Reading Quizzes Covered by Exam 2

Reading Quizzes Covered by Exam 2 - Reading Quiz #3...

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Reading Quiz #3 – Internet and Strategy Q1: When Michael Porter is calling for “a return to fundamentals” in page 3, what does he refer to by “fundamentals”? A. Those newly emerging business rules in the Internet era B. Stock price of a company C. The rule that a business has to create true economic value D. The equation that economic value is the gap between price and cost Q2: According to Michael Porter, which one of the following statements is NOT an influence of the Internet on the rivalry among existing competitors? A. The Internet widens the geographic market, increasing the number of competitors B. The Internet reduces switching cost C. The Internet migrates competition to price D. The Internet reduces differences among competitors as offerings are difficult to keep proprietary Q3: In page 10, Porter gives an example of the drugstore chain CVS which was able to roll out a complex Internet-based procurement application in just 60 days. What argument does the author try to support by this example? A. The Internet could dramatically enhance operational effectiveness B. Operational effectiveness does not necessarily provide a competitive advantage C. IT applications based on the Internet are simpler than traditional ones D. The Internet makes it more difficult to sustain operational advantages Q4: When Michael Porter talks about “the Internet as complement”, what does the Internet actually complement? A. The Internet channel complements traditional channels of doing business B. Different Internet-based companies complement each other and become partners C. Software products complement hardware products D. The Internet makes two different strategies, operational effectiveness and strategic positioning, complement each other Q5: In the last section, why does Michael Porter suggest “the end of the new economy”? A. The Internet-based businesses do not really create economic value B. The Internet bubble burst in early 2000 C. The phrase “new economy” is losing its relevance because the “old economy” of established companies is becoming hardly distinguishable from the “new economy” of dot-coms. D. The Internet often fails to disrupt existing industries and established companies, and it
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This note was uploaded on 11/16/2011 for the course MIS 309 taught by Professor Du during the Spring '11 term at University of Texas at Austin.

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Reading Quizzes Covered by Exam 2 - Reading Quiz #3...

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