Chapter II

Question 1

Managerial decision-making challenges

• –large amounts of information
• – sophisticated analysis techniques
• – decisions quickly

Answer 1

Analyze
Apply
Make

Question 2

The six-step decision-making process
--- identification
--- collection
Solution ---
Solution ---
Solution ---
Solution ---

Answer 2

Problem
Data
Generation
Test
Selection
Implementation

Question 3

—- —-: Define the problem as clearly and precisely as possible.

Answer 3

Problem Identification

Question 4

—- —-: Gather problem-related data, including who, what, where, when, why, and how. Be sure to gather facts, not rumors or opinions about the problem.

Answer 4

Data Collection

Question 5

—- —-: Detail every solution possible, including ideas that seem farfetched.

Answer 5

Solution Generation

Question 6

— —: Evaluate solutions in terms of feasibility(can it be completed), suitability(permanent or temporary fix), and acceptability(can all participants form a consensus).

Answer 6

Solution Test

Question 7

—- —-:Select the solution that best solves the problem and meets the needs of the business.

Answer 7

Solution Selection

Question 8

—- —-: If the solution solves the problem, then the decisions made were correct. If not, then the decisions were incorrect and the process begins again.

Answer 8

Solution Implementation

Question 9

— level: Unstructured Decisions: Managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan.

Answer 9

Strategic Level

Question 10

—: Semi structured Decisions; Employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change.

Answer 10

Managerial Level

Question 11

— —: Structured Decisions; Employees develop, control and maintain core business activities required to run the day-to-day operations

Answer 11

Operational Level

Question 12

— decisions - Situations where established processes offer potential solutions

Answer 12

Structured

Question 13

—decisions – Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision

Answer 13

Semistructured

Question 14

—- decision making – Managers develop overall strategies, goals, and objectives

Answer 14

Strategic

Question 15

• – A temporary activity a company undertakes to create a unique product, service, or result

Answer 15

Project

Question 16

— – Measurements that evaluate results to determine whether a project is meeting its goals

Answer 16

Metrics

Question 17

---(CSFs) – The crucial steps companies make to perform to achieve their goals and objectives and implement strategies
Create high-quality products
Retain competitive advantages
Reduce product costs
Increase customer satisfaction
Hire and retain the best professionals

Answer 17

Critical Success Factors

Question 18

--- (KPIs) – The quantifiable metrics a company uses to evaluate progress toward critical success factors
Turnover rates of employees
Number of product returns
Number of new customers
Average customer spending

Answer 18

Key Performance Indicators

Question 19

External KPI

—- – The portion of the market that a firm captures (external)

Answer 19

Market Share

Question 20

Internal KPI

—(ROI) – Indicates the earning power of a project

Answer 20

Return of Investment

Question 21

— – Measure the performance of MIS itself, such as throughput, transaction speed, and system availability

Answer 21

Efficiency MIS metrics

Question 22

— – Measures the impact MIS has on business processes and activities, including customer satisfaction and customer conversation rates

Answer 22

Effectiveness MIS metrics

Question 23

— – Baseline values the system seeks to attain

Answer 23

Benchmark

Question 24

— – A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance

Answer 24

Benchmarking

Question 25

--- – A simplified representation or abstraction of reality
Models help managers to
Calculate risks
Understand uncertainty
Change variables
Manipulate time to make decisions

Answer 25

Model

Question 26

The primary types of MIS Systems for Decision Making are:

Answer 26

Executive Information Systems, Decision Support Systems, Transaction Processing System

Question 27

— (TPS) – Basic business system that serves the operational level and assists in making structured decisions

Answer 27

Transaction processing system

Question 28

— (OLTP) - Capturing of transaction and event information using technology to process, store, and update

Answer 28

Online transaction processing

Question 29

—document – The original transaction recor

Answer 29

Source

Question 30

— (OLAP) – Manipulation of information to create business intelligence in support of strategic decision making

Answer 30

Online analytical processing

Question 31

—(DSS) – Models information to support managers and business professionals during the decision-making process

Answer 31

Decision Support System

Question 32

Four quantitative models used by DSSs include

• – analysis
• – analysis
• – analysis
• – analysis

Answer 32

What-if
Sensitivity
Goal-seeking
Optimization

Question 33

Executive information system (EIS) – A specialized DSS that supports senior level executives within the organization
Granularity
Visualization
Digital dashboard

Answer 33

Executive Information System