Florida International University

BUS 4602

Chapter 2: The Internet Value Chain

MULTIPLE CHOICE

1)One of the ways in which the Internet is changing business is:

1. increasing the reliance on hierarchical organizations.
2. making market share less important.
3. increasing the need for speed and agility.

2. Herman Miller realized                              as a benefit of its value chain improvements.

1. ability to maintain a larger inventory of finished products
2. decrease in turnover of inventory
3. improvement in the time it takes to deliver an order to a customer

3. Two concepts Herman Miller employed as part of its ongoing process of value chain improvement are:

1. Six Sigma and Performance Reporting.
2. Greening and Lean Thinking.
3. EDI and Inventory Management.

4. The value chain incorporates:

1. distinct divisions between entities in the supply chain.
2. the concept of vertical integration.
3. channels of distribution that reach the ultimate customer.

5. A phrase that describes value chains is:

1. seamless end-to-end integration throughout the channel of distribution.
2. the discrete activities that make up channels of distribution.
3. well-managed logistics activities.

6. The core processes of marketing include:

1. 1. supply chain management.
   2. order processing and inventory management.
   3. customer communications.

7. Outcomes-driven supply chains should be recognized as:

1. one means of achieving business profitability.
2. the result of automated marketing processes.
3. a revolutionary change in the way supply chains are managed.

8.         is one criterion for a successful supply chain.

1. Changing the way middlemen are compensated
2. Responsiveness to changes in customer demands
3. Eliminating expensive security practices      

9. Supply chain transparency might include:

1. revealing all the costs involved in distribution.
2. meeting all relevant governmental regulations.
3. assuring customers that products are made and transported in ways that correspond with their values.

10.         is an element of the supply chain management process.

1. Managing multiple channels of distribution
2. Establishing policies for environmentally-friendly procurement
3. Acquiring new customers      

11. Zara is successful in the highly competitive fashion industry because:

1. it is able to get what fashion consumers want into stores quickly.
2. it relies on formal surveys of consumers to judge what will be popular next season.
3. it outsources production to low-wage countries.

12. Del promotes customer loyalty by:

1. soliciting their input in social medi

2. frequent telephone calls.
3. comprehensive satisfaction surveys every business quarter.

13.                      is the term used to describe information systems that provide a complete picture of a supply chain

1. Integration
2. Mirroring
3. Automation

14. Over the years FedEx has enhanced customer value by:

1. giving customers tools to track their own shipments.
2. giving customers tools to activate FedEx Office orders.
3. both of the above.

15. The marketing concept of service-dominated logic includes which of the following concepts?

1. Services are a key component of modern economic systems.
2. Customers are always co-creators of value.
3. Neither of the above.

16. Which of the following is not an example of an integration process used in the creation of virtual value chains?

1. EDI
2. ML
3. Web Services

17. The term “Web Services” in value chains describes:

1. business applications on the Internet that allow suppliers and customers to work together.
2. software applications that are purchased from well-known software suppliers.
3. automated systems integrations applications.

18. Firms like Amazon and eBay use APIs to:

1. encourage other businesses to link to the firm’s site and sell their products there.
2. enable programmers to create software solutions that incorporate their technology.
3. both of the above.

19.         is a term that is descriptive of Cloud Computing:

1. Secure websites
2. SaaS
3. Service contracts

20. RFID tags:

1. use existing bar code technology to track products.
2. allow product codes to be read without passing over a scanner screen.
3. can only be used on physical product packages.

21. The benefits of business integration include:

1. use existing bar code technology to track products.
2. allow product codes to be read without passing over a scanner screen.
3. can only be used on physical product packages.

TRUE/FALSE

1. Greening its supply chain has allowed Herman Miller to make products that are mostly recyclable.

2. The value chain refers to the various suppliers a producer utilizes to procure products or services.

3. Supply chain management is one of the core marketing processes.

4. Transaction costs can be minimized while maintaining customer service in an outcomes-driven supply chain.

5. Dell’s business has unique characteristics that make it impossible for other businesses to use value chain techniques Dell has pioneered.

6. Transaction costs are part of a value chain but costs of finding information are not.

7. Social media tools like blogs and community forums can be useful in communicating with business customers in a value chain.

8. The first step in creating a virtual value chain is to create visibility, which can be defined as the ability for customers to see into inventory systems.

9. The value a customer perceives in a product or service is largely determined by its

price.

10. Among the benefits of integrated value chains are customer focus and resulting opportunity to create specialized value propositions for customer segments.

11. Electronic Data Interchange is an integration process that is relatively easy for enterprises large and small to implement.

12. Enterprise Resource Planning is used to integrate business processes including, but not limited to, marketing-related processes across the enterprise.

13. Web Services can be provided “in the cloud.”                
14. RFID is a 21^st century technology that is destined to revolutionalize supply chains.

15. Technology will provide the ultimate solution for efficiently-functioning supply chains.