Exam I

From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor.

True

Internet advertising is growing at approximately 10 percent a year.

True

Supply chain management systems are more externally oriented than enterprise systems.

True

The dimensions of information systems are management, organizations, and information technology.

True

Knowledge workers assist with paperwork at all levels of the firm.

False, not all levels do paperwork.

________ are designed to support organization-wide process coordination and integration. A) Decision-support systems B) Management information systems C) CRM systems D) Enterprise applications

D) Enterprise applications

The competitive forces model was created for today's digital firm.

False, controls future firms as well

In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries.

False, directly links consumer behavior to distribution

Computers are only part of an information system.

True

Customers are one of the competitive forces that affect an organization's ability to compete.

True

Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance.

True

Decision-support systems use internal information as well as information from external sources.

True

Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.

True

ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.

True

Enterprise systems often include transactions with customers and vendors.

True

The effect of the Internet has been to raise bargaining power over suppliers.

True

A managerial element in the UPS tracking system described in the chapter is A) taking inventory. B) providing package status reports to customers. C) the decision to use automation. D) in-house package tracking software.

C) the decision to use automation

To monitor the status of internal operations and the firm's relations with the external environment, managers need ________ systems. A) decision-support B) knowledge C) transaction processing D) management information

C) transaction processing

A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n) A) industry value chain. B) business ecosystem. C) value web. D) consortia.

C) value web

Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records? A) ESS B) TPS C) MIS D) DSS

D) DSS

A hotel reservation system is a typical example of a management information system.

False

ESSs are designed primarily to solve specific problems.

False

ESSs are designed to serve the middle management of the organization.

False

Enrolling employees in benefits plans is a business process handled by the finance and accounting function.

False

Management information systems typically support nonroutine decision making.

False

Most MISs use sophisticated mathematical models or statistical techniques.

False

Transaction processing systems are most commonly used by the senior management level of an organization.

False

You would use an MIS to help decide whether to introduce a new product line.

False

An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.

False, Adhocracy is a task force organization that responds to changing environments.

A fully digital firm produces only digital goods or services.

False, an example is eBAY

The term business ecosystem describes the interplay between the various organizational forces within a firm.

False, another term for loosely coupled but interdependent network of suppliers.

The use of Internet technologies allows companies to more easily sustain competitive advantage.

False, competitive advantage is not always sustainable.

Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.

False, computer literacy is the knowledge of information technology.

Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less.

False, even though generally speaking it is true.

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.

False, information systems consist of something different.

There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.

False, instead of information technology the fourth function is human resources.

Intranets allow firms to work easily with third-party suppliers and vendors.

False, intranet is only applied within the business.

Strong linkages to customers and suppliers decrease switching costs.

False, strong linkages increase switching costs

A transparent marketplace means that there is high product differentiation.

False, there is little product differentiation.

Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.

False, they are called business functions not processes.

Functional systems that support business processes within a single functional group, such as human resources, are being phased out in favor of cross-functional systems.

True

Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments

True

In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software.

True

In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.

True

In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.

True

In the strategy of product differentiation, information systems are used to enable new products and services.

True

In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.

True

Information supplied by an enterprise system is structured around cross-functional business processes.

True

Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment.

True

Mass customization is a form of mass production.

True

Online collaboration tools eliminate the need for global firms to have synchronous collaboration.

True

Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information.

True

Research has shown that only 25% of firms are able to align their information technology with their business goals.

True

The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.

True

The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.

True

The value chain model classifies all company activities as either primary or support.

True

UPS's use of Web-based tools that allow customers to embed UPS functions such as tracing and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.

True

An example of a keystone firm within a business ecosystem is A) Apple and software application writers in the mobile platform ecosystem. B) GUESS and the fashion ecosystem. C) Citibank and the ATM ecosystem. D) American Airlines and the computerized reservation ecosystem.

A) Apple and software application writers in the mobile platform ecosystem.

________ systems are designed to help firms manage their relationships with their customers. A) CRM B) MIS C) CLE D) CLU

A) CRM

The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage? A) E-commerce is affected by the law of diminishing returns. B) Internet technologies are universal, and therefore usable by all companies. C) Internet shopping produces cost transparency. D) The Internet enables the production or sales of substitute products or services.

B) Internet technologies are universal, and therefore usable by all companies.

An example of synergy in business is A) Amazon's use of the Internet to sell books. B) JP Morgan Chase's mergers with other banks that provided JP Morgan with a network of retail branches in new regions. C) Blockbuster combining traditional video rental with online video rental. D) Wal-Mart's order entry and inventory management system to coordinate with suppliers.

B) JP Morgan Chase's mergers with other banks that provided JP Morgan with a network of retail branches in new regions.

An example of raw data from a national chain of automobile stores would be A) an average of 13 Toyotas are sold daily in Kentucky. B) 30 percent increase in Toyota RAV 4 sales during September in Kentucky. C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky. D) all of the above.

C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky

A ________ is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CTO

C) CIO (Chief information officer)

The ________ helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes. A) CTO B) CSO C) CKO D) CPO

C) CKO (Chief knowledge officer)

________ systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance. A) Management information B) Transaction processing C) Decision-support D) Knowledge management

C) Decision-support

Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's A) data management environment. B) networked environment. C) IT infrastructure. D) information system.

C) IT infrastructure

Which types of systems consolidate the relevant knowledge and experience in the firm to make it available to improve business processes and management decision making? A) TPS B) extranets C) KMS D) CRM

C) KMS

Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time? A) ESS B) TPS C) MIS D) DSS

C) MIS

According to agency theory, the firm is viewed as a(n) A) unified, profit-maximizing entity. B) task force organization that must respond to rapidly changing environments. C) entrepreneurial endeavor. D) "nexus of contracts" among self-interested individuals.

D) "nexus of contracts" among self-interested individuals.

Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time? A) 1 only B) 1 and 2 C) 2 and 3 D) 1, 2, and 3

D) 1,2, and 3

An example of a business using information systems to create new products and services is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

D) Apple Inc.'s iPod

You are planning the launch of your new company, an application service provider that provides an online timesheet and project tracking application. To best communicate with and manage your relationship with your users, you would want to implement a(n) A) extranet. B) intranet. C) KMS. D) CMS.

D) CMS.

Non-typical business problems with causes and effects that are rapidly changing are typically handled by which type of information system ? A) MIS B) TPS C) ESS D) DSS

D) DSS

Output A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transfers data to the people who will use it or to the activities for which it will be used. D) transfers processed information to the people who will use it or to the activities for which it will be used.

D) transfers processed information to the people who will use it or to the activities for which it will be used

Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years? A) ESS B) TPS C) MIS D) DSS

A) ESS

All of the following statements regarding Lotus Notes are true except for A) It began as an e-mail and messaging client. B) It is the most widely used collaboration tool at Fortune 1000 companies. C) Firmwide installations at a large company require specialized servers and may cost millions of dollars per year. D) It provides tools for e-mail, calendars, help desk, CRM, blogs, and wikis.

A) It began as an e-mail and messaging client.

Which of the following statements is NOT true about information technology's impacts on business firms? A) It helps firms expand in size. B) It helps firms lower the cost of market participation. C) It helps reduce internal management costs. D) It helps reduce transaction costs.

A) It helps firms expand in size.

________ is the ability to offer individually tailored products or services using the same production resources as bulk production. A) Mass customization B) Size customization C) Magnitude customization D) Dimension customization

A) Mass customization

Enabling management to make better decisions regarding organizing and scheduling sourcing, production, and distribution is a central feature of A) SCMs B) TPSs C) KMSs D) ERPs

A) SCMs

An example of a business using information systems to attain operational excellence is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

A) Wal-Mart's RetailLink system

An example of a collaboration tool that supports colocated, asynchronous collaboration is A) a team room. B) e-mail. C) a MUD. D) a wall display.

A) a team room.

Which of the following activities would you perform to measure and compare your business processes to similar processes of other companies within your industry? A) benchmarking B) best practices C) value chain analysis D) strategic systems analysis

A) benchmarking

How are information systems used at the industry level to achieve strategic advantage? A) by building industry-wide, IT-supported consortia and symposia B) by raising the bargaining power of suppliers C) by encouraging the entry of new competitors D) by enforcing standards that reduce the differences between competitors

A) by building industry-wide, IT-supported consortia and symposia

The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its A) culture. B) environment. C) atmosphere. D) values.

A) culture

In Domino's upgraded Pulse Evolution system, it incorporated a Pizza Tracker functionality that shows the progression of individual pizza orders. This is an example of using information systems to achieve which business objective? A) customer and supplier intimacy B) survival C) improved decision making D) operational excellence

A) customer and supplier intimacy

Which of the following would NOT be used as an input for an information system? A) digital dashboard B) handheld computer C) bar-code scanner D) cell phone

A) digital dashboard

Buying or selling goods over the Internet is called A) e-commerce. B) e-business. C) an intranet. D) an extranet.

A) e-commerce.

The CPO is responsible for A) ensuring that the company complies with existing data privacy laws. B) making better use of existing knowledge in organizational and management processes. C) enforcing the firm's information security policy. D) overseeing the use of information technology in the firm.

A) ensuring that the company complies with existing data privacy laws.

You have been hired by Inspiration Inc. to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the United States. The end products of the company are customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 100 consultants, all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin? A) extranet, to enable quick collaboration over the Internet , minimize the time spent communicating with the client, and minimize the amount of paperwork needed B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C) KMS, for minimizing redundant work on similar clients D) marketing system, for improving sales levels

A) extranet, to enable quick collaboration over the Internet , minimize the time spent communicating with the client, and minimize the amount of paperwork needed

Sociologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

A) how systems affect individuals, groups, and organizations.

The primary activities of a firm include A) inbound logistics, operations, outbound logistics, sales and marketing, and service. B) inbound logistics, operations, outbound logistics, technology, and service. C) procurement, inbound logistics, operations, technology, and outbound logistics. D) procurement, operations, technology, sales and marketing, and services.

A) inbound logistics, operations, outbound logistics, sales and marketing, and service.

Which of the following would NOT be considered a disruptive technology? A) instant messaging B) e-mail C) Internet telephony D) PCs

A) instant messaging

Which of the following are key corporate assets? A) intellectual property, core competencies, and financial and human assets B) production technologies and business processes for sales, marketing, and finance C) knowledge and the firm's tangible assets, such as goods or services D) time and knowledge

A) intellectual property, core competencies, and financial and human assets

Executive support systems are information systems that support the A) long-range planning activities of senior management. B) knowledge and data workers in an organization. C) decision-making and administrative activities of middle managers. D) day-to-day processes of production.

A) long-range planning activities of senior management.

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for A) low-cost leadership. B) marketing effectiveness. C) focusing on market niche. D) strengthening supplier intimacy.

A) low-cost leadership.

A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy. A) machine B) professional C) divisionalized D) multidivisional

A) machine

Internet technology A) makes it easy for rivals to compete on price alone. B) imposes a significant cost of entry, due to infrastructure requirements. C) increases the difference between competitors because of the wide availability of information. D) makes it easy to sustain operational advantages.

A) makes it easy for rivals to compete on price alone.

According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. A) microeconomic B) macroeconomic C) sociotechnical D) behavioral

A) microeconomic

A firm can exercise greater control over its suppliers by having A) more suppliers. B) fewer suppliers. C) global suppliers. D) local suppliers.

A) more suppliers.

Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case? A) operational excellence B) new products and services C) competitive advantage D) customer support

A) operational excellence

Order data for baseball tickets and bar code data are examples of A) raw input. B) raw output. C) customer and product data. D) sales information.

A) raw input

A substitute product of most concern for a cable TV distributor is A) satellite TV. B) broadcast TV. C) satellite radio. D) the Internet.

A) satellite TV.

The use of information systems because of necessity describes the business objective of A) survival. B) improved business practices. C) competitive advantage. D) improved flexibility.

A) survival

An example of a social complementary asset is A) technology and service firms in adjacent markets. B) training programs. C) distributed decision-making rights. D) all of the above.

A) technology and service firms in adjacent markets

E-government refers to the application of ________ to digitally enable government and public sector agencies' relationships with citizens, businesses, and other arms of government. A) the Internet and networking technologies B) e-commerce C) e-business D) any computerized technology

A) the Internet and networking technologies

Thomas Friedman's declaration that the world was now "flat" meant that A) the Internet has reduced the economic advantages of developed countries. B) globalization is starting to offer less advantage to large corporations. C) the global economy is increasingly commanded by fewer and larger corporations. D) global capitalism is homogenizing culture and business practices throughout the world.

A) the Internet has reduced the economic advantages of developed countries

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called A) the information value chain. B) the IT value chain. C) information processing. D) feedback.

A) the information value chain

Which type of system would you use to change a production schedule if a key supplier was late in delivering goods? A) ESS B) TPS C) MIS D) DSS

B) TPS

Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) the specification of procedures for identifying packages with sender and recipient information B) monitoring service levels C) promoting the company strategy of low-cost, superior service D) the use of handheld computers and networks for managing package delivery

A) the specification of procedures for identifying packages with sender and recipient information

Which systems are typically a major source of data for other systems? A) transaction processing systems B) management information systems C) executive support systems D) decision-support systems

A) transaction processing systems

Which of the following can force a business and its competitors to compete on price alone? A) transparent marketplace B) high product differentiation C) poor process efficiency D) demand control

A) transparent marketplace

A virtual company A) uses the capabilities of other companies without being physically tied to those companies. B) uses Internet technology to maintain a virtual storefront. C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services, or virtual products.

A) uses the capabilities of other companies without being physically tied to those companies.

An example of an organizational complementary asset is A) using the appropriate business model. B) a collaborative work environment. C) laws and regulations. D) all of the above.

A) using the appropriate business model

Which of the following types of collaboration tools allows you to communicate with avatars using text messaging? A) virtual worlds B) screen sharing C) collaborative writing D) large audience Webinars

A) virtual worlds

Which main business function is responsible for maintaining employee records? A) sales and marketing B) human resources C) finance and accounting D) manufacturing and production

B) human resources

________ systems integrate supplier, manufacturer, distributor, and customer logistics processes. A) Collaborative distribution B) Supply-chain management C) Reverse logistics D) Enterprise planning

B) Supply-chain management

Which of the following decisions requires knowledge based on collaboration and interaction? A) How long will it take to manufacture this product? B) Should we work with with outside vendors on new products and services? C) In which geographical locations are our products garnering the most sales? D) Which product design is the most efficient for the user in terms of energy use?

B) Should we work with with outside vendors on new products and services?

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to A) invest in technology. B) adopt a new business model. C) invest in complementary assets. D) modernize their information value chain.

B) adopt a new business model

Upon which of the following industries has the Internet as a whole been a disruptive technology? A) bill payments B) air travel C) books D) real estate

B) air travel

You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their clients' continually updated branding guides, which include multiple image files and text documents, to all of the firm's branches. What system will best serve these needs? A) an intranet with KMS capabilities B) an extranet with KMS capabilities C) a TPS with KMS capabilities D) a CRM

B) an extranet with KMS capabilities

The interaction between information systems and organizations is influenced A) primarily by the decision making of middle- and senior-managers. B) by many factors, including structure, politics, culture, and environment. C) by two main microeconomic forces: capital and labor. D) primarily by the organization's business processes and culture.

B) by many factors, including structure, politics, culture, and environment.

The ________ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete. A) network economics B) competitive forces C) competitive advantage D) demand control

B) competitive forces

Which of the following is an example of a cross-functional business process? A) identifying customers B) creating a new product C) assembling a product D) paying creditors

B) creating a new product

The use of digital technology and the Internet to execute the major business processes in the enterprise is called A) e-commerce. B) e-business. C) enterprise applications. D) MIS.

B) e-business.

What is the most important function of an enterprise application? A) increasing speed of communicating B) enabling business functions and departments to share information C) enabling a company to work collaboratively with customers and suppliers D) enabling cost-effective e-business processes

B) enabling business functions and departments to share information

Enterprise systems are also known as ________ systems. A) resource planning B) enterprise resource planning C) enterprise support D) management information

B) enterprise resource planning

Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content? A) transaction processing systems B) executive support systems C) management information systems D) decision-support systems

B) executive support systems

Which of the following types of system helps expedite the flow of information between the firm and its suppliers and customers? A) intranet B) extranet C) KMS D) TPS

B) extranet

Maintaining the organization's financial records is a central purpose of which main business function? A) manufacturing and accounting B) finance and accounting C) sales and manufacturing D) finance and sales

B) finance and accounting

Psychologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

B) how human decision makers perceive and use formal information.

The six important business objectives of information technology are new products, services and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and A) improved flexibility B) improved decision making C) improved business practices D) improved efficiency

B) improved decision making

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of A) improved flexibility. B) improved decision making. C) improved efficiency. D) customer and supplier intimacy.

B) improved decision making

The four major types of competitive strategy are A) low-cost leadership; substitute products and services; customers; and suppliers. B) low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. C) new market entrants; substitute products and services; customers; and suppliers. D) low-cost leadership; new market entrants; product differentiation; and focus on market niche.

B) low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy.

In a hierarchical organization, the upper levels consist of A) managerial and professional employees. B) managerial, professional, and technical employees. C) professional and operational employees. D) managerial, professional, and operational employees.

B) managerial, professional, and technical employees

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. A) product differentiation B) market niche C) mass customization D) process efficiency

B) market niche

Disciplines that contribute to the technical approach to information systems are A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering.

B) operations research, management science, and computer science.

Converting raw data into a more meaningful form is called A) capturing. B) processing. C) organizing. D) feedback.

B) processing

Wal-Mart's continuous replenishment system allows it to A) provide mass customization. B) provide an efficient customer response system. C) strengthen customer intimacy. D) achieve economy of scale.

B) provide an efficient customer response system.

An example of a professional bureaucracy is a A) small startup firm. B) school system. C) mid-size manufacturing firm. D) consulting firm.

B) school system.

The three principal levels within a business organization hierarchy are A) senior management, operational management, and service workers. B) senior management, middle management, and operational management. C) senior management, operational management, and information systems. D) senior management, middle management, and service workers.

B) senior management, middle management, and operational management.

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective? A) customer and supplier intimacy B) survival C) competitive advantage D) improved decision-making

B) survival

An example of a business using information systems for customer and supplier intimacy is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

B) the Mandarin Oriental hotel's customer-preference tracking system

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as A) the point of no return. B) the law of diminishing returns. C) supply and demand. D) network inelasticity.

B) the law of diminishing returns

The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as A) switching costs. B) transaction costs. C) procurement. D) agency costs.

B) transaction costs.

Which of the following is not one of the fifteen categories of collaborative software tools? A) file sharing B) event scheduling C) white boarding D) extranets

D) extranets

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B) It sees capital and labor as primary production factors. C) It sees the inputs and outputs, labor and capital, as being infinitely malleable. D) It sees the organization as a social structure similar to a machine.

C) It sees the inputs and outputs, labor and capital, as being infinitely malleable.

You are consulting for a beverage distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step? A) Identify the business ecosystem the distributor is in. B) Implement a strategic transition to the new system. C) Perform a strategic systems analysis. D) Benchmark existing systems.

C) Perform a strategic systems analysis.

Which of the following statements about collaboration is not true? A) In business, a collaboration can last as little as a few minutes. B) Business collaboration relies on the formation of teams that are assigned a specific task or goal. C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure. D) One business benefit of collaboration is improved innovation.

C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure.

You have been hired by a worldwide non-profit agency to implement a system to handle their donations. The system must be able to handle and record telephone, sms, and Internet donations, provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a donor's information and history. Which of the following systems will best meet these needs? A) TPS B) TPS with DSS capabilities C) TPS with MIS capabilities D) TPS with ESS capabilities

C) TPS with MIS capabilities

Which of the following would not be a complementary asset for a solar panel manufacturer? A) international solar equipment certification standards B) government funding for green technology C) centralized hierarchical decision making D) innovation-driven management team

C) centralized hierarchical decision making

Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective? A) improved flexibility B) improved business practices C) competitive advantage D) survival

C) competitive advantage

Which of the following occupations would NOT be categorized as an "interaction" job? A) sales representative B) business manager C) engineer D) operations manager

C) engineer

Which of the following is NOT one of the competitive forces? A) suppliers B) other competitors C) external environment D) customers

C) external environment

You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. What type of system will most efficiently provide a solution? A) CRM B) enterprise system C) extranet D) intranet

C) extranet

Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to A) strengthen customer intimacy. B) differentiate their service. C) focus on market niche. D) increase efficiency.

C) focus on market niche.

Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having A) poor relationships with suppliers. B) poor relationships with customers. C) inadequate information. D) a surplus of information.

C) inadequate information.

The three activities in an information system that produce the information organizations use to control operations are A) information retrieval, research, and analysis. B) input, output, and feedback. C) input, processing, and output. D) data analysis, processing, and feedback.

C) input, processing, and output

Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy? A) middle management B) production workers C) knowledge workers D) data workers

C) knowledge workers

The Internet raises the bargaining power of customers by A) creating new opportunities for building loyal customer bases. B) making more products available. C) making information available to everyone. D) lowering transaction costs.

C) making information available to everyone.

The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called A) information systems literacy. B) information systems architecture. C) management information systems. D) information technology infrastructure.

C) management information systems

Producing bills of materials is a business process within the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing

C) manufacturing and production

The average number of tickets sold daily online is an example of A) input. B) raw data. C) meaningful information. D) feedback.

C) meaningful information

Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium? A) competitive advantage B) improved decision making C) new products and services D) survival

C) new products and services

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is A) management science. B) MIS. C) operations research. D) utilization management.

C) operations research.

Mintzberg's classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n) A) entrepreneurial structure. B) divisionalized bureaucracy. C) professional bureaucracy. D) adhocracy.

C) professional bureaucracy.

Which of the following industries has a low barrier to entry? A) automotive B) computer chip C) restaurant D) airline

C) restaurant

Business processes are collections of A) informal practices and behaviors. B) formalized and documented practices. C) routines. D) rights and privileges.

C) routines

Network economics A) applies the law of diminishing returns to communities of users. B) applies traditional economics to networked users. C) sees the cost of adding new members as inconsequential. D) balances the high cost of adding new members to a community against the lower cost of using network infrastructure.

C) sees the cost of adding new members as inconsequential.

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets? A) managerial B) governmental C) social D) organizational

C) social

Data management technology consists of the A) physical hardware and media used by an organization for storing data. B) detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C) software governing the organization of data on physical storage media. D) hardware and software used to transfer data.

C) software governing the organization of data on physical storage media

To what competitive force did the printed encyclopedia industry succumb? A) positioning and rivalry among competitors B) low cost of entry C) substitute products or services D) customer's bargaining power

C) substitute products or services

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective? A) customer intimacy B) operational excellence C) survival D) improved reporting

C) survival

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? A) improved efficiency B) customer and supplier intimacy C) survival D) competitive advantage

C) survival

If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating A) a value web. B) a value chain. C) synergies. D) core competencies.

C) synergies

The principal liaison between the information systems groups and the rest of the organization is a(n) A) programmer. B) information systems manager. C) systems analyst. D) CTO.

C) systems analyst.

The costs for firms operating on a global scale have been drastically reduced by A) networking technology. B) investments in organizational complementary assets. C) the Internet. D) the rise of digital content.

C) the Internet.

All of the following are major features of organizations that impact the use of information systems EXCEPT for A) business processes. B) environments. C) goals. D) agency costs.

D) agency costs.

Which of the following are environmental actors that interact with an organization and its information systems? A) customers B) suppliers C) regulatory agencies D) all of the above

D) all of the above

The most successful solutions or methods for achieving a business objective are called A) value activities. B) best processes. C) core competencies. D) best practices.

D) best practices.

A rival of your company, AutoTown, is going to implement analytic software that mines customer data with a goal of enabling the building of automobiles that customers actually want. This can be categorized as using information systems for which competitive strategy? A) low-cost leadership B) product differentiation C) focus on market niche D) customer intimacy

D) customer intimacy

An information system can enhance core competencies by A) providing better reporting facilities. B) creating educational opportunities for management. C) allowing operational employees to interact with management. D) encouraging the sharing of knowledge across business units.

D) encouraging the sharing of knowledge across business units.

The four major enterprise applications are A) SCMs, CRMs, DSSs, and KMSs. B) SCMs, CRMs, ESSs, and KMSs. C) enterprise systems, SCMs, DSSs, and CRMs. D) enterprise systems, SCMs, CRMs, and KMSs.

D) enterprise systems, SCMs, CRMs, and KMSs.

The value chain model A) categorizes five related advantages for adding value to a firm's products or services. B) sees the supply chain as the primary activity for adding value. C) categorizes four basic strategies a firm can use to enhance its value chain. D) helps a firm identify points at which information technology can most effectively enhance its competitive position.

D) helps a firm identify points at which information technology can most effectively enhance its competitive position.

All of the following are direct business benefits of collaboration, except for A) improved quality. B) improved financial performance. C) improved customer service. D) improved compliance with government regulations.

D) improved compliance with government regulations

An information system can enable a company to focus on a market niche through A) complex trend forecasting. B) tailoring products to the client. C) intensive product trend analysis. D) intensive customer data analysis.

D) intensive customer data analysis.

Which field of study focuses on both a behavioral and technical understanding of information systems? A) sociology B) operations research C) economics D) management information systems

D) management information systems

A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of A) knowledge management systems. B) transaction processing systems. C) executive support systems. D) management information systems.

D) management information systems.

Which of the following roles falls into the duties of an information systems manager? A) writing software instructions for computers B) acting as liaison between the information systems group and the rest of the organization C) translating business problems into information requirements D) managing data entry staff

D) managing data entry staff

The term "management information systems" designates a specific category of information systems serving A) integrated data processing throughout the firm. B) transaction process reporting. C) employees with online access to historical records. D) middle management functions.

D) middle management functions.

The point-of-sale Pulse system used by Domino's to maintain consistent and efficient management functions in its restaurants is best categorized as which type of system? A) TPS B) DSS C) CRM D) more than one of the above

D) more than one of the above

The hardware and software used to transfer data in an organization is called A) data management technology. B) networking and data management technology. C) data and telecommunications technology. D) networking and telecommunications technology.

D) networking and telecommunications technology

A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force. A) product differentiation B) traditional competitors C) low number of suppliers D) new market entrants

D) new market entrants

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is A) middle management. B) service workers. C) production management. D) operational management.

D) operational management.

As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T? A) low-cost leadership B) focus on market niche C) customer and supplier intimacy D) product differentiation

D) product differentiation

Which of the following is not one of the four main classifications for collaboration tools identified by the space/time matrix? A) synchronous/colocated B) same time/remote C) different time/remote D) remote/colocated

D) remote/colocated

Identifying customers is a responsibility of the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing

D) sales and marketing

ESS are specifically designed to serve which level of the organization? A) operational B) end-user C) middle management D) senior management

D) senior management

According to Leavitt's model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are A) environment, organization, structure, tasks. B) technology, people, culture, and structure. C) organization, culture, management, and environment D) tasks, technology, people, and structure.

D) tasks, technology, people, and structure.

Which of the following is one of the support activities in a firm's value chain? A) inbound logistics B) operations C) sales and marketing D) technology

D) technology

An organization is a A) stable, formal social structure that takes resources from the environment and processes them to produce outputs. B) formal, legal entity with internal rules and procedures that must abide by laws. C) collection of social elements. D) B and C E) A, B, and C

E) A, B, and C

Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below? A) Use IT to increase supplier loyalty. B) Use IT to increase operational efficiency. C) Use IT to create new products and business models. D) Use IT to help survive government reporting requirements. E) Use IT to achieve customer intimacy.

E) Use IT to achieve customer intimacy.

A Skype conference call using VOIP and webcams is an example of a remote, synchronous collaboration tool.

True

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

True

A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors.

True

A firm that invests in efficient business processes is making an investment in organizational complementary assets.

True

A substantial part of management responsibility is creative work driven by new knowledge and information.

True

A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business.

True

All organizations have bedrock, unassailable assumptions that define their goals and products.

True

An IT infrastructure provides the platform on which the firm can build its information systems.

True