Itm Exam 1 Questions & Answers 2024/2025

ITM EXAM 1 QUESTIONS & ANSWERS 2024/2025 What is MIS? - ANSWERSthe management and use of processes, information systems, and information to help organizations achieve their strategies Determining Industry Structure and Competitive Strategy - ANSWERSIndustry structure: defining characteristics of an industry determining potential for profitability in an industry determining sustainability. A. Existing competitive rivalry- - ANSWERShow intense is the competition? How many existing competitors? High = few competitors equally selling, easy switching costs, advertising and price wars hurt bottom line. B. threat of new entrants- - ANSWERShow easy or difficult to join the marketplace? Easy = greater risk of market share being depleted. Barriers to entry: cost advantages, access to inputs, brand recognition, economies of scale, regulatory barriers. C. threat of substitutes - - ANSWERShow easy is it for consumers to switch to a competitor or a similar product/service? How many competitors/substitutes? How do prices and quality compare? Switching costs & buyers inclination to change. E. bargaining of customers- - ANSWERShow much power does the consumer have to affect pricing and quality? High power→ less consumers, many sellers, easy switching costs. Low power→ purchase products in small volume, seller's product vary different from competitors. D. bargaining of suppliers- - ANSWERSHow much power does the supplier have? Power to raise prices on inputs, number of suppliers available, switching costs, substitutes. Porter's Four Competitive Strategies: - ANSWERScost, differentiation, industry wide, focus