require significant resources to overcome. FALSE Although competition can require significant resources, it is a positive characteristic in business that is natural and healthy. AACSB: Technology Bloom: Knowledge Difficulty: Medium Learning Objective: 1 4. (p. 47) Most products and services have some sort of substitute available to the consumer. TRUE AACSB: Technology Bloom: Knowledge Difficulty: Easy Learning Objective: 5 5. (p. 47) In the Internet world, a firm's biggest competitor may be one that is not yet in the marketplace but could emerge almost overnight. TRUE AACSB: Technology Bloom: Knowledge Difficulty: Medium Learning Objective: 2 2-2
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Chapter 02 - Competing with Information Technology 6. (p. 47) The threat of new entrants is often at its strongest during periods of rising costs or inflation. FALSE The threat of substitutes is often at its strongest during periods of rising costs or inflation. AACSB: Technology Bloom: Knowledge Difficulty: Medium Learning Objective: 1 2-3
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Chapter 02 - Competing with Information Technology 7. (p. 47) If a key supplier's bargaining power gets too strong, it can force the price of goods and services to unmanageably high levels. TRUE AACSB: Technology Bloom: Knowledge Difficulty: Easy Learning Objective: 1 8. (p. 48) An innovation strategy may allow a firm to focus its products or services and gain an advantage in a particular segment or niche of a market. FALSE A differentiation strategy may allow a firm to focus its products or services and gain an advantage in a particular segment or niche of a market. AACSB: Technology Bloom: Knowledge Difficulty: Medium Learning Objective: 1 9. (p. 48) When a firm develops ways to differentiate its products from a competitor's, it is pursuing a cost leadership strategy. FALSE When a firm develops ways to differentiate its products from a competitor's, it is pursuing a differentiation strategy. AACSB: Technology Bloom: Knowledge Difficulty: Easy Learning Objective: 1 2-4
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Chapter 02 - Competing with Information Technology 10.
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