chapter 2 is 300

A. Accounting Business Process

Reconciling bank accounts is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process

C. It made it easy for people to find the products they remembered from TV.

Refer IT's About Business 2.1 - Before the Stores: What was Before the Store's competitive advantage? A. It could supply products people wanted. B. It used Fulfillment by Amazon. C. It made it easy for people to find the products they remembered from TV. D. It was on the Web. E. It generated a profit

D. Merging two similar IT cultures.

Refer to Closing Case - Two Financial Giants Merge: When Wells Fargo acquired Wachovia, it faced all of the following issues except: A. Convincing all employees to focus on the overall goal. B. Providing ongoing support for all existing applications during the merger. C. Merging strategic IT applications into one new strategic focus. D. Merging two similar IT cultures. E. Integrating IT by implementing the best existing application in each business area

D. Supply chaining

Refer to IT's About Business 2.2 - Sleek Audio: Which of Friedman's flatteners applies to Sleek Audio's decision to bring its manufacturing back to the United States? A. Offshoring B. Informing C. Work-flow software D. Supply chaining E. The Steroids

A. Self-esteem

Refer to IT's About Business 2.3 - The Internet Facilitates Generosity: Sociologists argue that posting experiences on message boards can actually improve a person's A. Self-esteem B. Independence C. Wealth D. Free time E. Social status

E. rivalry among existing firms in an industry

Refer to IT's About Business 2.4 - Progressive: Progressive's Name Your Price application is aimed at which of Porter's five competitive forces? A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products E. rivalry among existing firms in an industry

B. differentiation

Southwest Airlines' low-cost, short-haul strategy is an example of which strategy for competitive advantage? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation

D. mass customization.

The Bodymetrics body scanner is best characterized as an example of: A. mass production. B. customer focus. C. real-time customer input. D. mass customization. E. continuous improvement

False

The Internet decreases customers' bargaining power.

False

The Internet increases traditional barriers to entry into a market.

True

The One Laptop per Child project aims to use technology to revolutionize how the world can educate its children

True

The activities of a business process can be measured

True

The bargaining power of suppliers is low when their buyers have many choices.

False

The business environment refers to the industry that a company is in

E. physical, digital

The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel. A. e-commerce, digital B. digital, e-commerce C. digital, physical D. physical, financial E. physical, digital

A. social responsibility

The digital divide is an example of which type of societal pressure? A. social responsibility B. government regulations C. protection against terrorism D. ethics E. information overload

False

The digital divide is the gap between data and knowledge

False

The information technology environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

B. innovation

The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage? A. cost leadership B. innovation C. differentiation D. operational effectiveness E. customer-orientation

True

The introduction of the ATM in the banking industry is an example of the innovation strategy

True

The music industry is a good example of the extremely low variable costs of digital products

False

The overall performance of an organization has little to do with how well it manages its business processes.

True

The primary activities in the value chain create the value for which customers are willing to pay

False

The procurement process includes the sales function.

E. intermediation, digital

The threat of competitors' entering a market is very high in industries that perform a(n) _____ role and in industries where the primary product or service is _____. A. intermediation, physical B. broker, physical C. sales, financial D. financial, digital E. intermediation, digital

D. low, high

The threat of competitors' entering the automobile manufacturing industry is _____ because barriers to entry are so _____. A. low, low B. high, high C. high, low D. low, high

E. rivalry among existing firms in an industry

The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret. This is an example of which of Porter's five forces? A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products E. rivalry among existing firms in an industry

D. It includes fewer persons with disabilities.

The workforce in developed countries is exhibiting all of the following trends except: A. It is becoming more diversified. B. It includes more women. C. It includes more single parents. D. It includes fewer persons with disabilities. E. It includes more minority-group members.

D. higher expectations

Today's customers have ________ . A. less knowledge about products B. less sophistication C. difficulty in finding information about products D. higher expectations E. difficulty in comparing prices

A. cost leadership

Walmart's automatic replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation

E. customer-orientation

When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation

False

When there are many substitute products, a company can create a competitive advantage by increasing fees

A. Delay releases of innovated products.

Which of the following is not a Section Reference 1 by organizations to business pressures? A. Delay releases of innovated products. B. Build strategic systems that enable an organization to increase market share or profits. C. Provide tools that satisfy customers so they don't go to a competitor. D. Manufacture customized goods at a lower cost. E. Conduct business electronically with customers and business partners.

E. Lack of funds

Which of the following is not a cause of inadequate alignment between IT and business? A. A lack of communication B. Different objectives C. Not understanding each group's expertise D. Lack of IT knowledge on the part of the business executives E. Lack of funds

A. Establish standards

Which of the following is not a role that information systems play in businesses processes? A. Establish standards B. Execute the process C. Capture and store process data D. Monitor process performance E. Detect problems with the process.

C. The company views IT as a way to support the business but not as a way to create new revenue streams.

Which of the following is not an example of business - IT alignment? A. The company goals are clear to every IT and business employee. B. The company ensures that IT employees understand how the company makes money. C. The company views IT as a way to support the business but not as a way to create new revenue streams. D. IT professionals rotate into business departments. E. The company views customer service as extremely important.

D. Building computer applications that use less energy

Which of the following is not an example of the growing initiative called green IT? A. Designing an IT infrastructure to support sustainability. B. Building systems that monitor carbon throughout the organization. C. Asking vendors about compliance on environmental standards. D. Building computer applications that use less energy E. Designing energy-efficient data centers.

A. Procurement

Which of the following processes involves the warehouse, purchasing, and accounting functional areas? A. Procurement B. Fulfillment C. Order entry D. Accounts receivable E. Payroll

B. Fulfillment

Which of the following processes involves the warehouse, sales, and accounting functional areas? A. Procurement B. Fulfillment C. Order entry D. Accounts Receivable E. Payroll

E. A process cannot cross functional area boundaries

Which of the following statements concerning business processes is false? A. A process has inputs. B. A process has outputs. C. A process has activities that can be measured. D. A process creates value. E. A process cannot cross functional area boundaries

B. New technologies offer alternative service options

Which of the following statements concerning technology pressures on modern businesses is true? A. Technology changes so rapidly that organizations should wait before they release new technology-based products. B. New technologies offer alternative service options. C. New technologies will never replace existing technologies. D. The amount of information on the Internet remains stable from year to year. E. The important information on the Internet is fee-based.

E. Business activity monitoring is a type of scheduled reporting.

Which of the following statements is false? A. BPM begins with process modeling. B. Process modeling is a graphical depiction of all the steps in a process. C. BPM uses Web-enabled technologies for user interfaces. D. Business activity monitoring is used to measure and manage business processes. E. Business activity monitoring is a type of scheduled reporting.

A. BPM is a task-oriented approach.

Which of the following statements is false? A. BPM is a task-oriented approach. B. BPM can help companies reduce costs. C. BPM can help companies increase revenue. D. BPM can improve customer satisfaction. E. BPM can improve organizational flexibility

D. Competitive advantage requires the use of technology.

Which of the following statements is false? A. Competitive advantage is based on some measurement such as cost, quality, or speed. B. Competitive advantage enables a company to function effectively within a market. C. Competitive advantage leads to higher-than-average profits. D. Competitive advantage requires the use of technology. E. Competitive advantage applies to companies of all sizes.

B. Government deregulation reduces competition.

Which one of the following statements is false? A. Businesses tend to view government regulations as expensive constraints on their activities. B. Government deregulation reduces competition. C. IT support is essential for compliance with many new regulations. D. IT has been used to identify patterns of behavior associated with terrorist activities. E. Information ethics can destroy the morale of a company's employees.

D. operational effectiveness

Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation

C. innovation

Which strategy for competitive advantage involves introducing new products and putting new features in existing products? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation

B. differentiation

Which strategy for competitive advantage involves offering different products, services, or product features? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation

D. Primary, support

_____ activities create value for which customers are willing to pay, whereas _____ activities do not add value directly to the firm's products or services. A. Support, primary B. Human resource management, inbound logistics C. Procurement, operations D. Primary, support E. Accounting, outbound logistics

B. An entry barrier

_____ is a feature that must be offered by a competing organization in order to survive in the marketplace. A. Competitive advantage B. An entry barrier C. Strategic advantage D. Rapid time-to-market E. One-to-one marketing

False

A business process always includes information systems.

True

A business process has inputs and outputs

True

A growing IT initiative called green IT is enabling organizations to reduce their carbon footprint.

False

An entry barrier is a long-term competitive advantage.

False

An information system that helps an organization gain a competitive advantage is called a competitive information system.

True

An organization's business processes can create a competitive advantage

C. Marketing business process

Applying copyrights and trademarks is an example of a(n): A. Accounting business process B. Finance business process C. Marketing business process D. Production business process E. Management information systems business process

True

BPM can improve an organization's flexibility

False

BPM is an implementation of BPR.

False

BPR is a strategy for improving the efficiency of an organization's data collection.

False

Build-to-stock is a strategy of producing customized products and services.

E. Changes in all of the above will create business pressures.

Business pressures on organizations are created when there are changes in A. Social factors B. Economic factors C. Legal factors D. Political factors E. Changes in all of the above will create business pressures.

True

Business process management includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

B. high, low

Buyer power is _____ when buyers have many choices from whom to buy and _____ when buyers have few choices. A. high, the same B. high, low C. low, low D. low, high E. low, the same

C. Marketing Business Process

Collecting sales tax is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process

C. Increased time to market

Competitive advantage for an organization manifests itself as all of the following except: A. Lower costs B. Higher quality C. Increased time to market D. Increased profits E. Increased speed

True

Competitive advantage helps a company function effectively within a market and generate larger-than-average profits.

False

Competitive advantage refers to making higher profits.

False

Cross-functional processes are executed within a single functional area.

True

Customer intimacy is the process whereby a business learns as much as possible about its customers to better anticipate and address their needs

True

Developed countries usually provide greater fringe benefits than developing countries.

True

Ethical issues are important because, if handled poorly, they can damage an organization's image.

True

Every competitive organization is driven by the competitive forces identified by Michael Porter.

E. Has a major impact on the corporate culture.

For many organizations, business process reengineering A. Is easy to implement. B. Is not disruptive to implement. C. Has little impact on facilities. D. Is inexpensive. E. Has a major impact on the corporate culture.

B. increases, decreasing

For most companies, the Web _____ the threat that new competitors will enter the market by _____ traditional barriers to entry. A. decreases, increasing B. increases, decreasing C. increases, increasing D. decreases, decreasing

True

Globalization is the integration and interdependence of many facets of life made possible by rapid advances in information technology.

B. The Internet increases your bargaining power.

How does the Internet affect the way you purchase your textbooks? A. The Internet gives you fewer choices. B. The Internet increases your bargaining power. C. The Internet provides you with less information. D. The Internet decreases your bargaining power. E. The Internet increases your switching costs.

C. managers can spend more time "putting out fires"

IT will impact managers' jobs in all of the following ways except: A. managers will have time to get into the field B. managers can spend more time planning C. managers can spend more time "putting out fires" D. managers can gather information more quickly E. none of the above

A. many, high

If there are _____ substitutes for an organization's products or services, then the threat of substitutes is _____. A. many, high B. few, low C. few, high D. many, low E. few, negligible

False

In general, government deregulation decreases competition.

True

In general, labor costs are higher in developed countries than in developing countries.

True

In mass customization, companies produce items in large quantity, but they tailor the items to meet the desires and needs of individual customers.

True

In mass production, a company produces a large quantity of identical items.

True

Information technology is facilitating the entry of a wide variety of employees into the workforce.

D. threat of substitute products

Information-based industries are most susceptible to which one of Porter's five forces? A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products E. rivalry among existing firms in an industry

True

Information-based industries face the greatest threat from substitutes.

False

Internet access in the United States is not particularly related to household income.

False

It's a good idea for a company to select two competitive advantage strategies

B. Finance Business Process

Managing account collections is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process

D. Human Resources Business Process

Managing pay and payroll is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Human Resources Business Process E. Management Information Systems Business Process

D. Production Business Process

Managing purchasing is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process

A. the global economy

Market pressures include which of the following? A. the global economy B. weak competition C. a homogeneous workforce D. weak customers E. high-cost offshore labor

True

Michael Porter concludes that the overall impact of the Internet is to increase competition, which generally diminishes a firm's profitability.

D. quickly, increases

New technologies can produce new products very _____, which _____ the threat from substitute products. A. slowly, decreases B. slowly, increases C. slowly, does not affect D. quickly, increases E. quickly, does not affect

D. competitive forces model, value chain model

Porter's _____ help(s) companies identify general strategies, whereas his _____ help(s) to identify specific activities where companies can use the strategies for greatest impact. A. value chain model, competitive forces model B. primary activities, support activities C. competitive forces model, primary activities D. competitive forces model, value chain model E. value chain model, support activities

B. general strategies, activities

Porter's competitive forces model helps organizations identify _____, whereas his value chain model helps organizations identify specific _____. A. competitive opportunities, activities B. general strategies, activities C. activities, competitive opportunities D. activities, general strategies E. primary activities, support activities

False

Porter's value chain model is a variation of his competitive advantage framework

E. mass customization

Producing customized items in large quantities is called: A. strategic systems. B. customer focus. C. continuous improvement. D. mass production. E. mass customization.

D. mass production.

Producing identical items in large quantities is called: A. strategic systems. B. customer focus. C. continuous improvement. D. mass production. E. mass customization