Multiple Choice
1. Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as: a) Co-opetition b) Strategic alliance c) Competition d) Collaboration e) Business strategy
Ans: a (Medium)
Response: See page 65
2. While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk? a) Awaking a sleeping giant b) Implementing IS poorly c) Demonstrating bad timing d) Running afoul of the law e) Mobile-based alternative removes advantages
Ans: b (Medium)
Response: See page 67
3. Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as:
a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition
Ans: a (Medium)
Response: See page 64
4. The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition
Ans: a (Medium)
Response: See page 64
5. Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter 's 5 competitive forces?
a) Bargaining power of