BMGT 301 EXAM 1 UMD UPDATED
ACTUAL 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.
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.
Define the value web and show how it is related to the value chain. - CORRECT
ANSWER - ---a collection of independent firms that use information technology to
coordinate their value chains to collectively produce a product or service.
---It is more customer driven and operates in a less linear fashion than the traditional value chain.
---a networked system that can synchronize the business processes of customers, suppliers, and
trading partners among different companies in an industry or in related industries.
Identify and describe the different levels in a business firm and their information needs. -
CORRECT ANSWER - From highest to lowest, the three levels of the organizational
hierarchy are senior, middle, and operational management.
Types of information systems - CORRECT ANSWER - transaction processing at the
operational level
decision-support systems
management information systems at the middle level
executive support systems at the senior level.
External business environmental forces include: - CORRECT ANSWER - technology and
science; economy, international change, and politics.
Internal business environmental forces include: - CORRECT ANSWER - customers,
suppliers, stockholders, regulations, and competitors.
ACTUAL 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.
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.
Define the value web and show how it is related to the value chain. - CORRECT
ANSWER - ---a collection of independent firms that use information technology to
coordinate their value chains to collectively produce a product or service.
---It is more customer driven and operates in a less linear fashion than the traditional value chain.
---a networked system that can synchronize the business processes of customers, suppliers, and
trading partners among different companies in an industry or in related industries.
Identify and describe the different levels in a business firm and their information needs. -
CORRECT ANSWER - From highest to lowest, the three levels of the organizational
hierarchy are senior, middle, and operational management.
Types of information systems - CORRECT ANSWER - transaction processing at the
operational level
decision-support systems
management information systems at the middle level
executive support systems at the senior level.
External business environmental forces include: - CORRECT ANSWER - technology and
science; economy, international change, and politics.
Internal business environmental forces include: - CORRECT ANSWER - customers,
suppliers, stockholders, regulations, and competitors.
