MIS Chapter 1

Apple's introduction of the iPhone while iPod sales were still very strong is an example of DYB.

True

Significant changes in IS should trigger a reassessment of the _____________. a. business strategy b. social strategy c. process strategy d. data strategy e. system strategy

a

Organizations seek to gain a competitive advantage by differentiation, cost, or _________. a. service b. focus c. profit d. value e. speed

b

The physical means by which information is exchanged among hardware components is called _______. a) hardware b) software c) networking d) personnel e) data

c

CRM stands for ________________.

customer relationship management

The general manager for a retail clothing outlet was recently cited as saying, "IT is the cornerstone of our company. All of our decisions are based on the sophisticated systems that we have deployed throughout our organization. IT drives our decisions." What position should the manager hold regarding IT and its influence on decision making? a. IT should drive business decisions. b. Organizational goals should drive IT decisions. c. Organizational strategy should drive IS decision making. d. Business strategy should drive IS decision making e. All strategy should be driven by IT strategy.

d

Which one of the following is NOT part of the information systems strategy matrix? a) Hardware b) Software c) Networking d) Personnel e) Data

d

The IS strategy drives the business strategy.

False

A social business strategy needs to align itself with the organization's IT strategy but not the business strategy.

False

Once a firm is out of alignment, it does not mean that it has to stay that way.

True

There has been accelerated competition and churn among market leaders concurrent with the increases in the quality and quantity of IT investments.

True

To avoid unwanted consequences, altering the IT Strategy requires adjustments to the organizational strategy.

True

A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. This unique service demonstrates the bank's desire to practice which one of Porter's strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation

a

Business strategies based on hyper-competition focus on customer satisfaction and profit maximization but also build in a component of business intelligence. Business intelligence helps an agile organization to: a) Predict and respond to new opportunities b) Leverage information technology in new ways c) Manage internal challenges d) React to supplier demands e) Collaborate

a

When a company's business strategy and technology strategy are intertwined, this situation is known as _______. a. convergence b. alignment c. dynamic d. differentiation e. technologically adjusted

a

All of the following are identified causes of the 2010 Deepwater Horizon oil spill EXCEPT for: a) Repeated failure to follow safety procedures b) The alignment of the Information Systems Strategy Triangle c) The failure of automated systems d) The leadership and organizational culture at BP e) Inadequate quality standards

b

At the time of the Deepwater Horizon oil spill and explosion, BP's IS Strategy Triangle was out of __________. a) control b) alignment c) adjustment d) scope e) specification

b

Google has disrupted a number of industries, particularly the advertising and software industries. Google's ability to quickly and aggressively provide new products and services is best described by: a. Porter's Generic Strategies b. The Hypercompetition Model c. The Information Systems Strategy Triangle d. The Social Business Strategy e. Customer Relationship Management

b

Organizational, cultural, and control variables are considered the ________ used by decision makers to effect change in their organization. a. collaboration tools b. managerial levers c. events d. IS e. organization objectives

b

The business diamond identifies the crucial, interrelated components for designing an organization. The components include all of the following EXCEPT: a) People b) Social media c) Structure d) Tasks e) Information and control

b

The organizational strategy should ideally _____ the IS strategy. a. drive b. complement c. dictate d. ignore e. sustain

b

Through the use of various technologies, a ski resort tracks the slopes each customer skis and the times he or she skis them. Skiers then have the ability to view this information online, and can choose to seamlessly share their accomplishments on Facebook. In addition, photographers positioned at the resort post pictures on Facebook for the skier. This ski resort has worked hard to develop a strong: a. IS Strategy b. Social business strategy c. Business strategy d. Organizational strategy e. Customer strategy

b

By using IS to achieve economies of scale and generate operating efficiencies, Walmart epitomizes which one of Porter's generic strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation

c

Technology guru Tim O'Reilly said this about the publishing industry: "To adapt, publishers need to cannibalize their own business, experimenting with new forms, new formats, and new business models." This statement is consistent with: a) Generic framework b) Focus strategy c) Hypercompetition d) Direct strategy e) Porter's generic strategies

c

To remain competitive, an organization's business strategy must adapt and respond to all of the following variables. Which variable in particular does IS help to determine? a. Market forces b. Customer demands c. The capabilities of the organization d. The organization's mission e. Organizational design

c

According to Porter, a company that makes its services available 24/7 would be practicing a _________ strategy.

cost leadership

A general manager should: a) Rely on IS personnel to make IS decisions b) Ignore how IS are used and managed c) Have a deep technical knowledge of IS d) Understand the use and consequences of technologies relevant to the business e) Not be expected to ask or understand technology related questions

d

A social business strategy is designed to use social IT tools for all of the following EXCEPT: a. Collaborating with stakeholders b. Building deeper connections with stakeholders c. Innovating with stakeholders d. Excluding stakeholders e. Networking with employees, customer and/or suppliers

d

General managers should take an active role in decisions about information systems. This is vital because: a. The IS department cannot be trusted to make good decisions. b. The IS department has not been trained to make general business decisions. c. The IS department does not have the company's best interests as its focus. d. Information systems are designed to support business objectives. e. Information systems are normally incongruent with business strategies.

d

In order to assess the critical issues in information management, a manager should know the IS infrastructure components. These are hardware, software, network and _______.

data

GE recognized that it could only sustain its competitive advantage for a limited time as competitors attempted to outmaneuver them. What was the model that Welch applied to help solve this problem? a) Destroy your organization b) Grow your organization c) Destroy your system d) Grow your system e) Destroy your business

e

L.L. Bean is an online/catalog retail company that aggressively uses tools like instant messaging to communicate with customers regarding potential purchases and uses Facebook for branding activities. This use of technology supports which strategy? a) IS strategy b) Business strategy c) Organizational strategy d) Mission strategy e) Social business strategy

e

The ________________________ is a plan articulating where a business seeks to go and how it expects to get there. a. vision statement b. mission statement c. stakeholder statement d. stockholder statement e. business strategy

e

This framework is called the ____________________ because it relates business strategy with IS strategy and organizational strategy. a. Porter's Generic Framework b. D'Aveni's Hypercompetition Model c. Information Technology Matrix d. IS Strategy Model e. Information Systems Strategy Triangle

e

According to Porter's Generic Strategies Framework, a company that limits its scope to a narrower segment of the market is exercising this type of strategy.

focus

GE employees develop strategies to destroy an existing competitive advantage so that they can then find fresh new ways to server the customer by applying a ________ strategy.

grow your business

The _______________ models suggest that the speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are "rapidly created and eroded."

hypercompetition

Social business opportunities fall into one of three categories: collaboration, engagement or ______.

innovation

A clear and compelling statement that unifies an organization's efforts and describes what the organization is all about is called its _________.

mission

The IS strategy can affect and is affected by changes in a company's business and _______ strategies.

organizational

The business diamond includes structure, tasks, information and controls, and ___________________________.

people