MIS Chapter 2

In order to maximize the effectiveness of an organization's business strategy, the manager must be able to identify and use information resources.

True

Web 2.0 technologies are Internet based applications that allow for interaction and collaboration among users.

True

Zara's use of information recourses has given it a substantial advantage over its competitors.

True

A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk? a) Demonstrating bad timing b) Awakening a sleeping giant c) Mobile-based alternative removes advantages d) Running afoul of the law e) Implementing IS poorly

b

SCM stands for ________________.

supply chain management

This is a collection of firms that, using technology, extend their business relationships and connect their value chains.

value system

List the three IS tools used to optimize the operations of a firm's value chain.

ERP, SCM, CRM

A firm's IS strategy and organizational strategy focus more on its external requirements than internal requirements.

False

Supply Chain Management (SCM) consists of technological components as well as a process that brings together information about customers, sales and marketing.

False

Unlike most assets, information resources do not lose value over time.

False

A firm that acquires a supplier is looking to reduce the "bargaining power of suppliers" force.

True

A firm's IS strategy and business strategy focus more on its external requirements than internal requirements.

True

A company that is in a market with few buying options for the consumer is experiencing which one of Porter's Five Competitive Forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors

a

Partnering with a competitor is becoming more and more common in today's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as: a) Co-opetition b) Integrated supply chain c) Business process d) Strategic alliance e) Value proposition

a

Porter's value chain framework suggests that a competitive advantage can stem from: a) Lowering costs and adding value b) Reducing isolated costs c) Disregarding customer data d) Optimizing internal costs e) Improving customer service

a

Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition

a

The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition

a

Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as: a) Co-opetition b) Strategic alliance c) Competition d) Collaboration e) Business strategy

a

Which "view," applied in the area of Information Systems, helps identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term? a) Resource-Based View b) Information-System View c) Information-Resource View d) System-Based View e) Organization View

a

Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter's 5 competitive forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry collaboration

b

Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter's value chain activities? a) Outbound Logistics b) Marketing & Sales c) Operations d) Service e) Human resources

b

While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk? a) Awaking a sleeping giant b) Implementing IS poorly c) Demonstrating bad timing d) Running afoul of the law e) Mobile-based alternative removes advantages

b

For a company whose main product is information (like a financial services company), the company must co-create its ________ strategy and ________ strategy.

business, IS

15. The Resource-Based View helps determine whether a firm's strategy has created value. Unlike Porter's Competitive Forces framework, this view maintains that competitive advantage comes from the ________________ and other resources of the firm. a) data b) technology c) information d) systems e) people

c

Facebook offers services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself from which competitive force? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry collaboration

c

Which part of the value chain includes the manufacturing of goods? a) Inbound Logistics b) Outbound Logistics c) Operations d) Service e) Organization

c

IT resources consist of IT assets and IT _______.

capabilities

This risk of using information resources must be carefully considered by managers due to the rapid spread of applications on smartphones and tablet devices. a) Demonstrating bad timing b) Awakening a sleeping giant c) Delivering a strategic coup d) Mobile-based alternatives remove advantages e) Equal access competition

d

Which one of the following is not considered to be a primary activity of the value chain of a firm? a) Inbound Logistics b) Service c) Sales & Marketing d) Technology e) Operations

d

Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care? a) Demonstrating bad timing b) Awakening a sleeping giant c) Mobile-based alternative removes advantages d) Running afoul of the law e) Implementing IS poorly

d

Zara's strategically uses information technologies to do all of the following EXCEPT: a) Bring new products quickly to market, meeting customer demands b) Support a continuous flow of information from stores to manufacturers to distributors c) Maintain a rich, centralized repository of customer data d) Build silos of responsibilities with limited interaction between store managers, designers and market specialists e) Keep its inventory levels very low (relative to other retailers)

d

All of the following benefit from the network effect EXCEPT: a. Wikis b. Twitter c. Email d. Facebook e. Network bandwidth

e

Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage? a) Porter's Competitive Forces b) Porter's Value Chain c) The Information Systems Strategy Triangle d) The Network Effect e) The Resource-Based View

e

This IT asset is business data that has been captured, organized and made available to an organization.

information repository

List the four support activities of the value chain.

organization, human resources, technology, purchasing

Information resources are defined as the available data, technology, people, and ______ available in an organization to be used by managers to complete business tasks.

processes