BMGT 301 EXAM 1 UMD QUESTIONS
WITH CORRECT ANSWERS
Sustainable Competitive Advantage - Answer-Financial performance that consistently
outperforms industry averages
Operational Effectiveness - Answer-Performing the same tasks better than rivals
perform them.
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.
Strategic Positioning - Answer-Performing different tasks than rivals or the same tasks
in a different way.
Straddling - 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): - Answer-Valuable
Rare
Difficult to imitate
For which there are no substitutes.
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.
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.
Management Information Systems (MIS) - Answer-Information Inputs: Summary
transaction data; high-volume data; simple models
Information Outputs: Summary and exception reports
Users: Middle managers
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
Executive Support Systems (ESS) - Answer-Information Inputs: Aggregate data;
external, internal
Information Outputs: Projections; responses to queries
Users: Senior managers
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.
Explain how the value chain model can be used to identify opportunities for information
systems. - Answer----can be used at each stage of the value chain to improve
operational efficiency, lower costs, improve profit margins, and forge a closer
relationship with customers and suppliers
---help examine how value-adding activities are performed at each stage of the value
chain.
---can improve the relationship with customers (customer relationship management
systems) and with suppliers (supply chain management systems) who may be outside
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