Chapter 2-Rainer

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

A. Accounting Business Process

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

A. BPM is a task-oriented approach.

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.

A. Delay releases of innovated products.

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.

A. Establish standards

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

A. Procurement

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

A. cost leadership

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

A. many, high

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

A. social responsibility

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

A. the global economy

_____ 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

B. An entry barrier

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

B. Finance Business Process

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

B. Fulfillment

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.

B. Government deregulation reduces competition.

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own-store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to build a web site for the business that will allow customers to order cookies and cupcakes for later pickup. Is this idea A. A strategic information system B. In alignment with the business. C. in support of a cost leadership strategy D. likely to provide long term competitive advantage E. a support activity within the value chain

B. In alignment with the business.

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.

B. New technologies offer alternative service options.

Hyo runs an ice cream store with her family. Which of the following activities is a part of their procurement process? A. Recording their daily sales revenue B. Sending an order to their sugar supplier C. Making the ice cream D. Setting up an employee schedule E. Taking an order for an ice cream cake

B. Sending an order to their sugar supplier

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.

B. The Internet increases your bargaining power.

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

B. differentiation

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

B. general strategies, activities

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

B. high, low

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

B. increases, decreasing

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

C. Increased time to market

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. 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

C. Marketing business process

Hyo runs an ice cream store with her family. Which of the following activities is a part of their procurement? A. Send an order to a supplier. B. Decide what to order. C. Record daily sales revenue D. Record goods received E. Send a check to a supplier

C. Record daily sales revenue

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.

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

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start a Cookie Club that gives each member (joining is free) a free cookie after they have purchased a dozen. This idea Reflects which one 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

C. bargaining power of customers

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

C. innovation

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

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

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.

D. Building computer applications that use less energy

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. Human Resources Business Process

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. It includes fewer persons with disabilities.

_____ 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

D. Primary, support

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

D. Production Business Process

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

D. competitive forces model, value chain model

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

D. higher expectations

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

D. low, high

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.

D. mass customization.

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

D. mass production.

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

D. operational effectiveness

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. quickly, increases

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

D. threat of substitute products

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.

E. A process cannot cross functional area boundaries.

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.

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

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.

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

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.

E. Has a major impact on the corporate culture.

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

E. Lack of funds

Hyo runs an ice cream store with her family. Which of the following activities is a part of their fulfillment process? A. Receiving goods from their supplier B. Making ice cream C. Recording daily sales revenue D. Recording goods received E. Making a custom-order ice cream cake

E. Making a custom-order ice cream cake

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

E. customer-orientation

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

E. intermediation, digital

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

E. mass customization.

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

E. physical, digital

Ted works in his family's bakery business. They supply bread and rolls to neighboring restaurants, and have their own store-front where they sell breads, rolls, pastries, cookies, and cupcakes. Ted thinks he should put free Wi-Fi in the store front (which seats about 15 people). This idea reflects which one 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

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

E. rivalry among existing firms in an industry

True/False. A business process always includes information systems.

False

True/False. An entry barrier is a long-term competitive advantage.

False

True/False. BPM is an implementation of BPR.

False

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

False

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

False

True/False. Competitive advantage refers to making higher profits.

False

True/False. Cross-functional processes are executed within a single functional area.

False

True/False. In general, government deregulation decreases competition.

False

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

False

True/False. It's a good idea for a company to select two competitive advantage strategies.

False

True/False. Porter's value chain model is a variation of his competitive advantage framework.

False

True/False. The Internet decreases customers' bargaining power.

False

True/False. The Internet increases traditional barriers to entry into a market.

False

True/False. The business environment refers to the industry that a company is in.

False

True/False. The digital divide is the gap between data and knowledge.

False

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

False

True/False. The procurement process includes the sales function.

False

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

False

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

False (Business environment)

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

False (strategic IS)

True/False. A business process has inputs and outputs

True

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

True

True/False. An organization's business processes can create a competitive advantage.

True

True/False. BPM can improve an organization's flexibility.

True

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

True

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

True

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

True

True/False. Developed countries usually provide greater fringe benefits than developing countries.

True

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

True

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

True

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

True

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

True

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

True

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

True

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

True

True/False. Information-based industries face the greatest threat from substitutes.

True

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

True

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

True

True/False. The activities of a business process can be measured

True

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

True

True/False. The introduction of the ATM in the banking industry is an example of the innovation strategy.

True

True/False. The music industry is a good example of the extremely low variable costs of digital products.

True

True/False. The primary activities in the value chain create the value for which customers are willing to pay.

True