BMGT 301 EXAM 1 UMD UPDATED
Exam Questions and CORRECT Answers
Sustainable Competitive Advantage - CORRECT ANSWER - Financial performance that
consistently outperforms industry averages
Operational Effectiveness - CORRECT ANSWER - Performing the same tasks better than
rivals perform them.
Fast Follower Exists when? - CORRECT ANSWER - 1. Savvy rivals watch a pioneer's
efforts
2. Learn from their successes and missteps
3. Then enter the market quickly with a comparable or superior product at a lower cost 4. Before
the first mover can dominate.
Strategic Positioning - CORRECT ANSWER - Performing different tasks than rivals or
the same tasks in a different way.
Straddling - CORRECT ANSWER - When a firm attempts to match the benefits of a
success position while maintaining its existing position.
True sustainable advantage comes from assets and business models that are simultaneously
(Resource-based Theory): - CORRECT ANSWER - Valuable
Rare
Difficult to imitate
For which there are no substitutes.
Powerful resources - CORRECT ANSWER - 1. Imitation-Resistant Value Chains: Others
find hard to replicate
2. Brand: Proxy for quality and inspires trust
,3. Scale: Advantages related to size; economies of scale
4. Switching Costs and Data: Costs consumer incur by switching providers
5. Differentiation: Be different; move away from being commoditized
6. Network Effects: When the value of a product or service increases as its number of users
expands.
7. Distribution Channels: The path through which products or services get to customers
8. Patents.
Technology can play a key role in creating and reinforcing assets for sustainable advantage. This
includes: - CORRECT ANSWER - a. Enabling an imitation resistant value chain
b. Strengthening a firm's brand
c. Collecting useful data
d. Establishing switching costs
e. Creating a network effect
f. Creating or enhancing a firm's scale advantage
g. Enabling product or service differentiationh. Offering an opportunity to leverage unique
distribution channels.
Transaction Processing Systems (TPS) - CORRECT ANSWER - Information Inputs:
Transactions; daily events
Information Outputs: Detailed reports; lists; summaries
Users: Operations personnel; first-line supervisors
Management Information Systems (MIS) - CORRECT ANSWER - Information Inputs:
Summary transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
Decision Support Systems (DSS) - CORRECT ANSWER - Information Inputs: Optimized
for data analysis, analytic models and data analysis tools.
, Information Outputs: Interactive; simulations; analysis
Users: Professionals, staff managers
Executive Support Systems (ESS) - CORRECT ANSWER - Information Inputs:
Aggregate data; external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
Define and describe the value chain model. - CORRECT ANSWER - ---highlights specific
activities in the business where competitive strategies can best be applied and where information
systems will most likely have a strategic impact and identifies specific, critical leverage points
where a firm can use information technology most effectively to enhance its competitive
position..
---views the firm as a series of basic activities that add a margin of value to a firm's products or
services. The activities are categorized as either primary or support activities.
---Primary activities are most directly related to production and distribution of the firm's products
and services, which create value for the customer.
---Support activities make the delivery of primary activities possible and consist of organization
infrastructure
---linked to the value chains of its suppliers, distributors, and customers.
Explain how the value chain model can be used to identify opportunities for information
systems. - CORRECT ANSWER - ---can be used at each stage of the value chain to
improve operational efficiency, lower costs, improve profit margins, and forge a closer
relationship with customers and suppliers
---help examine how value-adding activities are performed at each stage of the value chain.
---can improve the relationship with customers (customer relationship management systems) and
with suppliers (supply chain management systems) who may be outside the value chain but
belong to an extended value chain and can help businesses track benchmarks in the organization
and identify best practices of their particular industries.
---After analyzing various stages in the value chain, an organization can devise a list of candidate
applications for information systems.
Exam Questions and CORRECT Answers
Sustainable Competitive Advantage - CORRECT ANSWER - Financial performance that
consistently outperforms industry averages
Operational Effectiveness - CORRECT ANSWER - Performing the same tasks better than
rivals perform them.
Fast Follower Exists when? - CORRECT ANSWER - 1. Savvy rivals watch a pioneer's
efforts
2. Learn from their successes and missteps
3. Then enter the market quickly with a comparable or superior product at a lower cost 4. Before
the first mover can dominate.
Strategic Positioning - CORRECT ANSWER - Performing different tasks than rivals or
the same tasks in a different way.
Straddling - CORRECT ANSWER - When a firm attempts to match the benefits of a
success position while maintaining its existing position.
True sustainable advantage comes from assets and business models that are simultaneously
(Resource-based Theory): - CORRECT ANSWER - Valuable
Rare
Difficult to imitate
For which there are no substitutes.
Powerful resources - CORRECT ANSWER - 1. Imitation-Resistant Value Chains: Others
find hard to replicate
2. Brand: Proxy for quality and inspires trust
,3. Scale: Advantages related to size; economies of scale
4. Switching Costs and Data: Costs consumer incur by switching providers
5. Differentiation: Be different; move away from being commoditized
6. Network Effects: When the value of a product or service increases as its number of users
expands.
7. Distribution Channels: The path through which products or services get to customers
8. Patents.
Technology can play a key role in creating and reinforcing assets for sustainable advantage. This
includes: - CORRECT ANSWER - a. Enabling an imitation resistant value chain
b. Strengthening a firm's brand
c. Collecting useful data
d. Establishing switching costs
e. Creating a network effect
f. Creating or enhancing a firm's scale advantage
g. Enabling product or service differentiationh. Offering an opportunity to leverage unique
distribution channels.
Transaction Processing Systems (TPS) - CORRECT ANSWER - Information Inputs:
Transactions; daily events
Information Outputs: Detailed reports; lists; summaries
Users: Operations personnel; first-line supervisors
Management Information Systems (MIS) - CORRECT ANSWER - Information Inputs:
Summary transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
Decision Support Systems (DSS) - CORRECT ANSWER - Information Inputs: Optimized
for data analysis, analytic models and data analysis tools.
, Information Outputs: Interactive; simulations; analysis
Users: Professionals, staff managers
Executive Support Systems (ESS) - CORRECT ANSWER - Information Inputs:
Aggregate data; external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
Define and describe the value chain model. - CORRECT ANSWER - ---highlights specific
activities in the business where competitive strategies can best be applied and where information
systems will most likely have a strategic impact and identifies specific, critical leverage points
where a firm can use information technology most effectively to enhance its competitive
position..
---views the firm as a series of basic activities that add a margin of value to a firm's products or
services. The activities are categorized as either primary or support activities.
---Primary activities are most directly related to production and distribution of the firm's products
and services, which create value for the customer.
---Support activities make the delivery of primary activities possible and consist of organization
infrastructure
---linked to the value chains of its suppliers, distributors, and customers.
Explain how the value chain model can be used to identify opportunities for information
systems. - CORRECT ANSWER - ---can be used at each stage of the value chain to
improve operational efficiency, lower costs, improve profit margins, and forge a closer
relationship with customers and suppliers
---help examine how value-adding activities are performed at each stage of the value chain.
---can improve the relationship with customers (customer relationship management systems) and
with suppliers (supply chain management systems) who may be outside the value chain but
belong to an extended value chain and can help businesses track benchmarks in the organization
and identify best practices of their particular industries.
---After analyzing various stages in the value chain, an organization can devise a list of candidate
applications for information systems.
