Quiz #1 Flashcards
Information Systems help Business Processes by helping to…
capture process data
True or False: E-commerce is a broader concept than e-business
False
Starbuck’s Barista is a virtual order taker, which allows you to order drinks using your Smartphone rather than talking to a human being. This is what type of digital transformation?
Process Transformation
Uber introduced a pay-for ride service that uses cars owned by individuals, rather than by a cab company. This is what type of digital transformation?
Business Model Transformation
You took all house sales in Westchester for the last 3 months and determined that median home price is $1.5 million. This is an example of ________
Knowledge
True or False: Effectiveness focuses on doing the things that matter.
True
_______ is an example of effectiveness.
increasing customer satisfaction
Output of a Business Process can be a ______ or a _____
product; service
In a business process, resources can be ____ or ____
people; equipment
True or False: An organization’s business processes can be a competitive advantage or disadvantage.
True
_________ is an example of efficiency.
Automating order entry
In a Process Flow Diagram (PFD) decision stages are denoted by what type of symbol ?
diamond
True or False: A Process level issue is easier to troubleshoot than an instance level issue
True
_________ are materials, services, and information that flow through and are transformed as a result of Business process activities
inputs
True or False: Customers of a business process can be either internal or external to the organization
True
Which of the following is not a computer based information system?
Transaction Processing System
Electronic Commerce System
Functional Area Information System
Correct Answer
Product Flow system
Office Automation Systems
Product Flow Systems
A Business Process consists of which of the following three
component?
Input, Data, Output
Data, People, Outcome
Data, Processing, Result
Input, Resource, Output
Input, resource, output
True or False: Efficiency focuses on high quality products.
False
What is a Swim Lane Diagram in a PFD ?
describes who was doing what in a process
Your company provides NesPresso coffee pods for employees. Every month, a different set of flavors are provided. Is this a business process?
False; business process must add value to the product or company
True or False: An instance level issue has widespread effect on Business Process performance.
False
True or False: The two fundamental metrics that organizations employ in assessing their processes are efficiency and effectiveness.
True
_________ are people and equipment that perform business process activities
Resources
Business Process Evaluations occur in two levels: ________level and ________level
process; instance
_________ are the product or service created by the business process
outputs
Yes or No: Your company is moving Headquarters from LAX to Houston. A lot of logistics is involved. Is this a business process ?
False
Any type of Information System must contain these components (check all that apply).
IT infrastructure
ERP system
Business Intelligence (BI) System
Transaction Processing System (TPS)
IT infrastructure; Transaction Processing System
The internet makes customers _________ powerful; this is a _________ pressure.
more; market
The threat of new competitors will enter your market is _________ when entry is easy and _________ when there are significant barriers to entry.
high; low
The threat of new competitors will enter your market is high when entry is _________ and low when there are _________ barriers to entry
easy; significant
Buyer power is _________ when buyers have many choices from whom to buy and _________ when buyers have few choices
high; low
If there are many alternatives to an organization’s products or services, then the threat of substitutes is _________; if there are few alternatives, then the threat is ______.
high; low
The threat from rivalry is _________ when there is intense competition among many firms in an industry and _________ when competition is not as intense.
high; low
_________ industries experience the greatest threat from substitutes.
Information-based
You live in a small town with only one large retailer. This means there is low ______.
buyer power
Your business manufactures motors. Based on prices and shipping, you only have one business as an option to buy bearings. This means there is high _________.
supplier power
The music and newspaper industries were hurt primarily by _________.
threat of substitutes
Car and technology companies are currently competing over who can offer the first self-driving car. This is an example of a(n) _________ strategy.
innovation
True or False: If there are only two competitors, rivalry will be low.
False
Supplier power is high when buyers have _________ choices from whom to buy and low when buyers have _________ choices.
few; many
If there are _________ alternatives to an organization’s products or services, then the threat of substitutes is high; if there are _________ alternatives, then the threat is low.
many; few
Which of the following reduces buyer power?
loyalty programs
_________ are the costs, in money and time, imposed by a decision to buy elsewhere.
switching costs
Online advertising has caused newspapers to _________ subscription prices and _________ advertising rates.
increase; decrease
Today, if you want to operate a bank, you have to offer online banking - because most banks offer it. This is a(n) ________.
entry barrier
Primary activities _________ add value directly to the firm’s products or services; support activities _________ add value directly to the firm’s products or services.
do; do not
What are the two factors considered in Porter’s matrix of generic strategies?
target market size and type of advantage
Porter’s generic strategies are:
Cost leadership, differentiation, cost focus, focus differentiation
In Porter’s Generic Strategies model, a focus strategy involves:
Selling to a narrow customer segment
True or False: Google offers its employees choice of a wide variety of foods, in-office Gym, shower, and even a place to take a quick nap. While these make employees happy, Google does not get any competitive advantage by providing these facilities
Falsel
Walmart enjoys what type of strategic advantages ? Check all that apply
Differentiation Leadership
Cost Focus
Customer Focus
Operational Effectiveness
Innovation
Cost Leadership
customer focus, operational effectiveness, cost leadership
Tesla’s electric car division enjoys what type of strategic advantages ? Check all that apply
Cost Focus
Cost Leadership
Differentiation Leadership
Differentiation Focus
Operational Effectiveness
Innovation
new products, operational effectiveness, innovation
The NBA is using virtual reality to ________.
help remote fans feel the court-side experience
The NBA’s use of virtual reality indicates they are using Porter’s __________ strategy for competitive advantage.
innovation
_________ is an example of a support activity for most firms.
Product and technology development
_________ is an example of a primary activity for most firms.
operations
Which of the following has the strategy “I can sell at a lower price than you can”?
a) Cost leader
b) Customer oriented
c) Differentiation
d) Innovation
e) Operational effectiveness
cost leader
Which of the following has the strategy “I can do the same thing more efficiently than you can”?
cost leader
customer oriented
operational effectiveness
differentiation
innovation
operational effectiveness
You decide to integrate your supply chain to cut down production time. This is an example of a(n) _________ strategy
operational effectiveness
True or False: When you create a competitive strategy, you must plan your own moves and anticipate and counter your competitors’ moves.
True
Both Primary and Support activities create value for which customers are willing to pay.
False
Ikea sales household items at an affordable cost. This Swedish company has 474 stores all over the world including 70 in North America and 273 in Europe. What generic strategy does Ikea use ?
Cost leadership
El Torito is a California based Mexican restaurant chain owned by Xperience Restaurant Group. Their website uses the tagline:
“We know Mexican”
El Torito also has very attractive Happy hour prices for drinks and bar food.
What generic strategy does El Torito use ?
Differentiation Focus
ERP stands for
Enterprise Resource Planning
QuickBooks is a popular accounting tool that allows you to register sales, expenses, purchase orders, invoices, etc. It also allows you to produce Profit & Loss statement, Balance Sheet, Product-wise Sales report, and so on.
Using only the above description, categorize what type of Information System QuickBooks offers. (Check all that apply)
Transaction Processing System
Management Information System
Decision Support System
Executive Support System
Transaction processing system; management information system
Reconciling Bank Accounts fall under which Functional Area of Information Systems (FAIS) ?
accounting
Updating website falls under which Functional Area of Information Systems (FAIS) ?
marketing
Installing anti-virus software for the organization falls under which Functional Area of Information Systems (FAIS) ?
MIS
Purchasing raw material for production falls under which Functional Area of Information Systems (FAIS) ?
Operations
Determining how much dividend should be offered to shareholders falls under which Functional Area of Information Systems (FAIS) ?
Financial
Inventory Control falls under what type of Information System ? (check all that apply)
Transaction Processing System
Manufacturing and Operations System
Marketing System
Operational Level System
Management Level System
Management Information System
Decision Support System
Strategic Level System
Manufacturing and operations system; management level system; management information system
Contract cost analysis falls under what type of Information System ? (check all that apply)
Transaction Processing System
Human Resources Information System
Marketing Information System
Operational Level System
Management Level System
Management Information System
Accounting Information System
Financial Information System
Decision Support System
Human resources information system; management level system; management information system
Personnel Planning falls under what type of Information System ? (check all that apply)
Transaction Processing System
Human Resources Information System
Strategic Level System
Operational Level System
Management Level System
Management Information System
Accounting Information System
Financial Information System
Decision Support System
Executive Support System
Human resources information system; strategic level system; executive support system
Organizing cybersecurity training for new employees falls under which Functional Area of Information Systems (FAIS) ?
Human resources
Order processing is an example of ________________
Transaction Processing System
Order processing falls under which Functional Area of IS ?
Sales and marketing
Inventory Control is an example of ________________
Management Information System
Inventory Control falls under which Functional Area of IS ?
Management and Production
5 year sales trend forecast is handled by _____________
Executive Support System
True or False: Management Information Systems are primarily used by Mid-level managers
True
True or False: Decision Support Systems are primarily used by Mid-level managers
False
True or False: Executive Support System is a Management Level System
False
True or False: Annual Budgeting is process is part of Strategic Level System
False
Quality Assurance falls under which Functional Area of Information Systems (FAIS) ?
Operations
Vendor selection falls under which Functional Area of Information Systems (FAIS) ?
operations
Procurement processes does NOT involve _________.
sales
__________ is not involved in Fulfillment processes
purchasing
