Exam 1 (Chapters 1-3)

Question 1

Which of the following objectives best describes the business strategy behind the technologies implemented in Disney’s Operational Command Center, as discussed in the chapter case

Answer 1

customer support

Question 2

Which of the following would not be a complementary asset for a solar panel manufacturer

Answer 2

centralized hierarchical decision making

Question 3

An example of a business using information systems to create new products and services is

Answer 3

Apple Inc.’s iPod

Question 4

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective

Answer 4

survival

Question 5

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?

Answer 5

survival

Question 6

Which of the following best describes the primary reason for implementing a new information system, from a business perspective?

Answer 6

The system will create new value for the firm, beyond its costs

Question 7

The three principle levels within a business organization hierarchy are

Answer 7

senior management, middle management, and operational management.

Question 8

Maintaining the organization’s financial records is a central purpose of which main business function?

Answer 8

finance and accounting

Question 9

All of the following are advantages, for a firm, of cloud computing except

Answer 9

ability to improve communication

Question 10

An example of an organizational complementary asset is

Answer 10

using the appropriate business model.

Question 11

Intranets allow firms to work easily with third-party suppliers and vendors.

Answer 11

false

Question 12

Verizon’s implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of

Answer 12

Improved Decision making

Question 13

Order data for baseball tickets and bar code data are examples of

Answer 13

raw input

Question 14

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?

Answer 14

social

Question 15

The field that 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 is called

Answer 15

management information systems.

Question 16

Disciplines that contribute to the technical approach to information systems are

Answer 16

operations research, management science, and computer science.

Question 17

Which of the following choices may lead to competitive advantage:
1. new products, services, and business models; 2. charging less for superior products; 3. responding to customers in real time?

Answer 17

1, 2, and 3

Question 18

Which of the following is not one of the primary environmental actors that interacts with an organization and its information systems?

Answer 18

sales force

Question 19

Knowledge workers assist with paperwork at all levels of the firm.

Answer 19

False

Question 20

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers’ skills is an example of using technology to achieve which business objective?

Answer 20

survival

Question 21

The ________ helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes.

Answer 21

CKO

Question 22

Functional systems that support business processes within a single functional group, such as human resources, are being phased out in favor of cross-functional systems.

Answer 22

True

Question 23

Which of the following is an example of a cross-functional business process?

Answer 23

creating a new product

Question 24

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

Answer 24

TPS

Question 25

Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content?

Answer 25

executive support systems

Question 26

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

Answer 26

DSS

Question 27

________ systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance.

Answer 27

Decision-support

Question 28

E-government refers to the application of ________ to digitally enable government and public sector agencies' relationships with citizens, businesses, and other arms of government.

Answer 28

the Internet and networking technologies

Question 29

Enterprise systems often include transactions with customers and vendors.

Answer 29

True

Question 30

The CPO is responsible for

Answer 30

ensuring that the company complies with existing data privacy laws.

Question 31

Executive support systems are information systems that support the

Answer 31

long-range planning activities of senior management.

Question 32

You are planning the launch of your new company, an application service provider that provides an online timesheet and project tracking application. To best communicate with and manage your relationship with your users, you would want to implement a(n)

Answer 32

CMS

Question 33

The four major enterprise applications are

Answer 33

enterprise systems, SCMs, CRMs, and KMSs

Question 34

You have been hired by Inspiration Inc., to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the United States. The end products of the company are customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 100 consultants, all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin?

Answer 34

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

Question 35

ESS are specifically designed to serve which level of the organization?

Answer 35

senior management

Question 36

MIS job growth is projected to be 50% greater than other jobs in the next five years.

Answer 36

True

Question 37

Which of the following is not one of the reasons for the increased business focus on collaboration and teamwork?

Answer 37

the need for more efficient work hierarchies

Question 38

Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance.

Answer 38

True

Question 39

Transaction processing systems are most commonly used by the senior management level of an organization.

Answer 39

False

Question 40

Non-typical business problems with causes and effects that are rapidly changing are typically handled by which type of information system?

Answer 40

DSS

Question 41

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

Answer 41

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

Question 42

The value chain model classifies all company activities as either primary or support.

Answer 42

True

Question 43

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

Answer 43

the law of diminishing returns.

Question 44

The competitive forces model can be used to analyze today's digital firm as well as traditional firms.

Answer 44

True

Question 45

The effect of the Internet has been to raise bargaining power over suppliers

Answer 45

True

Question 46

Which of the following would not be considered a disruptive technology?

Answer 46

instant messaging

Question 47

Network economics

Answer 47

sees the cost of adding new members as inconsequential.

Question 48

An example of synergy in business is

Answer 48

JP Morgan Chase's mergers with other banks that provided JP Morgan with a network of retail branches in new regions.

Question 49

The Internet raises the bargaining power of customers by

Answer 49

making information available to everyone.

Question 50

As discussed in the chapter opening case, which of the four generic strategies did Sears employ to combat the competition offered by Target, Walmart, and Macy's?

Answer 50

customer and supplier intimacy

Question 51

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

Answer 51

Mass customization

Question 52

An information system can enable a company to focus on a market niche through

Answer 52

intensive customer data analysis.

Question 53

Barnes & Noble's apps for its e-reader, the Nook, is an example of a firm using information systems to

Answer 53

strengthen ties to its customers.

Question 54

The term business ecosystem describes the interplay between the various organizational forces within a firm.

Answer 54

False

Question 55

Business processes are collections of standard operating procedures.

Answer 55

True

Question 56

In environmental scanning, a firm may use information systems to

Answer 56

identify external events that may affect it.

Question 57

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

Answer 57

new market entrants

Question 58

The ________ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete.

Answer 58

competitive forces

Question 59

Mass customization is a form of mass production.

Answer 59

True

Question 60

In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software.

Answer 60

True