Primary activities are activities where value is added directly to the product. (T/F) - correct answer T
The increasing reliance on the web for information has created a digital divide between those who have Internet access and those who do not. (T/F) - corre...
Primary activities are activities where value is added directly to the product. (T/F) - correct answer
T
The increasing reliance on the web for information has created a digital divide between those who have
Internet access and those who do not. (T/F) - correct answer T
Threat of government regulation is one of the five forces in Porter's model. (T/F) - correct answer
F
Sustaining technologies are changes in technology that maintain the rate of improvement in customer
value. (T/F) - correct answer T
Disruptive technologies introduce a very new package of attributes to the accepted mainstream
products. (T/F) - correct answer T
An organization responds to the structure of its industry by choosing a competitive strategy. (T/F) -
correct answer T
The productivity paradox suggests IT investments do not create business value. (T/F) - correct answer
T
A value chain is a network of activities that improve the effectiveness of a good or service. (T/F) - correct
answer T
Porter's concept of a value chain is crucial for developing a competitive strategy. (T/F) - correct answer
F
As defined by Porter, a value chain is a network of value-creating activities. (T/F) - correct answer
T
,Sales and service would be examples of supporting activities in Porter's value chain model. (T/F) - correct
answer F
Accounting functions like accounts receivables would be an example of a supporting activity in Porter's
value chain model. (T/F) - correct answer T
An organization's goals and objectives are determined by the structure of its value chain.
(T/F) - correct answer F
One way of assessing the structure of the adventure travel industry is to apply Porter's five forces
model. - correct answer T
In a large city, the threat of new entrants for the sandwich shop business is probably high. - correct
answer T
Among its suppliers, Walmart is famous for not having much bargaining power. (T/F) - correct answer
F
Porter identified five fundamental competitive strategies. (T/F) - correct answer F
According to Porter's model, four competitive forces determine industry profitability. (T/F) - correct
answer F
The bargaining power of customers is one of the competitive forces identified by Porter. (T/F) - correct
answer T
The bargaining power of customers is one of the competitive strategies identified by Porter. (T/F) -
correct answer F
Some competitive advantages are less sustainable than others. (T/F) - correct answer
T
, The systems chosen to support a particular competitive strategy may be evaluated according to the
support they give that strategy. (T/F) - correct answer T
A call centre used for customer service would be an example of a support activity in the value chain.
(T/F) - correct answer F
In Porter's five forces model, the linkages depict how competitive forces are deployed in an
organization. (T/F) - correct answer F
Switching costs are those associated with network switches. (T/F) - correct answer F
An information system that allows suppliers to view a company's inventory in real-time would provide a
competitive advantage due to product differentiation. (T/F) - correct answer F
General Motors' OnStar system was developed so that car drivers could easily get help in emergency
situations. This would be an example of an information system being used to differentiate a product.
(T/F) - correct answer T
Which of the following is an example of a primary activity in a value chain?
A) A manager preparing a production schedule
B) A CFO preparing a budget
C) An accountant preparing an income statement
D) A computer technician backing up a file server
E) A worker spray painting a car - correct answer E
A primary activity in a value chain is best described as
A) an activity that uses only raw materials.
B) an activity that involves customer service and sales.
C) an activity that requires the use of information systems.
D) an activity which value is directly added to a product.
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 RealGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
