IS Exam 1

Walmart's continuous replenishment system allows it to: A) provide mass customization. B) provide an efficient customer response system. C) strengthen customer intimacy. D) achieve economy of scale.

provide an efficient customer response system

A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n):

transaction-processing system

A business process is a single step taken in a set of logically related activities that accomplish a specific business task

False

Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization

False

ESSs are designed to serve the middle management of the organization.

False

Enterprise systems do not utilize order transaction data

False

Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives

False

Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach

False

Most MISs use sophisticated mathematical models or statistical techniques.

False

Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.

False

The decision to grant credit to a customer is normally made by a senior manager.

False

The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.

False

The greatest barrier to changing business processes is, ironically, management itself.

False

The law of diminishing returns always applies to digital, as well as traditional products

False

Transaction processing systems are most commonly encountered at the senior management level of an organization

False

Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.

False

A business is a formal or informal organization created to sell services or products.

False

An understanding of enterprise - wide systems for customer relationship management is one of the skills relevant to careers in marketing

True

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

improved decision making

All of the following describe the effects of globalization except

increases in transaction costs

A firm can exercise greater control over its suppliers by having:

more suppliers

Which of the following can force a business and its competitors to compete on price alone

Transparent marketplace

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

True

A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.

True

An IT infrastructure provides the platform on which the firm can build its information systems.

True

An extranet is a private intranet extended to authorized users outside the organization.

True

As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.

True

Business Process Reengineering is the radical redesign of business processes

True

Customers are one of the competitive forces that affect an organization's ability to compete.

True

ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.

True

In the strategy of product differentiation, information systems are used to enable new products and services.

True

Information supplied by an enterprise system is structured around cross functional business processes

True

Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013.

True

Strong linkages to customers and suppliers increase switching costs

True

Studies show that about half of a business firm's profits can be explained by alignment of IT with business

True

Supply chain management systems are more externally oriented than enterprise systems

True

TPS help managers monitor the firm's relations with the external environment.

True

The dimensions of information systems are people, organizations, and information technology.

True

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

True

The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.

True

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

True

Employees that assist with paperwork at all levels of the firm are called:

data workers

Checking for product quality is an activity associated with the ________ function.

manufacturing and production

A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?

new market entrants

All of the following choices describe ways for a company to achieve a competitive advantage, except:

implementing information systems to support better management decision making.

The three activities in an information system that produce the information organizations use to control operations are:

input, processing, output

The five basic entities that make up any business are suppliers, customers, employees, products and services, and:

invoices and payments

Key forces in a business's immediate environment include

regulations

Which of the following industries has the lowest barrier to entry

restaurant

Promoting the organization's products or services is a responsibility of the ________ function.

sales and marketing

a substitute product of most concern for a cable TV distributor is

satellite TV

The three principal levels of hierarchies within a business organization are:

senior management, middle management, and operational management

Journalist Thomas Friedman's description of the world as "flat" referred to:

the flattening of economic and cultural advantages of developed countries

Engineers and architects are examples of:

knowledge workers

A hotel reservation system is a typical example of a management information system.

False

A network requires at least three computers and a shared resource.

False

A transparent marketplace means that there is high product differentiation.

False

BPM is considered concluded when the new processes are both implemented and accepted.

False

Benchmarks are specific standards for business processes set by industry leaders.

False

Deciding whether to introduce a new product line is the responsibility of an operational manager

False

ESSs are designed primarily to solve specific problems.

False

IT managerial jobs are outsourced easily because of the universal standards used by the Internet.

False

Management Information Systems primarily support nonroutine decision making

False

Political conflict is an example of the people dimension of business problems.

False

Senior management is responsible for directing the day-to-day activities of the business.

False

The more people that use Microsoft Office software and related products, the lower its value.

False

There are two types of outsourcing : offshore outsourcing and foreign outsourcing

False

Which of the following is a cross-functional business process

Fulfilling a customer oder

As discussed in the chapter opening case, the Giants' new ticketing information systems is an effort to achieve which of the primary business objectives?

Improved decision making

A primary challenge in BPM is employee resistance.

True

Decision - support systems often use information from external sources

True

Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.

True

Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.

True

Identifying a problem includes agreeing that a problem exists

True

In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.

True

In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.

True

In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.

True

Probably the best single way to reduce quality problems is to reduce cycle time.

True

Teams are formal business groups that are created to accomplish a specific task.

True

Transaction processing systems are the basic business systems that serve the operational level of the organization

True

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 was an information systems solution used to achieve customer intimacy.

True

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:

survival

The use of information systems because of necessity describes the business objective of:

survival

Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy

A PC manufacturer's use of information systems to facilitate direct access from suppliers to production schedules

Which of the following illustrates the use of information systems to achieve product differentiation

A shoe manufacturers use of information systems in selling custom, made to order shoes directly to customers

Which of the following is not one of the competitive forces of Porter's model

External environments

Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces

compete on employee loyalty

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.

Which of the following is an example of a key force in a firm's broader, less immediate environment

economic trends

The six important business objectives of information system investment include all of the following except:

employee morale