BMGT 301 EXAM 1 UMD UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Sustainable Competitive Advantage
Answer:
Financial performance that consistently outperforms industry averages
Question:
2. Operational Effectiveness
Answer:
Performing the same tasks better than rivals perform them.
Question:
3. Fast Follower Exists when?
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.
Question:
4. Strategic Positioning
Answer:
Performing different tasks than rivals or the same tasks in a different way.
Question:
5. When a firm attempts to match the benefits of a success position while
maintaining its existing position.
Answer:
Straddling
Question:
6. True sustainable advantage comes from assets and
business models that are simultaneously (Resource-based
Theory):
Answer:
Valuable
Rare
Difficult to imitate
For which there are no substitutes.
,Question:
7. Powerful resources
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.
Question:
8. Technology can play a key role in creating and
reinforcing assets for sustainable advantage. This
includes:
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.
Question:
9. Transaction Processing Systems (TPS)
Answer:
Information Inputs: Transactions; daily events
Information Outputs: Detailed reports; lists; summaries
Users: Operations personnel; first-line supervisors
Question:
10. Management Information Systems (MIS)
Answer:
Information Inputs: Summary transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
, Question:
11. Decision Support Systems (DSS)
Answer:
Information Inputs: Optimized for data analysis, analytic models and data analysis
tools.
Information Outputs: Interactive; simulations; analysis
Users: Professionals, staff managers
Question:
12. Executive Support Systems (ESS)
Answer:
Information Inputs: Aggregate data; external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
Question:
13. Define and describe the value chain model.
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.
QUESTIONS AND CORRECT ANSWERS
Question:
1. Sustainable Competitive Advantage
Answer:
Financial performance that consistently outperforms industry averages
Question:
2. Operational Effectiveness
Answer:
Performing the same tasks better than rivals perform them.
Question:
3. Fast Follower Exists when?
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.
Question:
4. Strategic Positioning
Answer:
Performing different tasks than rivals or the same tasks in a different way.
Question:
5. When a firm attempts to match the benefits of a success position while
maintaining its existing position.
Answer:
Straddling
Question:
6. True sustainable advantage comes from assets and
business models that are simultaneously (Resource-based
Theory):
Answer:
Valuable
Rare
Difficult to imitate
For which there are no substitutes.
,Question:
7. Powerful resources
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.
Question:
8. Technology can play a key role in creating and
reinforcing assets for sustainable advantage. This
includes:
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.
Question:
9. Transaction Processing Systems (TPS)
Answer:
Information Inputs: Transactions; daily events
Information Outputs: Detailed reports; lists; summaries
Users: Operations personnel; first-line supervisors
Question:
10. Management Information Systems (MIS)
Answer:
Information Inputs: Summary transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
, Question:
11. Decision Support Systems (DSS)
Answer:
Information Inputs: Optimized for data analysis, analytic models and data analysis
tools.
Information Outputs: Interactive; simulations; analysis
Users: Professionals, staff managers
Question:
12. Executive Support Systems (ESS)
Answer:
Information Inputs: Aggregate data; external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
Question:
13. Define and describe the value chain model.
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.
