BMGT 301 EXAM QUESTIONS WITH VERIFIED
ANSWERS
Differentiate between operational effectiveness and strategic positioning - Answers - ---
operational effectiveness: performing the same tasks better than rivals perform them
---strategic positioning: performing different activities from those of rivals, or the same
activities in a different way.
Differentiate between competitive advantage and sustainable competitive advantage -
Answers - ---competitive advantage: a condition or circumstance that puts a company in
a favorable or superior business position.
---sustainable competitive advantage: financial performance that consistently
outperforms their industry peers
---Key to competitive advantage: Combining Big Data and Effective Analytics.
Understand the resource view of the firm concept - Answers - Resources:
• tangible and intangible assets of a firm
• used to conceive of and implement strategies
Capabilities:
• a subset of resources that enable a firm to take full advantage of other resources
Imitation-resistant value chain - Answers - Developed a way of doing business that
others will struggle to replicate, and in nearly every successful effort of this kind,
technology plays a key enabling role.
Resources for competitive advantage - Answers - ◦Valuable
◦Rare
◦not easily Imitated
◦Not easily Substitutable
Concept of switching costs - Answers - When consumers incur an expense to move
from one product or service to another.
Differentiation - Answers - Creating a unique experience for users
Networks effects - Answers - the value of a product or service increases as the number
of users grows.
Activities involved in Value Chain Analysis model - Answers - ◦inbound logistics - obtain
raw materials◦ Operations - transformation of inputs to finished goods
◦Outbound logistics - storing products and delivering them
◦Marketing/sales - establishing a customer need
◦Service activities - after-sale service and maintenance
, ---Support Activities: Value chain activities that an organization conducts to support the
creation of business value.
Competitive Forces model. - Answers - Objective - use this model to identify potential
areas where IT can be used to gain a competitive advantage.
Netflix and its use of technology - Answers - ---Straddling:When a firm attempts to
match the benefits of a successful position while maintaining its existing position
---Crowdsourcing:This is the act of taking a job traditionally performed by a designated
agent (usually an employee) and outsourcing it to an undefined generally large group of
people in the form of an open call.
---Churn rate:The rate at which customers leave a product or service
---Collaborative Filtering:A classification of software that monitors trends among
customers and uses this data to personalize an individual's customer's experience.
---Windowing:his is an industry practice whereby content (usually a motion picture) is
available to a given distribution channel for a specified time period or "window", usually
under a different revenue model
---Pure Play:A firm that focuses on a specific product, service or business mode.
---Long tail:Refers to an extremely large selection of content or products.
---Atoms to Bits:The idea that many media products are sold in containers (atoms) has
moved to bits (the ones and zeros that make up a video file, music, book).
---lots of data
Understand the concept of Network effects - Answers - ---Also known as Network
Externalities or Metcalfe's Law.
---Occur when the value of a product or service increases as its number of users grows.
Sources of value - Answers - 1.Exchange: Every product or service subject to network
effects fosters some kind of exchange
2.Staying Power: Networks with greater numbers of users suggest a stronger staying
power
3.Complementary Benefits: Products or services that add additional value to the primary
product or service that makes up a network
---Others: Switching Costs: The cost a consumer incurs when moving from one product
to another.
Web 2.0 - Answers - Internet services that foster collaboration and information sharing;
characteristics that distinctly set "___Web 2.0____________" efforts apart from the
static, transaction-oriented Web sites of "Web 1.0"
Peer Production - Answers - When users collaboratively work to create content,
products, and services
Crowdsourcing - Answers - where initially undefined groups of users band together to
solve problems, create code, and develop services, is a type of peer production
ANSWERS
Differentiate between operational effectiveness and strategic positioning - Answers - ---
operational effectiveness: performing the same tasks better than rivals perform them
---strategic positioning: performing different activities from those of rivals, or the same
activities in a different way.
Differentiate between competitive advantage and sustainable competitive advantage -
Answers - ---competitive advantage: a condition or circumstance that puts a company in
a favorable or superior business position.
---sustainable competitive advantage: financial performance that consistently
outperforms their industry peers
---Key to competitive advantage: Combining Big Data and Effective Analytics.
Understand the resource view of the firm concept - Answers - Resources:
• tangible and intangible assets of a firm
• used to conceive of and implement strategies
Capabilities:
• a subset of resources that enable a firm to take full advantage of other resources
Imitation-resistant value chain - Answers - Developed a way of doing business that
others will struggle to replicate, and in nearly every successful effort of this kind,
technology plays a key enabling role.
Resources for competitive advantage - Answers - ◦Valuable
◦Rare
◦not easily Imitated
◦Not easily Substitutable
Concept of switching costs - Answers - When consumers incur an expense to move
from one product or service to another.
Differentiation - Answers - Creating a unique experience for users
Networks effects - Answers - the value of a product or service increases as the number
of users grows.
Activities involved in Value Chain Analysis model - Answers - ◦inbound logistics - obtain
raw materials◦ Operations - transformation of inputs to finished goods
◦Outbound logistics - storing products and delivering them
◦Marketing/sales - establishing a customer need
◦Service activities - after-sale service and maintenance
, ---Support Activities: Value chain activities that an organization conducts to support the
creation of business value.
Competitive Forces model. - Answers - Objective - use this model to identify potential
areas where IT can be used to gain a competitive advantage.
Netflix and its use of technology - Answers - ---Straddling:When a firm attempts to
match the benefits of a successful position while maintaining its existing position
---Crowdsourcing:This is the act of taking a job traditionally performed by a designated
agent (usually an employee) and outsourcing it to an undefined generally large group of
people in the form of an open call.
---Churn rate:The rate at which customers leave a product or service
---Collaborative Filtering:A classification of software that monitors trends among
customers and uses this data to personalize an individual's customer's experience.
---Windowing:his is an industry practice whereby content (usually a motion picture) is
available to a given distribution channel for a specified time period or "window", usually
under a different revenue model
---Pure Play:A firm that focuses on a specific product, service or business mode.
---Long tail:Refers to an extremely large selection of content or products.
---Atoms to Bits:The idea that many media products are sold in containers (atoms) has
moved to bits (the ones and zeros that make up a video file, music, book).
---lots of data
Understand the concept of Network effects - Answers - ---Also known as Network
Externalities or Metcalfe's Law.
---Occur when the value of a product or service increases as its number of users grows.
Sources of value - Answers - 1.Exchange: Every product or service subject to network
effects fosters some kind of exchange
2.Staying Power: Networks with greater numbers of users suggest a stronger staying
power
3.Complementary Benefits: Products or services that add additional value to the primary
product or service that makes up a network
---Others: Switching Costs: The cost a consumer incurs when moving from one product
to another.
Web 2.0 - Answers - Internet services that foster collaboration and information sharing;
characteristics that distinctly set "___Web 2.0____________" efforts apart from the
static, transaction-oriented Web sites of "Web 1.0"
Peer Production - Answers - When users collaboratively work to create content,
products, and services
Crowdsourcing - Answers - where initially undefined groups of users band together to
solve problems, create code, and develop services, is a type of peer production
