Question 1
pts
A high-level IS manager has his firm utilize sophisticated information systems to digitally design its
products so that design defects can be detected and removed early in the process, reducing development
cost. What business strategy does this represent?
high standards
cost leadership
differentiation
focus
Boeing employs sophisticated information systems that enable the digital
design of various aircraft-related systems. These systems allow early
detection and removal of design defects and reduce development cost and
time.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the same value as
competitors but at a lower price (cost leadership), (2) by charging higher prices for providing products
that are perceived by the customer as being better (differentiation), or (3) by understanding and servicing
a target market better than anyone else (focus). Boeing employs sophisticated information systems that
enable the digital design of various aircraft-related systems. These systems allow early detection and
removal of design defects and reduce development cost and time.
Question 2
pts
A senior IS manager decides to invest in an information system that will reduce subcontractor labor costs
for her organization by facilitating relocation of tools and materials to more optimal locations while
rearranging workflows. What business strategy does this represent?
high standards
cost leadership
differentiation
focus
Skanska USA, a construction firm, employs an information system to track
and analyze the movement and tasks of subcontractors on the job. With this
, system, Skanska can relocate tools and materials to more optimal locations
and rearrange workflows to speed up the building process and to reduce
labor costs.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the same value as
competitors but at a lower price (cost leadership), (2) by charging higher prices for providing products
that are perceived by the customer as being better (differentiation), or (3) by understanding and servicing
a target market better than anyone else (focus). Skanska USA, a construction firm, employs an
information system to track and analyze the movement and tasks of subcontractors on the job. With this
system, Skanska can relocate tools and materials to more optimal locations and rearrange workflows to
speed up the building process
and to reduce labor costs.
Question 3
pts
A senior IS manager implements a vendor-managed inventory system that reduces both the administrative
costs of managing inventory and inventory holding costs. What business strategy does this represent?
high standards
cost leadership
differentiation
focus
Walmart, well known for its cost leadership, employs a vendor-managed
inventory system to streamline product flow and better manage its store
inventories. This system reduces the administrative costs of managing
inventory, lowers inventory holding costs, and increases sales through
reductions of out-of-stock situations in its stores.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the same value as
competitors but at a lower price (cost leadership), (2) by charging higher prices for providing products
that are perceived by the customer as being better (differentiation), or (3) by understanding and servicing
a target market better than anyone else (focus). Walmart employs a vendor-managed inventory system to
streamline product flow and better manage its store inventories. This system reduces the administrative
costs of managing inventory, lowers inventory holding costs, and increases sales through reductions of
out-of-stock situations in its stores.
Question 4
pts
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Timeless2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
