VSB2006: Example Mid-Term Exam Multiple Choice Questions

1. ______ was formed between Apple, maker of consumer electronics, and Nike, known for athletic footwear. This interorganizational relationship provided a unique product, the Nike+iPod Sports Kit which enables runners to synchronize and monitor their runs with iTunes and the Nike+ website. a. A value alliance

b. A switching cost

c. A competitive alliance

d. An intra-organizational alliance

e. A co-opetition alliance

VSB2006: Example Mid-Term Exam Multiple Choice Questions

2. In the PC maker industry, manufacturer Dell purchases the Windows OS (operating system) from Microsoft. Microsoft raised the price of its OS, which will decrease the profitability of Dell because the PC market is fierce and customers frequently purchase PCs based on price. According to Porter’s five competitive forces model, Dell is experiencing: 

a. Potential threat of new entrants

b. Bargaining power of buyers

c. Bargaining power of suppliers

d. Threat of substitute products

e. Industry competitors

VSB2006: Example Mid-Term Exam Multiple Choice Questions

3. Which of the following are IT assets?

a. SharePoint skills

b. Technical skills

c. IT management skills

d. All of the above

e. None of the above

VSB2006: Example Mid-Term Exam Multiple Choice Questions

4. The digitization of music opened a new market for Apple’s iPod while destroying the market for Sony's Walkman. Digital music is:

a. a disruptive technology

b. a sustaining technology

c. a product differentiator

d. All of the above

e. A and B only

VSB2006: Example Mid-Term Exam Multiple Choice Questions

5. Acme Foods of Canton, OH is a seller of unique ginger snap cookies made with real dried ginger root. The cookies are sold internationally. Which one of Porter's Generic Strategies is most applicable to Acme in seeking a competitive advantage?

a. Broad cost leadership strategy

b. Focused cost leadership strategy

c. Broad differentiation strategy

d. Focused differentiation strategy

VSB2006: Example Mid-Term Exam Multiple Choice Questions

6. Technology guru Tim O'Reilly said this about the publishing industry: "To adapt, publishers need to cannibalize their own business, experimenting with new forms, new formats, and new business models." This statement is consistent with:

a. Generic frameworkb. Focus strategyc. Hypercompetitiond. Direct strategye. Porter’s generic strategies 

VSB2006: Example Mid-Term Exam Multiple Choice Questions

7. Users of the Garmin nüvi, a global positioning system (GPS), formed their own social media community. Some members brag about creating their own points of interest (POI) which they add to Garmin maps. Members vote for their favorite user-generated custom POI. In response Garmin added POIs to their product line. This is an example of which social business opportunity:

a. Collaborationb. Engagementc. Innovationd. Direct strategye. In-group collectivism