1. What is the difference between the primary activities and the supporting activities in Porter’s Value Chain Model? (10 points)
Primary activities relate directly to the production and distribution of the firms products and services, while Support activities do not add value to the products and services of the firm, instead they contribute to the firms competitive advantage by supporting Primary activities. Following are some examples of both activities: Primary activities
Inbound logistics
Operations
Outbound logistics
Marketing and Sales
Services
Support activities
Administration and Management
Human resources
Product and technology development
Procurement
2. Explain - Give examples. (20 points)
a. How information technology can be a substitute product. (10 points)
The term substitute is pretty self explanatory, when a product has other substitute products being offered by industry. Substitute products are bad for business.
Information technology can substitute products in industries where material goods can be replaced by digitized information e.g. music, books and software
b. How IT can increase barrier to entry. (10 points)
Information Technology can create barriers of entry if an organization in any industry provides a service that improves the customer experience, this service is then expected from all organizations in that industry. . A competing organization now must provide that service in order to survive e.g. a car company giving backup camera, the organization that first provided this service gained first-move advantage.
3. Why should information security be a prime concern to management? (10 points)
Information security