Chapter 1, Chapter 2, Chapter 3

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What percent of U.S. businesses have some form of remote work program?
Answers:
15 percent
25 percent
35 percent
55 percent
75 percent

55 percent

The first step in the model of business problem solving discussed in the chapter is:
Answers:
interviewing the people involved in the problem.
identifying the problem.
outlining the problem’s causes.
assigning the problem to a problem solver.
evaluating possible solutions to the problem.

identifying the problem.

As discussed in the chapter opening case, the San Francisco Giants are taking advantage of wireless technology to do which of the following?
Answers:
Improve decision making
Achieve operational excellence
Implement dynamic ticket pricing
Perform data analysis
Enhance fan experience

Enhance fan experience

You are a new manager at a plumbing supply manufacturer where there are an unusually high number of returns for a new aerator used in the production of high-end faucets. In examining the problem you determine that the primary cause is the improperly designed die cast for the aerator. Which dimension of a business problem does this reflect?
Answers:
People
Technology
Management
Organizational
Cultural

People

A firm that must invest in a new information system in order to comply with federal legislation is investing to achieve which of the following business objectives?
Answers:
Customer intimacy
Operational excellence
New products.
Improved decision making
Survival

Survival

As described in the chapter case, which of the following constitutes a managerial element of the UPS tracking system?
Answers:
The web-based Post Sales Order Management System
The ability to provide package status reports to customers
The decision to use automation
The implementation of in-house package tracking software
The ability to embed UPS functions in external sites

The decision to use automation

All of the following are new technology-related trends in MIS except:
Answers:
cloud computing.
big data.
IoT.
the mobile digital platform.
co-creation of business value.

co-creation of business value.

In 2015, what percent of Internet users will access the web through mobile devices?
Answers:
Less than 15 percent
Around 25 percent
50 percent
More than 60 percent
More than 75 percent

More than 60 percent

Which of the following is the best definition of an information system?
Answers:
A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization
Computers, keyboards, printers, and telecommunications devices
A set of detailed programmed instructions that transform raw data into information
Physical devices and software that can be connected to share voice, data, images, sound, and video
A global network that uses universal standards

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

In choosing the best solution for a business problem, all of the following are important considerations except:
Answers:
the cost of the solution.
the feasibility of the solution given existing resources and skills.
the length of time to implement the solution.
the attitudes of employees.
the ability to forget about the problem once it has been solved.

the ability to forget about the problem once it has been solved.

The final step in the four-step model of business problem solving is:
Answers:
outcome.
implementation.
change management.
feedback.
employee re-training.

implementation.

________ consists of detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
Answers:
Software
Programming
Enterprise applications
Business intelligence
Data management technology

Software

The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company’s members is called its:
Answers:
business process.
environment.
atmosphere.
values.
culture.

culture.

Perhaps the most frequent error in problem solving is:
Answers:
rushing to judgment about the nature of a problem.
not being aware of personal limitations.
being too doubtful.
following a rote pattern of decision making.
failing to consider all dimensions of a problem.

rushing to judgment about the nature of a problem.

Which business objective were competitors seeking when they rushed to provide ATMs as well after Citibank introduced the first ATMs in New York?
Answers:
Improved efficiency
Customer and supplier intimacy
Survival
Competitive advantage
Improved decision making

Survival

Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals.
Answers:
operations managers
senior managers
marketing managers
accounting managers
knowledge workers

senior managers

What percent of the Fortune 500 companies uses Twitter to communicate with their customers?
Answers:
20 percent
40 percent
50 percent
60 percent
80 percent

80 percent

The average number of baseball tickets sold at a particular price is an example of:
Answers:
input.
raw data.
meaningful information.
output.
feedback.

meaningful information.

A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives?
Answers:
Survival
Improved decision making
Competitive advantage
Operational excellence
Customer intimacy

Survival

The six important business objectives of information system investment include all of the following except:
Answers:
competitive advantage.
employee morale.
improved decision making.
survival.
new products.

employee morale.

Which of the following fields deals with behavioral issues, as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm?
Answers:
Information systems literacy
Information systems architecture
Management information systems
Information technology infrastructure
Computer information systems

Management information systems

An example of a business using information systems for supplier intimacy is:
Answers:
Apple’s creation of the iPad.
JCPenney’s information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.
Citibank’s ATM system.
Verizon’s web-based digital dashboard providing real-time company information for managers.
the Mandarin Oriental’s use of computers to keep track of guests’ preferences.

JCPenney’s information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.

Which of the following statements is not true?
Answers:
In 2015, American businesses will invest nearly $600 billion in information systems hardware, software, and telecommunications equipment.
In 2015, American businesses will spend $400 billion on business and management consulting and information technology services,
In 2015, about 25 percent of all capital investment in the United States will be for information systems hardware, software, and telecommunications equipment.
Expenditures in the United States for information systems are growing at a faster rate than the U.S. economy as a whole.
Worldwide expenditures for information were around $1 trillion.

Worldwide expenditures for information were around $1 trillion.

Output:
Answers:
is feedback that has been processed to create meaningful information.
is information that is returned to appropriate members of the organization to help them evaluate the input stage.
transfers raw data to the people who will use it or to the activities for which it will be used.
transfers processed information to the people who will use it or to the activities for which it will be used.
is a stream of raw facts representing events occurring in organizations or the physical environment.

transfers processed information to the people who will use it or to the activities for which it will be used.

Which of the following would not be considered part of the implementation phase of problem solving?
Answers:
Change management
Purchasing hardware for an information systems solution
Training an employee on new systems software
Evaluating a selection of software packages for implementing a new business process
Determining the attitude of employees about the solution.

Evaluating a selection of software packages for implementing a new business process

Consider an information system in a moving company that analyzes travel patterns and decides which routes are the most efficient for every van. The need for employees to follow procedures to update this system with arrival and departure times would be considered a(n) ________ dimension of the system.
Answers:
organizational
managerial
people
technology
cultural

organizational

Which are the three major dimensions of business problem solving?
Answers:
Organizational dimensions, people dimensions, and technology dimension
Organizational dimensions, people dimensions, and environmental dimensions
People dimensions, technology dimensions, and environmental dimensions
Technology dimensions, organizational dimensions, and environmental dimensions
Organizational dimensions, technology dimensions, and cultural dimensions

Organizational dimensions, people dimensions, and technology dimension

To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support?
Answers:
New products
Survival
Customer intimacy
Improved decision making
Operational excellence

Customer intimacy

The failure of NASA’s initial solution to preventing the space shuttle shedding foam illustrates:
Answers:
the importance of training employees on new business processes.
the need to prepare for measuring outcomes of a business solution.
the continuous nature of problem solving.
the need to quickly adapt to new technological innovations.
the importance of organizational change in problem solving.

the continuous nature of problem solving.

An example of raw data from an automobile manufacturer would be:
Answers:
an average of 130 Subarus sold daily in New York in 2015.
1,300 Subaru Outbacks sold during the first quarter 2015 in New York.
1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000.
annual sales of Subaru Outbacks increased 4.5 percent.
an average sale price of $26,000 for all Subaru Outbacks sold during January 2015 in Mount Kisco, New York.

1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000.

The culture of UPS places service to the customer among the company’s highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is "culture" an important factor to consider when building information system solutions to business problems?
Answers:
Culture is one element that can be radically changed, not always for the better, by new information systems.
Culture affects how information system solutions are implemented and used.
Culture is a cauldron of employee perspectives and conflicts, which can be used to improve business processes.
Culture is the driving force behind decision making and innovation.
Culture is the basis for organizational politics.

Culture affects how information system solutions are implemented and used.

All of the following are examples of environmental actors in an information system except:
Answers:
customers.
stockholders.
feedback.
competitors.
regulatory agencies.

feedback.

Verizon’s implementation of a web-based digital dashboard to provide managers with real-time information, such as customer complaints, is an example of:
Answers:
improved flexibility.
improved decision making.
competitive advantage.
supplier intimacy.
a new product.

improved decision making.

Which of the following statements is not true?
Answers:
The most common and successful offshore outsourcing projects involve production programming and system maintenance programming work, along with call center work.
Inflation in Indian wages for technology work is leading to a counter movement of some IT jobs back to the United States.
The fear that offshore outsourcing will reduce demand for new information system hires in the United States is mitigated by the fact that reduced IT expenditures results in increased IT investments and the creation of domestic jobs.
The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States.
Management and organizational tasks required in systems development usually are not outsourced.

The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States.

A database into which employees manually input customer names and addresses is riddled with errors and you have been charged with rectifying the situation. In considering the organizational dimensions of this problem, you should consider:
Answers:
the skill levels of the employees inputting the data.
the training given to the employees inputting the data.
the business processes in place governing the manual input of the data.
the types of automatic error checking provided by the input software.
the storage capacity of the database.

the business processes in place governing the manual input of the data.

All of the following can be considered managerial responsibilities except:
Answers:
making action plans to solve organizational problems.
creating new products and services.
designing new information systems.
allocating human resources to coordinate the work to be done.
setting strategy for responding to business challenges in the environment.

designing new information systems.

In a hierarchical organization, the upper levels consist of:
Answers:
managerial, professional and knowledge workers.
managerial, professional, and technical workers.
professional and operational workers.
managerial, professional, and operational workers.
knowledge, technical and operational workers.

managerial, professional, and technical workers.

Which of the following is an example of a business using information systems to create new products and services?
Answers:
Apple’s creation of the iPad
JC Penney’s information system that allows its contract manufacturers to see what garments have been sold and need to be replaced
The Mandarin Oriental’s use of computers to keep track of guests’ preferences
Verizon’s web-based digital dashboard providing real-time company information for managers
Walmart’s Retail Link’s system

Apple’s creation of the iPad

Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following?
Answers:
New business models
Operational efficiency
Customer intimacy
Competitive advantage
Survival

Operational efficiency

Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the:
Answers:
management dimension.
people dimension.
organizational dimension.
technical dimension.
cultural dimension.

organizational dimension.

Telepresence is an example of which of the following?
Answers:
Business intelligence
Social business
IoT
Mobile digital platform
Virtual meeting

Virtual meeting

________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format.
Answers:
FTP
Email
The World Wide Web
HTML
An extranet

The World Wide Web

Which of the following is a global network that uses universal standards to connect millions of different networks around the world?
Answers:
An extranet
The World Wide Web
The Internet
An intranet
Verizon

The Internet

Poor business processes are an example of the ________ dimension of business problems.
Answers:
management
organizational
people
infrastructure
cultural

organizational

Inadequate database capacity is an example of the ________ dimension of business problems.
Answers:
technology
organizational
people
management
cultural

technology

As described in the chapter case, which of the following constitutes an organizational element in the UPS tracking system?
Answers:
The specification of procedures for identifying packages with sender and recipient information
Monitoring service levels
Promoting the company strategy of low-cost, superior service
The use of handheld computers and networks for managing package delivery
Routing software that creates the most efficient delivery route for each driver

The specification of procedures for identifying packages with sender and recipient information

What is the estimated growth rate for information systems managers’ jobs through 2020?
Answers:
-10%
-1%
15%
5%
45%

15%

All of the following describe the effects of globalization except:
Answers:
significant decreases in operating costs.
reduction of labor costs through outsourcing.
ability to find low-cost suppliers.
increases in transaction costs.
replication of business models in multiple countries.

increases in transaction costs.

Journalist Thomas Friedman’s description of the world as "flat" refers to:
Answers:
the flattening of economic and cultural advantages of developed countries.
the use of the Internet and technology for instantaneous communication.
the reduction in travel times and the ubiquity of global exchange and travel.
the growth of globalization.
the increased use of global currencies.

the flattening of economic and cultural advantages of developed countries.

Intranets:
Answers:
are based on mainframe technology.
are multiple networks joined together.
are typically used to communicate with the business’s trusted vendors.
use Internet technology for a private company network.
provide the platform on which a firm builds its information systems.

use Internet technology for a private company network.

Approximately how many adult Americans are online?
Answers:
118 million
170 million
205 million
220 million
227 million

227 million

Data management technology consists of:
Answers:
the physical hardware and media used by an organization for storing data.
the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
the software governing the organization of data on physical storage media.
the hardware and software used to transfer data.
the universally accepted standards for storing data.

the software governing the organization of data on physical storage media.

Which of the following is an important skill for a marketing major?
Answers:
An understanding of online transaction and reporting systems
An understanding of product management enterprise systems
An understanding of supplier management enterprise systems
An understanding of enterprise systems that enhance leadership
An understanding of financial reporting systems

An understanding of product management enterprise systems

Which of the following is an important skill for an accounting major?
Answers:
An understanding of online transaction and reporting systems
An understanding of product management enterprise systems
An understanding of supplier management enterprise systems
An understanding of enterprise systems that enhance leadership
An understanding of enterprise systems for customer relationship management

An understanding of online transaction and reporting systems

Converting raw data into a more meaningful form is called:
Answers:
capturing.
processing.
organizing.
feedback.
inputting.

processing.

Assume you work for a package delivery service in a major metropolitan area and that the business has been losing customers for several years. You have been asked to find a solution to this problem. What is the correct way to proceed?
Answers:
Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution.
Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution.
Identify the problem, design alternative solutions, choose the best solution, and then implement the solution.
Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution.
Identify relevant information technologies, interview employees, choose a technology, and implement the technology.

Identify the problem, design alternative solutions, choose the best solution, and then implement the solution.

The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as:
Answers:
IoT.
big data.
the mobile digital platform.
cloud computing.
business intelligence.

big data.

The three activities in an information system that produce the information organizations use to control operations are:
Answers:
information, research, and analysis.
input, output, and feedback.
input, processing, and output.
data analysis, processing, and feedback.
information, data, and processing.

input, processing, and output.

Legal compliance is an example of the ________ dimension of business problems.
Answers:
management
organizational
people
technology
cultural

people

The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once the messengers have left the office. This is a business problem that falls into the:
Answers:
management dimension.
people dimension.
organizational dimension.
technology dimension.
cultural dimension.

people dimension.

1. An ESS is an information system that supports the:

long-range planning activities of senior management.

knowledge and data workers in an organization.

decision-making and administrative activities of middle managers.

day-to-day processes of production.

management of customer relationships.

long-range planning activities of senior management.

1. Which of the following is an example of a key force in a firm’s broader, less immediate environment?

Competitors

Regulations

Suppliers

Economic trends

Customers

Economic trends

1. From your reading of the chapter-opening case study discussing ABB’s use of enterprise social networking, which of the following statements best expresses ABB’s experience?

ABB’s primary motivation for replacing its existing corporate intranet was to enhance its security.

Implementing Yammer improved employee productivity and collaboration.

Efforts to implement Yammer were met with significant resistance from employees.

Yammer provided ABB with a single entry point to all the information and tools ABB employees need for their jobs.

Implementing Yammer improved employee productivity and collaboration.

1. Which of the following would a CSO not be responsible for?

Educating and training users about security

Keeping management aware of security threats

Maintaining tools chosen to implement security

Providing physical security

Enforcing the firm’s information security policy

Providing physical security

1. Which of the following statements about Plan International’s new human resources system, as described in the chapter case, is not true?

It took six months to implement a working system at Plan International’s international headquarters.

The new system helps manage grants and donations received by Plan International.

The new system is cloud-based and delivers information on a secure mobile platform.

The new system enables employees to update their own personal information.

It took six months to implement a working system at Plan International’s international headquarters.

1. You manage the Information Systems department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics, such as views and click-throughs, about their current display ads. Which type of system will most efficiently provide a solution?

CRM

Enterprise system

Extranet

Intranet

KWM

Extranet

1. The principal liaison between the information systems groups and the rest of the organization is a(n):

programmer.

information systems manager.

systems analyst.

CIO.

CSO.

systems analyst.

1. Instant messaging, videoconferencing, and shared screens are all examples of ________ collaboration tools.

bimodal

colocated

synchronous

spontaneous

asynchronous

synchronous

1. The use of digital technology and the Internet to execute the major business processes in the enterprise is called:

e-commerce.

e-business.

enterprise applications.

MIS.

KWM.

e-business.

1. DSS and MIS are also referred to as ________ systems.

business information

business intelligence

executive support

business model

expert

business intelligence

1. Which type of system would you use to determine what trends in your supplier’s industry will affect your firm the most in five years?

ESS

TPS

MIS

DSS

KWM

ESS

1. Which of the following Google tools allows people to engage in group video chat?

Google Drive

Google Docs

Google Apps for Business

Google Circles

Google Hangouts

Google Hangouts

1. Which of the following is not a true statement with respect to business processes?

Every business can be seen as a collection of business processes.

Analyzing business processes can enable you to achieve a clear understanding of how a business actually works.

The efficiency of a business firm is not related to its business processes.

Information systems can automate many steps in business processes that were formerly performed manually.

A business process may involve a unique way in which work, information, and knowledge are coordinated within an organization.

The efficiency of a business firm is not related to its business processes.

1. The goal of social commerce applications is to:

connect through personal and business profiles.

use social media to connect with customers.

share opinions about purchasing products or services.

upload and share business documents.

harness collective knowledge to generate new ideas.

share opinions about purchasing products or services.

1. In a business environment, the focus of collaboration is to:

accomplish the task at hand.

provide a sense of community.

foster better communication.

prevent miscommunication.

increase a firm’s profit margin.

accomplish the task at hand.

1. Engineers and scientists are examples of:

senior management.

production workers.

knowledge workers.

middle management.

operational management.

knowledge workers.

1. Which of the following statements is not true about collaboration in a business setting?

Collaboration may be a short-lived activity, lasting just a few minutes.

Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity.

Meaningful collaboration requires a supportive business firm culture and the right, decentralized structure.

The evidence of the business benefits of collaboration is largely anecdotal.

Special types of information systems are available to support collaboration.

Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity.

1. You have been hired by Inspiration Inc. to help improve its profit margin. Inspiration Inc. is a business communications consulting firm that services many clients in different industries throughout the world. The firm provides its clients with customized written recommendations about how to best use the client’s existing resources to improve the client’s internal communications. The company has approximately 100 consultants, all of whom are located in its central headquarters in Chicago. What system do you recommend to improve Inspiration Inc.’s business processes and increase its profit margin?

Extranet, to enable quick collaboration via the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed

CRM, to maintain easily accessible customer records to minimize the time spent looking for client data

KMS, to minimize redundant work on similar clients

Video conferencing system, to improve collaboration

MIS, to produce reports on the firm’s operations

Extranet, to enable quick collaboration via the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed

1. The term management information systems refers to a specific category of information systems serving:

integrated data processing throughout the firm.

transaction process reporting.

senior management.

middle management functions.

knowledge workers.

middle management functions.

1. Interaction jobs are those jobs which:

require close coordination and collaboration.

involve knowledge that can’t be put into an information system.

are performed typically by operational-level employees.

require intense levels of interaction with clients.

require an emphasis on innovation.

require close coordination and collaboration.

1. Which of the following is an interorganizational business process?

Hiring an employee

Identifying a customer

Creating financial statements

Ordering raw materials

Checking product quality

Ordering raw materials

1. Which of the following is most likely to have direct responsibility for ensuring that his or her company complies with existing data privacy laws?

CPO

CKO

CIO

CIP

CSO

CPO

1. Producing a bill of materials is a responsibility of the ________ function.

finance and accounting

human resources

manufacturing and production

sales and marketing

technology

manufacturing and production

1. What analytical framework discussed in the chapter helps understand and evaluate the benefits and uses of collaboration tools?

Cost/use matrix

Task/time matrix

Space/cost matrix

Time/space matrix

Time/cost matrix

Time/space matrix

1. Identifying potential customers for the businesses’ products or services is an activity associated with the ________ function.

finance and accounting

human resources

manufacturing and production

technology

sales and marketing

sales and marketing

1. Each of the following is required for successful collaboration, except:

open culture.

strong hierarchy.

decentralized structure.

breadth of collaboration.

appropriate collaboration technology.

strong hierarchy.

1. Which of the following systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance?

MIS

TPS

DSS

KMS

CRM

DSS

1. A computerized system that performs and records the daily activities necessary to conduct business is classified as a(n):

executive support system.

management-level system.

decision support system.

transaction processing system.

business intelligence system.

transaction processing system.

1. Second Life is an example of a(n):

virtual world.

wiki.

social networking site.

mind mapping tool.

extranet.

virtual world.

1. Policies that determine which information technology will be used, when, and how, are provided by:

IT educational services.

IT management services.

application software services.

IT standards services.

data management services.

IT standards services.

1. A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of a/an:

KMS.

TPS.

ESS.

MIS.

CRM system

MIS.

1. As discussed in the chapter case, what is the primary reason why Spacebook failed?

It was too expensive to implement.

It was designed and developed without taking the organization’s culture into consideration.

It did not include enough collaboration tools.

Its user interface was confusing.

It was riddled with technical issues.

It was designed and developed without taking the organization’s culture into consideration.

1. A(n) ________ collects data from various key business processes and stores the data in a single comprehensive data repository, usable by many parts of the business.

TPS

DSS

automatic reporting system

MIS

enterprise system

enterprise system

1. Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?

ESS

TPS

MIS

DSS

CRM

MIS

1. Which of the following systems are designed to support organization-wide process coordination and integration?

DSS

MIS

CRM

Enterprise applications

ESS

Enterprise applications

1. Development and support services for a firm’s business systems are provided by:

IT educational services.

IT management services.

data management services.

IT standards services.

application software services.

application software services.

1. The three principal levels of hierarchies within a business organization are:

senior management, knowledge workers, and service workers.

senior management, middle management, and operational management.

senior management, data workers, and operational management.

senior management, operational management, and workers.

senior management, operational management, and data workers.

senior management, middle management, and operational management.

1. Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?

ESS

CRM system

MIS

DSS

SCM system

SCM system

1. IBM Connections is an example of which of the following?

MIS

Enterprise social networking tool

E-commerce system

Intranet

Extranet

Enterprise social networking tool

1. Key forces in a business’s immediate environment include:

stockholders.

technological innovations.

economic conditions.

politic conditions.

global events.

stockholders.

1. You work for a highly successful advertiser that is about to expand nationally. Of utmost importance will be finding a way to store and disseminate its clients’ frequently updated branding and style guides throughout the organization. The guides include multiple image files and text documents. What system will best serve these needs?

A wiki

An extranet with KMS capabilities

A TPS with KMS capabilities

A telepresence system

A virtual world

An extranet with KMS capabilities

1. Which of the following can typically access a company’s intranet?

The general public

The firm’s employees

The firm’s customers

The firm’s suppliers

The firm’s outside contractors

The firm’s employees

1. A wiki is a type of collaborative:

social network.

blogging.

virtual world.

website.

MIS.

website.

1. Which of the following is not a service typically provided by an information systems department?

Telecommunications services

Physical facilities management services

Data management services

Project management services

Human resources services

Human resources services

1. Supply chain management systems are considered to be a(n) ________ because they automate the flow of information across company boundaries.

KMS

enterprise system

MIS

interorganizational system

cross-functional system

interorganizational system

1. Which of the following refers to the purchase or sale of goods and services over the Internet?

E-commerce

E-business

CRM

MIS

SCM

E-commerce

1. ________ technology allows a videoconference participant to give the appearance of being present at a location other than his or her true physical location.

Telepresence

Virtual reality

Screen sharing

Mind mapping

Virtual world

Telepresence

1. Which of the following best describes the type of information systems FWO implemented, as discussed in the chapter case?

ESS

DSS

TPS

KMS

Cloud collaboration service

Cloud collaboration service

1. Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?

ESS

TPS

MIS

DSS

CRM

TPS

1. What is the most important benefit of an enterprise application?

Enabling speed of communicating

Enabling business functions and departments to share information

Enabling a company to work collaboratively with customers and suppliers

Enabling cost-effective, e-business processes

Enabling managers to make better decisions

Enabling business functions and departments to share information

1. Cisco’s WebEx is an example of which of the following types of collaboration tools?

Blog

Team room

Online meeting

Group calendar

Wiki

Online meeting

1. ________ provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.

TPS

MIS

ESS

CPS

CRM systems

CRM systems

1. Which of the following systems are designed to summarize and report on the company’s basic operations?

KMS

DSS

ESS

TPS

MIS

MIS

1. Employees that assist with paperwork at all levels of the firm are called:

data workers.

knowledge workers.

operational management.

service workers.

senior managers.

data workers.

1. Which of the following types of systems could be used to enable different firms to work collaboratively on a product?

Intranet

Extranet

KMS

CRM

DSS

Extranet

1. ________ support making decisions that are unique, rapidly changing, and not easily specified in advance.

MIS

TPS

ESS

DSS

KWM

DSS

1. Which of the following would be primarily responsible for enterprise-wide governance and usage of information to maximize the value of an organization’s data?

CKO

CPO

end users

CDO

CSO

CDO

1. A ________ is a senior manager who oversees the use of IT in the firm.

CEO

CFO

CIO

CIT

CPO

CIO

1. ________ systems integrate and share information from suppliers, manufacturers, distributors, and logistics companies.

Collaborative distribution

Supply chain management

Reverse logistics

Enterprise planning

Digital dashboard

Supply chain management

1. Suppliers, customers, employees, products and services, and ________ are the five basic components with which businesses must deal.

the environment

manufacturing and production

sales and marketing

invoices and payments

technology

invoices and payments

1. Nike’s forays into information technology represent an effort to

maintain low-cost leadership.

focus on market niche.

strengthen customer and supplier intimacy.

perform intensive customer data analysis.

achieve product differentiation.

achieve product differentiation.

1. How do information systems enhance core competencies?

by providing better reporting facilities

by creating educational opportunities for management

by allowing operational employees to interact with management

by encouraging the sharing of knowledge across business units

by fostering synergies among departments

by encouraging the sharing of knowledge across business units

1. A competitive force challenging the publishing industry is

positioning and rivalry among competitors.

low cost of entry.

substitute products or services.

customers’ bargaining power.

suppliers’ bargaining power.

substitute products or services.

1. Under Mintzberg’s classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of

entrepreneurial structures.

divisionalized bureaucracies.

professional bureaucracies.

adhocracies.

machine bureaucracies.

professional bureaucracies.

1. Network economics

applies the law of diminishing returns to communities of users.

applies traditional economics to networked users.

sees the cost of adding new members as inconsequential.

balances the high cost of adding new members to a community against the lower cost of using network infrastructure.

uses networks to link people, assets, and ideas.

sees the cost of adding new members as inconsequential.

1. ________ technologies radically change the business landscape and environment.

Explosive

Inventive

Disruptive

Subversive

Divisive

Disruptive

1. Business processes are collections of

informal practices and behaviors.

formalized and documented practices.

business rules.

rights and privileges.

routines.

routines.

1. According to agency theory, the firm is viewed as a(n)

unified, profit-maximizing entity.

task force organization that must respond to rapidly changing environments.

entrepreneurial endeavor.

"nexus of contracts" among self-interested individuals.

entrepreneurial structure.

"nexus of contracts" among self-interested individuals.

1. Which of the following is one of the support activities in a firm’s value chain?

inbound logistics

operations

sales and marketing

service

technology

technology

1. Amazon’s use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for

low-cost leadership.

marketing effectiveness.

focusing on market niche.

strengthening supplier intimacy.

developing synergies.

low-cost leadership.

1. Along with capital, ________ is the primary production input that the organization uses to create products and services.

structure

culture

politics

natural resources

labor

labor

1. Walmart’s continuous replenishment system allows it to

provide mass customization.

differentiate products.

strengthen customer intimacy.

achieve economy of scale.

achieve low-cost leadership.

strengthen customer intimacy.

1. Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered

organizational adjustments.

strategic transitions.

systems alterations.

business goal transitions.

sociotechnical transitions.

strategic transitions.

1. All of the following statements are true about information technology’s impact on business firms except

it helps firms expand in size.

it helps firms lower the cost of market participation.

it helps reduce internal management costs.

it helps reduce transaction costs.

it helps reduce agency costs.

it helps firms expand in size.

1. A substitute product of most concern for a cable TV distributor is

satellite TV.

broadcast TV.

satellite radio.

the Internet.

terrestrial radio.

satellite TV.

1. An example of synergy in business is

Amazon’s use of the Internet to sell books.

Bank of America acquiring Countrywide Financial to reach a large pool of new customers.

Blockbuster combining traditional video rental with online video rental.

Walmart’s order entry and inventory management system to coordinate with suppliers.

Nike’s use of technology to improve its product offerings.

Bank of America acquiring Countrywide Financial to reach a large pool of new customers.

1. The ability to offer individually tailored products or services using the same production resources as bulk production is known as

customized response.

size customization.

magnitude customization.

dimension customization.

mass customization.

mass customization.

1. The interaction between information systems and organizations is influenced

primarily by the decision making of middle and senior managers.

by the development of new information technologies.

by many factors, including structure, politics, culture, and environment.

by two main microeconomic forces: capital and labor.

by management decisions.

by many factors, including structure, politics, culture, and environment.

1. All of the following are competitive forces except

suppliers.

new market entrants.

external environment.

customers.

substitute products.

external environment.

1. An activity businesses perform to measure and compare business processes to similar processes of other companies within their industry is

benchmarking.

best practices.

value chain analysis.

strategic systems analysis.

secondary activities.

benchmarking.

1. The parts of an organization’s infrastructure, human resources, technology, and procurement that make the delivery of the firm’s products or services possible are known as ________ activities.

primary

auxiliary

secondary

service

support

support

1. How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?

It sees information systems as a way to rearrange the inputs and outputs of the organization.

It sees capital and labor as primary production factors.

It sees an organization as a collection of rights, privileges, obligations, and responsibilities.

It sees the organization as a social structure similar to a machine.

It sees the inputs and outputs, labor and capital, as being infinitely malleable.

It sees the inputs and outputs, labor and capital, as being infinitely malleable.

1. The value chain model

categorizes five related advantages for adding value to a firm’s products or services.

sees the supply chain as the primary activity for adding value.

categorizes four basic strategies a firm can use to enhance its value chain.

highlights specific activities in the business where competitive strategies can best be applied.

enables more effective product differentiation.

highlights specific activities in the business where competitive strategies can best be applied.

1. The four major competitive strategies are

low-cost leadership, substitute products and services, customers; and suppliers.

low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.

new market entrants, substitute products and services, customers, and suppliers.

low-cost leadership, new market entrants, product differentiation, and focus on market niche.

customers, suppliers, new market entrants, and substitute products.

low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.

1. Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy.

machine

professional

divisionalized

multidivisional

ad hoc

machine

1. In environmental scanning, a firm may use information systems to

utilize sensors that track products through the value chain.

analyze external Internet traffic to its Web sites.

identify external events that may affect it.

understand its carbon footprint and energy impacts on the environment.

develop a unified organizational culture.

identify external events that may affect it.

1. The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as

culture.

politics.

structure.

viewpoints.

variance.

politics.

1. ________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

Product differentiation

Low-cost leadership

Customer efficiency

Mass customization

Switching cost

Product differentiation

1. A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.

product differentiation

traditional competitors

low number of suppliers

new market entrants

low number of customers

new market entrants

1. 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)

industry value chain.

business ecosystem.

value web.

consortia.

synergy chain.

value web.

1. Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors.

product differentiation

market niche

mass customization

process efficiency

low-cost leadership

market niche

1. As discussed in the chapter opening case, which of the four generic strategies did T.J. Maxx employ to combat the competition offered by Target, Kohls, Walmart, Macy’s and pure online stores likeRue LaLa and Gilt Groupe?

market niche focus

customer and supplier intimacy

network-based strategy

product synergies

efficient customer response

market niche focus

1. All of the following industries have been disrupted by the Internet except

encyclopedias.

newspapers.

music.

air travel.

clothing.

clothing.

1. Which of the following industries has a low barrier to entry?

automotive

computer chip

national retailer

airline

restaurant

restaurant

1. Which of the following represent the primary activities of a firm?

inbound logistics, operations, outbound logistics, sales and marketing, and service

inbound logistics, operations, outbound logistics, technology, and service

procurement, inbound logistics, operations, technology, and outbound logistics

procurement, operations, technology, sales and marketing, and services

organization infrastructure, human resources, technology, and procurement

inbound logistics, operations, outbound logistics, sales and marketing, and service

1. All of the following are considered disruptive technologies except

instant messaging.

e-mail.

Internet telephony.

PCs.

smartphones.

instant messaging.

1. According to research on organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are

environment, organization, structure, and tasks.

technology, people, culture, and structure.

organization, culture, management, and environment.

tasks, technology, people, and structure.

costs, tasks, structure, and management.

tasks, technology, people, and structure.

1. Which of the following is not a major feature of organizations that impacts the use of information systems?

business processes

environments

goals

agency costs

leadership styles

agency costs

1. The ________ model highlights the primary or support activities that add a margin of value to a firm’s products or services where information systems can best be applied to achieve a competitive advantage.

competitive forces

value chain

bargaining power

new entrant

rivalry

value chain

1. The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as

retention costs.

preservation costs.

differentiation costs.

switching costs.

variation costs.

switching costs

1. Which of the following best illustrates the use of information systems to focus on market niche?

A car manufacturer’s Web site that lets you customize the features on the car you are purchasing.

A restaurant chain analyzing local sales figures to determine which menu items to serve.

A bookseller selling an e-book reader that reads only the bookseller’s books.

A department store creating specialized products for preferred customers.

A clothes manufacturer expanding its offerings to new styles.

A department store creating specialized products for preferred customers.

1. The Internet raises the bargaining power of customers by

creating new opportunities for building loyal customer bases.

making more products available.

making information available to everyone.

lowering transaction costs.

enabling the development of new services.

making information available to everyone.

1. A firm can exercise greater control over its suppliers by having

more suppliers.

fewer suppliers.

global suppliers.

local suppliers.

regional suppliers.

more suppliers.

1. All of the following are IT-enabled products and services providing competitive advantage except

Amazon’s one-click shopping.

Apple’s iPod and iTunes.

Ping’s golf club customization.

PayPal’s online person-to-person payment system.

Walmart’s RetailLink system.

Walmart’s RetailLink system.

1. When two organizations pool markets and expertise that result in lower costs and generate profits, it is referred to as creating

a value web.

a value chain.

net marketplaces.

core competencies.

synergies.

synergies.

1. What are the most successful solutions or methods for achieving a business objective?

value activities

best processes

core competencies

best practices

benchmarks

best practices

1. You are consulting for a cosmetics distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step?

Identify the business ecosystem the distributor is in.

Implement a strategic transition to the new system.

Perform a strategic systems analysis.

Benchmark existing systems.

Set up a strategic transition.

Perform a strategic systems analysis.

1. An example of a divisionalized bureaucracy is a

startup firm.

university.

Fortune 500 firm.

midsize manufacturer.

consulting firm.

Fortune 500 firm.

1. Walmart’s attempts to increase its online presence is an example of a firm using information systems to

strengthen ties to its customers.

simplify the industry value chain.

develop synergies.

focus on market niche.

achieve low-cost leadership.

achieve low-cost leadership.

1. A(n) ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.

value chain

support web

value web

consortium

firm network

value web

1. 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

the point of no return.

the law of diminishing returns.

supply and demand.

network inelasticity.

the invisible hand.

the law of diminishing returns.

1. Why does Amazon.com need to worry about competitors in online shopping?

E-commerce is affected by the law of diminishing returns.

Internet technologies are universal, and therefore usable by all companies.

Internet shopping produces cost transparency.

The Internet enables the production or sales of substitute products or services.

The Internet increases switching costs.

Internet technologies are universal, and therefore usable by all companies.

1. A virtual company

uses networks to link people, assets, and ideas.

uses Internet technology to maintain a virtual storefront.

uses Internet technology to maintain a networked community of users.

provides entirely Internet-driven services, or virtual products.

is limited by traditional organizational boundaries.

uses networks to link people, assets, and ideas.

1. A(n) ________ is an activity at which a firm excels as a world-class leader.

expertise area

competitive advantage

growth driver

efficiency

core competency

core competency

1. How are information systems used at the industry level to achieve strategic advantage?

by building industry-wide, IT-supported consortia and symposia

by raising the bargaining power of suppliers

by encouraging the entry of new competitors

by enforcing standards that reduce the differences between competitors

by decreasing switching costs

by building industry-wide, IT-supported consortia and symposia

1. An organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment according to the ________ definition of organizations.

microeconomic

macroeconomic

sociotechnical

behavioral

psychological

microeconomic

1. An example of a keystone firm within a business ecosystem is

Apple and software application writers in the mobile platform ecosystem.

GUESS and the fashion ecosystem.

Citibank and the ATM ecosystem.

American Airlines and the computerized reservation ecosystem.

Nike and the athletic apparel ecosystem.

Apple and software application writers in the mobile platform ecosystem.

1. Which model is used to describe the interaction of external forces that affect an organization’s strategy and ability to compete?

network economics model

competitive forces model

competitive advantage model

demand control model

agency costs model

competitive forces model

1. An organization is a

stable, formal social structure that takes resources from the environment and processes them to produce outputs.

formal, legal entity with internal rules and procedures that must abide by laws.

a collection of people and other social elements.

B and C

A, B, and C

A, B, and C

1. When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as

switching costs.

network costs.

procurement.

agency costs.

transaction costs.

transaction costs.

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