Div1

69) There are four major business functions: human resources; manufacturing and production; manufacturing and production; finance and accounting; and information technology. A) TRUE B) FALSE

B

82) The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly. A) TRUE B) FALSE

B

7) Which of the following is the key business metric behind the technologies implemented by Kroger, as discussed in the chapter-opening case? A) Higher customer satisfaction levels B) Survival C) Improved employee morale D) Improved decision making E) Reduced cost of supplies

A

34) Walmart's continuous replenishment system allows it to do all of the following except: A) provide mass customization. B) transmit orders to restock directly to its suppliers. C) keep costs low. D) better meet customer demands. E) fine-tune merchandise availability.

A

50) Which of the following is an example of an organizational complementary asset? A) Using the appropriate business model B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure E) Strong senior management

A

71) An efficient customer response system directly links consumer behavior to distribution and production and supply chains.

A

73) Mass customization offers individually tailored products or services using the same resources as mass production. A) TRUE B) FALSE

A

75) The value chain model classifies all company activities as either primary or support activities. A) TRUE B) FALSE

A

7) Which of the following technologies disrupted the traditional publishing industry? A) Instant messaging B) e-mail C) Internet telephony D) PCs E) World Wide Web

E

11) Along with capital, ________ is the primary production input that the organization uses to create products and services. A) structure B) culture C) politics D) feedback E) labor

E

19) When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as: A) switching costs. B) network costs. C) procurement. D) agency costs. E) transaction costs.

E

81) A key word in social business is "conversations."

TRUE

82) An example of a remote, synchronous collaboration tool is a Skype conference call using VOIP and webcams.

TRUE

83) Global firms can collaborate from different locations at the same time using synchronous collaboration tools.

TRUE

27) All of the following are competitive forces in Porter's model except: A) suppliers. B) new market entrants. C) external environment. D) customers. E) substitute products.

C

21) How many service jobs move offshore to lower-wage countries in a typical year? A) 3,000 B) 30,000 C) 300,000 D) 3 million E) 30 million

C

23) Approximately how many Americans access the Internet using a smartphone or tablet? A) 118 million B) 172 million C) 194 million D) 220 million E) 258 million

C

95) You are consulting for a natural food products distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step? A) Identify the business ecosystem the distributor is in B) Implement a strategic transition to the new system C) Perform a strategic systems analysis D) Benchmark existing systems E) Set up a strategic transition

C

2) Which of the following is an example of a cross-functional business process? A) Identifying customers B) Transporting the product C) Creating a new product D) Assembling a product E) Paying creditors

C) Creating a new product

19) Which of the following types of information systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance? A) MIS B) TPS C) DSS D) KMS E) RPS

C) DSS

28) Which of the following marketplace forces would be of least concern to a manufacturer of deep-sea oil rigs? A) Product differentiation B) Traditional competitors C) Low number of suppliers D) New market entrants E) Low number of customers

D

96) Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered: A) organizational adjustments. B) strategic transitions. C) systems alterations. D) business goal transitions. E) sociotechnical transitions.

B

76) Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments. A) TRUE B) FALSE

A

13) To monitor the status of internal operations and the firm's relations with the external environment, managers need which of the following types of system? A) DSS B) KWS C) TPS D) MIS E) BIS

C) TPS

51) When two organizations pool markets and expertise that result in lower costs and generate profits, they are creating: A) a value web. B) a value chain. C) net marketplaces. D) core competencies. E) synergies.

E

63) A(n) ________ is an activity for which a firm is a world-class leader. A) expertise area B) competitive advantage C) growth driver D) efficiency E) core competency

E

26) Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Solar energy D) Airline E) Small retailer

E

3) Which of the following 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 A) 1 only B) 1 and 2 C) 2 and 3 D) 1 and 3 E) 1, 2, and 3

E

40) All of the following are IT-enabled products and services providing competitive advantage except: A) Amazon's one-click shopping. B) Apple's iPod and iTunes. C) Ping's golf club customization. D) PayPal's online person-to-person payment system. E) Nike's use of celebrities to market their products.

E

41) Which of the following statements best describes organizational culture? A) It encompasses the sum of beliefs and assumptions by all members. B) It enables the organization to transcend the different levels and specialties of its employees. C) It reflects the senior management's perspective on the organization and goals. D) It allows a company to achieve greater operational efficiency. E) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.

E

15) The term management information systems refers to a specific category of information systems serving: A) integrated data processing throughout the firm. B) transaction process reporting. C) employees with online access to historical records. D) the information technology function. E) middle management functions.

E) middle management functions.

97) The number of IS/MIS jobs is projected to grow 50% faster than the average job growth for the economy as a whole in the next eight years.

TRUE

98) In 2016, the median wage for IT/MIS jobs is about twice the level for all occupations.

TRUE

99) IT governance refers to the overall decision-making that guides the IT strategy of a firm.

TRUE

15) A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective? A) Customer intimacy B) Operational excellence C) Survival D) Creation of new products E) Improved decision making

C

95) Which of the following job categories is expected to experience the most growth over the next eight years? A) Computer support specialists B) Software engineers C) Systems analysts D) Computer programmers E) Database administrators

C) Systems analysts

64) Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives. A) TRUE B) FALSE

A

17) Routines are also called standard operating procedures. A) TRUE B) FALSE

A

42) Procter and Gamble uses InnovationNet for which of the following? A) To enhance its core competencies B) To benchmark its progress against competitors C) To create synergies with its suppliers D) To take advantage of network economics E) To establish a virtual company

A

45) Which of the following represent the primary activities of a firm? A) Inbound logistics, operations, outbound logistics, sales and marketing, and service B) Inbound logistics, operations, outbound logistics, technology, and service C) Procurement, inbound logistics, operations, technology, and outbound logistics D) Procurement, operations, technology, sales and marketing, and services E) Organization infrastructure, human resources, technology, and procurement

A

72) Information systems are used to enable new products and services via product differentiation. A) TRUE B) FALSE

A

74) UPS's use of web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites is an information systems solution used to achieve customer intimacy. A) TRUE B) FALSE

A

77) When the output of some units in a firm can be used as inputs to other units, synergies develop, which can lower costs and generate profits. A) TRUE B) FALSE

A

79) Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage. A) TRUE B) FALSE

A

96) Sociologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.

A

14) As discussed in the chapter opening case, which of the following statements about Verizon is not true? A) Verizon is focusing on satellite-based television in its competition with AT&T. B) Verizon claims that its wireless network is the largest and most reliable in the United States. C) Verizon is investing in upgrading its high-speed networks. D) Verizon sees mobile ads and video as an investment for the future. E) Verizon offers a standalone video service.

A

15) All organizations have bedrock, unquestioned assumptions that define their goals and products. A) TRUE B) FALSE

A

16) A professional bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. A) TRUE B) FALSE

A

20) All of the following statements are true about information technology's impact on business firms except: A) it helps firms expand in size. B) it helps firms lower the cost of market participation. C) it helps reduce internal management costs. D) it helps reduce transaction costs. E) it helps reduce agency costs.

A

26) Creating a marketing plan is an example of a business process. A) TRUE B) FALSE

A

28) A business model describes how a company produces, delivers, and sells a product or service to create wealth. A) TRUE B) FALSE

A

29) Private business investment in information technology constituted 37 percent of all invested capital in 2015. A) TRUE B) FALSE

A

29) Which of the following substitute products would be of most concern for a cable TV distributor? A) Satellite TV B) Broadcast TV C) Satellite radio D) The Internet E) Terrestrial radio

A

3) According to the ________ definition of organizations, an organization is seen as a means by which capital and labor are transformed by the organization into outputs to the environment. A) microeconomic B) macroeconomic C) sociotechnical D) behavioral E) psychological

A

31) A firm can exercise greater control over its suppliers by having: A) more suppliers. B) fewer suppliers. C) global suppliers. D) local suppliers. E) only a single supplier.

A

32) Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates which of the following strategies? A) Low-cost leadership B) Marketing effectiveness C) Focusing on market niche D) Strengthening supplier intimacy E) Developing synergies

A

33) RFID sensor-generated data on stored food items such as storage location is an example of: A) raw input. B) raw output. C) customer and product data. D) sales information. E) information systems.

A

39) The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its: A) culture. B) environment. C) atmosphere. D) business process. E) mission.

A

47) Which of the following would a company employ to measure and compare its business processes to similar processes of other companies within their industry? A) Benchmarking B) Best practices C) Value chain analysis D) Strategic systems analysis E) Secondary activities

A

48) In ________, raw data is systematically acquired and transformed during various stages that add value to that information. A) an information value chain B) the firm value chain C) information processing D) the feedback process E) the dissemination process

A

49) Information systems can be used at the industry level to achieve strategic advantage by: A) building industrywide, IT-supported consortia and symposia. B) raising the bargaining power of suppliers. C) encouraging the entry of new competitors. D) enforcing standards that reduce the differences between competitors. E) decreasing switching costs.

A

50) In network economics, the value of a commercial software vendor's software products: A) increases as more people use them. B) decreases as more people use them. C) increases due to higher marginal gain in output. D) decreases according to the law of diminishing returns. E) is unrelated to the number of people that use them.

A

70) You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems. A) TRUE B) FALSE

A

51) Which of the following is an example of a social complementary asset? A) Technology and service firms in adjacent markets B) Training programs C) Distributed decision-making rights D) Incentives for management innovation E) A strong IS development team

A

53) Which of the following would not be used as an input for an information system? A) Digital dashboard B) Tablet computer C) Bar code scanner D) Smartphone E) RFID reader

A

56) A virtual company: A) uses networks to link people, assets, and ideas. B) uses Internet technology to maintain a virtual storefront. C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services or virtual products. E) is limited by traditional organizational boundaries.

A

57) Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) The specification of procedures for identifying packages with sender and recipient information B) Monitoring service levels C) Promoting the company strategy of low-cost, superior service D) The use of handheld computers and networks for managing package delivery E) A web-based Post Sales Order Management System

A

58) ________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors. A) Product differentiation B) Low-cost leadership C) Focusing on market niche D) Strengthening customer intimacy E) Strengthening supplier intimacy

A

65) Smart products are an example of the Internet of Things. A) TRUE B) FALSE

A

66) A company's competitive advantages ultimately translate into higher stock market valuations than its competitors. A) TRUE B) FALSE

A

67) The three main dimensions of information systems are management, organizations, and information technology. A) TRUE B) FALSE

A

77) A firm that invests in a strong IS development team is making an investment in organizational complementary assets. A) TRUE B) FALSE

A

78) According to the network economics perspective, the more people offering products on eBay's site, the greater the value of the site to all who use it. A) TRUE B) FALSE

A

79) The term business ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers. A) TRUE B) FALSE

A

80) A firm can be said to have competitive advantage when it has access to resources that others do not. A) TRUE B) FALSE

A

80) The key elements of an organization are its structure, business processes, politics, culture, and people. A) TRUE B) FALSE

A

82) Detailed, programmed instructions that control computer hardware components in an information system are known as computer software. A) TRUE B) FALSE

A

83) Smart products generally raise switching costs. A) TRUE B) FALSE

A

9) Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy. A) machine B) professional C) divisionalized D) multidivisional E) ad hoc

A

98) The behavioral approach to information systems focuses on analyzing the psychological, social, and economic impacts of systems rather than the technical aspects. A) TRUE B) FALSE

A

91) Define and describe a business ecosystem. Give an example of a business ecosystem. Short Answer:

A business ecosystem is a collection of loosely coupled but interdependent industries (suppliers, distributors, technology manufacturers, etc.) that provides related services and products. It is similar to a value web, except that cooperation takes place across many industries rather than many firms. Business ecosystems can be characterized as having one or a few keystone firms that dominate the ecosystem and create the platforms used by other niche firms. Keystone firms in the Microsoft ecosystem include Microsoft and technology producers such as Intel and IBM. Niche firms include thousands of software application firms, software developers, service firms, networking firms, and consulting firms that both support and rely on the Microsoft products. Another example of a business ecosystem is the mobile Internet platform. In this ecosystem there are four industries: device makers (Apple iPhone, Samsung, Motorola, LG, and others), wireless telecommunication firms (AT&T, Verizon, T-Mobile, Sprint, and others), independent software applications providers (generally small firms selling games, applications, and ring tones), and Internet service providers (who participate as providers of Internet service to the mobile platform).

87) Define business process. What might be a business process used at a hospital? Short Answer:

A business process is a set of logically related tasks and behaviors for accomplishing work. Hiring a new employee, customer intake, and filing medical records are examples of business processes at a hospital.

89) How is the concept of core competency relevant to ABC Computers, a local computer store that repairs and builds custom computers? Give examples. Short Answer:

A core competency is an activity for which a company is a world leader, and from this perspective, ABC Computers does not have a core competency, as there are thousands of similar firms with longer track records. However, it might be good business practice for ABC Computers to define its core competencies in ways that differentiate its products from those of competitors and enable it to provide superior service or products. In defining a core competency, the business management can then determine ways to enable employees to understand and reach higher levels of quality production and service. For example, ABC Computers might define a core competency as being able to advise customers as to the types of system they really need, and ABC Computers could engage in knowledge gathering activities to help employees assess customer need.

90) How does a company's use of information systems affect its corporate strategies? Provide an example. Short Answer:

A firm's ability to effectively use information technology is interdependent with its ability to implement corporate strategies and achieve corporate goals. More and more, the ability to compete and succeed depends on a company's ability to implement technology. What a business would like to do in the future can depends on what its systems will be able to do. Examples of this might be a company who invests in information systems that enable it to create new products or to make its distribution system more efficient, allowing the company to become the low-cost producer.

74) ________ allows you to communicate with avatars using text messaging. A) A virtual world B) Screen sharing C) Collaborative writing D) A large audience Webinar E) Telepresence

A) A virtual world

36) Which of the following types of system would you use to manage relationships with your customers? A) CRM B) MIS C) CLE D) CLU E) KMS

A) CRM

24) Which of the following would you use to forecast trends in your supplier's industry that could affect your firm over the next five years? A) ESS B) TPS C) MIS D) DSS E) KMS

A) ESS

93) Which of the following is a firm's CPO responsible for? A) Ensuring that the company complies with existing data privacy laws B) Making better use of existing knowledge in organizational and management processes C) Enforcing the firm's information security policy D) Overseeing the use of information technology in the firm E) Acting as liaison between the information systems group and the rest of the company

A) Ensuring that the company complies with existing data privacy laws

89) You work at the business headquarters for a chain of movie theaters. Describe this firm's information value chain. Short Answer:

An information value chain adds value to data at various stages, transforming it into valuable data. At a chain of movie theaters, data would be gathered from ticket sales and concession sales. Information systems would help transform this into meaningful information, such as determining the types of movies popular in certain regions, times and days of the week that people most often saw movies, what snacks were the most popular. This information would be valuable in making decisions, such as offering ticket discounts during less popular time slots and offering more popular snack items. Further feedback based on the results of these decisions could determine whether these decisions were effective.

22) Which of the following statements is not true? A) In 2015, American businesses invested about $1 trillion in information systems hardware, software, and telecommunications equipment. B) In 2015, American businesses spent $500 billion on business and management consulting and information technology services. C) Private business investment in information technology has grown from 21 percent of total invested capital in 1999 to 37 percent of all invested capital in 2015. D) Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms. E) Much of the money spent by American businesses on business and management consulting involves redesigning firms' business operations to take advantage of new technologies.

B

43) Maintaining the organization's financial records is a central purpose of which main business function? A) Manufacturing and accounting B) Finance and accounting C) Sales and manufacturing D) Finance and sales E) Human resources

B

54) The idea that 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, is referred to as: A) the point of no return. B) the law of diminishing returns. C) supply and demand. D) network inelasticity. E) virtual economics.

B

60) The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage. A) competitive forces B) value chain C) bargaining power D) new entrant E) rivalry

B

67) The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms. A) TRUE B) FALSE

B

12) The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as organizational: A) culture. B) politics. C) structure. D) environments. E) routines.

B

14) Which of the following statements about digital firms is not true? A) In digital firms, time shifting and space shifting are the norm. B) Today, most firms are fully digital. C) Digital firms offer extraordinary opportunities for flexible global organization and management. D) Digital firms sense and respond to their environments more rapidly than traditional firms. E) Digital firms have more flexibility to survive in turbulent times.

B

24) Which of the following statements is not true? A) Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. B) Most PCs manufactured in China use microprocessor chips manufactured in Korea. C) Eighty percent of the toys sold in the United States are manufactured in China. D) In 2015, 60 percent of Apple's revenue was generated outside of the United States. E) Technology companies are particularly dependent on offshore revenue.

B

25) Internet advertising is growing at approximately 5 percent a year. A) TRUE B) FALSE

B

25) Which model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete? A) Network economics model B) Competitive forces model C) Competitive advantage model D) Demand control model E) Agency costs model

B

27) In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled. A) TRUE B) FALSE

B

35) Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors. A) product differentiation B) market niche C) mass customization D) process efficiency E) low-cost leadership

B

36) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) analysis.

B

38) In a hierarchical organization, the upper level consists of: A) scientists. B) senior management. C) professional employees. D) data workers. E) knowledge workers.

B

45) Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system enables the firm to create new products and services. B) The system will create new value for the firm, beyond its costs. C) The system will automate key business processes. D) The system is in use by our primary competitors. E) The system integrates well with the Web.

B

54) The three principal levels within a business organization hierarchy are: A) senior management, operational management, and service workers. B) senior management, middle management, and operational management. C) senior management, operational management, and information systems. D) senior management, middle management, and service workers. E) senior management, data workers, and service workers.

B

56) Which main business function is responsible for maintaining employee records? A) Sales and marketing B) Human resources C) Finance and accounting D) Manufacturing and production E) Middle management

B

60) Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format? A) HTML B) The World Wide Web C) E-mail D) An extranet E) FTP

B

64) Why does Amazon need to worry about competitors in online shopping? A) E-commerce is affected by the law of diminishing returns. B) Internet technologies are universal, and therefore usable by all companies. C) Internet shopping produces cost transparency. D) The Internet enables the production or sales of substitute products or services. E) The Internet increases switching costs.

B

65) Computers and programs are the only things required to produce the information an organization needs. A) TRUE B) FALSE

B

66) Information systems literacy focuses primarily on knowledge of information technology. A) TRUE B) FALSE

B

69) High product differentiation is a sign of a transparent marketplace. A) TRUE B) FALSE

B

76) In the value chain model, support activities are most directly related to the production and distribution of the firm's products and services, which create value for the customer. A) TRUE B) FALSE

B

78) Data is information that has been shaped into a form that is meaningful to human beings. A) TRUE B) FALSE

B

81) Middle managers make long-range strategic decisions about the firm's products and services. A) TRUE B) FALSE

B

81) The law of diminishing returns only applies to digital products. A) TRUE B) FALSE

B

9) Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following? A) New products and services B) Operational efficiency C) Survival D) Customer intimacy E) Competitive advantage

B

94) Disciplines that contribute to the technical approach to information systems include: A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering. E) economics, sociology, and psychology.

B

97) Psychologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.

B

35) Which type of system integrates supplier, manufacturer, distributor, and customer logistics processes? A) Collaborative distribution system B) Supply chain management system C) Reverse logistics system D) Enterprise planning system E) Transaction processing system

B) Supply chain management system

11) If your main supplier was late in delivering goods, which type of system would you use to update your production schedule? A) ESS B) TPS C) MIS D) DSS E) BIS

B) TPS

42) In ________, digital technology and the Internet are used to execute the major business processes in the enterprise. A) e-commerce B) e-business C) enterprise applications D) MIS E) SCM

B) e-business

31) A(n) ________ system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business. A) transaction processing B) enterprise C) automatic reporting D) management information E) knowledge management

B) enterprise

27) All of the following are examples of business intelligence systems except a system that: A) summarizes and reports on a company's basic operations. B) tracks the flows of materials in a factory. C) focuses on problems that are unique and rapidly changing. D) compares total annual sales figures for specific products to planned targets. E) addresses nonroutine decisions.

B) tracks the flows of materials in a factory.

86) You are consulting with the owner of Better Fitness, a national chain of gyms. What strategies might Better Fitness use in applying information services to achieve a competitive advantage? Short Answer:

Better Fitness could use computers, smart products and mobile apps to monitor and evaluate health and fitness of members and customize workouts in product differentiation strategy. They could use information systems for sales and marketing data research in order to define a niche market that would bring greater profits. They could allow customers to review their health data and add additional information or view statistics to create customer intimacy. If the individual gyms are franchises, then a network could be used for franchisees to share data and research new sales tactics, etc.

10) Which of the following is an example of a divisionalized bureaucracy? A) Startup firm B) University C) Fortune 500 firm D) Midsize manufacturer E) Consulting firm

C

46) Which of the following would not be a complementary asset for a solar panel manufacturer? A) International solar equipment certification standards B) Government funding for green technology C) Centralized hierarchical decision making D) Innovation-driven management team E) Subsidies for adoption of solar energy

C

49) 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? A) Managerial B) Governmental C) Social D) Organizational E) Auxiliary

C

52) Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems? A) Senior executives B) Sales executives C) Production workers D) Operational managers E) Knowledge workers

C

55) Personnel who design new products or services for a firm belong to which level of a business hierarchy? A) Middle management B) Production workers C) Knowledge workers D) Data workers E) Service workers

C

58) Which of the following constitutes a managerial element in the UPS tracking system described in the chapter? A) Taking inventory B) Providing package status reports to customers C) The decision to use automation D) In-house package tracking software E) Ability to embed UPS functions in external sites

C

17) Which of the following is not one of the current changes taking place in information systems technology? A) Growing business use of big data B) Growth in cloud computing C) Growth in the PC platform D) Emerging mobile digital platform E) Increased usage of data generated by the Internet of Things

C

41) The Internet increases the bargaining power of customers by: A) creating new opportunities for building loyal customer bases. B) making more products available. C) making information available to everyone. D) lowering transaction costs. E) enabling the development of new services.

C

42) Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's: A) data management environment. B) networked environment. C) information technology (IT) infrastructure. D) information system. E) culture.

C

6) Competitors were seeking which of the following business objectives when they rushed to provide ATMs after Citibank introduced the first ATMs in New York? A) Improved efficiency B) Customer and supplier intimacy C) Survival D) Competitive advantage E) Improved decision making

C

12) You have been hired by a non-profit agency to implement a system to handle their donations. The system must be able to handle and record telephone, SMS, and Internet donations, provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a donor's information and history. Which of the following systems will best meet these needs? A) TPS B) TPS with DSS capabilities C) TPS with MIS capabilities D) TPS with ESS capabilities E) DSS with MIS capabilities

C) TPS with MIS capabilities

68) Which of the following is the greatest obstacle in enabling collaboration between employees at different, distant corporate locations? A) Privacy B) Permissions C) Time zones D) Language E) Corporate culture

C) Time zones

89) The principal liaison between the information systems groups and the rest of the organization is a(n): A) programmer. B) information systems manager. C) systems analyst. D) CTO. E) CIO.

C) systems analyst.

92) Select a popular product or company that you are familiar with, such as Apple's iPad. Apply Porter's competitive forces model to that product and/or company. Which of the four generic strategies is the company using? Short Answer:

Competitors to the iPad include the Microsoft Surface and many others, but few as widely known. New market entrants: There is not a huge barrier to entry in this field; many other technology companies offer tablet computers. Substitute products and services: Smartphones are a substitute product or service. Customers: The iPad still has the highest brand recognition among consumers, diminishing the bargaining power of customers. However, this advantage has diminished as other similar products that are as well designed enter the marketplace. In terms of the iPad, Apple seems to be focused on product differentiation by creating a product with unique features and capabilities.

10) How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2015? A) About $100 million B) About $1 billion C) About $100 billion D) About $1 trillion E) About $10 trillion

D

21) According to agency theory, the firm is viewed as a(n): A) unified, profit-maximizing entity. B) task force organization that must respond to rapidly changing environments. C) entrepreneurial endeavor. D) "nexus of contracts" among self-interested individuals. E) entrepreneurial structure.

D

39) Which of the following best illustrates the use of information systems to focus on market niche? A) A car manufacturer's Web site that lets you customize the features on the car you are purchasing. B) A restaurant chain analyzing local sales figures to determine which menu items to serve. C) A bookseller selling an e-book reader that reads only the bookseller's books. D) A department store creating specialized products for preferred customers. E) A clothes manufacturer expanding its offerings to new styles.

D

48) The most successful solutions or methods for achieving a business objective are called: A) value activities. B) best processes. C) core competencies. D) best practices. E) benchmarks.

D

61) Which of the following is a private corporate network extended to authorized users outside the organization? A) An intranet B) The World Wide Web C) The Internet D) An extranet E) FTP

D

1) Which of the following is not one of the six strategic business objectives of information systems? A) New products and services B) Improved decision making C) Competitive advantage D) Improved employee morale E) Survival

D

12) Approximately what percent of U.S. businesses have some form of remote work program? A) About 15 percent B) About 25 percent C) About 35 percent D) About 60 percent E) About 75 percent

D

2) Which of the following statements about organizations is not true? A) An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. B) An organization is a formal, legal entity with internal rules and procedures that must abide by laws. C) An organization is a collection of people and other social elements. D) An informal group can be considered to be an organization. E) An organization is a collection of rights, privileges, obligations, and responsibilities delicately balanced over a period of time through conflict and conflict resolution.

D

20) All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) reduction of labor costs through outsourcing. C) ability to find low-cost suppliers. D) increases in transaction costs. E) replication of business models in multiple countries.

D

22) According to research on organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are: A) environment, organization, structure, and tasks. B) technology, people, culture, and structure. C) organization, culture, management, and environment. D) tasks, technology, people, and structure. E) costs, tasks, structure, and management.

D

35) Output: A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transfers data to the people who will use it or to the activities for which it will be used. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) converts raw input into a meaningful form.

D

37) In environmental scanning, a firm may use information systems to: A) transform inputs into products and services. B) analyze the performance of its intranet. C) identify external events that may affect it. D) keep track of the temperature within its data centers. E) develop a unified organizational culture.

D

38) Which of the following is not a true statement about value webs? A) Value webs involve a collection of independent firms that use information technology to coordinate their value chains. B) Value webs are more customer-driven than traditional value chains. C) Value webs operate in a less linear fashion than traditional value chains. D) Value webs are inflexible and cannot adapt quickly to changes in supply and demand. E) Value webs involve highly synchronized industry value chains.

D

44) The value chain model: A) categorizes five related advantages for adding value to a firm's products or services. B) sees the supply chain as the primary activity for adding value. C) categorizes four basic strategies a firm can use to enhance its value chain. D) highlights specific activities in the business where competitive strategies can best be applied. E) enables more effective product differentiation.

D

47) In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business? A) Middle management B) Service workers C) Production management D) Operational management E) Knowledge workers

D

5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following? A) Improved flexibility B) Improved decision making C) Improved efficiency D) Customer intimacy E) Operational excellence

D

53) Information systems enhance core competencies by: A) providing better reporting facilities. B) creating educational opportunities for management. C) allowing operational employees to interact with management. D) encouraging the sharing of knowledge across business units. E) fostering synergies among departments.

D

59) The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as: A) retention costs. B) preservation costs. C) differentiation costs. D) switching costs. E) variation costs.

D

62) A(n) ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market. A) value chain B) support web C) value web D) consortium E) net marketplace

D

8) Which of the following is an example of a business using information systems to create a new product? A) Walmart's RetailLink system B) The Mandarin Oriental's use of computers to keep track of guest preferences C) Verizon's use of a web-based digital dashboard to provide real-time company information for managers D) Apple's creation of the iPod E) Kroger's use of sensors to monitor cold food storage temperatures

D

18) Non-typical business problems with causes and effects that are rapidly changing are typically handled by which of the following types of information system? A) MIS B) TPS C) ESS D) DSS E) KMS

D) DSS

32) The four major types of enterprise applications are: A) SCM, CRM, DSS, and KMS. B) SCM, CRM, ESS, and KMSs. C) ERP, SCM, DSS, and CRM. D) ERP, SCM, CRM, and KMS. E) TPS, MIS, DSS, and ESS.

D) ERP, SCM, CRM, and KMS.

30) Which of the following systems is designed to support organization-wide process coordination and integration? A) DSS B) MIS C) CRM D) Enterprise applications E) SCM

D) Enterprise applications

25) Which of the following is a highly structured decision? A) Creating a new product B) Estimating the effect of changing costs of supply materials C) Calculating the best trucking routes for product delivery D) Granting credit to a customer E) Forecasting new industry trends

D) Granting credit to a customer

96) Which of the following statements is not true? A) In 2016, the median wage for IT/MIS jobs is about $80,000. B) In the next eight years to 2024, IS/MIS will add about 500,000 jobs. C) Out of 114 occupations, MIS is ranked 15th in terms of salaries. D) In general, the technical occupations in IT are showing faster expansion than occupations involved with the management of IT. E) The growth of online software services and cloud computing is impacting the job prospects for computer programmers.

D) In general, the technical occupations in IT are showing faster expansion than occupations involved with the management of IT.

91) An information systems manager: A) writes software instructions for computers. B) acts as liaison between the information systems group and the rest of the organization. C) translates business problems into information requirements. D) manages data entry staff. E) oversees the company's security policy.

D) manages data entry staff.

4) The ________ function is responsible for identifying customers. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing E) distribution and logistics

D) sales and marketing

75) All of the following are reasons for the increased business focus on collaboration and teamwork, except for: A) the need for creating innovative products and services. B) growth of "interaction" jobs. C) greater global presence. D) the need for more efficient work hierarchies. E) the need to reduce communication costs.

D) the need for more efficient work hierarchies.

13) Which of the following statements about disruptive technologies is not true? A) Disruptive technologies radically change the business landscape and environment. B) Disruptive technologies may be substitute products that perform better than other products currently being produced. C) Disruptive technologies may sometimes simply extend the marketplace. D) Disruptive technologies may put entire industries out of business. E) Firms that invent disruptive technologies as first movers always become market leaders.

E

30) Walmart's attempt to increase its online presence is an example of a firm using information systems to: A) strengthen ties to its customers. B) simplify the industry value chain. C) develop synergies. D) focus on market niche. E) achieve low-cost leadership.

E

36) The ability to offer individually tailored products or services using the same production resources as bulk production is known as: A) mass marketing. B) micromarketing. C) micro customization. D) niche customization. E) mass customization.

E

4) A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A) Operational excellence B) Improved decision making C) Competitive advantage D) Customer intimacy E) Survival

E

4) Which of the following statements about the technical view of organizations is not true? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B) It sees capital and labor as primary production factors. C) It emphasizes group relationships, values and structures. D) It sees the organization as a social structure similar to a machine. E) It sees the inputs and outputs, labor and capital, as being infinitely malleable.

E

40) Data management technology consists of which of the following? A) Physical hardware and media used by an organization for storing data B) Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system C) Two or more computers to share data or resources D) Hardware and software used to transfer data E) Software governing the organization of data on physical storage media

E

32) The three activities in an information system that produce the information organizations use to control operations are: A) information, research, and analysis. B) input, output, and feedback. C) data, information, and analysis. D) data analysis, processing, and feedback. E) input, processing, and output.

E

46) Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing D) Service E) Technology

E

55) Which of the following statements about network economics is not true? A) Uber is an example of a business model that is based on the principle of network economics. B) The law of diminishing returns does not always apply to every situation. C) From a network economics perspective, the value of a community of people grows as the number of participants in the community increases. D) Information technology can be strategically useful from a network economics perspective. E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.

E

6) Which of the following statements about business processes is not true? A) Business processes influence the relationship between an organization and information technology. B) Business processes are a collection of standard operating procedures. C) A business firm is a collection of business processes. D) Business processes are usually ensconced in an organization's culture. E) Business processes are typically unaffected by changes in information systems.

E

61) The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as ________ activities. A) primary B) auxiliary C) secondary D) service E) support

E

62) Which of the following 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? A) Information systems literacy B) Information systems architecture C) Business processes D) Information technology infrastructure E) Management information systems

E

63) Which field of study focuses on both a behavioral and technical understanding of information systems? A) Sociology B) Operations research C) Economics D) Behavioral computing E) Management information systems

E

95) Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control? A) Management science B) MIS C) Computer science D) Utilization management E) Operations research

E

20) Which type of information system would you use to forecast the return on investment if your firm planned to switch to a new supplier that offered products at a lower cost? A) ESS B) TPS C) MIS D) CRM E) DSS

E) DSS

73) Which of the following is not a business benefit of collaboration? A) Improved quality B) Improved financial performance C) Improved customer service D) Improved innovation E) Improved compliance with government regulations

E) Improved compliance with government regulations

71) Which of the following tools would you use to evaluate and choose a collaboration tool for your organization? A) Virtual meeting system B) Cloud collaboration C) IBM Notes D) The collaboration matrix E) The time/space collaboration and social tool matrix

E) The time/space collaboration and social tool matrix

69) A(n) ________ social networking tool creates business value by connecting the members of an organization through profiles, updates, and notifications that are tailored to internal corporate uses. A) cloud-based B) social-commerce C) collaborative D) remote, asynchronous E) enterprise

E) enterprise

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

FALSE

46) A DSS is most commonly used by the operations management level of an organization.

FALSE

47) You would use an MIS to help determine if your business should introduce a new product line.

FALSE

48) For nonroutine decision making, senior managers rely on management information systems.

FALSE

49) Most transaction processing systems use sophisticated mathematical models or statistical techniques.

FALSE

53) Operational managers use ESS primarily to solve specific problems.

FALSE

56) An SCM is considered to be an intraorganizational system because it manages information that flows between different companies.

FALSE

59) An inventory control system is an example of an MIS.

FALSE

6) Identifying customers is a business process handled by the human resources function.

FALSE

80) Production tasks are coordinated through the use of social networks in social business.

FALSE

91) Why is the building of a house an appropriate analogy for the building of an information system? Short Answer:

Houses are built with hammers, nails, and wood, but these alone do not make a house. The architecture, design, setting, landscaping, and all of the decisions that lead to the creation of these features are part of the house and are crucial for solving the problem of putting a roof over one's head. Computers and programs are the hammer, nails, and lumber of computer-based information systems, but alone they cannot produce the information a particular organization needs. To understand information systems, you must understand the problems they are designed to solve, their architectural and design elements, and the organizational processes that lead to these solutions.

90) How is Internet technology useful from a network economics perspective? Give examples. Short Answer:

In network economics, the cost of adding a participant in the network is negligible, while the gain in value is relatively much larger. The Internet itself is an example of a successful implementation of network economics—the more people participate, the more valuable and essential a commodity it is. If a company were to provide a service through the Internet such as a project management application, the costs to the company of adding another user are small (as the software infrastructure or application is already built), and the more users are signed up, the more profit is made.

85) What is the difference between information technology and information systems? Describe some of the functions of information systems. Short Answer:

Information technology (IT) consists of all the hardware and software that a firm needs to use to achieve its business objectives. Information systems are more complex. An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. An information system: - Supports decision making, coordination, and control. - Helps employees analyze problems. - Helps employees visualize complex subjects. - Helps create new products.

85) You are advising the owner of ABC Computers, a small local computer shop that repairs and also builds custom computers to order. What competitive strategies could ABC Computers employ? Which ones may it have difficulty executing? Short Answer:

Low-cost leadership: ABC Computers may have difficulty competing against the computer sales and warranty services of major national computer manufacturers, such as Dell, but may be able to implement low-cost leadership in comparison to any other local computer stores. Product differentiation: Although many national computer manufacturers sell customized computers for individuals, ABC Computers may be able to differentiate its product by using superior components and adding more services to its product. Focus on market niche: ABC Computers could focus on a being a local store with in-store technology support and assistance as a market niche Customer and supplier intimacy: ABC Computers has an advantage in customer intimacy, in that it can develop relationships with local customers on a face-to-face basis. This advantage could be augmented to offset the low-cost leadership of national manufacturers, such as Dell. Because of much smaller production scales, ABC Computers will probably not be able to exercise as much control over suppliers as does Dell or other manufacturers.

86) You are a marketing manager for a national movie theater chain. Give an example of data that your department could use for creating meaningful information. What type of information could that data produce? Short Answer:

Movie ticket sales from individual theaters would be an example of raw data. Meaningful information from this would be: average number of tickets sold to seniors on certain days of the week.

99) What are the major factors to consider when performing a strategic systems analysis? Short Answer:

One major factor is the structure of the industry the firm is in. For example, what competitive forces are at work in the industry, and what is the basis for competition? What is the nature and direction of change in the industry, and how does the industry use IT? A second major factor is determining the firm and industry value chains. For example, how is the company creating value for the customer? Are best practices being used and core competencies leveraged? Is the industry supply chain or customer base changing, and what will the effect be? Can the firm benefit from strategic partnerships or value webs? And where in the value chain will information systems provide the greatest value to the firm? The third major factor to consider is has the firm aligned IT with its business strategy and goals. Have these goals been correctly stated or defined? Is IT improving the right business processes and activities in accordance with the firm's goals? Are we using the right metrics to measure progress?

83) Define operational excellence. How can information systems help achieve it? Short Answer:

Operational excellence is the achievement of higher levels of productivity, efficiency, and profitability. Information systems can help achieve operational excellence by improving communications to suppliers and optimizing the supply chain. Information systems could help managers communicate with workers more efficiently, enable technological innovation in products, minimize warehouse overhead, and streamline distribution.

7) One example of a business process is shipping a product to a customer.

TRUE

99) Describe the sociotechnical view of management information systems. Short Answer:

Optimizing both the social and technical systems in production is when optimal organizational performance is achieved

87) The text describes Michael Porter's view of the Internet as somewhat negative. What negative influences does Porter see? Describe several positive influences the Internet has on business. Do these outweigh the negative influences? Short Answer:

Porter sees the Internet as creating ever more intense rivalry, through allowing new competitors to enter the market, and forcing competition on price alone, raising the bargaining power of customers, and dampening profits. Positive influences of the Internet would be lowering telecommunications costs, creating new opportunities for building brands and loyal customer bases, lowering costs of globalization. You could also view Porter's negative take on lowering the barrier to entry as a positive for new companies. The Internet's influence being negative or positive depends in part on the point of view from which the influence is being seen. For example, a telephone utility is impacted negatively by the emergence of Internet telephony, whereas other industries may be impacted positively either through the use of this technology or through engaging in Internet telephony as a business.

88) This chapter discusses how each organization has its own culture and sets of values shared by most of its members. What kind of shared values might you find at a law firm? Short Answer:

Shared values at a law firm might be: The legal system works, the legal system is fair, lawyers help people, and people need help with the legal system because it is complicated.

100) Which academic disciplines contribute to the behavioral approach to information systems? Short Answer:

Sociologists, Psychologists, and Economists

55) Enterprise applications integrate information from multiple functions and business processes to enhance the performance of the organization as a whole.

TRUE

44) Transaction-level information is essential for operational management to be able to direct the day-to-day operations of the business.

TRUE

50) Managers can use DSS to make decisions about problems that are unusual and not easily specified in advance.

TRUE

51) A DSS uses internal information as well as information from external sources.

TRUE

52) An organization's MIS and DSS supply an ESS with summarized information.

TRUE

54) A web interface used to present integrated personalized business content to users is called a portal.

TRUE

57) Supply chain management systems are more externally oriented than enterprise systems.

TRUE

18) How are the technical and behavioral definitions of an organization different? Short Answer:

The behavioral definition of an organization is that it is a collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution. The technical definition sees an organization as an entity that takes inputs from the environment and processes these to create products that are then consumed by the environment. The technical view sees capital and labor as interchangeable units, with the ability to rearrange these units at will, whereas the behavioral view sees that rearranging some aspects of the organization, such as an information system, will have important consequences and changes for the organization's other units.

31) What are the main changes taking place in organizational use of information systems? Which of these do you think is having the greatest impact on businesses? Short Answer:

The main organizational changes taking place are: 1. businesses using social networking platforms to deepen interactions with employees, customers, and suppliers, 2. telework gaining momentum in the workplace, with growing numbers of people working away from a traditional office, and 3. co-creation of business value, with the sources of business value shifting from products to solutions and experiences and from internal sources to networks of suppliers and collaboration with customers. The increase in collaboration is having the greatest impact, as customers are essentially gaining greater control in determining the end product, businesses who are flexible enough to listen to and respond to customer demand will be more successful.

92) What is the single most important theme of the book? Short Answer:

The single most important theme of the book is that managers need to consider the broader organization and management dimensions of information systems to understand current problems as well as to derive substantial above-average returns from information technology investments.

73) Intranets link different systems and networks within a firm.

True

30) You are starting a small bike messenger company. Given your type of services (hand-delivering packages within a small geographical area), could your firm be a digital firm? If so, what would make this a digital firm? Short Answer:

Yes, the firm could be a digital firm. As long as most of its relationships with customers, employees, and suppliers are digitally enabled. For example, the company can use cell phones and information systems to order and organize deliveries and to connect and direct employees to track the deliveries.

72) Creative work driven by new knowledge and information is a significant part of management responsibility. A) TRUE B) FALSE

A

23) List three organizational factors that can prevent a firm in fully realizing the benefits of a new information system, and provide examples for each. Short Answer:

1. Culture: All organizations have a foundation of unquestioned assumptions that define their goals and products. These assumptions include what products should be produced, how they should be produced, where and for whom they should be produced. Sharing the same cultural assumptions, agreement on other matters is more likely. Any changes that threaten or undermine these assumptions will most likely be met with resistance. For example, if a company stops paying overtime at time and a half, employees might feel undervalued and be less willing to work extra hours. 2. Politics: People in an organizations occupy different positions with different specialties, concerns, and perspectives. This means that they naturally have opposing views about how resources, rewards, and punishments should be distributed. This results in political struggles for resources, competition, and conflict within every organization. 3. Environments: Organizations reside in environments which they draw resources and to which they supply goods and services. Organization and environments have a reciprocal relationship, meaning that organizations are depended on the social and physical environment and organizations can influence their environment. For example, business firms form alliances with other businesses to influence the political process (they advertise to influence customer acceptance of their products.)

57) Which of the following is an example of a keystone firm within a business ecosystem? A) Apple in the mobile platform ecosystem B) GUESS and the fashion ecosystem C) Citibank and the ATM ecosystem D) American Airlines and the computerized reservation ecosystem E) Nike and the athletic apparel ecosystem

A

18) Thomas Friedman's description of the world as "flat" refers to: A) the flattening of economic and cultural advantages of developed countries. B) the use of the Internet and technology for instantaneous communication. C) the reduction in travel times and the ubiquity of global exchange and travel. D) the growth of globalization. E) the increased use of global currencies.

A

68) Customers are one of the competitive forces that affect an organization's ability to compete. A) TRUE B) FALSE

A

38) You have been hired by BizCom, a business communications consultancy that services many clients in different industries throughout the United States, to help it improve its profit margin. BizCom provides 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 50 consultants, all of whom are located in its central headquarters in Alexandria, Virginia. What type of system do you recommend that BizCom install to improve its business processes and increase its profit margin? A) An extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed B) A CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C) A KMS, for minimizing redundant work on similar clients D) A marketing system, for improving sales levels E) A TPS, to help manage all daily activities and transactions

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

76) Which of the following statements regarding IBM Notes is not true? A) It began as an e-mail and messaging client. B) It is a widely used collaboration tool at larger firms. C) It provides capabilities for wikis and microblogging. D) It provides tools for full version control of all company documentation. E) It is designed to provide security for sensitive corporate information.

A) It began as an e-mail and messaging client.

43) Which of the following statements about Plan International's new human resources system, as described in the chapter case, is not true? A) It took six months to implement a working system at Plan International's international headquarters. B) The new system helps manage grants and donations received by Plan International. C) The new system is cloud-based and delivers information on a secure mobile platform. D) The new system enables employees to update their own personal information. E) The new system provides a bird's-eye view of the entire Plan workforce.

A) It took six months to implement a working system at Plan International's international headquarters.

22) An ESS supports which of the following? A) Long-range planning activities of senior management B) Knowledge and data workers in an organization C) Decision making and administrative activities of middle managers D) Day-to-day processes of production E) Transactional needs of the organization

A) Long-range planning activities of senior management

16) Which of the following would you use in order to determine which of your suppliers has the best and worst records for keeping to your production schedule? A) MIS B) TPS C) UPS D) DSS E) CRM

A) MIS

34) Which of the following types of system enables management to make better decisions regarding organizing and scheduling sourcing, production, and distribution? A) SCM B) TPS C) KMS D) ERP E) MIS

A) SCM

14) A(n) ________ is typically a major source of data for other systems. A) TPS B) MIS C) ESS D) DSS E) KMS

A) TPS

78) ________ is a collaboration tool that supports remote (different place), synchronous (same time) collaboration. A) Video conferencing B) E-mail C) A MUD D) A wall display E) A virtual world

A) Video conferencing

26) Using the Internet to buy or sell goods is called: A) e-commerce. B) e-business. C) an intranet. D) an extranet. E) e-government.

A) e-commerce.

41) Using ________ to enable government relationships with citizens, businesses, and other arms of government is called e-government. A) the Internet and networking technologies B) e-commerce C) e-business D) any computerized technology E) telecommunications

A) the Internet and networking technologies

5) According to the chapter case, ABB decided to switch from its existing corporate intranet for all of the following reasons except: A) the intranet was too expensive to maintain. B) the intranet was too static and outmoded to meet its current needs. C) the intranet had poor capabilities for searching for information. D) the intranet lacked collaboration tools. E) the intranet was confusing and inefficient.

A) the intranet was too expensive to maintain.

24) What is agency theory? How does information technology enable a firm to reduce agency costs? Short Answer:

Agency theory - economic theory that views the firm as a nexus of contracts among self-interested individuals who must be supervised and managed Information technology reduces the costs of acquiring and analyzing information, which allows organizations to reduces agency costs because it becomes easier for managers to oversee a greater number of employees. This, overall, lowers agency costs. In the long run, firms should have fewer middle managers and higher revenue per employee, if they've invested in IT.

16) The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as: A) IoT. B) big data. C) the mobile digital platform. D) cloud computing. E) business intelligence.

B

33) The four major competitive strategies are: A) low-cost leadership, substitute products and services, customers; and suppliers. B) low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy. C) new market entrants, substitute products and services, customers, and suppliers. D) low-cost leadership, new market entrants, product differentiation, and focus on market niche. E) customers, suppliers, new market entrants, and substitute products.

B

2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following? A) Compliance with regulations B) Managerial decision making C) Efficiency in creation of new products D) Employee morale E) Intimacy with its suppliers

B

52) Which of the following is an example of synergy in business? A) Amazon's use of the Internet to sell books B) Bank of America acquiring Countrywide Financial to reach a large pool of new customers C) Blockbuster combining traditional video rental with online video rental D) Walmart's order entry and inventory management system to coordinate with suppliers E) Nike's use of technology to improve its product offerings

B

68) Knowledge workers make long-range strategic decisions about products and services. A) TRUE B) FALSE

B

70) The effect of the Internet has been to decrease the bargaining power of customers. A) TRUE B) FALSE

B

71) All business processes are formally documented by an organization. A) TRUE B) FALSE

B

74) Switching costs decrease when customers are strongly linked to products and platforms. A) TRUE B) FALSE

B

75) There is little variation in returns on IT investment across firms. A) TRUE B) FALSE

B

84) Mintzberg's classification identifies five forces in an industry's environment that affect the strategic position of a firm. A) TRUE B) FALSE

B

97) Research has shown that a majority of firms are able to align their information technology with their business goals. A) TRUE B) FALSE

B

98) The use of Internet technologies allows companies to more easily sustain competitive advantage. A) TRUE B) FALSE

B

79) According to the chapter case, which of the following statements about Cisco's IX5000 telepresence system is not true? A) No special changes to a room are required to install the IX5000 system. B) A six-seat IX500 system costs about $500,000. C) The IX5000 system is able to capture an entire room in fine detail. D) The IX5000 system needs only half the power, installation time, and data transmission capacity (bandwidth) as Cisco's previous telepresence systems. E) Produban was the first company to deploy the IX5000 system.

B) A six-seat IX500 system costs about $500,000.

23) Which of the following systems would you expect to deliver integrated, personalized business content through a web-based interface? A) TPS B) ESS C) MIS D) DSS E) SCM

B) ESS

29) What is the most important function of an enterprise application? A) Increasing speed of communicating B) Enabling business functions and departments to share information C) Enabling a company to work collaboratively with customers and suppliers D) Enabling cost-effective e-business processes E) Enabling inventory and supply chain management

B) Enabling business functions and departments to share information

33) ________ systems are also known as enterprise systems. A) Resource planning B) Enterprise resource planning C) Enterprise support D) Management information E) Decision-support

B) Enterprise resource planning

40) Which of the following types of system helps coordinate the flow of information between the firm and its suppliers and customers? A) Intranet B) Extranet C) KMS D) TPS E) DSS

B) Extranet

72) Which of the following decisions requires knowledge based on collaboration and interaction? A) How long will it take to manufacture this product? B) Should we work with outside vendors on new products and services? C) In which geographical locations are our products garnering the most sales? D) Which product design is the most efficient for the user in terms of energy use? E) How can we produce this product more cheaply?

B) Should we work with outside vendors on new products and services?

19) In 2015, what percent of the U.S. economy resulted from foreign trade? A) 10 percent B) 25 percent C) 30 percent D) 50 percent E) 66 percent

C

34) The total number of food items with storage temperatures problems is an example of which of the following? A) Input B) Raw data C) Meaningful information D) Feedback E) Processing

C

37) Which of the following is an example of raw data from an automobile manufacturer? A) An average of 120 Subarus sold daily in New York in 2016 B) 1,200 Subaru Outbacks sold during the first quarter 2016 in New York C) One Subaru Outback sold July 27, 2016 in Mohegan Lake, New York for $24,000 D) Annual sales of Subaru Outbacks increased 5.3 percent E) An average sale price of $25,500 for all Subaru Outbacks sold during July 2016 in Mohegan Lake, New York

C

1) The interaction between information technology and organizations is influenced: A) solely by the decision making of middle and senior managers. B) by the development of new information technologies. C) by many factors, including structure, politics, culture, and environment. D) by two main macroeconomic forces: capital and labor. E) by the rate of growth of the organization.

C

11) To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) Customer intimacy B) Survival C) Operational excellence D) Improved decision making E) New products and services

C

43) Which of the following is a competitive force challenging the publishing industry? A) Positioning and rivalry among competitors B) Low cost of entry C) Substitute products or services D) Customers' bargaining power E) Suppliers' bargaining power

C

59) Which of the following is a global network that uses universal standards to connect millions of different networks around the world? A) An extranet B) The World Wide Web C) The Internet D) An intranet E) Verizon

C

8) Under Mintzberg's classification of organizational structure, knowledge-based organizations fall under the category of: A) entrepreneurial structures. B) divisionalized bureaucracies. C) professional bureaucracies. D) adhocracies. E) machine bureaucracies.

C

90) A ________ is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CTO E) CKO

C) CIO

92) 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. A) CTO B) CSO C) CKO D) CPO E) CEO

C) CKO

28) Which of the following types of systems typically use a digital dashboard to display an array of charts and graphs of a business's key performance indicators? A) MIS B) TPS C) ESS D) CRM E) SCM

C) ESS

39) You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide a solution? A) CRM B) Enterprise system C) Extranet D) Intranet E) MIS

C) Extranet

37) Which of the following would you use to consolidate the relevant knowledge and experience in the firm and make it available to improve business processes and management decision making? A) TPS B) An extranet C) KMS D) CRM E) MIS

C) KMS

1) Producing a bill of materials is a business process in which of the following functional areas? A) Finance and accounting B) Human resources C) Manufacturing and production D) Research and development E) Sales and marketing

C) Manufacturing and production

67) SVF uses which of the following collaboration tools? A) EMC Documentum eRoom B) IBM Notes C) Microsoft SharePoint Online D) Microsoft Yammer E) Salesforce Chatter

C) Microsoft SharePoint Online

70) Which of the following statements about collaboration is not true? A) In business, a collaboration can last as little as a few minutes. B) Business collaboration relies on the formation of teams that are assigned a specific task or goal. C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure. D) One business benefit of collaboration is improved innovation. E) Businesses need special systems for collaboration.

C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure.

93) What are complementary assets and how does investment in them impact returns on technology investments? Short Answer:

Complementary assets are those assets required to derive value from a primary investment. Research indicates that firms that support their technology investments with investments in complementary assets, such as new business models, new business processes, management behavior, organizational culture, or training, receive superior returns, whereas those firms failing to make these complementary investments receive less or no returns on their information technology investments.

5) Which of the following is not a major feature of organizations that impacts the use of information systems? A) Business processes B) Environments C) Goals D) Agency costs E) Leadership styles

D

17) A relocation control system that reports summaries on the total moving, house hunting, and home financing costs for employees in all company divisions falls into which of the following categories? A) KMS B) TPS C) ESS D) MIS E) DSS

D) MIS

77) Which of the following is not one of the four main classifications for collaboration tools identified by the space/time matrix? A) Synchronous/colocated B) Same time/remote C) Different time/remote D) Remote/colocated E) Same time/same place

D) Remote/colocated

21) Which level of the organization is an ESS specifically designed to serve? A) Operational B) End-user C) Middle management D) Senior management E) Knowledge workers

D) Senior management

94) All of the following job categories are expected to grow over the next eight years except: A) computer support specialists. B) software engineers. C) systems analysts. D) computer programmers. E) database administrators.

D) computer programmers.

3) Order fulfillment involves all of the following business processes except: A) checking the customer's credit. B) assembling the product. C) submitting the order. D) making customers aware of the product. E) shipping the product.

D) making customers aware of the product.

93) Why are disruptive technologies "tricky"? Provide examples. Short Answer:

Disruptive technologies can be tricky because firms that invent disruptive technologies as first movers do not always benefit if they lack the resources to exploit the technology or fail to see the opportunity. For example, the MITS Altair 8800 is widely regarded as the first PC, but its inventors did not take advantage of their first-mover status. Second movers, so-called fast followers such as IBM and Microsoft, reaped the rewards. Citibank's ATMs revolutionized retail banking, but other banks copied them. Now all banks use ATMs, and the benefits go mostly to the consumers.

13) All of the following are new technology-related trends in MIS except: A) cloud computing. B) big data. C) IoT. D) the mobile digital platform. E) co-creation of business value.

E

44) All of the following are examples of environmental actors in an information system except: A) competitors. B) regulatory agencies. C) customers. D) suppliers. E) sales force.

E

100) Research has shown that the more successfully a firm can align its IT with its business goals, the more profitable it will be. What practical steps should a firm use in aligning IT with its goals? Short Answer:

Steps to align IT with your organization's goals include: identifying your business strategy and goals and breaking these goals into concrete activities and processes; identifying how you measure progress toward these goals; determining how IT can help achieve these goals and improve business processes and activities; and measuring the actual performance of the business.

58) A TPS is an information system that keeps track of all of the daily routine transactions of a business.

TRUE

94) Why has the Internet made competitive rivalry more intense? Short Answer:

The Internet has made competitive rivalry more intense because Internet technology is based on universal standards that any company can use, making it easier for rivals to compete on price alone and for new competitors to enter the market. Because information is available to everyone, the Internet also raises the bargaining power of customers, who can quickly find the lowest-cost provider on the web, which may dampen profits. The Internet also widens the geographic market, increasing the number of competitors and reducing differences among competitors, and makes it more difficult to sustain operational advantages.

88) Value chain analysis is useful at the business level to highlight specific activities in the business where information systems are most likely to have a strategic impact. Discuss this model, identify the activities, and describe how the model can be applied to the concept of information technology. Short Answer:

The value chain model identifies specific, critical leverage points where a firm can use information technology most effectively to enhance its competitive positions. Exactly where can it obtain the greatest benefit from strategic information systems? What specific activities can be used to create new products and services, enhance market penetration, lock in customers and suppliers, and lower operational costs? This model views the firm as a series or chain of basic activities that add a margin of value to a firm's products or services. These activities can be categorized as either primary activities or support activities. Primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer. Primary activities include: inbound logistics, operations, outbound logistics, sales and marketing, and service. Support activities make the delivery of the primary activities possible and consist of: organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input).

84) You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy? Short Answer:

You could create a website that allows customers to customize cars, communicate with support personnel and other car owners. You could create an automated e-mail service reminding car owners to take their car in for periodic checkups. You could have an information system that tracks customer preferences in local areas, so you can provide cars that reflect local customer needs and desires.