All organizations have bedrock, unassailable assumptions that define their goals and products. |
t |
An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. |
f |
From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor. |
t |
A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors. |
t |
The competitive forces model can be used to analyze today’s digital firm as well as traditional firms. |
t |
Customers are one of the competitive forces that affect an organization’s ability to compete. |
t |
A transparent marketplace means that there is high product differentiation. |
f |
The effect of the Internet has been to raise bargaining power over suppliers. |
t |
In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries. |
f |
In the strategy of product differentiation, information systems are used to enable new products and services. |
t |
Mass customization is a form of mass production. |
t |
Strong linkages to customers and suppliers decrease switching costs. |
f |
Business processes are collections of standard operating procedures. |
t |
the value chain model classifies all company activities as either primary or support. |
t |
In the value chain model, primary activities are most directly related to the production and distribution of the firm’s products and services that create value for the customer. |
t |
The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits. |
t |
In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software. |
t |
The term business ecosystem describes the interplay between the various organizational forces within a firm. |
f |
Research has shown that only 25% of firms are able to align their information technology with their business goals. |
t |
The use of Internet technologies allows companies to more easily sustain competitive advantage. |
f |
As discussed in the chapter opening case, which of the four generic strategies did Sears employ to combat the competition offered by Target, Walmart, and Macy’s? |
C) customer and supplier intimacy |
The interaction between information systems and organizations is influenced A) primarily by the decision making of middle and senior managers. |
B) by many factors, including structure, politics, culture, and environment. |
An organization is a |
E) A, B, and C |
According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. A) microeconomic |
A) microeconomic |
How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? |
C) It sees the inputs and outputs, labor and capital, as being infinitely malleable. |
All of the following are major features of organizations that impact the use of information systems except for |
D) agency costs. |
Business processes are collections of A) informal practices and behaviors. |
C) routines. |
Which of the following would not be considered a disruptive technology? A) instant messaging |
A) instant messaging |
Mintzberg’s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n) |
C) professional bureaucracy. |
A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy. |
A) machine |
An example of a divisionalized bureaucracy is a A) startup firm. |
C) Fortune 500 firm. |
The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as |
B) transaction costs. |
Which of the following statements is not true about information technology’s impacts on business firms? |
A) It helps firms expand in size. |
According to agency theory, the firm is viewed as a(n) |
D) "nexus of contracts" among self-interested individuals. |
According to Leavitt’s model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are |
D) tasks, technology, people, and structure. |
the ________ model is used to describe the interaction of external forces that affect an organization’s strategy and ability to compete. |
B) competitive forces |
Which of the following industries has a low barrier to entry? A) automotive |
C) restaurant |
Which of the following is not one of the competitive forces? A) suppliers |
C) external environment |
A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force. A) product differentiation |
D) new market entrants |
A substitute product of most concern for a cable TV distributor is A) satellite TV. |
A) satellite TV. |
Barnes & Noble’s apps for its e-reader, the Nook, is an example of a firm using information systems to |
A) strengthen ties to its customers. |
A firm can exercise greater control over its suppliers by having A) more suppliers. |
A) more suppliers. |
Amazon’s use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for |
A) low-cost leadership. |
The four major types of competitive strategy are |
B) low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. |
Walmart’s continuous replenishment system allows it to A) provide mass customization. |
B) provide an efficient customer response system. |
When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. |
B) market niche |
_______ is the ability to offer individually tailored products or services using the same production resources as bulk production. |
A) Mass customization |
In environmental scanning, a firm may use information systems to A) utilize sensors that track products through the value chain. |
C) identify external events that may affect it. |
An information system can enable a company to focus on a market niche through A) complex trend forecasting. |
D) intensive customer data analysis. |
Which of the following best illustrates the use of information systems to focus on market niche? |
D) A department store creating specialized products for small groups of customers. |
As described in the chapter case, the competitive force of ________ resulted in Starbuck’s downturn in 2008, and it employed information systems in a strategy of ________ to combat this force. |
A) traditional competitors; product differentiation |
The Internet raises the bargaining power of customers by |
C) making information available to everyone. |
Which of the following industries has not been disrupted by the Internet? A) encyclopedias |
C) clothing |
What significant competitive force is challenging the publishing industry? A) positioning and rivalry among competitors |
C) substitute products or services |
The value chain model |
D) helps a firm identify points at which information technology can most effectively enhance its competitive position. |
The primary activities of a firm include |
A) inbound logistics, operations, outbound logistics, sales and marketing, and service. |
Which of the following is one of the support activities in a firm’s value chain? A) inbound logistics |
D) technology |
Which of the following activities would you perform to measure and compare your business processes to similar processes of other companies within your industry? |
A) benchmarking |
The most successful solutions or methods for achieving a business objective are called A) value activities. |
D) best practices. |
How are information systems used at the industry level to achieve strategic advantage? A) by building industry-wide, IT-supported consortia and symposia |
A) by building industry-wide, IT-supported consortia and symposia |
A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n) |
C) value web. |
If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating |
C) synergies. |
An example of synergy in business is |
B) JP Morgan Chase’s mergers with other banks that provided JP Morgan with a network of retail branches in new regions. |
An information system can enhance core competencies by A) providing better reporting facilities. |
D) encouraging the sharing of knowledge across business units. |
The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as |
B) the law of diminishing returns. |
Network economics |
C) sees the cost of adding new members as inconsequential. |
A virtual company |
A) uses the capabilities of other companies without being physically tied to those companies. |
An example of a keystone firm within a business ecosystem is |
A) Apple and software application writers in the mobile platform ecosystem. |
69) The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage? |
B) Internet technologies are universal, and therefore usable by all companies. |
You are consulting for a beverage distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step? |
C) Perform a strategic systems analysis. |
ch 3 is
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