ISA EXAM 1 Extension Study Guide PDF

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Exam One extension study guide for all sections...

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ISA EXAM 1 Extension Study Guide This Could Happen to You ● The industry + competitive strategy was being changed which in turn caused need for

Q2: What give forces determine industry structure? ● Porter developed the 5 Forces Model to help organizations determine the potential profitability of an industry o Is now used as a way to formulate competitive strategy o Grouped into two types: i. Competitive Forces 1. Competition from vendors of substitutes 2. Competition from new competitors 3. Competition from existing rivals ii. Forces Related to Supply Chain Bargaining Power 1. Bargaining power of customers a. Have more bargaining power if there is more options for suppliers 2. Bargaining power of suppliers a. Have more bargaining power if there is other competition of suppliers Industry Structure → -

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Bargaining power of suppliers Threat of substitutes Bargaining power of suppliers Threat of new entrants Rivalry

Competitive Strategy → Lowest cost across the industry

Better product/service across the industry

Lowest cost within an industry segment

Better product/service within an industry segment

Value Chain →

Business Processes →

Information Systems -Hardware -Software -Data -Procedures -People

● Companies do not typically do things in this order, which is why this is an “ought” model

Q3: What is competitive strategy?

4 Fundamental Competitive Strategies

Cost Differentiation Industry Wide Lowest cost across the industry Better product/service across the industry -Usually larger company -Usually larger company Focus Lowest cost within an industry Better product/service within segment an industry segment - Usually smaller company

-Usually smaller company

● Focus strategies by finding a niche market/need ● In order for any of these to be successful, 1) culture 2) objectives 3) activities must be in sync with the strategy.

Q4: How does competitive strategy determine value chain structure?

Cost Strategies Differentiation Strategies

Structure for essential functions at lowest possible cost More costly systems, as long as their investments to differentiate are benefiting the strategy

Value: Amount of money that a customer is wiling to pay for a resource, product, or service Margin: The difference between the value that an activity creates and the cost of the activity. Should be positive or shouldn’t be a step. Value Chain: A network of value-creating activities. Primary Value Activities: Business functions that are linked directly to production of the organizations product or services 1. Inbound Logistics-Receiving, storing and dissenting inputs to the product. 2. Operations – Transforming inputs into the final product. 3. Outbound Logistics- Collecting, storing and distributing products 4. Sales and Marketing- Induce buyers to purchase the product or service 5. Customer Service- Assist customers use of the products Support Activities: Business functions that assist and facilitate the primary activities. 1. Procurement- Manage Supplier Relationships 2. Technology- Investigate New Designs 3. Human Resources- Hire & Support Employees 4. Firm Infrastructure- Manage Company Resources

Value Chain Linkages ● Interactions across value activities o Used to reduce inventory costs ▪ By better planning production o In service oriented companies it is generated by operations, marketing and sales o In product oriented companies it is generated through manufacturing Rival: So similar that they can be switched out interchangeably Substitute: Similar enough that they satisfy the same needs but they are still different products ***Insert model from slide show Principals of Competitive Advantage ● Product Implementations 1. Create a new product or service 2. Enhance products or services 3. Differentiate products or services ● Process Implementations 1. Lock in customers or buyers a. Can be done through contracts (with a switching cost penalty) 2. Lock in suppliers 3. Raise barriers to market entry a. Invest in capital that allows you to make the product more cheaply than others so they cannot enter (would also be differentiating it) 4. Establish alliances a. Linking to other organizations 5. Reduce costs a. Price must also change b. Quality must remain the same c. Typically good when you are competing based on price

Chapter 5 The difference between Excel and a database Database - Used when there are multiple themes - Used when you have to link columns/

Both -

Powerful Easy to

Excel - Not easy to link columns and tables

-

tables together Can easily queries

use

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The Database Hierarchy*

Records or Rows Fields or Columns Bytes/ Bytes/ Character Character

Table or File Records or Rows Fields or Columns Bytes/ Bytes/ Character Character

Records or Rows Fields or Columns Bytes/ Bytes/ Character Character

What is contained in a database?

Multipl e tables (one for each theme)

Relational Database: Made to keep track of things Relationships among rows and tables Metadata - Values in one table relate to a record of - Describes the structure of the another table database and its data through - Primary Key: Uniquely identifies a record o Data type: text, number, in a table date o Each table must have one o Field name - Foreign Key: A non-primary key in one o Field properties* table is related to a primary key of a - “ Data that describes data” different table o Makes the database easier - A primary key in one table can becomes a to use foreign key in another table

User

Database Application System Database Database Mgm. Database Application System Forms: Search A software program based upon data with 3 functions Tables provided by the user Reports: Present Create a database Relationships among rows and data using sorting, tables filtering, and

grouping Queries: Searched based on data provided by user

Applications: Intermediate between the user and the database

Process 1. Read 2. Insert 3. Modify 4. Delete

Meta-data

Administer

How to Design Database 1. Determine the necessary tables (files) (themes) 2. Determine which fields (columns) for the records in each table a. Only one value for per field 3. Determine primary keys for records in each table 4. Determine relationships between records in the table 5. Normalize the database a. Repeat steps 1-4 until there is no redundancy (everything is only stored once)

SQL- The basis for Exercise 2 SELECT column1 [, column2] FROM table1 [JOIN table 2 ON table1.fieldq=table2.fieldr] [JOIN table3 ON table2.fieldx=table3.fieldy) etc. [WHERE “conditions”] [GROUP BY ‘column-list’} {ORDER BY ‘column list” [ASC | DESC]] SELECT lastname FROM Customers [JOIN Order ON customers.customerID=Order.customerid] [WHERE customers.customerID= ‘0712’ SELECT ProductName FROM Products JOIN Customers ON order.orderid=customer.orderid [JOIN OrderDetails ON Orders.OrderId=orderdetails.orderid JOIN Products ON products.productid=orderdetails.productid

[WHERE Orderid= ‘2015’

Chapter 6: TQ: What is the cloud? The *elastic leasing of pooled computer resources over the internet. Flexibility for unpredictable demand while limited financial risks TQ: All IP Adresses contain 4 numbers- 0-256 options = A large number but not large enough...