IE349 – Final Exam Student Name_______________________ IE349 Enabling Competitive Advantage through Information Technology Final Exam – Fall 2012 Please answer the following questions in short-essay form. Please use concrete examples to support your answer. Also, please read ALL of the questions BEFORE you begin to answer, because you should not use the same case study to answer multiple questions (the only exception being Question 7 [extra credit]. If you need additional space to answer a particular question, please ask for additional blank paper. 1. Pick one of the case studies from the course that demonstrates the concept of competitive advantage through IT (25 points) a. Describe the state of competition before the investment in IT b. Describe the investment in IT (what did the company do) c. Describe the results on the company's competitive advantage d. Infrastructural or proprietary (explain your answer) 1 IE349 – Final Exam Student Name_______________________ Question 1 (continued space for answering) 2 IE349 – Final Exam Student Name_______________________ 2. What were the main obstacles that Billy Bean of the Oakland A's faced in implementing the statistics-based approach to managing the team? How did he overcome these obstacles? (15 points) 3 IE349 – Final Exam Student Name_______________________ 3. Describe the concept of “Network Effect”: What is it? How does it create competitive advantage? Please use a concrete example to explain your answer (15 points) 4 IE349 – Final Exam Student Name_______________________ 4. In 2011, Facebook considered two avenues for revenue growth. Briefly describe the two strategies, and then pick which one you think will provide the best opportunity for growth gained by competitive advantage. Please support your answer by explaining why and how your chosen strategy will deliver competitive advantage and revenue growth (15 points) 5 IE349 – Final Exam Student Name_______________________ 5. Do you think Google has developed a strategy to achieve and maintain sustainable competitive advantage through IT? Please use Porter's view of competitive advantage and strategy to defend your evaluation of Google's actions in this area (15 points) 6 IE349 – Final Exam Student Name_______________________ 6. Looking back at Carr's article "IT Doesn't Matter", was he right? Using material/examples from lectures, readings and group projects, please explain and defend your answer (15 points) 7 IE349 – Final Exam Student Name_______________________ 7. EXTRA CREDIT: Imagine that you have $1000 to invest in 4 companies: Apple, Amazon, Facebook and Google. Your objective is to invest such that you get the maximum return in 10 years. Keeping in mind that stock prices are the market’s estimates of future profit growth, how would you invest your money? Why? Please note that you can decide to invest in 1, 2, 3 or all 4 companies. If you do decide to invest in more than one company, explain why you choose to invest in each company. 8