Exam 1 (CH 1-4)

Question 1

E-Commerce

Answer 1

the buying and selling of goods and services by using the Internet

Question 2

E-Business

Answer 2

the use of the Internet to conduct and support day-to-day business activities

Question 3

Object technology

Answer 3

a software technology that defines a system in terms of objects that consolidate data and behavior (into objects).

Question 4

Systems Integration

Answer 4

process of building a unified information system out of diverse components of purchases software, custom-built software, hardware, and networking

Question 5

Information technology

Answer 5

the hardware and software a business uses to achieve objectives

Question 6

Information system

Answer 6

interrelated components that manage information to

Question 7

Data

Answer 7

streams of raw facts

Question 8

Information

Answer 8

data shaped into meaningful, useful form

Question 9

input

Answer 9

activity of gathering and capturing raw data

Question 10

processing

Answer 10

converting or transforming data into useful ouputs

Question 11

output

Answer 11

production of useful information, usually in form of docs and reports

Question 12

feedback

Answer 12

output used to make changes to input or processing activities

Question 13

system variable

Answer 13

quantity or item controlled by the decision maker

Question 14

system parameter

Answer 14

value or quantity that cannot be controlled

Question 15

Computer-based information system (CBIS)

Answer 15

A single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store, and process data into information

Question 16

TPS

Answer 16

Transaction processing systems

organized collection of people, procedures, software, databases, and devices used to record completed business transactions

The TPS records the data from everyday operation throughout every division or department in the organization. Each division/department is tied together through the TPS to provide useful information to all management levels throughout the company

Question 17

MIS

Answer 17

Management information systems

Help with monitoring, controlling, decision making, and administrative activities

An MIS is used by managers throughout the organization to help them in directing, planning, coordinating, communicating and decision making. The MIS will help answer structured questions.

Question 18

E/DSS

Answer 18

Executive/Decision support systems

Help address strategic issues and long-term trends, both in firm and in external environment

DSS is used for complex “what if” questions that require internal and external data. Decisions at this mgt level are somehow semi-structured ==) the system should respond to non-routine questions and help managers with non-routine decisions.

Question 19

Strategy

Answer 19

a set of decisions made to achieve competitive advantage

Question 20

Competitive Advantage

Answer 20

ability of a firm to outperform its competitors in financial measures

measures:
Accounting profits - not a bad measure for firms in identical/very comparable businesses

Stock Price - can rflect values not in the accounting tables

Question 21

Operational Effectiveness

Answer 21

performing the same tasks better than rivals perform them.

-lower cost

Question 22

Strategic Positioning

Answer 22

performing different tasks than your rivals, or performing the same tasks in a different way.
-Higher value/revenue

Question 23

Product Differentiation

Answer 23

Many possible dimensions to differentiate products
Physical attributes: color, size, …
Intangible attributes: service, quality
Two types of differentiation
Vertical - build a better product; products differ in quality (Civic vs. Acura)
Horizontal - position yourself in “product space” away from your competitors; used to appeal to distinct group of customers (red and blue cars)

Question 24

Price discrimination

Answer 24

when sales of identical goods or services are transacted at differentpricesfrom the same provider.

In general, the practice of charging different customers different prices is calledprice discrimination

Question 25

Resources

Answer 25

tangible (finanial, physical) and intangible ( tech, reputation) assets of a firm

Question 26

Capabilities

Answer 26

a subset of resources that enable a firm to take full advantage of other resources
-marketing skill, cooperative relationships