Question ONE: True / False Questions (Circle the correct answer) 1 When an organization uses information technology to develop products, services and capabilities in order to gain a strategic advantage over competitive forces in the global marketplace, it is using information systems in a strategic role. True False 2. Competition is a negative characteristic in business that can require significant resources to overcome. True False 3. Most products and services have some sort of substitute available to the consumer True False In the Internet world, a firm's biggest competitor may be one that is not yet in the marketplace but could emerge almost overnight. True False 5. The threat of new entrants is often at its strongest during periods of rising costs or inflation True False 6. If a key supplier's bargaining power gets too strong, it can force the price of goods and services to unmanageably high levels. True False 7. An innovation strategy may allow a firm to focus its products or services and gain an advantage in a particular segment or niche of a market. True False 8. When a firm develops ways to differentiate its products from a competitor's, it is pursuing a cost leadership strategy. True False 9. When a firm uses IT to create virtual organizations of business partners, it is pursuing a growth strategy True False 10. A given activity can fall into one or more of the categories of competitive strategy True False 11. If an organization offers its online package tracking system in a manner that allows its customers to access shipment information not only via a computer, but via a mobile phone as well then such an action could fall into both the differentiation and innovation strategy categories True False 12. When a firm makes such radical changes to its business processes for producing products and services that it alters the fundamental structure of an industry, it is pursuing an innovation strategy True False