MNGT-220 Final Exam Study Guide Exam 1

What is the difference between opt-in and opt-out? Provide and explain an example.

*Opt-in*: Model of informed consent prohibiting an organization from collecting any personal information unless the individual specifically takes action to approve information collection and use. "conscious decision to participate" (ex. website asks you if you would like to allow cookies) *Opt-out*: Model of informed consent permitting the collection of personal information until the consumer specifically requests that the data not be collected. (ex. you click on a website and it automatically starts using cookies)

List Porter's five competitive forces.

- Customers - Suppliers - Traditional Competitors - New Market Entrants - Substitute Goods and Services

transaction processing systems (TPS)

Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization's operational level.

What is a cookie and how does it work?

Cookies: Tiny file deposited on a computer hard drive when an individual visits certain websites. Used to identify the visitor and track visits to the website. This allows the website to tailor the website more towards each individual person

Which of the following is by far the most common source of business system failure? A) Software bugs B) Software errors C) Hardware failures D) Facilities failures E) Data quality

Data quality

What is the digital divide and how does it impact society?

Digital Divide: Large disparities in access to computers and the Internet among different social groups and different locations. This puts certain areas and people at a disadvantage because they do not have access to technology

digital dashboard

Displays all of a firm's key performance indicators as graphs and charts on a single screen to provide one-page overview of all the critical measurements necessary to make key executive decisions.

agency theory

Economic theory that views the firm as a nexus of contracts among self-interested individuals who must be supervised and managed. a set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored

You have been hired by BizCom to help it improve its business processes and financial performance. BizCom is a business communications consulting firm that services many clients in different industries throughout the United States. BizCom provides customized written recommendations about how to best use a client's existing resources to improve the client's internal communications. The company has approximately 50 consultants, all of whom are located in its central headquarters in Alexandria, Virginia. Which of the following would you recommend that BizCom install? A) Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with its clients, 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, to minimize redundant work on similar clients D) MIS, to produce reports on the firm's operations E) TPS, to help manage all daily activities and transactions

Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with its clients, and minimize the amount of paperwork needed

Which of the following is an example of a cross-functional business process? A) Identifying customers B) Shipping a product C) Fulfilling a customer order D) Hiring employees E) Paying creditors

Fulfilling a customer order

What is the most important benefit of an enterprise application? A) Enabling the creation of business intelligence B) Helping businesses become more flexible and productive by enabling business functions and departments to share information and coordinate their business processes more closely C) Providing answers to nonroutine questions D) Enabling cost-effective e-business processes E) Enabling managers to make better decisions

Helping businesses become more flexible and productive by enabling business functions and departments to share information and coordinate their business processes more closely

Which of the following statements about Porter's competitive forces model is not true? A) Porter's competitive forces model is the most widely used model for understanding competitive advantage. B) Porter's model focuses on a firm's general business environment. C) The more substitute products and services in an industry, the less a firm can control pricing and the lower the firm's profit margins. D) In a free economy, there are very low barriers to entry in all industries. E) The power of customers grows if they can easily switch to a competitor's products and services.

In a free economy, there are very low barriers to entry in all industries.

As discussed in the chapter-opening case, AWM Smart Shelf can help brands and retailers achieve which of the following? A) Increased customer intimacy B) Survival C) Improved employee morale D) Development of new products E) Increased supplier intimacy

Increased customer intimacy

Which of the following is a primary drawback to the "do anything anywhere" computing environment? A) It makes work environments less pleasant. B) It creates a digital divide. C) It centralizes power at corporate headquarters. D) It blurs the traditional boundaries between work and family time. E) It leads to employees being paid less for the total amount of work performed.

It blurs the traditional boundaries between work and family time.

Which of the following is not a feature of the General Data Protection Regulation (GDPR)? A) It applies to all firms doing business in the EU. B) Its protections of the privacy rights of EU citizens apply worldwide, regardless of where processing of the data takes places. C) It imposes fines on companies for violating the regulation up to 4 percent of a firm's global revenue. D) It creates a single EU privacy policy. E) It prevents firms from using cookies.

It prevents firms from using cookies.

Struggles for resources, competition, and conflict within an organization that result from divergent viewpoints about how resources, rewards, and punishments should be distributed are an example of which of the following? A) Organizational culture B) Organizational politics C) Organizational structure D) Organizational environment E) Business processes

Organizational politics

ethics

Principles of right and wrong that can be used by individuals acting as free moral agents to make choices to guide their behavior.

extranet

Private intranet that is accessible to authorized outsiders outside of the company.

________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors. A) Product differentiation B) Low-cost leadership C) Focusing on market niche D) Strengthening customer intimacy E) Strengthening supplier intimacy

Product differentiation

The use of computers to assemble data from different sources to create digital dossiers of detailed information about individuals is known as which of the following? A) Profiling B) Phishing C) Spamming D) Targeting E) Spyware

Profiling

Which level of the organization is an ESS specifically designed to serve? A) Operational management B) End-users C) Middle management D) Senior management E) Knowledge workers

Senior management

Which of the following makes long-range strategic decisions about products and services as well as ensures financial performance of the firm? A) Senior management B) Middle management C) Production workers D) Operational management E) Knowledge workers

Senior management

Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Solar energy D) Airline E) Small retailer

Small retailer

data

Streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.

mass customization

The capacity to offer individually tailored products or services using mass production resources.

Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system enables the firm to create new products and services. B) The system will create new value for the firm, beyond its costs. C) The system will automate key business processes. D) The system is in use by our primary competitors. E) The system integrates well with the Web.

The system will create new value for the firm, beyond its costs.

business process

The unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service.

profiling

The use of computers to combine data from multiple sources and create electronic dossiers (reports) of detailed information on individuals.

Which of the following statements about digital firms is not true? A) In digital firms, time shifting and space shifting are the norm. B) Today, most firms are fully digital. C) Digital firms offer extraordinary opportunities for flexible global organization and management. D) Digital firms sense and respond to their environments more rapidly than traditional firms. E) Digital firms have more flexibility to survive in turbulent times.

Today, most firms are fully digital

COPPA is a set of five principles developed by the FTC that most American and European privacy law is based on.

false

Knowledge workers make long-range strategic decisions about products and services

false

Managers rely on TPS for nonroutine decision making.

false

Mintzberg's classification identifies five forces in an industry's environment that affect the strategic position of a firm.

false

The ethical no-free-lunch rule states that: A) if an action cannot be taken repeatedly, then it is not right to be taken at any time. B) one should take the action that produces the least harm or incurs the least cost. C) one can put values in rank order and understand the consequences of various courses of action. D) if something someone else has created is useful to you, it has value, and you should assume the creator wants compensation for this work. E) if an action is not right for everyone to take, it is not right for anyone to take.

if something someone else has created is useful to you, it has value, and you should assume the creator wants compensation for this work.

The three activities in an information system that produce the information organizations use to make decisions, control operations, analyze problems, and create new products are: A) information, research, and analysis. B) input, output, and feedback. C) data, information, and analysis. D) data analysis, processing, and feedback. E) input, processing, and output.

input, processing, and output.

The Internet increases 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. E) enabling the development of new services.

making information available to everyone.

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) transforms raw data into processed information. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) is a stream of raw facts representing events occurring in organizations or the physical environment.

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

A company's competitive advantages ultimately translate into higher stock market valuations than its competitors.

true

Because of their special claims to knowledge, wisdom, and respect, professionals take on special rights and obligations.

true

Customer relationship management systems coordinate all of the business processes that deal with customers in sales, marketing, and service.

true

Detailed, programmed instructions that control computer hardware components in an information system are known as computer software.

true

Outsourcing has accelerated the development of new information systems in the United States.

true

The claim to privacy is protected by the U.S. Constitution.

true

intranet

An internal network based on Internet and World Wide Web technology and standards, and used by people within the company.