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Chapter 10 Exercises

Chapter 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Principles of MIS

© 2008 by Jerry Post
  1. Consider a small service firm such as a physician, dentist, accountant, or lawyer. Is it possible for such an office to use computers to gain a competitive advantage? To start, identify the customers, suppliers, and rivals. Do you think the “natural” switching costs are high or low; that is, how often do customers switch to competitors? Which of the major techniques do you think would be the most successful (barriers to entry, switching costs, quality control, lower prices, ties to customers or suppliers, etc.)?
  2. How long can firms maintain an advantage using an information system? Research one of the classic cases and find out how long it took for the competitors to implement a similar information system (for example, Merrill Lynch and its Cash Management Account, American Airlines and the Sabre System, Levi-Strauss and its Levi-Link ordering system, or Federal Express and its tracking system). Find out when the system was implemented, identify the competitors, and find out when they implemented similar systems. Did the original company continue to update its strategy? Collect data on sales and profits for the firms to see whether there were major changes.
  3. Pick an industry. Find two firms in the industry—one a technology leader, the other a follower. Get the financial information on those firms for the last five years. Find analyst summaries of their operations. Compare the two firms. Are there differences in finances, operating methods, or customers?
  4. Choose an area of management, such as marketing, manufacturing, or logistics. Find an example of a firm that you believe is doing a good job applying IT in this area. Briefly explain how this usage could provide strategic benefits to the firm.
  5. Choose one of the IS techniques to gain a competitive advantage. Identify a firm (not one of the examples in the chapter) that is using that method. Briefly describe the financial position of the firm and how it is using information systems.
  6. For each of the following pairs of companies, identify the industry and specify the company that is perceived as the leader and the one that is the follower.
    1. Microsoft, Google
    2. Boeing, Airbus
    3. Citigroup, Bank of America
    4. General Motors, Toyota
    5. Hewlett-Packard, Dell
    6. UPS, FedEx
    7. Nokia, Samsung
    8. PepsiCo, Coke
    9. McDonald’s, CKE Restaurants
    10. American Airlines, Southwest Airlines
  7. Has the Internet changed the distribution of songs? In particular, is it easier or harder for small labels and independent groups to get their music heard and sold to consumers?

    8. Toolbox logoTechnology Toolbox

  8. Using a GIS tool, compare the sales for Rolling Thunder Bicycles against population and income.
  9. As a team assignment, interview as many students as possible to obtain their home Zip codes (or try to obtain the data from your institutional research office). Store the data in a spreadsheet or DBMS by ZIP Code. Use a GIS to display the data.
  10. Create sample sales data by state. Use a GIS tool to compare the sales against population and income.
  11. Choose a company case at the end of one of the chapters in this book. Perform an initial business analysis of the company. Focus on identifying the major problems faced by the company and the cause of those problems. Identify the primary level of the problem (operations, tactics, or strategies).
  12. Select a company in the Fortune 500 (or Global 1000). Get some basic background information on the company and read its latest annual report. Using Porter’s framework, identify its primary rivals and the level of rivalry. If they exist, identify major customers and suppliers and discuss the sales methods used by the organization. Discuss any potential competitors or substitute products that might arise in the near future. Describe any barriers to entry that might keep them out.

    13. Teamwork logoTeamwork

  13. Each team member should read through at least two industry cases in the chapters of this book. Identify whether the firm is a leader or a follower in terms of strategy and technology. Compare each firm’s financial data to that of the industry (for example, by sales and number of employees). Combine the individual analyses and summarize them. Identify any patterns you might see. For example, do the larger firms tend to be leaders or followers in technology?
  14. Choose a firm that provides reasonable amounts of management information (such as a local firm or a well-documented public firm). Have each team member choose one area (research, engineering, marketing, and so on). Identify the strengths of the firm in the area. Create a short plan to improve the company’s use of IT within that area. Make sure the usage fits with the overall strategy of the company.
  15. Choose an industry. Assign each team member to investigate a level within the production chain. Each person should identify the tasks that occur at the specified level along with the major firms. Identify the rivalry and any dominant firms at each level. Identify the use of IT at each level and any ties across levels. Combine the results and briefly discuss where on the chain you would prefer to enter as a new firm.
  16. Choose a large firm (perhaps an automobile manufacturer). Use the annual report to identify the financial condition of the firm. Use the management letter to identify the basic strategies of the firm. Identify the firm’s primary competitors. If possible (try searching MIS magazine Web sites), identify the technology level used in the company.
  17. Research the rivalry and strategies being pursued by NetFlix and Blockbuster Video. Look at market share and service plans and pricing. What are the short-run and long-run strategies of each company? Is one firm stronger than the other?
  18. Where do people learn about new music? Interview at least 30 people not in your class to find out where they first heard about a song they recently purchased or downloaded. Also ask if they paid for the song, and how much they paid. Combine your results into a report outlining the strategy a new record label should take.

    19. Rolling Thunder Bicycles logoRolling Thunder Database

  19. Identify the competition in the industry. Who are existing rivals? Who are potential rivals? Be sure to define the industry carefully. Consider using North American Industrial Classification System (NAICS) codes.
  20. Perform a value chain analysis of the company. Could they improve profits by expanding vertically or horizontally? Are there additional products we should consider offering?
  21. The management has the opportunity to purchase a chain of retail bicycle stores. Evaluate the strategic aspects of this proposed acquisition. What will be the effect on the information systems? Can the existing information system be used to improve the operations of the retail stores? What additions and improvements would be needed?
  22. Is there any way to increase ties to the customers using technology to gain a competitive advantage?
  23. Examine the value chain in the bicycle industry. How many levels are there and which levels are the most profitable?
  24. A key element in the bicycle industry is that sales are driven by the popularity of the sport, which in turn is influenced by demographics. Consequently, sales can decline over time or suddenly expand for particular bicycle models. How can a manufacturer like Rolling Thunder Bicycles strategically deal with these issues?
  25. Use Porter’s Five Forces model to examine Rolling Thunder Bicycles relationships and long-term strategic potential.