Exam (elaborations)
Organizational Strategy and information Systems
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- Wastewater B Test .
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- Wastewater B Test .
Organizational Strategy and information Systems
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Organizational Strategy and informationSystems
Organisational Strategy - correct answer-Organisational strategy is the alignment of a
company's planning, decisions, and actions to enable it to reach its goals, mission, and
objectives.
Organisations create information systems for what two purposes: - correct answer-1.To
obtain its goals, objectives, or mission
2.To solve a major problem or meet a challenge
Michael Porter - correct answer-one of the foremost developers of modern management
techniques, has developed three distinct management models that many organizations use
to refine their strategies. These models enable an organization to align its information
systems to help implement its strategy.
Michael Porter created which three models - correct answer-1.The Five Forces Industry
Analysis
2.The Generic Strategies
3.The Value Chain
Michael Porter's Five Forces Industry Analysis model seeks to - correct answer-analyze the
forces that exist in the industry of which a business is a part. There are three main reasons
for using this model: (1) to better understand the industry in which it competes, (2) to
determine how attractive it is to start a business in a given industry, and (3) to determine how
to conduct a successful business in a given industry.
Porter's Five Forces are - correct answer-1.Rivalry
2.Threat of substitutes
3.Customer bargaining power
4.Supplier power
5.Threat of new entrants
Rivalry - correct answer-competition in industries.
Threat of subsitues - correct answer-are products in another industry that could be
substituted for the products in the industry being studied. The force (threat) is intense when
close substitutes can constrain the ability of a firm to raise prices, or when the demand for a
product can be affected by a change in the price of a substitute.
Threat of substitutes is determined by these factors:
Customer loyalty to certain brands
Good customer relationships
Current trends and fashions
Price of the substitute in relation to the performance of the substitute
, Customer bargaining power - correct answer-the influence that customers can exert on an
industry. If the force of customer bargaining is strong, it restricts the ability of firms operating
in that industry to raise prices without losing customers. This is especially true if the
customers have many options from which to choose, or locations from which to buy, a given
product.
Supplier Power - correct answer-is the influence an industry's suppliers can exert on that
industry. For instance, if a supplier can lower the quality of its products, reduce services, or
raise prices without losing customers, it exerts a high level of power on the industry.
Threat of new entrants - correct answer-refers to how difficult it is to enter an industry. The
force is considered intense if it is easy to enter an industry because this increases
competition and makes it more difficult to retain market shares. The more barriers to entry,
the more benign this force because the barriers keep new entrants out.
The threat of new entrants force is low (meaning it is difficult to enter an industry) when: -
correct answer-1.There is patented or protected knowledge
2. Brand switching is difficult
3. There are restricted distribution channels
4. Entry and exit costs are high
Threat of substitutes is determined by these factors: - correct answer-1.Customer loyalty to
certain brands
2.Good customer relationships
3.Current trends and fashions
4. Price of the substitute in relation to the performance 5.of the substitute
A firm raising or lowering its prices and making its products unique, developing innovative
channels of distribution, or exploiting relationships with suppliers can result in - correct
answer-rivalry
Products in another industry that could be used in place of products in the industry being
studied are known as - correct answer-substitutes
If the force is intense for _________ it restricts the ability of firms operating in that industry to
raise prices without losing customers. - correct answer-customer bargaining power
Raised prices of products sold to capture a portion of a hot market is often a result of -
correct answer-supplier power
The is considered intense if it is easy to enter an industry because this increases competition
and makes it more difficult to retain market shares. - correct answer-threat of new entrants
Porter's Generic Strategies - correct answer-In this case, the term generic means that these
strategies are not industry-specific. Unlike Porter's Five Forces, which are applied to the
industry as a whole, Porter's Generic Strategies are applied at the business-unit level.
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