OIM 210 EXAM 1 STUDY GUIDE
Components of an information system - Answer -hardware
software
data
procedures
people
cant be bought or sold & specific to company
Sustainable competetive advantage - Answer -financial performance that consistently
outperforms industry peers
two approaches companies can compete on - Answer -operational effectiveness
strategic positioning
operation effectiveness - Answer -performing the SAME tasks better than your rivals
(often leads to price differences-> product becomes a commodity-> bad)
example of operation effectiveness - Answer -Fed Ex vs. UPS
strategic positioning - Answer -performing DIFFERENT tasks than your rivals, or
performing the same tasks in a different way
example of strategic positioning - Answer -fresh direct vs. grocery stores
size based advantage - Answer -larger companies can get things for less money than
unknown/small companies
example of size based advantage - Answer -Walmart vs. fresh direct
fresh direct - Answer -1 facility
low labor costs
low energy
less waste
every 2 days they sell out their entire inventory
inventory turns - Answer -the number of times inventory is sold or used during a given
period
higher= more profit
assets that yield sustainable advantage - Answer -rare
value
imperfectly imitable (cant be imitated)
non-substitutable
Components of an information system - Answer -hardware
software
data
procedures
people
cant be bought or sold & specific to company
Sustainable competetive advantage - Answer -financial performance that consistently
outperforms industry peers
two approaches companies can compete on - Answer -operational effectiveness
strategic positioning
operation effectiveness - Answer -performing the SAME tasks better than your rivals
(often leads to price differences-> product becomes a commodity-> bad)
example of operation effectiveness - Answer -Fed Ex vs. UPS
strategic positioning - Answer -performing DIFFERENT tasks than your rivals, or
performing the same tasks in a different way
example of strategic positioning - Answer -fresh direct vs. grocery stores
size based advantage - Answer -larger companies can get things for less money than
unknown/small companies
example of size based advantage - Answer -Walmart vs. fresh direct
fresh direct - Answer -1 facility
low labor costs
low energy
less waste
every 2 days they sell out their entire inventory
inventory turns - Answer -the number of times inventory is sold or used during a given
period
higher= more profit
assets that yield sustainable advantage - Answer -rare
value
imperfectly imitable (cant be imitated)
non-substitutable
