Chapter 2: Business processes

Question 1

Which are the three levels that strategy can be seen to operate at?

(i) The internal level.
(ii) The external level.
(iii) The business portfolio level.
(iv) The inter-organisation level.
(v) The intra-organisation level.
(vi) The competitive level.
a. (i) (ii) (vi)
b. (i) (iii) (vi)
c. (iii) (iv) (v)
d. (iv) (v) (iii)

Answer 1

Which are the three levels that strategy can be seen to operate at?

(i) The internal level.
(ii) The external level.
(iii) The business portfolio level.
(iv) The inter-organisation level.
(v) The intra-organisation level.
(vi) The competitive level.
a. (i) (ii) (vi)

*b. (i) (iii) (vi)

c. (iii) (iv) (v)
d. (iv) (v) (iii)

Question 2

Answer 2

Question 3

What is a business process?

a. A series of interlocking activities that work together across the organisation to achieve some predetermined organisational goal.
b. Any activity performed by a business.
c. Any core activity that produces a profit.
d. Any activity performed by a manufacturing company providing that it produces a profit.

Answer 3

What is a business process?

*a. A series of interlocking activities that work together across the organisation to achieve some predetermined organisational goal.

b. Any activity performed by a business.
c. Any core activity that produces a profit.
d. Any activity performed by a manufacturing company providing that it produces a profit.

Question 4

Answer 4

Question 5

There are two perspectives of organisational design:

a. logical and physical.
b. internal and external.
c. functional and business process.
d. scientific and practical.

Answer 5

There are two perspectives of organisational design:

a. logical and physical.
b. internal and external.

*c. functional and business process.

d. scientific and practical.

Question 6

Because of ERP’s best practice approach, if all organisations adopt the ERP system and have the same underlying processes, they are less likely to distinguish themselves and gain a competitive advantage. This is likely a major reason for:

a. not adopting ERP.
b. adopting ERP before competitors do.
c. configuring a business process around an ERP system.
d. not configuring a business process around an ERP system.

Answer 6

Because of ERP’s best practice approach, if all organisations adopt the ERP system and have the same underlying processes, they are less likely to distinguish themselves and gain a competitive advantage. This is likely a major reason for:

a. not adopting ERP.
b. adopting ERP before competitors do.
c. configuring a business process around an ERP system.

*d. not configuring a business process around an ERP system.

Question 7

The information business:

a. cannot operate without modern information and communication technologies.
b. cannot operate on a manual basis.
c. is not popular because it adds middleman costs to final prices.
d. is useful for both everyday consumers and enterprise-level customers.

Answer 7

The information business:

a. cannot operate without modern information and communication technologies.
b. cannot operate on a manual basis.
c. is not popular because it adds middleman costs to final prices.

*d. is useful for both everyday consumers and enterprise-level customers.

Question 8

Answer 8

Question 9

An emphasis on business processes is different to a functional perspective of the organisation because a business process emphasis:

a. offers highly defined tasks and responsibilities.
b. gives employees the freedom to do what they want in order to please the customer.
c. acknowledges cross-functional communication and action is essential to the customer’s needs.
d. views the customer needs as secondary to those of the functional divisions.

Answer 9

An emphasis on business processes is different to a functional perspective of the organisation because a business process emphasis:

a. offers highly defined tasks and responsibilities.
b. gives employees the freedom to do what they want in order to please the customer.

*c. acknowledges cross-functional communication and action is essential to the customer’s needs.

d. views the customer needs as secondary to those of the functional divisions.

Question 10

The focus of the functional perspective of the organisation is on:

a) controlling the organisation so customers are satisfied.
b) ensuring the organisation can promptly respond to its operating environment.
c) controlling staff through specifically defined duties.
d) integrating the functional areas for efficient operations.

Answer 10

The focus of the functional perspective of the organisation is on:

a) controlling the organisation so customers are satisfied.
b) ensuring the organisation can promptly respond to its operating environment.

c) controlling staff through specifically defined duties.

d) integrating the functional areas for efficient operations.

Question 11

Answer 11

Question 12

In a BPR project:

a. a leadership team is “good to have” but not necessary.
b. a leadership team consists of company executives should be established to guide the project.
c. the leadership team may include some influential external stakeholders.
d. the leadership team members need not be of authority sufficient.

Answer 12

In a BPR project:

a. a leadership team is “good to have” but not necessary.
b. a leadership team consists of company executives should be established to guide the project.

*c. the leadership team may include some influential external stakeholders.

d. the leadership team members need not be of authority sufficient.

Question 13

Answer 13

Question 14

Which of the following statements regarding BPR is not true?

a. BPR is an attempt at downsizing.
b. Ethical issues are involved in BPR.
c. Social issues are involved in BPR.
d. Employees can be extremely wary when BPR is mentioned.

Answer 14

Which of the following statements regarding BPR is not true?

*a. BPR is an attempt at downsizing.

b. Ethical issues are involved in BPR.
c. Social issues are involved in BPR.
d. Employees can be extremely wary when BPR is mentioned.

Question 15

People within the organisation need to be encouraged to provide feedback about the design of a process. This is particularly the case:

a. at the lower levels of the organisation.
b. at the line manager level of the organisation.
c. at the middle management level of the organisation.
d. at the executive level of the organisation.

Answer 15

People within the organisation need to be encouraged to provide feedback about the design of a process. This is particularly the case:

*a. at the lower levels of the organisation.

b. at the line manager level of the organisation.
c. at the middle management level of the organisation.
d. at the executive level of the organisation.

Question 16

Which of the following is not a problem or limitation of a functionally based organisational design?

a. Not reflective of the reality of today.
b. Lack of administrative power.
c. Slow to react to the environment.
d. Focuses on the wrong things.

Answer 16

Which of the following is not a problem or limitation of a functionally based organisational design?

a. Not reflective of the reality of today.

*b. Lack of administrative power.

c. Slow to react to the environment.
d. Focuses on the wrong things.

Question 17

Answer 17

Question 18

Scientific management is concerned with:

a. streamlined work flows across the organisation.
b. hierarchical control of the organisation through three levels of management.
c. clearly defining individual employee’s responsibilities and tasks.
d. dividing the business structure into the optimal number of functional divisions.

Answer 18

Scientific management is concerned with:

a. streamlined work flows across the organisation.
b. hierarchical control of the organisation through three levels of management.

*c. clearly defining individual employee’s responsibilities and tasks.

d. dividing the business structure into the optimal number of functional divisions.

Question 19

Michael Porter sees the implementation and attainment of strategies as consisting of five steps.

Which of the following is NOT one of the steps?

a. Fit.
b. Uniqueness.
c. Operational efficiency.
d. Sustainability.

Answer 19

Michael Porter sees the implementation and attainment of strategies as consisting of five steps.

Which of the following is NOT one of the steps?

a. Fit.
b. Uniqueness.

*c. Operational efficiency.

d. Sustainability.

Question 20

Normally, the first step in a BPR project is to:

a. form a leadership team.
b. convince others within the organisation that BPR is actually required.
c. create and communicate a vision.
d. encourage employees to try new ways of doing things.

Answer 20

Normally, the first step in a BPR project is to:

a. form a leadership team.

*b. convince others within the organisation that BPR is actually required.

c. create and communicate a vision.
d. encourage employees to try new ways of doing things.

Question 21

An organisation is undergoing a major change to the way it does business, redesigning business processes and the use of IT within the processes. One of the suggested change approaches was TQM. In this case:

a. TQM would be ideal because it allows for all employees to offer suggestions and be involved in the changing of the organisation.
b. TQM would be ideal because its incremental approach to organisational change means that the change process would be well managed.
c. TQM would not be ideal because its incremental approach would mean that change would take a large amount of time.
d. TQM would not be ideal because its incremental approach is suited to gradual change rather than large scale change.

Answer 21

An organisation is undergoing a major change to the way it does business, redesigning business processes and the use of IT within the processes. One of the suggested change approaches was TQM. In this case:

a. TQM would be ideal because it allows for all employees to offer suggestions and be involved in the changing of the organisation.
b. TQM would be ideal because its incremental approach to organisational change means that the change process would be well managed.
c. TQM would not be ideal because its incremental approach would mean that change would take a large amount of time.

*d. TQM would not be ideal because its incremental approach is suited to gradual change rather than large scale change.

Question 22

A process that has been reengineered will have less of a role for specialists because:

a. specialists are made redundant through the cost-cutting emphasis of BPR.
b. decisions that require specialists are removed from a process.
c. generalists are trained and act as specialists through the assistance of decision aids.
d. jobs are combined and key workers are given decision-making responsibility.

Answer 22

A process that has been reengineered will have less of a role for specialists because:

a. specialists are made redundant through the cost-cutting emphasis of BPR.
b. decisions that require specialists are removed from a process.
c. generalists are trained and act as specialists through the assistance of decision aids.

*d. jobs are combined and key workers are given decision-making responsibility.

Question 23

Michael Porter puts forward five forces that shape the industry in which a firm operates. Which of the following is NOT one of the forces?

a. Threat of new entrants.
b. Legislative power of the government.
c. Rivalry among existing competitors.
d. Threat of substitute products or services.

Answer 23

Michael Porter puts forward five forces that shape the industry in which a firm operates. Which of the following is NOT one of the forces?

a. Threat of new entrants.

*b. Legislative power of the government.

c. Rivalry among existing competitors.
d. Threat of substitute products or services.

Question 24

Which of the following is not a benefit of a functionally based organisational design?

a. Control and coordination.
b. Stability.
c. Communication efficiency.
d. Task specificity.

Answer 24

Which of the following is not a benefit of a functionally based organisational design?

a. Control and coordination.
b. Stability.

*c. Communication efficiency.

d. Task specificity.

Question 25

Any benefits gained through improved resource efficiency in the process perspective could potentially be negated by the increased resources required to support the new IT within the organisation. This phenomenon is referred to as:

a. spill-over effect.
b. productivity paradox.
c. rent misappropriation.
d. siphon effect.

Answer 25

Any benefits gained through improved resource efficiency in the process perspective could potentially be negated by the increased resources required to support the new IT within the organisation. This phenomenon is referred to as:

a. spill-over effect.

*b. productivity paradox.

c. rent misappropriation.
d. siphon effect.

Question 26

Answer 26

Question 27

TQM is designed for (i)______, (ii)______ change, while BPR is more of a (iii)_______, (iv)_____ approach to change.

a) (i) incremental, (ii) top-down, (iii) moderate risk, (iv) clean slate
b) (i) incremental, (ii) bottom-up, (iii) radical, (iv) top-down
c) (i) top-down, (ii) quick, (iii) long-term, (iv) incremental
d) (i) narrow, (ii) within function, (iii) narrow, (iv) across function

Answer 27

TQM is designed for (i)______, (ii)______ change, while BPR is more of a (iii)_______, (iv)_____ approach to change.

a) (i) incremental, (ii) top-down, (iii) moderate risk, (iv) clean slate

b) (i) incremental, (ii) bottom-up, (iii) radical, (iv) top-down

c) (i) top-down, (ii) quick, (iii) long-term, (iv) incremental
d) (i) narrow, (ii) within function, (iii) narrow, (iv) across function

Question 28

Which one of the following technology is more likely to be used in the billing and cash receipts process by the seller of goods?

a. RFID.
b. Electronic bill presentation and payment.
c. Electronic bill payment.
d. Evaluated receipts settlement.

Answer 28

Which one of the following technology is more likely to be used in the billing and cash receipts process by the seller of goods?

a. RFID.
b. Electronic bill presentation and payment.
c. Electronic bill payment.

*d. Evaluated receipts settlement.

Question 29

Which one of the following is NOT a BPR principle in practice?

a. Combine jobs and let workers make decisions.
b. Perform process steps in a functionally logical order.
c. Allow processes to vary.
d. Reduce the impediment of controls and reconciliation.

Answer 29

Which one of the following is NOT a BPR principle in practice?

a. Combine jobs and let workers make decisions.

*b. Perform process steps in a functionally logical order.

c. Allow processes to vary.
d. Reduce the impediment of controls and reconciliation.

Question 30

In the process perspective of the organisation, a flattened organisational design cannot:

a. increase task specificity.
b. reduce bureaucracy.
c. create a more flexible organisation.
d. identify tasks and functions that do not add value.

Answer 30

In the process perspective of the organisation, a flattened organisational design cannot:

*a. increase task specificity.

b. reduce bureaucracy.
c. create a more flexible organisation.
d. identify tasks and functions that do not add value.

Question 31

Michael Porter sees a business as having two options when deciding on a strategy. These two options are:

a. economies of scale and entry barrier.
b. economies of scope and differentiation.
c. price competition and product abundance.
d. differentiation and cost leadership.

Answer 31

Michael Porter sees a business as having two options when deciding on a strategy. These two options are:

a. economies of scale and entry barrier.
b. economies of scope and differentiation.
c. price competition and product abundance.

*d. differentiation and cost leadership.

Question 32

Benefits of a reengineered process from a customer’s perspective do not include:

a. better information availability.
b. more convenient way of participating in a process.
c. a specific reference point.
d. friendlier customer service.

Answer 32

Benefits of a reengineered process from a customer’s perspective do not include:

a. better information availability.
b. more convenient way of participating in a process.
c. a specific reference point.

*d. friendlier customer service.

Question 33

There are four main areas in which an organisation can benefit from the application of technology to its business processes. These areas do not include:

a. transaction-based area.
b. change-based area.
c. strategy-based area.
d. marketing-based area.

Answer 33

There are four main areas in which an organisation can benefit from the application of technology to its business processes. These areas do not include:

a. transaction-based area.
b. change-based area.
c. strategy-based area.

*d. marketing-based area.

Question 34

The major difference between a business process and a business function is that:

a. business processes emphasises what gets done, business functions emphasise how it gets done.
b. business process personnel are highly skilled specialists, business function personnel are generalists operating across numerous areas.
c. business processes emphasise vertical structure and hierarchy, business functions emphasise the horizontal integration of the organisation.
d. business processes are customer driven, business functions are task driven.

Answer 34

The major difference between a business process and a business function is that:

a. business processes emphasises what gets done, business functions emphasise how it gets done.
b. business process personnel are highly skilled specialists, business function personnel are generalists operating across numerous areas.
c. business processes emphasise vertical structure and hierarchy, business functions emphasise the horizontal integration of the organisation.

*d. business processes are customer driven, business functions are task driven.

Question 35

Which of the following is NOT a benefit of adopting a business process perspective within the organisation?

a. Better customer service and customer relations.
b. Greater efficiency and effectiveness in using resources.
c. Tighter organisational control.
d. Less non-value-adding activities.

Answer 35

Which of the following is NOT a benefit of adopting a business process perspective within the organisation?

a. Better customer service and customer relations.
b. Greater efficiency and effectiveness in using resources.

*c. Tighter organisational control.

d. Less non-value-adding activities.

Question 36

The benefits of a business process perspective include:

a) a well-defined hierarchy for organisational control.
b) an integrated horizontal organisation.
c) delegated power to employees through less reliance on specialists.
d) specialists doing a large amount of work to ensure its proper completion.

Answer 36

The benefits of a business process perspective include:

a) a well-defined hierarchy for organisational control.
b) an integrated horizontal organisation.

c) delegated power to employees through less reliance on specialists.

d) specialists doing a large amount of work to ensure its proper completion.

Question 37

Evaluated receipts settlement involves:

a. the purchaser paying for goods without receiving an invoice.
b. the supplier issuing an invoice before goods have been delivered.
c. speeding up the accounts receivable process for a vendor.
d. the electronic sending and payment of invoices.

Answer 37

Evaluated receipts settlement involves:

*a. the purchaser paying for goods without receiving an invoice.

b. the supplier issuing an invoice before goods have been delivered.
c. speeding up the accounts receivable process for a vendor.
d. the electronic sending and payment of invoices.

Question 38

The business process can yield benefits for an organisation through:

a. ignoring customer service and focussing on superior product design.
b. offering customers cheaper prices.
c. outsourcing all customer service activities.
d. improved customer service and customer relations through a value adding emphasis.

Answer 38

The business process can yield benefits for an organisation through:

a. ignoring customer service and focussing on superior product design.
b. offering customers cheaper prices.
c. outsourcing all customer service activities.

*d. improved customer service and customer relations through a value adding emphasis.

Question 39

Instead of turning up to work knowing that all they will be doing is one specific, narrowly defined task, employees become involved in a range of tasks and see how the tasks integrate with each other. This is a likely description of:

a. employee empowerment.
b. a functional environment.
c. a business process oriented environment.
d. multi-tasking.

Answer 39

Instead of turning up to work knowing that all they will be doing is one specific, narrowly defined task, employees become involved in a range of tasks and see how the tasks integrate with each other. This is a likely description of:

a. employee empowerment.
b. a functional environment.

*c. a business process oriented environment.

d. multi-tasking.

Question 40

The logical consequence of Taylor’s scientific management approach was that organisations:

a. developed rigid hierarchies that sought to tightly control lower levels of the organisation.
b. developed highly interactive and flexible structures that could easily adapt to changing environments.
c. had employees who questioned procedures and sought to continually redefine their role.
d. streamlined the information flows across the organisation.

Answer 40

The logical consequence of Taylor’s scientific management approach was that organisations:

*a. developed rigid hierarchies that sought to tightly control lower levels of the organisation.

b. developed highly interactive and flexible structures that could easily adapt to changing environments.
c. had employees who questioned procedures and sought to continually redefine their role.
d. streamlined the information flows across the organisation.

Question 41

Which of the following is NOT a central tenet of BPR?

a. Look for ways technology can potentially be applied to solve a business problem.
b. Look for ways technology can potentially be applied to create a unique strategic position for an organisation.
c. Look for ways technology can potentially be applied to help organisation grasp emergent opportunities.
d. Look for ways technology can potentially be applied to help organisation sustain competitive advantage.

Answer 41

Which of the following is NOT a central tenet of BPR?

a. Look for ways technology can potentially be applied to solve a business problem.
b. Look for ways technology can potentially be applied to create a unique strategic position for an organisation.
c. Look for ways technology can potentially be applied to help organisation grasp emergent opportunities.

*d. Look for ways technology can potentially be applied to help organisation sustain competitive advantage.

Question 42

Organisations will benefit most from the application of IT when:

a. they use the most advanced and latest IT.
b. all business processes are computerised.
c. IT costs are brought to the minimum.
d. the use of IT is driven by business needs and opportunities.

Answer 42

Organisations will benefit most from the application of IT when:

a. they use the most advanced and latest IT.
b. all business processes are computerised.
c. IT costs are brought to the minimum.

*d. the use of IT is driven by business needs and opportunities.

Question 43

In terms of BPR:

a. job descriptions need not be adjusted.
b. the attainment of short-term wins is a form of positive feedback.
c. once improvements are consolidated, further change should be avoided so that achieved improvements can be sustained.
d. institutionalising the new approaches does not involve changes in organisational culture.

Answer 43

In terms of BPR:

a. job descriptions need not be adjusted.

*b. the attainment of short-term wins is a form of positive feedback.

c. once improvements are consolidated, further change should be avoided so that achieved improvements can be sustained.
d. institutionalising the new approaches does not involve changes in organisational culture.

Question 44

Answer 44

Question 45

ERP systems will help an organisation improve its process design when:

a) the existing process is flawed and the strategy of the organisation is consistent with the ERP approach.
b) the existing process is flawed and strategies are different to the ERP approach but the organisation can change to the ERP-defined process.
c) the existing process is old, having been in place for several years.
d) the process in the ERP system is different from the existing process used by the organisation.

Answer 45

ERP systems will help an organisation improve its process design when:

a) the existing process is flawed and the strategy of the organisation is consistent with the ERP approach.

b) the existing process is flawed and strategies are different to the ERP approach but the organisation can change to the ERP-defined process.
c) the existing process is old, having been in place for several years.
d) the process in the ERP system is different from the existing process used by the organisation.

Question 46

An example of a strategic level decision would be:

a. determining the quantity of raw materials to purchase.
b. appointing a new line manager responsible for running the delivery department.
c. reconfiguring the production line design to eliminate wasted time due to bottlenecks.
d. deciding whether to acquire the remaining shares of a partially owned subsidiary.

Answer 46

An example of a strategic level decision would be:

a. determining the quantity of raw materials to purchase.
b. appointing a new line manager responsible for running the delivery department.
c. reconfiguring the production line design to eliminate wasted time due to bottlenecks.

*d. deciding whether to acquire the remaining shares of a partially owned subsidiary.

Question 47

Business processes can provide an organisation with a competitive advantage. This competitive advantage is more likely to come from:

a. the design of business processes that are more efficient and effective.
b. the design of business processes that are unique or offer something different.
c. the design of business processes that are more competitive and flexible.
d. the design of business processes that have lower costs of execution.

Answer 47

Business processes can provide an organisation with a competitive advantage. This competitive advantage is more likely to come from:

a. the design of business processes that are more efficient and effective.

*b. the design of business processes that are unique or offer something different.

c. the design of business processes that are more competitive and flexible.
d. the design of business processes that have lower costs of execution.

Question 48

In managing changes in a business process, organisations will often consult lower-level staff for ideas about improvements. This is done because:

a) lower-level employees need to have the perception they are involved in the change.
b) lower-level employees perform most of the process and possess valuable knowledge about its operation.
c) top-level management fears union reprisals if it does not consult lower-level staff.
d) lower-level employees can be useful in managing the change process.

Answer 48

In managing changes in a business process, organisations will often consult lower-level staff for ideas about improvements. This is done because:

a) lower-level employees need to have the perception they are involved in the change.

b) lower-level employees perform most of the process and possess valuable knowledge about its operation.

c) top-level management fears union reprisals if it does not consult lower-level staff.
d) lower-level employees can be useful in managing the change process.

Question 49

IT as an enabler of BPR means that:

a) all jobs should be performed by computers.
b) existing processes should be automated using the latest technology.
c) IT can enable people to better enjoy their work roles.
d) IT should be used in newly designed processes where possible.

Answer 49

IT as an enabler of BPR means that:

a) all jobs should be performed by computers.
b) existing processes should be automated using the latest technology.
c) IT can enable people to better enjoy their work roles.

d) IT should be used in newly designed processes where possible.

Question 50

Answer 50

Question 51

Which of the following indicates that a company is using the internet effectively for its business processes?

a. A company has a home page, information only website.
b. Sales orders captured through the website feed automatically into the revenue cycle.
c. Customers can contact the company for more information through the website.
d. The company uses internet banking to pay invoices.

Answer 51

Which of the following indicates that a company is using the internet effectively for its business processes?

a. A company has a home page, information only website.

*b. Sales orders captured through the website feed automatically into the revenue cycle.

c. Customers can contact the company for more information through the website.
d. The company uses internet banking to pay invoices.

Question 52

Answer 52

Question 53

Although ERP systems are built around the idea of best practice, some organisations will choose not to adopt the ERP best practice, seeking instead to modify the design of the system. The mostly likely reason for doing so is:

a. modifying the ERP system will lower the cost of implementation because redundant features are removed.
b. the ‘fit’ between the system and the business processes needs to exist. It is easier to change the system than to change the organisational design.
c. the ERP system is unable to drive some of the organisation’s unique business processes that provide distinct competitive advantage to the organisation.
d. adopting an ERP system off the shelf erodes competitive advantage because everyone else has the same software at their disposal.

Answer 53

Although ERP systems are built around the idea of best practice, some organisations will choose not to adopt the ERP best practice, seeking instead to modify the design of the system. The mostly likely reason for doing so is:

a. modifying the ERP system will lower the cost of implementation because redundant features are removed.
b. the ‘fit’ between the system and the business processes needs to exist. It is easier to change the system than to change the organisational design.

*c. the ERP system is unable to drive some of the organisation’s unique business processes that provide distinct competitive advantage to the organisation.

d. adopting an ERP system off the shelf erodes competitive advantage because everyone else has the same software at their disposal.

Question 54

Answer 54

Question 55

Answer 55

Question 56

An organisation is looking for a way to improve their accounts payable process. Someone suggested that they continue to send out paper invoices but allow customers to pay through their bank website and phone banking. This is an example of:

a. electronic bill presentment.
b. electronic bill presentment and payment.
c. electronic bill payment.
d. neither electronic bill presentment nor payment.

Answer 56

An organisation is looking for a way to improve their accounts payable process. Someone suggested that they continue to send out paper invoices but allow customers to pay through their bank website and phone banking. This is an example of:

a. electronic bill presentment.
b. electronic bill presentment and payment.

*c. electronic bill payment.

d. neither electronic bill presentment nor payment.

Question 57

An ERP system is:

a. a complex set of computer program modules that integrate the different functional areas of the organisation.
b. developed around an information silo principle.
c. a system that integrates functional and proprietary information systems in different departments in an organisation.
d. suitable for both large and small organisations.

Answer 57

An ERP system is:

*a. a complex set of computer program modules that integrate the different functional areas of the organisation.

b. developed around an information silo principle.
c. a system that integrates functional and proprietary information systems in different departments in an organisation.
d. suitable for both large and small organisations.

Question 58

A sales person is processing a credit sale. As per company policy, the sales person should conduct the credit check and forward the result to a supervisor, who would then make a decision on the creditworthiness of the applicant and send this back to the sales person. This scenario is more likely to happen in:

a. functionally based organisation.
b. business process based organisation.
c. both functionally based organisation and business process based organisation.
d. neither functionally based organisation nor business process based organisation.

Answer 58

A sales person is processing a credit sale. As per company policy, the sales person should conduct the credit check and forward the result to a supervisor, who would then make a decision on the creditworthiness of the applicant and send this back to the sales person. This scenario is more likely to happen in:

*a. functionally based organisation.

b. business process based organisation.
c. both functionally based organisation and business process based organisation.
d. neither functionally based organisation nor business process based organisation.

Question 59

The first stage in adopting a business process perspective is:

a. securing customer approval.
b. ensuring that the project is fully costed.
c. ensuring that the company is currently using updated technology.
d. that it must be represented in the design of the organisation.

Answer 59

The first stage in adopting a business process perspective is:

a. securing customer approval.
b. ensuring that the project is fully costed.
c. ensuring that the company is currently using updated technology.

*d. that it must be represented in the design of the organisation.

Question 60

Which of the following is NOT a result of moving to a business process-based environment?

a. The way that the organisation is managed is changed.
b. Functional barriers are broken down.
c. The layer of middle management is thickened.
d. Employee resistance.

Answer 60

Which of the following is NOT a result of moving to a business process-based environment?

a. The way that the organisation is managed is changed.
b. Functional barriers are broken down.

*c. The layer of middle management is thickened.

d. Employee resistance.

Question 61

Which of the following statements is NOT true about a reengineered process?

a. Jobs change and people are empowered.
b. Work units change from a functional to a process perspective.
c. Controls are increased to ensure smooth functioning.
d. Workers jobs are combined and workers are given decision rights.

Answer 61

Which of the following statements is NOT true about a reengineered process?

a. Jobs change and people are empowered.
b. Work units change from a functional to a process perspective.

*c. Controls are increased to ensure smooth functioning.

d. Workers jobs are combined and workers are given decision rights.

Question 62

The first stage in adopting a business process perspective is that:

a. it should focus on removing middle management.
b. it must be represented in the design of the organisation.
c. it should emphasise the flattening of the organisational structure.
d. it must be reflected in the organisation’s latest statements.

Answer 62

The first stage in adopting a business process perspective is that:

a. it should focus on removing middle management.

*b. it must be represented in the design of the organisation.

c. it should emphasise the flattening of the organisational structure.
d. it must be reflected in the organisation’s latest statements.

Question 63

A business operates by sourcing data from various sources and compiling or customising it in a way that adds value for the end customer. This business is:

a. a compiler.
b. a data miner.
c. a customiser.
d. an aggregator.

Answer 63

A business operates by sourcing data from various sources and compiling or customising it in a way that adds value for the end customer. This business is:

a. a compiler.
b. a data miner.
c. a customiser.

*d. an aggregator.

Question 64

Which of the following is not a factor that is attributed to the uptake of the IT by many organisations?

a. Government support.
b. Customer pressure.
c. Ability to access technological support.
d. Better socioeconomic environment.

Answer 64

Which of the following is not a factor that is attributed to the uptake of the IT by many organisations?

a. Government support.
b. Customer pressure.
c. Ability to access technological support.

*d. Better socioeconomic environment.

Question 65

Answer 65

Question 66

Answer 66

Question 67

Which of the following statements is NOT true regarding Australian businesses?

a. More than 90% of businesses are using the Internet.
b. More than 80% of websites have some form of customer contact facility.
c. More than 70% of businesses have incorporated Internet into business processes.
d. The percentage of Australian businesses that have web presence has increased by 15% from 2003 to 2010.

Answer 67

Which of the following statements is NOT true regarding Australian businesses?

a. More than 90% of businesses are using the Internet.
b. More than 80% of websites have some form of customer contact facility.

*c. More than 70% of businesses have incorporated Internet into business processes.

d. The percentage of Australian businesses that have web presence has increased by 15% from 2003 to 2010.

Question 68

The philosophy of TQM is geared around four main concepts. These concepts are:

a. quality, process, organisations and management.
b. quality, process, people and management.
c. quality, people, organisations and management.
d. quality, process, people and organisation.

Answer 68

The philosophy of TQM is geared around four main concepts. These concepts are:

a. quality, process, organisations and management.
b. quality, process, people and management.

*c. quality, people, organisations and management.

d. quality, process, people and organisation.

Question 69

Vendor-managed inventory involves the buyer transferring the responsibility for:

a. physically holding inventory items.
b. storing, retrieving, and acquiring inventory items.
c. determining what, when and how much is purchased.
d. keeping the inventory at a fixed and predetermined level.

Answer 69

Vendor-managed inventory involves the buyer transferring the responsibility for:

a. physically holding inventory items.
b. storing, retrieving, and acquiring inventory items.

*c. determining what, when and how much is purchased.

d. keeping the inventory at a fixed and predetermined level.