1) How does competitive strategy determine value chain structure? Define the terms value, margin, and value chain. Explain why orga-nizations that choose a differentiation strategy can use value to determine a limit on the amount of extra cost to pay for differenti-ation. Name the primary and support activities in the value chain and explain the purpose of each. Explain the concept of linkages.

2) How do business processes generate value? Define business process, cost, and margin as they pertain to business processes. Explain the purpose of an activity and describe types of repository. Explain the importance of business process redesign and describe the difference between the business processes.

3) How do information systems provide competitive advantages? List and briefly describe eight principles of competitive advantage. Consider your college bookstore. List one application of each of the eight principles. Strive to include examples that involve information systems.