CHAPTER 3 1) An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. FALSE Diff: 3 Page Ref: 86 AACSB: Reflective thinking skills CASE: Content Objective: 3.1 2) From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor. TRUE Diff: 3 Page Ref: 87 AACSB: Use of information technology CASE: Content Objective: 3.1 3) One type of competitive advantage Amazon was able to implement in selling books over the Internet was that of being a new market entrant. TRUE Diff: 3 Page Ref: 95 AACSB: Analytic skills CASE: Analysis Objective: 3.2 4) A firm can …show more content…
FALSE Diff: 2 Page Ref: 107 AACSB: Reflective thinking skills CASE: Content Objective: 3.4 20) The use of Internet technologies allows companies to more easily sustain competitive advantage. FALSE Diff: 3 Page Ref: 109 AACSB: Use of information technology CASE: Content Objective: 3.5 21) As discussed in the chapter opening case, which of the four generic strategies to combat competitive forces formed the basis of e-Bay 's growth strategy? A) low-cost leadership B) focus on market niche C) customer and supplier intimacy D) product differentiation Diff: 2 Page Ref: 77, 97 AACSB: Analytic skills CASE: Analysis Objective: 3.2 22) Which of the following would NOT be considered a disruptive technology? A) instant messaging B) e-mail C) Internet telephony D) PCs Register to View AnswerDiff: 3 Page Ref: 84-85 AACSB: Analytic skills CASE: Analysis Objective: 3.1 4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 23) The interaction between information systems and organizations is A) primarily guided by the decision making of middle- and senior-managers. B) a complex, two-way relationship mediated by factors such as the environment and organizational structure. C) driven by the microeconomic forces of capital and labor. D) successfully managed when the organization 's existing culture and goals are seen as the driving force. Register to View AnswerDiff: 2 Page Ref: 79 AACSB: Use of information technology CASE: Content
Also information systems assist with making decisions and business processes by formulating strategic plans and make decisions for the organisation longevity and prosperity. Additionally information systems add controls to employee processes, ensuring
Information systems interact with the organizations and influences the organization in many aspects of the whole organizational structure to the daily behavior. Information systems can enable strategies in four aspects including low-cost leadership, product differentiation, focus on market value and strengthen customer and supplier intimacy.
Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.
1. This strategy can provide customer with more choices and attract new customers to Amazon’s online retailing, through which Amazon’s customer base is spreading. Amazon originally only sold books, but now it also sells Kindle, MP3 and so on.
Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.
As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).
Strategic recomendation on International Commercial Strategy for E-Bay: “Alliance, Acquisition or Abandon Strategy” (use QSPM to select strategy) 20%
The company has made use of Integration strategy and forward integration with the aim to promote its products and services. The concept of forward vertical integration strategy helped Amazon to gain control over distribution and free shipping transportation for most of its products. However, the concept was changed and replaced with the backward vertical integration when Amazon's product named Kindle was manufactured as eBook reader. The company made use of all the available resources in an efficient way to benefit its financial performance (Frey & Cook, 2004).
An information system is a base in today’s business world. Everything is electronic. In various businesses, the survival and ability to succeed strategic business goals is challenging without extensive use of information system. Businesses improve the efficiency of their operations in order to accomplish higher profitablity. Besides that, information systems are important tools available to managers for achieving higher levels of efficiency and productiviy in business operations. For an example, Zara uses the PDA technology to gather customer feedback and input.
CHANGE is the only constant in the relationship between information systems and organizations. As technology evolves and changes, its introduction into organizations requires changes in the firm 's infrastructure and the services it can provide to its employees, customers, and suppliers.
Amazon is a company that sells many open product categories online by allowing customers to take the time to search and shop through the product offerings. Many product categories that are offered on Amazon may include device accessories, kindle devices, beauty, books, electronics, health & personal care, etc. The foremost product category that can offer the greatest advantage compared with a retail store chain is most definitely the books category. Reason to this is that the company has expanded the customer’s online shopping experience by offering such a wide range of physical and electronic books, depending on the preference of the customers. They are able to search for the top-rated selling
Amazon is a relatively small player in the bookstore industry, and its main competitors are Barnes & Noble and Borders. Despite the difference in scale, the company shows great promise, because its business model overcomes many of the competitors’ drawbacks.
Amazon¡¦s idea of selling books online on such a grand scale, though, has brought online retailing to a new level. Following is a look at Amazon¡¦s online retail process and how information systems played a role in the overall process.
1. Analyze the marketing environment and the forces shaping eBay’s business over the years. What conclusions can you draw?