MIS 309 Chapter 1 Test Bank

When analyzing the book store industry, some of today's businesses compete with different business strategies and cost strategies. Which of the following is using a broad market competitive scope along with a low cost strategy? A. Amazon.com B. any local independent books store that specializes in antique books C. Barnes and Noble D. your college bookstore

A. Amazon.com

Susan is an executive at Equity Title where she is responsible for collecting, maintaining and distributing knowledge for the company. What is Susan's role at Equity Title? A. Chief Knowledge Officer (CKO) B. Chief Technology Officer (CTO) C. Chief Information Officer (CIO) D. Chief Security Officer (CSO)

A. Chief Knowledge Officer (CKO)

Who is responsible for collecting, maintaining, and distributing company knowledge? A. Chief Knowledge Officer (CKO) B. Chief Privacy Officer (CPO) C. Chief Technology Officer (CTO) D. Chief Information Officer (CIO)

A. Chief Knowledge Officer (CKO)

Which of the following is not a technology company but used technology to revamp the business process of renting videos? A. Netflix B. Dell C. Zappos D. Amazon

A. Netflix

Which of the following evaluates a project's position? A. SWOT Analysis B. The Five Forces Model C. Value Chain Analysis D. Three Generic Strategies

A. SWOT Analysis

Which of the following offers an example where Porter's five forces are mostly strong and competition is high? A. a dog walking business B. a ski resort C. a professional hockey team D. All of these are correct.

A. a dog walking business

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy, what market should you target? A. a niche market B. a broad market C. neither niche or broad markets D. both niche and broad markets

A. a niche market

What is the Internet of Things? A. a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention B. extracts information from data and uses it to predict future trends and identify behavioral patterns C. refers to devices that connect directly to other devices D. opportunities to change the way people purchase books

A. a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention

Which of the following are included as potential internal strengths in a SWOT analysis that are helpful to an organization? A. core competencies, market leaders, cost advantages, excellent management B. lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line C. expanded product line, increase in demand, new markets, new regulations D. new entrants, substitute products, shrinking markets, costly regulatory, requirements

A. core competencies, market leaders, cost advantages, excellent management

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy. A. cost leadership with a low cost B. differentiation with a low cost C. cost leadership with a high cost D. All of these are correct.

A. cost leadership with a low cost

Which group of stakeholders' primary interests include fair compensation, job security, and ethical conduct/treatment? A. employees B. shareholders/investors C. community D. customers

A. employees

Cars, groceries, and clothing belong in which category? A. goods B. services C. production D. productivity

A. goods

What are material items or products that customers will buy to satisfy a want or need? A. goods B. services C. production D. productivity

A. goods

Which of the following represents the department that maintains policies, plans, and procedures for the effective management of employees? A. human resources B. sales C. employee resources D. employee relations

A. human resources

Which of the following is considered a good? A. milk and eggs B. managing a team C. selling groceries D. All of these are correct.

A. milk and eggs

Which data types are typically found in the sales department? A. sales data, customer data, commission data, and customer support data B. employee data, promotion data, vacation data C. investment data, monetary data, reporting data D. transactional data, purchasing data, payroll data, tax data

A. sales data, customer data, commission data, and customer support data

What is a person or group that has an interest or concern in an organization? A. stakeholder B. business strategy C. supplier D. partner

A. stakeholder

Your boss has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a differentiation strategy? A. Southwest, Horizon, Frontier, JetBlue B. British Airways, Singapore Airlines, Virgin Atlantic C. Sky Taxi - a rent by the hour personal plane service D. All of these are correct.

B. British Airways, Singapore Airlines, Virgin Atlantic

Trina works for Johnson Electric as a corporate lawyer, and part of her duties are to ensure the ethical and legal use of information within the company. Which of the following represents Trina's role at Johnson Electric? A. Chief Knowledge Officer (CKO) B. Chief Privacy Officer (CPO) C. Chief Technology Officer (CTO) D. Chief Information Officer (CIO)

B. Chief Privacy Officer (CPO)

Who is responsible for ensuring the ethical and legal use of information within a company? A. Chief Knowledge Officer (CKO) B. Chief Privacy Officer (CPO) C. Chief Technology Officer (CTO) D. Chief Information Officer (CIO)

B. Chief Privacy Officer (CPO)

Jeremy is an executive for Green Web Designs, where his primary role is to ensure the security of business systems and develop strategies to protect the company from online viruses and hackers. What is Jeremy's role within the company? A. Chief Executive Officer (CEO) B. Chief Security Officer (CSO) C. Chief Procurement Officer (CPO) D. Chief Technology Officer (CTO)

B. Chief Security Officer (CSO)

Who is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks by hackers and viruses? A. Chief Knowledge Officer (CKO) B. Chief Security Office (CSO) C. Chief Technology Officer (CTO) D. Chief Information Officer (CIO)

B. Chief Security Officer (CSO)

________ extracts information from data and uses it to predict future trends and identify behavioral patterns. A. Internet of Things B. Predictive Analytics C. Machine to Machine D. Flat World

B. Predictive Analytics

What evaluates industry attractiveness? A. SWOT Analysis B. The Five Forces Model C. Value Chain Analysis D. Three Generic Strategies

B. The Five Forces Model

Imagine you are creating a new product to sell in an up-and-coming market. Which of the following statements indicates that it would be difficult for you to enter this new market? A. The threat of new entrants force is high in the up-and-coming market. B. The threat of new entrants force is low in the up-and-coming market. C. The threat of new entrants force is high during the summer months in the up-and-coming market. D. All of these are correct, depending on the time of year.

B. The threat of new entrants force is low in the up-and-coming market.

If you were thinking about a washing machine as a system, which of the following represents the outputs? A. the dirty clothes, water, and detergent B. the clean clothes C. the wash and rinse cycle D. the light indicating that the washer is off balance and has stopped

B. the clean clothes

What executes business strategy? A. SWOT Analysis B. The Five Forces Model C. Value Chain Analysis D. Three Generic Strategies

C. Value Chain Analysis

Cheryl is the operations manager for Nature's Bread Company, which specializes in providing natural products for health conscious individuals. Cheryl is responsible for compiling, analyzing, and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day. Which of the following is an example of the type of information Cheryl would be using to successfully perform her job? A. Craig Newmark is customer number 15467. B. Flour Power is supplier number 8745643. C. best-selling product by day D. Best-selling product changes when Tony the best baker is working.

C. best-selling product by day

Information technology can enable departments to more efficiently and effectively perform their core _____________. A. facts B. feedback mechanisms C. business operations D. media issues

C. business operations

Which of the following is considered a service? A. cars B. groceries C. cutting hair D. All of these are correct.

C. cutting hair

What is business intelligence? A. raw facts that describe the characteristics of an event or object B. data converted into a meaningful and useful context C. information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making D. skills, experience, and expertise, coupled with information and intelligence, which creates a person's intellectual resources

C. information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making

Which four elements are included in systems thinking? A. output, process, feedback, and accounting B. process, output, operations, and accounting C. input, process, output, and feedback D. input, output, sales, and feedback

C. input, process, output, and feedback

Which of the following represents the relationship between functional areas in a business? A. independent B. autonomous C. interdependent D. self-sufficient

C. interdependent

Which data types are typically found in the finance department? A. promotion data, sales data, advertising data B. employee data, promotion data, vacation data C. investment data, monetary data, reporting data D. transactional data, purchasing data, payroll data, tax data

C. investment data, monetary data, reporting data

The challenge that companies today sometimes have is that they are departmentalized and act independently of each other. Which of the following provides solutions that can help a company work interdepartmentally to make decisions and solve problems? A. marketing B. human resource data C. management information systems D. resource information systems

C. management information systems

The actual hamburger is included in which category of making a hamburger? A. input B. process C. output D. All of these are correct.

C. output

What is the name of a company's internal computer department? A. Management Information Systems (MIS) B. Information Systems (IS) C. Information Technology (IT) D. All of these are correct.

D. All of these are correct

Which of the following is considered a good? A. cars B. groceries C. clothing D. All of these are correct.

D. All of these are correct.

Which of the following is considered a service? A. selling groceries B. managing a team C. cutting hair D. All of these are correct.

D. All of these are correct.

Which of the following is considered a service? A. teaching B. waiting tables C. cutting hair D. All of these are correct.

D. All of these are correct.

Which of the following represents the types of data commonly found in the accounting department? A. tax data B. payroll data C. transactional data D. All of these are correct.

D. All of these are correct.

MIS can be an important enabler of business success and innovation. Which of the below statements is accurate when referring to MIS? A. MIS equals business success and innovation. B. MIS represents business success and innovation. C. MIS is not a valuable tool that leverages talent. D. MIS is a valuable tool that can leverage the talents of people who know how to use and manage it effectively.

D. MIS is a valuable tool that can leverage the talents of people who know how to use and manage it effectively.

When a company is the first to market with a competitive advantage, this is called a first-mover advantage. All of the following companies were first-movers except ____________. A. FedEx - online self-service software B. Apple - iPad C. Apple - iPod D. Microsoft - Bing Search Engine

D. Microsoft - Bing Search Engine

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider? A. Walmart. B. Tiffany and Co. C. Neiman Marcus D. Payless Shoes

D. Payless Shoes

Which strategy below helps an organization choose its business focus? A. SWOT Analysis B. The Five Forces Model C. Value Chain Analysis D. Three Generic Strategies

D. Three Generic Strategies

What is the rate at which goods and services are produced based upon total output given total inputs? A. goods B. services C. production D. productivity

D. productivity

Which activities belong in the sales department? A. records, measures, and reports monetary transactions B. tracks strategic financial issues, including money, banking, credit, investments, and assets C. supports the sales by planning, pricing, and promoting goods or services is marketing D. relies on information from operations to understand inventory, place orders, and forecast consumer demand

D. relies on information from operations to understand inventory, place orders, and forecast consumer demand

Businesses rarely need to update business strategies as the business environment remains relatively stable.

FALSE

A variable is a business intelligence characteristic that stands for a value that cannot change over time.

FALSE (A variable is a data characteristic that can change over time)

An overview of systems thinking includes input, process, output, and finances.

FALSE (An overview of systems thinking includes input, process, output, and feedback)

A SWOT analysis evaluates an organization's strengths, worries, opportunities, and technologies to identify significant influences that work for or against business strategies.

FALSE (Threats, not technologies)

Cars, groceries, and clothing are all examples of goods.

TRUE

People using the same information can make different decisions depending on how they interpret or analyze the information.

TRUE (Information is data converted into a meaningful and useful context. The truth about information is that its value is only as good as the people who use it)

Which of the following is considered data? A. quantity sold B. best customer by month C. best-selling item by month D. worst selling item by month Feedback: Quantity sold is data.

A. quantity sold

Where would you categorize weaknesses in a SWOT analysis? A. internal, helpful B. internal, harmful C. external, helpful D. external, harmful

B. internal, harmful

What are the two main categories in a value chain analysis? A. primary value activities and secondary value activities B. primary value activities and support value activities C. primary value activities and strengthening value activities D. None of these are correct.

B. primary value activities and support value activities

When evaluating the value chain, which of the following is included in the support value activities? A. inbound activities B. marketing and sales C. firm infrastructure D. finance and sales

C. firm infrastructure

Business intelligence is information collected from multiple sources. Which of the following provides an example of a source that would be included in business intelligence? A. suppliers B. customers C. competitors D. All of these are correct.

D. All of these are correct.

Which of the following is considered a core driver of the information age? A. information B. business intelligence C. knowledge D. All of these are correct.

D. All of these are correct.

A primary value activity is a standardized set of activities that accomplish a specific task, such as processing a customer's order.

FALSE (That would be a business process)

Cheryl is the operations manager for Nature's Bread Company, which specializes in providing natural products for health conscious individuals. Cheryl is responsible for compiling, analyzing, and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day. Which of the following is an example of a piece of data Cheryl would be using to successfully perform her job? A. Craig Newmark is customer number 15467. B. compare the costs of supplies including energy over the last five years to determine the best-selling product by month C. best-selling product by day D. Best-selling product changes when Tony the best baker is working.

A. Craig Newmark is customer number 15467. (Data is raw facts that describe the characteristics of an event or object. Data for Cheryl would include Craig Newmark is customer number 15467)

Why do students need to study information technology? A. Information technology is everywhere in business. B. Information technology is rarely discussed in business. C. Information technology is rarely used in organizations. D. Information technology is found in only a few businesses. Feedback: Information technology is everywhere in business.

A. Information technology is everywhere in business.

111. ___________ is a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention. A. Internet of Things B. Predictive Analytics C. Machine to Machine D. Flat World

A. Internet of Things

MIS can add value to both primary and support activities within a business. Which of the following is not an example of a company adding value by the use of MIS in a support activity? A. Netflix creating a business strategy for the video rental market that delivers videos via the mail B. the human resources department creates a tracking system to efficiently reward employees based on their performance C. Scottrade Corp. creating an online system for employees to track paychecks, benefits, wellness rewards program, and other employee benefit items D. the University of Forks creates a program to automatically order office supplies such as pens and pads of paper for its employees

A. Netflix creating a business strategy for the video rental market that delivers videos via the mail

Your boss has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents supplier power in the soft drink industry? A. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. C. Zevia Natural Diet Soda begins selling directly over the Internet. D. vitamin water, fruit juice, coffee

A. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.

MIS can add value to both primary activities and support activities in the value chain. Which of the following is NOT an example of a company adding value by the use of MIS in a primary activity? A. Scottrade Corp. creating an online system for employees to track paychecks, benefits, wellness rewards program, and other employee benefit items B. a system for the sales and marketing departments to track specific sales targets and follow up processes C. an easy electronic survey, similar to the survey monkey, to be sent to the customer right after a service was completed D. Royal Crest Dairy using their custom order and delivery system through an easily accessible Web portal for the customer to track delivery status

A. Scottrade Corp. creating an online system for employees to track paychecks, benefits, wellness rewards program, and other employee benefit items

Your boss has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a cost leadership strategy? A. Southwest, Horizon, Frontier, JetBlue B. British Airways, Singapore Airlines, Virgin Atlantic C. Sky Taxi - a rent by the hour personal plane service D. All of these are correct.

A. Southwest, Horizon, Frontier, JetBlue

Which of the following statements is correct when considering a SWOT analysis? A. Strengths and weaknesses originate inside an organization. B. Opportunities and threats originate inside an organization. C. Strengths and threats originate inside an organization. D. Opportunities and weaknesses originate outside an organization.

A. Strengths and weaknesses originate inside an organization.

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales? A. Suppliers can drive down profits by charging more for supplies. B. New market entrants can steal potential investment capital. C. Substitute products can steal customers. D. Competition can steal customers.

A. Suppliers can drive down profits by charging more for supplies.

Imagine you are creating a new product to sell in an up-and-coming market. Which of the following statements indicates that it would be easy for you as the new entrant to compete in this market? A. The threat of new entrants force is high in the up-and-coming market. B. The threat of new entrants force is low in the up-and-coming market. C. The threat of new entrants force is impossible to define in the up-and-coming market. D. All of these are correct, depending on the time of year.

A. The threat of new entrants force is high in the up-and-coming market.

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market? A. Threat of new entrants B. Threat of substitute products or services C. Threat of buyer power D. Supply chain competition

A. Threat of new entrants

Which of the following provides an accurate definition of systems thinking? A. a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part B. a way of monitoring individual components including an input, the process, and an output, while continuously gathering feedback on the entire system C. a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on the entire system D. a way of monitoring singular parts of a system by viewing a single input that is processed or transformed to produce an entire system that is continuously monitored to gather feedback on each individual part

A. a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

The department within a company that records, measures, and reports monetary transactions is called _____________. A. accounting B. marketing C. human resources D. operations management

A. accounting

The banking industry has implemented several competitive advantages including ATMs, online bill pay services, and electronic statements. Of course, these competitive advantages were quickly duplicated by any competitor that wanted to remain in the banking industry. These were all examples of which competitive advantage? A. acquiring new technology products and services B. hiring new employees C. reducing expenses D. gaining invaluable feedback from customers

A. acquiring new technology products and services

Which of the following offers an example where Porter's five forces are mostly weak and competition is low? A. an international hotel chain purchasing milk B. a coffee shop C. a single consumer purchasing milk D. a dog walking business

A. an international hotel chain purchasing milk

How are the majority of companies today typically organized? A. by departments or functional areas B. by departments or financial areas C. by degree or financial areas D. by manager or knowledge area

A. by departments or functional areas

Which of the following is considered a good? A. cars B. teaching C. waiting tables D. All of these are correct.

A. cars

A __________ advantage features a product or service on which customers place a greater value than they do on similar offerings from competitors. A. competitive B. competitor C. power D. first mover

A. competitive

Which of the following represents the core drivers of the information age? A. data, information, business intelligence, knowledge B. fact, data, intelligence, experience C. fact, intelligence, business skills, knowledge D. data, intelligence, business information, knowledge

A. data, information, business intelligence, knowledge (DIBIK)

Your boss has asked you to analyze the music industry using Porter's five forces model. Which of the following represents supplier power in the music industry? A. established record labels like EMI, Sony, Universal B. Walmart, Target, iTunes C. game systems like Wii, social networks like Facebook D. Taylor Swift, Beyoncé, The Beatles, The Stones

A. established record labels like EMI, Sony, Universal

What is a SWOT analysis? A. evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies B. analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry C. views a firm as a series of business processes, each of which adds value to the product or service D. generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

A. evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies

107. What is the confirmation or validation of an event or object? A. fact B. data C. information technology D. business intelligence

A. fact

Shelby Black runs a very successful hair salon in downtown Los Angeles. One of Shelby's tasks is to input positive and negative customer reviews into her computer system. What type of information is Shelby gathering? A. feedback B. processing C. output management D. sales processing

A. feedback

The lettuce, tomatoes, patty, bun, and ketchup are included in which category of making a hamburger? A. input B. process C. output D. All of these are correct.

A. input

Feedback is information that returns to its original transmitter and modifies the transmitter's actions. What would the original transmitter include? A. input, transform, output B. input, transform, outnumber C. output, input, performer D. input, process, transform

A. input, transform, output

Where would you categorize strengths in a SWOT analysis? A. internal, helpful B. internal, harmful C. external, helpful D. external, harmful

A. internal, helpful

Today's workers are referred to as _______________ and they use BI along with personal experience to make decisions based on both information and intuition, a valuable resource for any company. A. knowledge workers B. knowledge thinkers C. knowledge resources D. knowledge players

A. knowledge workers

Which data types are typically found in the operations management department? A. manufacturing data, distribution data, and production data B. sales data, customer data, commission data, and customer support data C. employee data, promotion data, vacation data D. investment data, monetary data, reporting data

A. manufacturing data, distribution data, and production data

What are goods? A. material items or products that customers will buy to satisfy a want or need B. tasks performed by people that customers will buy to satisfy a want or need C. the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services D. the rate at which goods and services are produced based upon total output given total inputs

A. material items or products that customers will buy to satisfy a want or need

Which of the following represents the types of data commonly found in the finance department? A. monetary data B. technology data C. production data D. employee data

A. monetary data

Which group of stakeholders' primary interests include reliable contracts, ethical materials handling, and responsible production? A. partners/suppliers B. shareholders/investors C. community D. government

A. partners/suppliers

Which data types are typically found in the marketing department? A. promotion data, sales data, advertising data B. employee data, promotion data, vacation data C. investment data, monetary data, reporting data D. transactional data, purchasing data, payroll data, tax data

A. promotion data, sales data, advertising data

Which of the following represents the types of data commonly found in the marketing department? A. promotional data B. payroll data C. tax data D. employee data

A. promotional data

Which of the following represents procurement as part of the support value activities in a value chain analysis? A. purchases inputs such as raw materials, resources, equipment and supplies B. applies MIS to processes to add value C. distributes goods and services to customers D. promotes, prices, and sells products to customers

A. purchases inputs such as raw materials, resources, equipment and supplies

What is data? A. raw facts that describe the characteristics of an event or object B. data converted into a meaningful and useful context C. information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making D. skills, experience, and expertise, coupled with information and intelligence, that creates a person's intellectual resources

A. raw facts that describe the characteristics of an event or object

Which activities belong in the accounting department? A. records, measures, and reports monetary transactions B. tracks strategic financial issues, including money, banking, credit, investments, and assets C. supports sales by planning, pricing, and promoting goods or services is marketing D. relies on information from operations to understand inventory, place orders, and forecast consumer demand

A. records, measures, and reports monetary transactions

Callie owns and operates one of the most successful local coffee shops in Denver called The Edgewater Café. Each time a customer purchases their 100th cup of coffee at The Edgewater Café, they receive a free pound of coffee of their choice. What is Callie attempting to create with her unique "Free Pound of Coffee" marketing program? A. reducing buyer power with a loyalty program B. increasing buyer power with a loyalty program C. decreasing supplier power with a differentiated product D. creating a substitute product

A. reducing buyer power with a loyalty program

Shawn is on the executive board for ABC pharmaceuticals. The company produces the number one selling cancer-fighting drug on the market. Due to its incredible success, ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which force is ABC pharmaceutical using to increase its drug price? A. supplier power B. buyer power C. threat of false entrants D. business power

A. supplier power

Identifying competitive advantages can be difficult and explains why they are typically _______. A. temporary B. satisfactory C. terminated D. unsuccessful

A. temporary

If you were thinking about a home theater system, which of the following represents the inputs? A. the DVD player, DVD movie, speakers, TV, and electricity B. playing the movie, including the audio through the speakers and the video on the TV C. a message stating that the disk is dirty and cannot be played D. spinning the disk to play, pause, rewind, or fast forward

A. the DVD player, DVD movie, speakers, TV, and electricity

What is buyer power? A. the ability of buyers to affect the price they must pay for an item B. the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) C. high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market D. high when there are many alternatives to a product or service and low when there are few alternatives from which to choose

A. the ability of buyers to affect the price they must pay for an item

If you were thinking about a washing machine as a system, which of the following represents the inputs? A. the dirty clothes, water, and detergent B. the clean clothes C. the wash and rinse cycle D. the light indicating that the washer is off balance and has stopped Feedback: The inputs for a washing machine include the dirty clothes, water, and detergent.

A. the dirty clothes, water, and detergent

A system is a collection of parts that link to achieve a common purpose. Systems thinking is a way of monitoring _____________. A. the entire system B. a division within the sales role C. the executive team D. the company's competitors

A. the entire system

Sandy works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Sandy determines that the best value she can add is by creating a service that offers free next day shipping on any order over $50. Where in the value chain is Sandy adding value? A. the primary value activity outbound logistics B. the primary value activity inbound logistics C. the primary value activity marketing and sales D. the primary value activity operations

A. the primary value activity outbound logistics

Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages? A. the three generic strategies B. the threat of substitute buyer power C. differentiated costs D. supplier loyalty

A. the three generic strategies

If you were thinking about an oven as a system, which of the following represents the input? A. the uncooked food B. the cooked food C. a light indicating that the oven has reached the preheated temperature D. the oven running at 350 degrees for 20 minutes

A. the uncooked food

What is predictive analytics? A. A world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention B. Extracts information from data and uses it to predict future trends and identify behavioral patterns C. Refers to devices that connect directly to other devices D. Opportunities to change the way people purchase books

B. Extracts information from data and uses it to predict future trends and identify behavioral patterns

Your boss has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents buyer power in the soft drink industry? A. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. C. Zevia Natural Diet Soda begins selling directly over the Internet. D. Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.

Your boss has asked you to analyze the music industry using Porter's five forces model. Which of the following represents buyer power in the music industry? A. established record labels like EMI, Sony, Universal B. Walmart, Target, iTunes C. independent record labels D. game systems like Wii, social networks like Facebook

B. Walmart, Target, iTunes

Which of the following represents the definition of a variable? A. a data characteristic that is collected through competitive intelligence and cannot change over time B. a data characteristic that stands for a value that changes or varies over time C. a data characteristic that stands for a value that does not change or vary over time D. a data characteristic that is collected only through competitive intelligence and can change over time

B. a data characteristic that stands for a value that changes or varies over time

What is Porter's Five Forces Model? A. evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies B. analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry C. views a firm as a series of business processes, each of which adds value to the product or service D. generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

B. analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry

What is information? A. raw facts that describe the characteristics of an event or object B. data converted into a meaningful and useful context C. information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making D. skills, experience, and expertise, coupled with information and intelligence that creates a person's intellectual resources

B. data converted into a meaningful and useful context

Which data types are typically found in the human resources department? A. promotion data, sales data, advertising data B. employee data, promotion data, vacation data C. investment data, monetary data, reporting data D. transactional data, purchasing data, payroll data, tax data

B. employee data, promotion data, vacation data

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive? A. significant barrier B. entry barrier C. product differentiation D. entry chain

B. entry barrier

Which of the following is not considered a category within the primary value activities in a value chain analysis? A. inbound logistics B. firm infrastructure C. operations D. service

B. firm infrastructure

Assume you are in the business of producing and selling cars. If you could produce more cars with the same input, what would happen to your productivity and profits assuming the price of your cars remains the same? A. increase in productivity, decrease in profits B. increase in productivity, increase in profits C. decrease in productivity, decrease in profits D. decrease in productivity, increase in profits

B. increase in productivity, increase in profits

Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input, what would happen to your productivity and profits assuming the price of your hamburgers remains the same? A. increase in productivity, decrease in profits B. increase in productivity, increase in profits C. decrease in productivity, decrease in profits D. decrease in productivity, increase in profits

B. increase in productivity, increase in profits

Assume you are in the business of producing and selling t-shirts. If you could produce more t-shirts with the same input, what would happen to your productivity and profits assuming the price of your t-shirts remains the same? A. increase in productivity, decrease in profits B. increase in productivity, increase in profits C. decrease in productivity, decrease in profits D. decrease in productivity, increase in profits

B. increase in productivity, increase in profits

What is data converted into a meaningful and useful context? A. competitive intelligence B. information C. buyer power D. first-mover advantage

B. information

The age we live in has infinite quantities of facts that are widely available to anyone who can use a computer. What age is this statement referring to? A. data age B. information age C. business intelligence age D. Internet of Things

B. information age

How does the text recommend that a company operate if it wants to be successful in the information age? A. functionally independent between departments B. interdependently between departments C. together as one department with little or no independence D. each department acting as its own individual business unit

B. interdependently between departments

Which of the following are included as potential internal weaknesses in a SWOT analysis that are harmful to an organization? A. core competencies, market leaders, cost advantages, excellent management B. lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line C. expanded product line, increase in demand, new markets, new regulations D. new entrants, substitute products, shrinking markets, costly regulatory, requirements

B. lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line

Which activities belong in the operations management department? A. records, measures, and reports monetary transactions B. manages the process of converting or transforming resources into goods or services C. supports the sales by planning, pricing, and promoting goods or services is marketing D. maintains policies, plans, and procedures for the effective management of employees

B. manages the process of converting or transforming resources into goods or services

If a business is following a focused strategy, then its competitive scope is ________. A. broad market B. narrow market C. broad range products D. broad range of services

B. narrow market

Jennifer is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented. Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers. What would Jennifer determine The Museum Company is using as its generic strategy? A. broad market, low cost B. narrow market, high cost C. broad market, high cost D. narrow market, low cost

B. narrow market, high cost

Which department manages the process of converting or transforming resources into goods or services? A. sales B. operations management C. accounting D. finance

B. operations management

Greg works for Geneva Steel Corporation. Greg's duties include managing the overall processes for the company and transforming the steel resources into goods. Which department would Greg most likely work in? A. accounting B. operations management C. marketing D. CIO

B. operations management (Operations management manages the process of converting or transforming of resources into goods or services.)

Which of the following statements is correct when considering a SWOT analysis? A. strengths and weaknesses originate outside an organization. B. opportunities and threats originate outside an organization. C. strengths and threats originate inside an organization. D. opportunities and weaknesses originate outside an organization.

B. opportunities and threats originate outside an organization.

Which of the following is not considered a category within the support value activities in a value chain analysis? A. technology development B. outbound logistics C. human resource management D. firm infrastructure

B. outbound logistics

Most companies are typically organized by departments or functional areas. Which of the following is not a common department found in a company? A. accounting B. payroll C. marketing D. human resources

B. payroll

If you were thinking about a home theater system, which of the following represents the outputs? A. the DVD player, DVD movie, speakers, TV, and electricity B. playing the movie including the audio through the speakers and the video on the TV C. a message stating that the disk is dirty and cannot be played D. spinning the disk to play, pause, rewind, or fast forward

B. playing the movie including the audio through the speakers and the video on the TV

Cooking a patty and putting the ingredients together are included in which category of making a hamburger? A. input B. process C. output D. All of these are correct.

B. process

Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces? A. rivalry among new entrants B. rivalry among existing competitors C. threat of substitute products or services D. buyer power

B. rivalry among existing competitors

The department within a company that performs the function of selling goods or services is called _______________. A. marketing B. sales C. finance D. operations management

B. sales

Teaching, waiting tables, and cutting hair belong in which category? A. goods B. services C. production D. productivity

B. services

What are tasks performed by people that customers will buy to satisfy a want or need? A. goods B. services C. production D. productivity

B. services

Which group of stakeholder's primary interests include maximizing profits, growing market share, and high return on investment? A. partners/suppliers B. shareholders/investors C. community D. government

B. shareholders/investors

What is included in a SWOT analysis? A. strengths, weaknesses, organizations, and technology B. strengths, weaknesses, opportunities, and threats C. success, willingness, opportunities, and technology D. success, weaknesses, organizations, and threats

B. strengths, weaknesses, opportunities, and threats

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies? A. broad differentiation B. supplier cost differentiation C. focused strategy D. broad cost leadership

B. supplier cost differentiation

What includes all parties involved, directly or indirectly, in obtaining raw materials or a product? A. support chain B. supply chain C. system chain D. supply choice

B. supply chain

What are costs that make customers reluctant to switch to another product or service? A. support activities B. switching costs C. loyalty rewards D. value chain activities

B. switching costs

What is a way of monitoring the entire system in a company, by viewing the multiple inputs being processed to produce outputs? A. feedback thinking B. systems thinking C. output management D. operational thinking

B. systems thinking

What are services? A. material items or products that customers will buy to satisfy a want or need B. tasks performed by people that customers will buy to satisfy a want or need C. the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services D. the rate at which goods and services are produced based upon total output given total inputs

B. tasks performed by people that customers will buy to satisfy a want or need

If you were thinking about an oven as a system, which of the following represents the output? A. the uncooked food B. the cooked food C. a light indicating that the oven has reached the preheated temperature D. the oven running at 350 degrees for 20 minutes

B. the cooked food

What is supplier power? A. the ability of buyers to affect the price they must pay for an item B. the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) C. high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market D. high when there are many alternatives to a product or service and low when there are few alternatives from which to choose

B. the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)

Paula is the owner and operator of a high-end online custom clothing company. Paula has never heard of Porter's Five Forces model and she wants to understand why she would perform an analysis using it. If you were tasked with explaining Porter's Five Forces model to Paula, what would be the primary reason she would want to use this type of analysis? A. to help Paula choose a clothing business focus B. to help Paula evaluate the attractiveness of the clothing industry C. to help Paula evaluate and execute business goals D. All of these are correct.

B. to help Paula evaluate the attractiveness of the clothing industry

Which activities belong in the finance department? A. records, measures, and reports monetary transactions B. tracks strategic financial issues, including money, banking, credit, investments, and assets C. supports sales by planning, pricing, and promoting goods or services is marketing D. relies on information from operations to understand inventory, place orders, and forecast consumer demand

B. tracks strategic financial issues, including money, banking, credit, investments, and assets

Information is data converted into useful, meaningful context. What are data characteristics that change or vary over time? A. facts B. variables C. supplies D. services

B. variables

Steve Jobs and Apple created a big advantage in the technology industry with the introduction of the iPod, iPhone, and iPad. What are these all examples of? A. competitive advantage B. first-mover advantage C. All of these are correct. D. None of these are correct.

C. All of these are correct.

Who is responsible for ensuring the speed, accuracy, availability, and reliability of the management information systems within a company? A. Chief Knowledge Officer (CKO) B. Chief Privacy Officer (CPO) C. Chief Technology Officer (CTO) D. Chief Information Officer (CIO)

C. Chief Technology Officer (CTO)

Which role within a company is responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals and objectives? A. Chief knowledge officer (CKO) B. Chief privacy officer (CPO) C. Chief information officer (CIO) D. Chief security officer (CSO)

C. Chief information officer (CIO)

Which of the following is not a core driver of the information age? A. information B. knowledge C. Internet of Things D. data

C. Internet of Things

112. _________ refers to devices that connect directly to other devices. A. Internet of Things B. Predictive analytics C. Machine to machine D. Flat world

C. Machine to machine

MIS is a business function, like accounting or sales, which moves information about people, products, and processes across the company to facilitate decision making and problem solving. What does MIS stands for? A. Management Information Strategy B. Management Intelligence System C. Management Information System D. Management Information Strategist

C. Management Information System

Your boss has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a focused strategy? A. Southwest, Horizon, Frontier, JetBlue B. British Airways, Singapore Airlines, Virgin Atlantic C. Sky Taxi - a rent by the hour personal plane service D. All of these are correct.

C. Sky Taxi - a rent by the hour personal plane service

Which of the following is not a technology company but used technology to revamp the business process of selling shoes? A. Netflix B. Dell C. Zappos D. Amazon

C. Zappos

Your boss has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a threat of a new entrant in the soft drink industry? A. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. C. Zevia Natural Diet Soda begins selling directly over the Internet. D. vitamin water, fruit juice, coffee

C. Zevia Natural Diet Soda begins selling directly over the Internet.

If you were thinking about an oven as a system, which of the following represents the feedback? A. the uncooked food B. the cooked food C. a light indicating that the oven has reached the preheated temperature D. the oven running at 350 degrees for 20 minutes

C. a light indicating that the oven has reached the preheated temperature

If you were thinking about a home theater system, which of the following represents the feedback? A. the DVD player, DVD movie, speakers, TV, and electricity B. playing the movie including the audio through the speakers and the video on the TV C. a message stating that the disk is dirty and cannot be played D. spinning the disk to play, pause, rewind, or fast forward

C. a message stating that the disk is dirty and cannot be played

Which department records, measures, and reports monetary transactions? A. sales B. operations management C. accounting D. finance

C. accounting

Gina works for Aquarium Retail Services selling high-end saltwater fish and tank supplies. Aquarium Retail Services is the current market leader in Gina's city. Gina has recently been approached by Deep Blue Incorporated with an opportunity to run its corporate nationwide marketing and sales division. Gina decides to jump at the opportunity! Deep Blue is attempting to gain a competitive ________ by stealing its competitor's key employees. A. power B. entry barrier C. advantage D. loyalty

C. advantage

A business strategy achieves a specific set of goals, including__________. A. developing new products or services, and attracting new competition B. increasing costs, and attracting new competition C. attracting new customers, and developing new products or services D. All of these are correct.

C. attracting new customers, and developing new products or services

Which of the following is considered information? A. quantity sold B. date sold C. best-selling item by month D. product sold

C. best-selling item by month

What is a standardized set of activities that accomplishes a specific task? A. business strategy B. business outcome C. business process D. knowledge process

C. business process

In the center of Porter's Five Forces model is competition. Which of the following represents the four outer boxes? A. buyer power, systems power, threat of false entrants, and threat of substitute products or services B. buyer power, systems power, threat of new entrants, and threat of substitute products or services C. buyer power, supplier power, threat of new entrants, and threat of substitute products or services D. business power, supplier power, threat of new entrants, and threat of powerful services

C. buyer power, supplier power, threat of new entrants, and threat of substitute products or services

Which group of stakeholders' primary interests include professional associations, ethical recycling, and increasing employment? A. employees B. shareholders/investors C. community D. customers

C. community

Which of the following is not considered a core driver of the information age? A. information B. business Intelligence C. competitive Intelligence D. data

C. competitive Intelligence (The core drivers of the information age include data, information, business intelligence, and knowledge)

The process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed is the definition of ___________. A. feedback B. information C. competitive intelligence D. data

C. competitive intelligence

What is the primary responsibility of the CTO? A. overseeing all uses of MIS B. ensuring the security of business systems C. ensuring speed, accuracy, and reliability for MIS D. collecting and distributing company information

C. ensuring speed, accuracy, and reliability for MIS

Which of the following are included as potential external opportunities in a SWOT analysis that are helpful to an organization? A. core competencies, market leaders, cost advantages, excellent management B. lack of strategic direction, obsolete technologies, lack of managerial talent, outdated, product line C. expanded product line, increase in demand, new markets, new regulations D. new entrants, substitute products, shrinking markets, costly regulatory, requirements

C. expanded product line, increase in demand, new markets, new regulations

Where would you categorize opportunities in a SWOT analysis? A. internal, helpful B. internal, harmful C. external, helpful D. external, harmful

C. external, helpful

Which of the following is the key term that defines the confirmation or validation of an event or object? A. buyer power B. data C. fact D. entry barrier

C. fact

Broad differentiation, broad cost leadership, and _________ create the three generic strategies identified by Porter. A. narrow market leadership B. high cost versus low cost C. focused strategy D. None of these are correct.

C. focused strategy

Your boss has asked you to analyze the music industry using Porter's five forces model. Which of the following represents the threat of substitute products or services in the music industry? A. established record labels like EMI, Sony, Universal B. independent record labels C. game systems like Wii, social networks like Facebook D. Taylor Swift, Beyoncé, The Beatles, The Stones

C. game systems like Wii, social networks like Facebook

What is threat of new entrants? A. the ability of buyers to affect the price they must pay for an item B. the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) C. high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market D. high when there are many alternatives to a product or service and low when there are few alternatives from which to choose

C. high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market

What is the support value activity that provides employees with training, hiring, and compensation? A. procurement B. operations resource management C. human resource management D. firm infrastructure

C. human resource management

When applying Porter's three generic strategies, Tiffany and Co. has a competitive scope and cost strategy that is __________. A. broad market - high cost strategy B. narrow market - low cost strategy C. narrow market - high cost strategy D. broad market - low cost strategy

C. narrow market - high cost strategy

Which of the below is similar to focused strategy versus broad strategy? A. large market versus leadership B. large market versus uniqueness C. niche market versus large market D. niche market versus generic

C. niche market versus large market

How can a company reduce the threat of substitute products or services? A. market the product to less than ten customers B. ignore competitive forces C. offer additional value through wider product distribution D. offer less value, making the product far more generic and similar to the competition

C. offer additional value through wider product distribution

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage? A. rivalry B. buyer power C. product differentiation D. substitute product

C. product differentiation

What is the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services? A. goods B. services C. production D. productivity

C. production

Which of the following represents the types of data commonly found in the operations management department? A. monetary data B. payroll data C. production data D. employee data

C. production data

Updating business strategies is a continuous undertaking as internal and external environments ________. A. become less competitive B. remain stagnant C. rapidly change D. become more consistent

C. rapidly change

What is machine to machine? A. a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention B. extracts information from data and uses it to predict future trends and identify behavioral patterns C. refers to devices that connect directly to other devices D. opportunities to change the way people purchase books

C. refers to devices that connect directly to other devices

Which of the following represents a typical supply chain? A. company - customers - suppliers B. company - suppliers - customers C. suppliers - company - customers D. suppliers - customers - company

C. suppliers - company - customers

Which activities belong in the marketing department? A. records, measures, and reports monetary transactions B. tracks strategic financial issues, including money, banking, credit, investments, and assets C. supports sales by planning, pricing, and promoting goods or services is marketing D. relies on information from operations to understand inventory, place orders, and forecast consumer demand

C. supports sales by planning, pricing, and promoting goods or services is marketing

All of the following are common tools used in industry to analyze and develop competitive advantages, except _________. A. the Five Forces Model B. the three generic strategies C. the competitive analysis model D. value chain analysis

C. the competitive analysis model

What is production? A. material items or products that customers will buy to satisfy a want or need B. tasks performed by people that customers will buy to satisfy a want or need C. the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services D. the rate at which goods and services are produced based upon total output given total inputs

C. the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services

If you were thinking about a washing machine as a system, which of the following represents the process? A. the dirty clothes, water, and detergent B. the clean clothes C. the wash and rinse cycle D. the light indicating that the washer is off balance and has stopped

C. the wash and rinse cycle

What is one of the most common ways a company can decrease supplier power? A. charge lower prices B. charge higher prices C. use MIS to find and create alternative products D. Companies cannot impact supplier power.

C. use MIS to find and create alternative products

Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers? A. product analysis B. primary supplier power C. value chain analysis D. buyer chain analysis

C. value chain analysis

What is a value chain analysis? A. evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies B. analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry C. views a firm as a series of business processes, each of which adds value to the product or service D. generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

C. views a firm as a series of business processes, each of which adds value to the product or service

Data is useful for understanding individual sales, but to gain deeper insight into a business data needs to be turned into information. Which of the following offers an example of turning data into information? A. Who are my best customers? B. What is my best-selling product? C. What is my worst-selling product? D. All of these are correct.

D. All of these are correct.

If a supplier has high power, what can it do to influence its industry? A. charge higher prices B. shift costs to industry participants C. limit quality or services D. All of these are correct.

D. All of these are correct.

MIS is a business function. Which of the following does MIS perform to help aid the company in decision making and problem solving? A. moves information about people B. moves processes across the company to improve systems C. moves information about products D. All of these are correct.

D. All of these are correct.

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers? A. target high value-adding activities to further enhance their value B. target low value-adding activities to increase their value C. perform some combination of the two D. All of these are correct.

D. All of these are correct.

Which of the following represents a reason why competitive advantages are typically temporary? A. The competitor will hire away your key employees. B. The competitor quickly seeks ways to duplicate your business operations. C. The competitor will purchase new technology. D. All of these are correct.

D. All of these are correct.

Which of the following represents the types of data commonly found in the sales department? A. customer data B. sales report data C. commission data D. All of these are correct.

D. All of these are correct.

Why do students need to study information technology? A. Information technology is everywhere in business. B. Information technology is frequently discussed in business. C. Information technology is frequently used in organizations. D. All of these are correct.

D. All of these are correct.

The sales department needs to rely on information from operations to understand _________. A. inventory B. customer orders C. demand forecasts D. All of these are correct.

D. All of these are correct. (Sales needs to rely on information from operations to understand inventory, place orders, and forecast consumer demand.)

Which of the following is not a technology company but used technology to revamp the business process of selling books? A. Netflix B. Dell C. Zappos D. Amazon

D. Amazon

Cheryl is the operations manager for Nature's Bread Company, which specializes in providing natural products for health conscious individuals. Cheryl is responsible for compiling, analyzing, and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day. Which of the following is an example of knowledge that Cheryl would be using to successfully perform her job? A. Craig Newmark is customer number 15467. B. Flour Power is supplier number 8745643. C. best-selling product by day D. Best-selling product changes when Tony the best baker is working.

D. Best-selling product changes when Tony the best baker is working.

Who is responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals and objectives? A. Chief Knowledge Officer (CKO) B. Chief Privacy Officer (CPO) C. Chief Technology Officer (CTO) D. Chief Information Officer (CIO)

D. Chief Information Officer (CIO)

Your boss has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents rivalry in the soft drink industry? A. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. C. Zevia Natural Diet Soda begins selling directly over the Internet. D. Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

D. Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

When evaluating the value chain, all of the following are included in the primary value activities except _________. A. inbound activities B. operations C. service D. MIS development

D. MIS development

Which of the following statements is true? A. MIS equals business success. B. MIS equals business innovation. C. MIS represents business success and innovation. D. MIS enables business success and innovation.

D. MIS enables business success and innovation.

What is knowledge? A. Raw facts that describe the characteristics of an event or object. B. Data converted into a meaningful and useful context. C. Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making. D. Skills, experience, and expertise, coupled with information and intelligence that creates a person's intellectual resources.

D. Skills, experience, and expertise, coupled with information and intelligence that creates a person's intellectual resources.

Which of the following demonstrates a company that has implemented a low cost, broad market strategy? A. Neiman Marcus B. Payless Shoes C. The Sharper Image D. Walmart

D. Walmart

Which of the following is an example of information? A. Who is customer number 12345XX? B. What is product number 12345XX? C. What customer number is Bob Smith? D. What is my worst-selling product?

D. What is my worst-selling product? (What is my worst-selling product is an example of taking data and turning it into information)

Which of the following is an example of data? A. Who are my best customers? B. What is my best-selling product? C. What is my worst-selling product? D. Who is customer number 12345XX?

D. Who is customer number 12345XX?

What is a competitive advantage? A. a product that an organization's customers place a lesser value on than similar offerings from a competitor B. a feature of a product or service on which customers place a lesser value than they do on similar offerings from a supplier C. a service that an organization's customers place a lesser value on than similar offerings from a supplier D. a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors

D. a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors

What is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making? A. supplier's intelligence B. social intelligence C. employee intelligence D. business intelligence

D. business intelligence

Which of the following is not a typical way that a company would duplicate a competitive advantage? A. acquiring the new technology B. copying the business operations C. hiring away key employees D. carrying large product inventories

D. carrying large product inventories

The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or ________. A. focused strategy; product differentiation B. focused strategy; cost advantage C. cost advantage; primary value activities D. cost advantage; product differentiation

D. cost advantage; product differentiation

Which group of stakeholders' primary interests include exceptional customer service, high-quality products, and ethical dealings? A. partners/suppliers B. shareholders/investors C. community D. customers

D. customers

Which of the following is considered a core driver of the information age? A. fact B. goods C. competitive Intelligence D. data

D. data

The Victory Wireless store in Denver is currently offering a fabulous marketing strategy for potential new iPhone customers. Victory Wireless offers customers who purchase an iPhone with a 2-year subscription a free Otter phone case, car charger, earphones, and speakers. In terms of Porter's Five Forces, what is Victory Wireless attempting to achieve with this marketing strategy? A. increase buyer power B. increase substitute products C. decrease supplier power D. decrease buyer power

D. decrease buyer power

Which of the following represents the types of data commonly found in the human resources department? A. financial data B. technology data C. production data D. employee data

D. employee data

Where would you categorize threats in a SWOT analysis? A. internal, helpful B. internal, harmful C. external, helpful D. external, harmful

D. external, harmful

Which department tracks strategic financial issues, including money, banking, credit, investments, and assets? A. sales B. operations management C. accounting D. finance

D. finance

What are Porter's three generic strategies? A. evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies B. analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry C. views a firm as a series of business processes, each of which adds value to the product or service D. generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

D. generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

Which group of stakeholder's primary interests include adhering to regulations/laws, increasing employment, and ethical taxation reporting? A. partners/suppliers B. shareholders/investors C. community D. government

D. government

What is rivalry among existing competitors? A. the ability of buyers to affect the price they must pay for an item B. the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) C. high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market D. high when competition is fierce in a market and low when competitors are more complacent

D. high when competition is fierce in a market and low when competitors are more complacent

What is threat of substitute products or services? A. the ability of buyers to affect the price they must pay for an item B. the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services) C. high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market D. high when there are many alternatives to a product or service and low when there are few alternatives from which to choose

D. high when there are many alternatives to a product or service and low when there are few alternatives from which to choose

Which department maintains policies, plans, and procedures for the effective management of employees? A. sales B. operations management C. accounting D. human resources

D. human resources

Kevin is an incoming freshman at your college. Kevin is frustrated by the cost of books, tuition, and expenses and he also needs to purchase a rather expensive laptop. In an effort to save money, Kevin organizes a Facebook group with other college students who need to purchase laptops. Soon, Kevin's Facebook group has close to 100,000 students. Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount. What business strategy is Kevin using to purchase laptops? A. collecting business intelligence B. decreasing entry barriers C. purchasing a substitute product D. increasing buyer power

D. increasing buyer power

Which activities belong in the human resources department? A. records, measures, and reports monetary transactions B. tracks strategic financial issues, including money, banking, credit, investments, and assets C. supports sales by planning, pricing, and promoting goods or services is marketing D. maintains policies, plans, and procedures for the effective management of employees

D. maintains policies, plans, and procedures for the effective management of employees

The department within a company that supports the sales by planning, pricing, and promoting goods or services is called ___________. A. sales B. operations management C. accounting D. marketing

D. marketing

Which of the following are included as potential external weaknesses in a SWOT analysis that are harmful to an organization? A. core competencies, market leaders, cost advantages, excellent management B. lack of strategic direction, obsolete technologies, lack of managerial talent, outdated, product line C. expanded product line, increase in demand, new markets, new regulations D. new entrants, substitute products, shrinking markets, costly regulatory requirements

D. new entrants, substitute products, shrinking markets, costly regulatory requirements

John is the CEO of Tech World, a retail store that sells computers, monitors, cameras, televisions and many other electronic products. John and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, John determines that all of the forces are high in this new industry. What should John do? A. explode into the market with an overflow of the product B. contemplate other products to introduce at the same time in this new market C. compare the competitor's prices and offer his product lower in this new market D. not introduce the product because all five forces are strong and this would be a highly risky business strategy

D. not introduce the product because all five forces are strong and this would be a highly risky business strategy

When reviewing Porter's value chain analysis, which of the following provides customer support after the sale of goods and services? A. inbound logistics B. outbound logistics C. operations D. service

D. service

If you were thinking about a home theater system, which of the following represents the process? A. the DVD player, DVD movie, speakers, TV, and electricity B. playing the movie including the audio through the speakers and the video on the TV C. a message stating that the disk is dirty and cannot be played D. spinning the disk to play, pause, rewind, or fast forward

D. spinning the disk to play, pause, rewind, or fast forward

Which of the following represents a company in a supply chain? A. customer and competitor B. supplier and competitor C. knowledge worker and supplier D. supplier and customer

D. supplier and customer

If you were thinking about a washing machine as a system, which of the following represents the feedback? A. the dirty clothes, water, and detergent B. the clean clothes C. the wash and rinse cycle D. the light indicating that the washer is off balance and has stopped

D. the light indicating that the washer is off balance and has stopped

If you were thinking about an oven as a system, which of the following represents the process? A. the uncooked food B. the cooked food C. a light indicating that the oven has reached the preheated temperature D. the oven running at 350 degrees for 20 minutes

D. the oven running at 350 degrees for 20 minutes

What is productivity? A. material items or products that customers will buy to satisfy a want or need B. tasks performed by people that customers will buy to satisfy a want or need C. the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services D. the rate at which goods and services are produced based upon total output given total inputs

D. the rate at which goods and services are produced based upon total output given total inputs

Which data types are typically found in the accounting department? A. promotion data, sales data, advertising data B. employee data, promotion data, vacation data C. investment data, monetary data, reporting data D. transactional data, purchasing data, payroll data, tax data

D. transactional data, purchasing data, payroll data, tax data

What includes support value activities and primary value activities and is used to determine how to create the greatest possible value for customers? A. supplier power B. operations management C. Porter's Five Forces Model D. value chain analysis

D. value chain analysis

Which of the following is not considered a core driver of the information age? A. information B. business Intelligence C. knowledge D. variables

D. variables

Your boss has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a substitute product in the soft drink industry? A. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. C. Zevia Natural Diet Soda begins selling directly over the Internet. D. vitamin water, fruit juice, coffee

D. vitamin water, fruit juice, coffee

Buyer power is included as one of Porter's three generic strategies.

FALSE

Decreasing customer loyalty, increasing costs, and decreasing sales are all examples of business strategies.

FALSE

Inbound logistics and operations are part of the support value activities.

FALSE

For an organization to succeed, every department or functional area must work independently to be most effective.

FALSE (Every department or functional area must work together or interdependently sharing common information and not be a "silo.")

When a company is the first to market with a competitive advantage, it gains a particular benefit known as competitive intelligence.

FALSE (First-mover advantage)

If a business could produce the same hamburger with less expensive inputs it would probably see a decrease in profits.

FALSE (Increase)

A standardized set of activities that accomplish a specific task is called a supply chain component.

FALSE (It is called a business process)

Zappos is not a technology company; its primary business focus is to sell books.

FALSE (Its primary focus is to sell shoes, bags, and clothing)

Knowledge workers are individuals valued for their ability to mitigate risk and implement critical human resource rules and regulations.

FALSE (Knowledge workers are individuals valued for their ability to interpret and analyze information.)

Mark Peterson identified the Porter's Five Forces Model which analyzes the competitive forces within a business environment.

FALSE (Michael Porter)

Porter has identified three generic business strategies including focused, broad cost leadership, and switching strategy.

FALSE (Porter has identified three generic business strategies: 1) broad cost leadership, 2) broad differentiation, and 3) focused strategy)

Porter's Five Forces Model outlines the process for a sales strategy.

FALSE (Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry)

The finance department performs the function of selling goods or services.

FALSE (Sales Department)

Firm infrastructure and human resource management are part of the primary value activities.

FALSE (Support value activities)

The Internet of Things refers to devices that connect directly to other devices.

FALSE (That is M2M)

Machine to machine (M2M) extracts information from data and uses it to predict future trends and identify behavioral patterns.

FALSE (That is predictive analytics)

Predictive analytics is a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention.

FALSE (That is the IoT)

The chief technology officer is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks from hackers and viruses.

FALSE (The chief technology officer is responsible for ensuring the speed, accuracy, availability, and reliability for MIS)

Using only data and information to make decisions and solve problems is the key to finding success in business. These are also the only core drivers of the information age and the building blocks of business systems.

FALSE (The core drivers are data, information, business intelligence, and knowledge)

The threat of substitute products or services refers to the power of competitors to enter a new market.

FALSE (The threat of substitute products or services refers to the power of customers to purchase alternatives)

Lettuce, tomatoes, patty, bun, and ketchup are included in the output of making a hamburger.

FALSE (These are the inputs)

The sales and marketing departments primarily use monetary data.

FALSE (They use transactional data)

The business decisions made by the marketing department include transactional data, purchasing data, payroll data, and tax data.

FALSE (This is accounting)

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter's supplier power.

FALSE (This is an example of Porter's threat of substitute products or services)

Competitive intelligence is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making.

FALSE (This is business intelligence)

Rivalry among existing competitors refers to the ability of buyers to affect the price they must pay for an item.

FALSE (This is buyer power)

A first-mover advantage is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed.

FALSE (This is competitive intelligence)

The business decisions made by the human resources department include investment data, monetary data, and reporting data.

FALSE (This is finance)

The business decisions made by the accounting department include employee data, promotion data, and vacation data.

FALSE (This is human resources)

The business decisions made by the accounting department include manufacturing data, distribution data, and production data.

FALSE (This is operations management)

The business decisions made by the human resources department include potential customer data, sales report data, commission data, and customer support data.

FALSE (This is sales)

The business decisions made by the finance department include promotion data, sales data, and advertising data.

FALSE (This is the marketing department)

Tiffany & Company competes in the marketplace by offering high-cost custom jewelry. Tiffany & Company is following a broad market and cost leadership strategy.

FALSE (Tiffany & Company is following a focused market with high cost differentiation strategy)

Top managers use social intelligence to define the future of the business, analyzing markets, industries, and economies to determine the strategic direction the company must follow to remain unprofitable.

FALSE (Top managers use business intelligence, not social intelligence, to remain profitable, not unprofitable.)

The chief knowledge officer is responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals and objectives.

FALSE (this is the chief information officer)

A SWOT analysis evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.

TRUE

A business process is a standardized set of activities that accomplish a specific task, such as processing a customer's order.

TRUE

A fact is the confirmation or validation of an event or object. In the past, people primarily learned facts from books.

TRUE

A grilled cheese sandwich is considered the final output of a making-a-sandwich process.

TRUE

A leadership plan that achieves a specific set of goals or objectives is a business strategy.

TRUE

A stakeholder is a person or group that has an interest or concern in an organization. Stakeholders drive business strategies, and depending on the stakeholder's perspective, the business strategy can change.

TRUE

According to Porter it is recommended to adopt only one of the three generic strategies.

TRUE

According to Porter's three generic strategies, Walmart is following a business strategy that focuses on broad market and low cost.

TRUE

Attracting new customers, decreasing costs, and entering new markets are all examples of successful business strategies.

TRUE

Bread, cheese, and butter are included in the process of making a grilled cheese sandwich.

TRUE

Business intelligence is information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making.

TRUE

Buyer power is the ability of buyers to affect the price they must pay for an item.

TRUE

Choosing not to fire a sales representative who is underperforming, knowing that person is experiencing family problems, is a form of knowledge.

TRUE

Companies today are successful when they combine the power of the information age with traditional business methods.

TRUE

Companies update business strategies continuously as internal and external environments change.

TRUE

Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.

TRUE

Cooking a patty and putting the ingredients together are included in the process of making a hamburger.

TRUE

FedEx created a first-mover advantage by developing its customer self-service software, which allows people to request parcel pickups, print mailing slips, and track parcels online.

TRUE

Firm infrastructure and human resource management are part of the support value activities.

TRUE

Goods are material items or products that customers will buy to satisfy a want or need.

TRUE

If a business could produce more hamburgers with the same inputs it would see a rise in productivity and possibly an increase in profits.

TRUE

In a SWOT analysis, potential external opportunities are helpful when they identify all significant trends along with how the organization can benefit from each, including new markets, additional customer groups, legal changes, innovative technologies, population changes, competitor issues, and so on.

TRUE

In a SWOT analysis, potential external threats are harmful when they identify all threats or risks detrimental to your organization, including new market entrants, substitute products, employee turnover, differentiating products, shrinking markets, adverse changes in regulations, economic shifts, and so on.

TRUE

In a SWOT analysis, potential internal strengths are helpful when they identify all key strengths associated with the competitive advantage including cost advantages, new and/or innovative services, special expertise and/or experience, proven market leader, improved marketing campaigns, and so on.

TRUE

In a SWOT analysis, potential internal weaknesses are harmful when they identify all key areas that require improvement. Weaknesses focus on the absence of certain strengths, including absence of an Internet marketing plan, damaged reputation, problem areas for service, outdated technology, employee issues, and so on.

TRUE

In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.

TRUE

Inbound logistics and operations are part of the primary value activities.

TRUE

It is not uncommon to find stakeholders' business strategies have conflicting interests such as investors looking to increase profits by eliminating employee jobs.

TRUE

MIS is a tool that is most valuable when it leverages the talents of people who know how to use and manage it effectively.

TRUE

Machine to machine (M2M) refers to devices that connect directly to other devices.

TRUE

Order date, amount sold, and customer number are all forms of data.

TRUE

Predictive analytics extracts information from data and uses it to predict future trends and identify behavioral patterns.

TRUE

Product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand.

TRUE

Production is the process where a business takes raw materials and processes them or converts them into a finished product for its goods or services.

TRUE

Productivity is the rate at which goods and services are produced based upon total output given total inputs.

TRUE

Successful companies today operate cross-functionally, integrating the operations of all departments.

TRUE

Supplier power is one of Porter's five forces and it measures the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).

TRUE

The Internet of Things (IoT) is a world where interconnected, Internet-enabled devices or "things" can collect and share data without human intervention.

TRUE

The accounting and finance departments primarily use monetary data.

TRUE

The business decisions made by the accounting department include transactional data, purchasing data, payroll data, and tax data.

TRUE

The business decisions made by the finance department include investment data, monetary data, and reporting data.

TRUE

The business decisions made by the human resources department include employee data, promotion data, and vacation data.

TRUE

The business decisions made by the marketing department include promotional data, sales data, and advertising data.

TRUE

The business decisions made by the operations management department include manufacturing data, distribution data, and production data.

TRUE

The business decisions made by the sales department include potential customer data, sales report data, commission data, and customer support data.

TRUE

The chief knowledge officer is responsible for collecting, maintaining, and distributing company knowledge.

TRUE

The chief privacy officer is responsible for ensuring the ethical and legal use of information within a company.

TRUE

The chief security officer is responsible for ensuring the security of business systems and developing strategies and safeguards against attacks from hackers and viruses.

TRUE

The chief technology officer is responsible for ensuring the speed, accuracy, availability, and reliability for MIS.

TRUE

The information age is the present time, during which infinite quantities of facts are widely available to anyone who can use a computer.

TRUE

The marketing department supports sales by planning, pricing, and promoting goods or services.

TRUE

The operations management department manages the process of converting or transforming resources into goods or services.

TRUE

The threat of substitute products or services refers to the power of customers to purchase alternatives.

TRUE

The value chain will group a company's activities into two categories: primary value activities and support value activities.

TRUE

There are many challenges to changing doctors, including transferring medical records and losing the doctor patient relationship along with the doctor's knowledge of the patient's history. Changing doctors provides a great example of switching costs.

TRUE

To combat business challenges, leaders communicate and execute business strategies, a term deriving from the Greek word stratus for army and ago for leading.

TRUE

Top managers use predictive analytics to define the future of the business, analyzing markets, industries, and economies to determine the strategic direction the company must follow to remain profitable.

TRUE

Value chain analysis views a firm as a series of business processes that each adds value to the product or service.

TRUE

Waiting tables, teaching, and cutting hair are all examples of services that people pay for to fulfill a need.

TRUE

With the Five Forces Model, companies should watch the forces in the market. If the forces are strong, competition generally increases, and if the forces are weak, competition typically decreases.

TRUE