MGMT 339: Quiz #1 & 2

Organizations must clearly define and acknowledge information security accountability and responsibility.

-Accountability principle -Ethics principle -Timeliness principle -Assessment principle -Equity principle

Why is an organizational mission important?

-Directs efforts of individuals in a common direction -Offers sound rationale for allocating resources -Defines critical work areas and jobs that must be accomplished

Disadvantage of outsourcing IS to companies in other countries?

-Integrating domestic and nondomestic workforces -managing multiple languages -defining global work expectations -being perceived as unpatriotic

What to develop in order to increase personal power?

1. A sense of obligation toward the manager 2. A belief that the manager possesses a significant level of expertise within the organization 3. A sense of identification with the manager 4. The perception that they are dependent on the manager

Steps to properly operate Information System (IS)

1. Determining information needs 2. Determining and gathering appropriate data 3. Summarizing data 4. Analyzing data 5. Transmitting information 6. Using the information

Factors that determine the value of information

1. Information appropriateness 2. Information quality 3. Information timeliness 4. Information quantity

Activities to improve Information System (IS) effectiveness

1. Managing user satisfaction 2. Managing the IS workforce 3. Managing IS security

What is total power made up of?

1. Position Power 2. Personal Power

The degree of user satisfaction with the Information System (IS) is determined by what factors

1. The quality of the IS 2. The quality of the information

Five Forces Model

A framework that identifies five forces that determine the profit potential of an industry and shape a firm's competitive strategy.

Service Facility

A person (or crew), a machine (or group of machines), or both, necessary to perform the service for the customer

Priority Rule

A rule that selects the next customer to be served by the service facility

Customer Population

An input that generates potential customers

How to calculate capacity cushion?

C = 100% - Average Utilization rate(%)

Operational Control Decisions

Ensure that specific task are carried out effectively and efficiently

competitor capability

Firm's ability to take an action

Attacker

First firm to make strategic or tactical action

Competitive awareness

How mindful a company is to competitor's actions

Question Mark

In the portfolio matrix, a business unit that has high market growth rate, but low relative market share

Data Contamination

Inaccurate data gathering that makes the data less representative of reality

Advantage of outsourcing IS to companies in other countries?

Lower cost of labor

Equity principle

Management shall respect the rights of all employees when setting policy regarding security measures.

GE Multifactor Portfolio Matrix

Matrix created by Low vs. High Industry Attractiveness and Strong vs. Weak Business Strength

Waiting Line

One or more "customers" waiting for service

Accountability principle

Organizations must clearly define and acknowledge information security accountability and responsibility.

Timeliness principle

Organizations should act in a timely manner to prevent or respond to breaches of and threats to information systems.

Assessment principle

Organizations should periodically assess the risks to information and information systems.

Ethics principle

Organizations should use information and execute information security in an ethical manner.

Capacity gap

Positive or negative difference between projected demand and current capacity

Strategic Planning Decisions

Relate to determining organizational objectives and actions to achieve those objectives

Management Control Decisions

Relate to obtaining and using resources to reach objectives

Defender

Second firm which must choose whether or not to respond to the attacker

Information technology (IT)

Technology focused on the use of information in the performance of work

BCG Growth-Share Matrix

The Boston Consulting Group planning tool that evaluates business units in terms of their growth potential and market share.

Base case

The act of doing nothing and losing orders from any demand that exceeds current capacity, or incur costs because capacity is too large

Cash flow

The difference between the flows of funds into and out of an organization over a period of time, including revenues, costs, and changes in assets and liabilities

Power

The extent to which an individual is able to influence others so that they respond to orders

Internal environment

The level of an organization's environment that exists inside the organization and normally has immediate and specific implications for managing the organization

General environment

The level of an organization's external environment that contains components having broad, long-term implications for managing the organization

Industry environment

The level of an organization's external environment that contains components normally having relatively specific and immediate implications for managing the organization

Service System

The number of lines and the arrangement of the facilities

Data

The process of developing information begins with gathering some type of facts or statistics

Planning Horizon

The set of consecutive time periods considered for planning purposes

Setup Time

The time required to change a process or an operation from making one service or product to making another

Information Overload

Too much information to consider properly which can lead managers to be afraid to make decisions

How to calculate utilization?

Utilization = [Average Output Rate / Maximum Capacity]

Capacity Requirement

What a process's capacity should be for some future time period to meet the demand of customers (external or internal), given the firm's desired capacity cushion.

critical question analysis

What are the purposes and objectives of the organization? Where is the organization presently going? In what kind of environment does the organization now exist? What can be done to better achieve organizational objectives in the future?

Strategy

a broad and general plan developed to reach long-term objectives

Information System (IS)

a network of applications established within an organization to provide managers with the information that will assist them in decision making

Symptom

a sign that a problem exists

strategic business unit (SBU)

a significant organizational segment that is analyzed to develop organizational strategy aimed at generating future business or revenue

Growth

a strategy adopted by management to increase the amount of business that an SBU is currently generating

Stability

a strategy adopted by management to maintain or slightly improve the amount of business that an SBU is generating

Divestiture

a strategy adopted to eliminate an SBU that is not generating a satisfactory amount of business and that has little hope of doing so in the near future

Differentiation

a strategy in which a firm seeks to be unique in its industry along a dimension or a group of dimensions that are valued by consumers

Focus

a strategy that emphasizes making an organization more competitive by targeting a particular segment of customers

Cost leadership

a strategy that focuses on making an organization more competitive by producing products more cheaply than competitors can

retrenchment

a strategy where management attempts to strengthen or protect the amount of business an SBU is currently generating

Mission Statement

a written document developed by management, normally based on input by managers as well as nonmanagers, that describes and explains the mission of the organization

business portfolio analysis

an organizational strategy formulation technique that is based on the philosophy that organizations should develop strategy much as they handle investment portfolios

Problem

any factor within an organization that is a barrier to organizational goal attainment

Technology

any type of equipment or process that organization members use in the performance of their work

Information

details about a project or the set of conclusions derived from data analysis

Control

ensuring that an event occurs as it was planned to occur

Information appropriateness

how relevant the information is to the decision-making situation that the manager faces. If the information is quite relevant, then it is said to be appropriate. Generally, as the appropriateness of the information increases, so does the value of that information

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Cash Cow

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

Dog

in the portfolio matrix, a business unit that has low growth potential and a small market share

Star

in the portfolio matrix, a business unit that is a fast-growing market leader

Strategic Planning

long-range(5 years into the future) planning that focuses on the organization as a whole

Corrective Action

managerial activity aimed at bringing organizational performance up to the level of performance standards

Commitment Principle

managers should commit funds for planning only if they can anticipate, in the foreseeable future, a return on planning expenses as a result of long-range planning analysis

Strategic control

monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed

Personal Power

power derived from a manager's relationships with others

Positional Power

power derived from the organizational position that a manager holds

Strategy implementation

putting strategies into action

Tactical planning

short-range[1 year or less into the future] planning that emphasizes the current operations of various parts of an organization

What does "Threat of new entrants" refer to in the Five Forces Model?

the ability of new firms to enter an industry; as the threat of new entrants increases, the attractiveness of the industry decreases

Organizing skills

the ability to create throughout the organization a network of people who can help solve implementation problems as they occur

Interacting skills

the ability to manage people during implementation

Allocating skills

the ability to provide the organizational resources necessary to implement a strategy

Monitoring skills

the ability to use information to determine whether a problem has arisen that is blocking strategy implementation

information quantity

the amount of decision-related information that managers possess

Information Quality

the degree to which information represents reality. The more closely information represents reality, the higher the quality and the greater the value of that information

What does "threat of substitute products" refer to in the Five Forces Model?

the extent to which customers use products or services from another industry instead of the focal industry

Information timeliness

the extent to which the receipt of information allows decisions to be made and action to be taken so that the organization can gain some benefit from possessing the information.

Competitor motivation

the incentives that drive an organization to take action

What does "intensity of rivalry" refer to in the Five Forces Model?

the intensity of competition among the organizations in an industry. As the intensity of rivalry increases, the attractiveness of the industry decreases

Standard

the level of activity established to serve as a model for evaluating organizational performance

What does "Buyer Power" refer to in the Five Forces Model?

the power that customers have over the firms operating in an industry; as buyer power increases, the attractiveness of the industry decreases

What does "Supplier Power" refer to in the Five Forces Model?

the power that suppliers have over the firms operating in an industry

Competitive dynamics

the process by which firms undertake strategic and tactical actions and how competitors respond to these actions

Strategy formulation

the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing the organizational purpose

Strategic management

the process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy

Organizational mission

the purpose for which—the reason why—an organization exists

Social values

the relative degrees of worth that a society places on the ways in which it exists and functions

Economics

the science that focuses on understanding how people of a particular community or nation produce, distribute, and use various goods and services

Demographics

the statistical characteristics of a population

Environmental analysis

the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operations