CIS chapter 3 BARUCH COLLEGE
According to your readings, ________ was able to link external suppliers, which allowed it to obtain more than 70 percent of parts from outside the organization. A. Chrysler B. McDonalds C. Target D. Kodak E. TJ Maxx
A. Chrysler
When a strategic system is adopted, managers will need to devise new ________ for coordinating their firm's activities with customers, suppliers, and other organizations. A. business processes B. systems C. business goals D. budgets E. line items
A. business processes
The power of the customer ________ if they have an easy time switching from one company (e.g., not having to pay an exit fee) to another. A. grows B. stops C. changes over time D. remains the same E. decreases
A. grows
The competitive rivalry force of the Internet is strong because it has ________. A. made it easier for companies to compete on price alone B. made product substitutes harder to find C. helped companies sell products that are highly differentiated D. increased the power of suppliers E. reduced the power of the customer
A. made it easier for companies to compete on price alone
Information technology, especially the use of networks, can help firms lower the cost of ________, making it worthwhile for firms to contract with external suppliers instead of using internal sources. A. market participation (transaction costs) B. outsourcing management C. collective bargaining D. freelance outsourcing E. benefits for employees
A. market participation (transaction costs)
Information systems can be used to create products and services that are personalized to meet a specific customer's requirements, termed __________. A. mass customization B. customer intimacy C. product differentiation D. information domination E. product capitalization
A. mass customization
According to the value chain model, operations are considered a ________ of the firm. A. primary activity B. support activity C. data mining activity D. business intelligence activity E. processing activity
A. primary activity
Another name for standard operating procedures for creating goods and services is (are) ________. A. routines B. rotations C. organizational culture D. organizational environment E. organizational politics
A. routines
All of the following are advantages of new market entrants EXCEPT ________. A. they have less capital than an established company B. they often hire younger, less expensive, and often more innovative workers C. they are not encumbered by worn-out brand names D. they are more highly motivated than traditional occupants an industry E. they are not locked into old plants and equipment
A. they have less capital than an established company
Which of the following options increases the strength of the market entrant force? A. An increase in the government or local regulations that govern an industry B. A reduction in government or local regulations that govern an industry C. An increase in the cost of necessary equipment D. High customer loyalty toward existing businesses E. An industry with highly competitive rivals with very low profit margins
B. A reduction in government or local regulations that govern an industry
A powerful, current example of a rapidly expanding ecosystem is the mobile Internet platform. In this ecosystem there are four industries; select the answer that identifies them. A. Device retailers, wireless telecommunication firms, independent software applications providers, and Internet service providers B. Device makers, wireless telecommunication firms, independent software applications providers, and Internet service providers C. Device owners, wired telecommunication firms, software providers, and Wi-Fi providers D. Device makers, Wi-Fi providers, independent software applications providers, and Internet service providers E. Device makers, wireless telecommunication firms, open source applications providers, and Internet service providers
B. Device makers, wireless telecommunication firms, independent software applications providers, and Internet service providers
Which of the following options is a challenge to the sustainability of strategically implementing an information system? A. Network-based economies B. Managing strategic transitions C. Willingness to collaborate on new projects across different functional business groups D. Managers who take an active role in shaping IT to the enterprise E. Customers and suppliers willing to learn and evolve with new technology
B. Managing strategic transitions
________ encompasses a set of assumptions about what an organization should produce, how it is produced, and for whom. A. Business process B. Organizational culture C. Standard operating procedure D. Organizational environment E. Disruptive technology
B. Organizational culture
To identify the types of systems that provide a strategic advantage to their firms, select the list that contains all the questions managers should ask. A. What will the cost be to develop the IS system? Will we be able to develop in house? Will we use a native app or Web app? B. What is the structure of the industry in which the firm is located? What are the business, firm, and industry value chains for this particular firm? Have we aligned IT with our business strategy and goals? C. What products does our competitor offer that we offer? Can any of our value chains be automated? Can we use cloud services? D. Can we purchase an "off the shelf" system? Can we outsource the development? What system does our competitor use? E. What competition is there in the industry in which the firm is located? What are the business, firm, and industry value chains for this particular firm? Have we aligned IT with our business strategy and goals?
B. What is the structure of the industry in which the firm is located? What are the business, firm, and industry value chains for this particular firm? Have we aligned IT with our business strategy and goals?
A collection of routines for producing goods and services is called a(n) ________. A. routines B. business process C. organizational politics D. organizational culture E. organizational statement
B. business process
Substitute products that perform as well as or better than anything currently produced are called ________. A. cloud computing products B. disruptive technologies C. business processes D. standard operating products E. organizational environments
B. disruptive technologies
All of the following are organizational factors to consider when building a new system EXCEPT ________. A. the organization's culture and politics B. executive compensation C. the environment in which the organization must function D. the structure of the organization E. the type of organization and its leadership
B. executive compensation
In order to align IT with business as well as use information systems correctly managers need to perform a(n) ________. A. strategic transition B. strategic systems analysis C. institutional review D. value chain analysis E. structured walkthrough
B. strategic systems analysis
The accessibility, storage, and distribution of information and knowledge is increased dramatically by ________. A. business intelligence systems B. the Internet C. transaction processing systems D. cloud computing E. intranets
B. the Internet
A ________ consists of a networked system that can synchronize the value chains of business partners ________. A. value center; within a company B. value web; within an industry C. value web; within a company D. cloud computing system; within a company E. value center; within an industry
B. value web; within an industry
In the music industry, ________ are considered a newer substitute for CD-based music stores. A. files B. tracks C. Internet music sites D. records E. cassettes
C. Internet music sites
________ include two organizations sharing expertise. A. Enterprise systems B. Network-based strategies C. Synergies D. Core competencies E. Digital firms
C. Synergies
In most cases, a business ecosystem includes ________. A. all equal firms B. instructional design organizations C. a few keystone firms D. only technology companies E. only service companies
C. a few keystone firms
A(n) ________ includes interdependent networks of suppliers, distributors, and outsourcing firms. A. database B. economics model C. business ecosystem D. network system E. five-forces model
C. business ecosystem
Firms that do better than others are said to have a ________. A. change management B. more productive workforce C. competitive advantage D. better market share E. better organizational culture
C. competitive advantage
Information systems can ________ the organization by empowering lower-level employees. A. heighten B. reduce C. flatten D. hinder E. establish
C. flatten
One of the reasons that information technology flattens an organization is ________. A. information technology decreases management efficiency B. information technology gives less power to lower-level employees C. managers receive much more timely and accurate information, thus requiring fewer managers D. information technology has narrowed the distribution of information in the organization E. decision-making rights have been taken away from lower-level employees due to a lack of information
C. managers receive much more timely and accurate information, thus requiring fewer managers
The more successfully a firm can align information technology with its business goals, the ________. A. more its data will cost B. less successful it will be C. more profitable it will be D. more controlled it will be E. more high tech it will be
C. more profitable it will be
The most common reason for failure of large projects to succeed is ________. A. staff with poor skill-sets B. lack of proper project management C. organizational resistance to change D. failure of technology E. lack of senior management support
C. organizational resistance to change
According to the value chain model, technology is considered a ________ of the firm. A. primary activity B. processing activity C. support activity D. business intelligence activity E. data mining activity
C. support activity
Which of the following is the correct classification for an organizational structure characterized as a task force organization that must respond to rapidly changing environments? A. Entrepreneurial structure B. Professional bureaucracy C. Machine bureaucracy D. Adhocracy E. Divisionalized bureaucracy
D. Adhocracy
From the point of view of economics, IT changes ________. A. too rapidly to be correctly included in a yearly budget B. both the costs of data acquisition and the costs of information C. neither the cost of data acquisition or the cost of information D. both the relative costs of capital and the costs of information E. the costs of information but has no effect on relative costs of capital
D. both the relative costs of capital and the costs of information
Adopting strategic systems generally requires changes in ________ as well as business processes. A. hardware B. senior management C. software D. business goals E. personnel
D. business goals
Based on your reading, information systems help businesses compete ________. A. and provide enduring competitive advantage B. but do not affect its competitive position C. and it is easy to sustain the competitive advantages D. but sustaining a competitive advantage is challenging E. but are unrelated to competitive advantage
D. but sustaining a competitive advantage is challenging
The most widely used model for understanding competitive advantage is Michael Porter's ________. A. data model B. executive support model C. competitive exchange model D. competitive forces model E. compound forces model
D. competitive forces model
An innovation that dramatically changes the business environment is called a(n) ________. A. Internet B. instructional technology C. organizational learning company D. disruptive technology E. digital firm
D. disruptive technology
Market situations characterized by economic value being generated based on the number of people using a product are called ___________. A. value webs B. core competencies C. synergies D. network economics E. support activities
D. network economics
A virtual company uses ________ to link people, assets, and ideas. A. economics B. enterprise systems C. synergies D. networks E. digital firms
D. networks
The observation that IT broadens the distribution of information, empowers lower-level employees, and increases management efficiency is an example of the ________ effect of information technology on organizations. A. economic agency B. contract nexus C. transaction costs D. organizational and behavioral E. vertical integration
D. organizational and behavioral
The assumption that an MIS professor knows more about normalization than a student is an example of ________. A. business process B. organizational politics C. cloud computing D. organizational culture E. organizational statement
D. organizational culture
According to the value chain model, employee recruiting, hiring, and training are considered a ________ activity of the firm. A. primary B. data mining C. processing D. support E. business intelligence
D. support
Companies that establish a competitive advantage by having the lowest prices in an industry are using a ________ approach. A. data-driven B. customer loyalty C. product differentiation D. cost-leadership E. focused niche market
D. cost-leadership
________ of an organization's profits can be attributed to the alignment of IT with the business. A. None B. All C. One-third D. About 10 percent E. About 50 percent
E. About 50 percent
What is a disruptive technology? A. Disruptive technologies can be substitute products that perform below the standards of anything currently produced. B. Disruptive technologies simply extend the market, usually with unstable functionality and greater cost than existing products. C. Technologies that are created by a competitor that are lowering your organizations market share. D. Technologies that do not run on your organizations native app. E. Disruptive technologies can be substitute products that perform as well as or better than anything currently produced. In other cases, disruptive technologies simply extend the market, usually with less functionality and much less cost, than existing products.
E. Disruptive technologies can be substitute products that perform as well as or better than anything currently produced. In other cases, disruptive technologies simply extend the market, usually with less functionality and much less cost, than existing products.
A collection of routines and behaviors make up a(n) ________. A. disruptive technology B. organizational culture C. organizational environment D. standard operating procedure E. business process
E. business process
A stable, formal social structure that takes resources from the environment and processes them to produce output is called a(n) ________. A. business unit B. environment C. functional unit D. capital and labor E. organization
E. organization
Because Walmart has an efficient inventory replenishing system, they are able to reduce ________ costs. A. data B. database C. advertising D. networking E. overhead
E. overhead
According to the value chain model, sales and marketing is considered a ________ activity of the firm. A. business intelligence B. processing C. data mining D. support E. primary
E. primary
Nike sells customized sneakers through NIKEiD to establish ________. A. suppliers B. organizational politics C. organizational culture D. low-cost leadership E. product differentiation
E. product differentiation