|
What percent of U.S. businesses have some form of remote work program? |
55 percent |
|
The first step in the model of business problem solving discussed in the chapter is: |
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? |
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? |
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? |
Survival |
|
As described in the chapter case, which of the following constitutes a managerial element of the UPS tracking system? |
The decision to use automation |
|
All of the following are new technology-related trends in MIS except: |
co-creation of business value. |
|
In 2015, what percent of Internet users will access the web through mobile devices? |
More than 60 percent |
|
Which of the following is the best definition of an information system? |
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: |
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: |
implementation. |
|
________ consists of detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. |
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: |
culture. |
|
Perhaps the most frequent error in problem solving is: |
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? |
Survival |
|
Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals. |
senior managers |
|
What percent of the Fortune 500 companies uses Twitter to communicate with their customers? |
80 percent |
|
The average number of baseball tickets sold at a particular price is an example of: |
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? |
Survival |
|
The six important business objectives of information system investment include all of the following except: |
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? |
Management information systems |
|
An example of a business using information systems for supplier intimacy is: |
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? |
Worldwide expenditures for information were around $1 trillion. |
|
Output: |
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? |
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. |
organizational |
|
Which are the three major dimensions of business problem solving? |
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? |
Customer intimacy |
|
The failure of NASA’s initial solution to preventing the space shuttle shedding foam illustrates: |
the continuous nature of problem solving. |
|
An example of raw data from an automobile manufacturer would be: |
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? |
Culture affects how information system solutions are implemented and used. |
|
All of the following are examples of environmental actors in an information system except: |
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: |
improved decision making. |
|
Which of the following statements is not true? |
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: |
the business processes in place governing the manual input of the data. |
|
All of the following can be considered managerial responsibilities except: |
designing new information systems. |
|
In a hierarchical organization, the upper levels consist of: |
managerial, professional, and technical workers. |
|
Which of the following is an example of a business using information systems to create new products and services? |
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? |
Operational efficiency |
|
Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the: |
organizational dimension. |
|
Telepresence is an example of which of the following? |
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. |
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? |
The Internet |
|
Poor business processes are an example of the ________ dimension of business problems. |
organizational |
|
Inadequate database capacity is an example of the ________ dimension of business problems. |
technology |
|
As described in the chapter case, which of the following constitutes an organizational element in the UPS tracking system? |
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? |
15% |
|
All of the following describe the effects of globalization except: |
increases in transaction costs. |
|
Journalist Thomas Friedman’s description of the world as "flat" refers to: |
the flattening of economic and cultural advantages of developed countries. |
|
Intranets: |
use Internet technology for a private company network. |
|
Approximately how many adult Americans are online? |
227 million |
|
Data management technology consists of: |
the software governing the organization of data on physical storage media. |
|
Which of the following is an important skill for a marketing major? |
An understanding of product management enterprise systems |
|
Which of the following is an important skill for an accounting major? |
An understanding of online transaction and reporting systems |
|
Converting raw data into a more meaningful form is called: |
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? |
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: |
big data. |
|
The three activities in an information system that produce the information organizations use to control operations are: |
input, processing, and output. |
|
Legal compliance is an example of the ________ dimension of business problems. |
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: |
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. |
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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. |
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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 |
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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 |
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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 |
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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. |
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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. |
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1. A firm can exercise greater control over its suppliers by having more suppliers. fewer suppliers. global suppliers. local suppliers. regional suppliers. |
more suppliers. |
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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. |
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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. |
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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 |
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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. |
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1. An example of a divisionalized bureaucracy is a startup firm. university. Fortune 500 firm. midsize manufacturer. consulting firm. |
Fortune 500 firm. |
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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. |
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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 |
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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. |
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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. |
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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. |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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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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