Part A - PORTER’S FIVE FORCES MODEL
These are not the only possible answers, since markets vary based on the local situation and other factors.
Industry
Buyer Power
Supplier Power
Threat of New Entrants
Threat of Substitutes
Rivalry
Airline
Low
in the Australian environment, there are few choices of airline (low); in larger markets there are many more choices (high)
High
very few suppliers, very particular needs
Low
it is very hard to start an airline, with high costs and government regulations
Low
for shorter distances, there are other travel options (high), but for longer (overseas) trips, people will not really consider anything other than flying (low). For some things like business meetings, there are substitutes like videoconferencing, but this is not a major factor
High
airlines are very competitive and will reduce prices to match competitors
IT Support
High
many choices, and much support can be provided without physically being there, these options include non-local (phone, Internet) support
Low
not much is needed from suppliers and there are many alternatives for hardware and software
High
low entry barriers: no regulations, can start with limited capital expenses
Low*
other than people supporting themselves via the Internet (*although this could be very significant), there are not really many alternatives
Low
this business does not seem to be too competitive (no price wars)

Part B - Critical Business Thinking
Answers will vary.

Part C - Apply Your Knowledge
PROJECT TWO: ACHIEVING ALIGNMENT
Most companies would like to be in the market-leading position of Jetstar or Dell, which have used MIS to secure their respec­tive spots in the marketplace. These companies have a relentless goal of keeping the cost of technology down by combining the best of MIS and business leadership. The future belongs to those who are perceptive enough to grasp the significance of IT and resourceful enough to synchronise business management and information management.
What are some of the greatest MIS challenges for the coming year?
Answers will certainly vary here; however, most students should be able to identify many of the following:
1. Security—This is a very broad topic area, yet it is the most important in terms of IT challenges. Represented in this area are security issues, such as: biometric devices crime data encryption standards
Australian national security disaster planning encryption hackers risk management security hardware security management security software security standards security systems storage management systems implementation wireless. More mobile service with less bandwidth—This topic area has roots embedded in the security issues listed above. However, there is a challenge in developing and extending the infrastructure needed to support these types of services. Enterprise users planning to ‘mobilise’ access to corporate applications must look beyond the mobile service providers to the application developers and the handset manufacturers for end-to-end solutions that support specific applications over a mobile telephone network.
Business intelligence—Business intelligence systems will grow from being a ‘cool’ IT ‘buzzword’ to a valuable function that will drive business. However, the challenge will be how to integrate, such as OLAP, data warehouses, data mining, with existing systems.
What drives MIS decisions?
Responses will vary here; however, some students may wish to answer this from a historical perspective. Some typical answers should include the following:
1. Companies buy computers and invest in information technology because they believe those investments will improve their productivity. However, the impact of IT expenditures on a company’s productivity is far less clear—and harder to quantify.
2. Companies have been able to measure IT expenses—from acquisitions to the maintenance of computer networks, security and so on—without much ado. But they are now finding ways to measure the value of IT