(Test Bank) Chapter 1: Doing Business In Digital Times

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1 Chapter 1: Doing Business in Digital Times Test Bank Multiple Choice 1. Food manufacturers must be able to trace all ingredients ________ in case of contamination or recall . a. Along their supply chain b. In processed products they sell c. Imported from outside North America d. In perishable food they export Answer: A Difficulty: Medium Section Ref erence : Chapter Snapshot and Opening Case Learning Objective: Provide a real -world example of doing business in digital times. AACSB: Use of information technology 2. ________ are data visualizations that display the current status of key performance indicators in easy -to-understand formats : a. Predictions b. Dashboards c. Digital models d. Real-time reports Answer: B Difficulty: Easy Section Ref erence : Chapter Snapshot and Opening Case Learning Objective: Provide a real -world example of doing business in digital times. AACSB: Use of information technology 3. A top concern of well -established corporations, global financial institutions, born -on-the- Web retailers, and government agencies is how to design their digital business models in order to do all of the following, except: a. Deliver an incredible customer experience b. Improve profitability c. Implement cloud computing d. Increase market share 2 Answer: C Difficulty: Medium Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Analytic skills 4. Forrester research repeatedly confirms there is a strong relationship between the quality of a firm's ________, which in turn increases revenue. a. Mobile apps and business transactions b. IoT capabilities and KPIs c. Business model and marketing efforts d. Customer experience and loyalty Answer: D Difficulty: Hard Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Use of information technology 5. Enterprises c an acquire the latest business apps and digital services as they are needed and without large upfront investments by switching from owning IT resources to ________ . a. cloud computing b. private data centers c. data synchronization d. machine -to-machine technology Answer: A Difficulty: Medium Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Use of information technology 3 6. Amazon Elastic Compute Cloud, known as EC2, eliminates the need to invest in hardware up front, so companies can develop and deploy applications faster. EC2 reduces the time it takes to acquire server space from ________. a. weeks to minutes b. weeks to day s c. months to weeks d. months to days Answer: A Difficulty: Medium Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACS B: Use of information technology 7. Machine -to-machine (M2M) technology enables sensor -embedded products to share reliable real-time data ________. a. over short distances b. via radio signals c. using cloud services d. via databases Answer: B Difficulty: Hard Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Reflective thinking skills 8. An estimated ________ % of big data are unstructured . a. 25 b. 33 c. 50 d. 80 Answer: D Difficulty: Medium Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leverag ed. AACSB: Reflective thinking skills 4 9. The field of ________ involves managing and analyzing massive sets of data for purposes such as target marketing, trend analysis, and the creation of individually tailored products and services. a. Data science b. Cloud computing c. Machine -to-machine technology d. Business models Answer: A Difficulty: Medium Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels ar e being leveraged. AACSB: Reflective thinking skills 10. All of the following are examples of the influence of social, mobile, and cloud technologies except ________ . a. Connections and feedback via social networks have changed the balance of influence. b. Custom ers expect to use location -aware services, apps, alerts, social networks, and the latest digital capabilities at work and outside work. c. Customer loyalty and revenue growth depend on a business’ ability to offer unique customer experiences that wow customer s more than competitors can. d. Consumers are less likely to trust tweets from ordinary people than recommendations made by celebrity endorsements. Answer: D Difficulty: Hard Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Reflective thinking skills 11. Zipcar has pioneered the car rental by the hour business model. What technology enables Zipcar to lease cars for short time spans to registered members? a. Social networks b. Mobiles c. Sensors d. Wearables Answer: C 5 Difficulty: Hard Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Reflective thinking skills 12. Which if the following is not an example of the Internet of Things is being used by businesses? a. A network of ground sensors that allow agricultural operations to ad just the amount of fertilizer and water applied to specific field locations. b. Sensors in shoppers club cards that make it possible for retailers to offer discounts or promotions to consumers at the point of sale. c. Sensors in rental cars that allow companies to base rates on the driving behavior of their customers d. Sensors on packages of cereal, pasta, soup or other food products made for children that allow companies to determine young consumer’s satisfaction with the nutritional value of the product. Answer: D Difficulty: Medium Section Ref erence : Every Business is a Digital Business Learning Objective: Describe the use of digital technology in every facet of business and how digital channels are being leveraged. AACSB: Use of information technology 13. Exampl es of ____________ _ that can be facilitated by digital technologies are credit approval, opening a new account, order fulfillment, and shipping a product. a. Strategic activities b. Business processes c. Planning activities d. Competitive advantages Answer: B Diffic ulty: Hard Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information tech nology 14. The goal of _________ is to eliminate unnecessary non –value added processes, then to simplify and automate the remaining processes to reduce cycle time, labor, and costs. 6 a. Strategic planning b. Busin ess process reengineering c. Real-time information systems d. Business Intelligence Answer: B Difficulty: Easy Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 15. All functions and departments in the enterprise have tasks that they need to complete to produce outputs or ________ in order to meet their ________ . a. deliverables; objectives b. business processes; budgets c. milestones; deliverables d. processes; business model Answer: A Difficulty: Medium Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and wha t can be accomplished with near -real-time data. AACSB: Use of information technology 16. AutoTrader redesigned its legacy order fulfillment process in order ________ a. To process hundreds of orders and contracts each month b. To document how tasks were performed c. To reduce cycle time d. To move processing to the cloud Answer: C Difficulty: Medium Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 17. What are the basic components of business processes? a. Inputs and outputs 7 b. Data, knowledge, and activities c. People, technology, and outputs d. Inputs, activities, and deliverables Answer: D Difficulty: Hard Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 18. Routine formal processes are referred to as ________. a. cross -functional processes b. standard operating procedures c. business tasks d. standardized transactions Answer: B Difficulty: Medium Section Ref erence: Business Process Managemen t and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 19. Applying IT to a manual or outdated process wil l _________ : a. Minimize cycle time b. Not optimize the process c. Eliminate wasted steps d. Improve the outputs Answer: B Difficulty: Hard Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 20. Which o f the following is not a goal of business process reengineering? a. eliminate unnecessary or non -value -added processes b. simplify and automate remaining processes 8 c. reduce cycle time, labor, and costs d. increase i nnovation Answer: D Difficulty: Medium Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, char acteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 21. BPR is part of the larger discipline of ________, which consists of methods, tools, and technology to support and con tinuously improve business processes. a. business process management b. cycle time reduction c. business model optimization d. standard operating procedures Answer: A Difficulty: Medium Section Ref erence: Business Process Management and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Use of information technology 22. In order to be successful, BPM requires all of the following except ________ . a. buy-in from a broad cross section of the business b. software to map processes that are performed manually c. the right technology d. highly effective change management processes Answer: B Difficulty: Hard Section Ref erence: Business Process Man agement and Improvement Learning Objective: Explain the types, sources, characteristics, and control of enterprise data, and what can be accomplished with near -real-time data. AACSB: Reflective thinking skills 23. ________ means being able to respond quickly in order to take advantage of opportunities faster or better than competitors . a. agility 9 b. flexibility c. responsive d. IT consumerization Answer: A Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 24. ________ means having the ability to quickly integrate new business functions or to easily reconfigure software or apps. a. agility b. flexibility c. responsive d. IT consumerization Answer: B Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 25. ________ means that IT capacity can be easily scaled up or down as needed, which essentially requires cloud computing . a. agility b. flexibility c. responsive ness d. IT consumerization Answer: C Diffic ulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 26. ________ is the migration of privat ely-owned mobile devices into enterprise IT environments. 10 a. agility b. flexibility c. responsive ness d. IT consumerization Answer: D Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 27. Two key components of corporate profitability are _____ ____ and _________ . a. SWOT; strategic planning b. Employee performance; technology c. Industry structure; compet itive advantage d. Agility; commodities Answer: C Difficulty: Hard Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of informati on technology 28. ________ is the scanning and review of the political, social, economic, and technical environments of an organization. a. Business Intelligence b. Strategy c. SWOT d. Strategic analysis Answer: D Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 29. IT agility, flexibility, and mobility are tightly interrelated and primarily dependent on: 11 a. An organization’s IT infrastructure and architecture b. The IT division’s strategic hiring and training practices c. IT’s integration with production and accounting units d. Strategic alignment between IT budget and company mission statement Answer: A Difficulty: Hard Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 30. Matt is using his own tablet for work purposes, which i s an example of a trend called ____________ _. a. Mixed use IT b. Employer IT cost shifting c. IT consumerization d. BYOM Answer: C Difficulty: Easy Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 31. Using a combination of mobile and database technology, Pizza House keeps records of the pizza preferences of all its customers. When Sam order s from Pizza House, he only says “send me the usual” when he calls in his order; and hangs up. Accessing the database, the Pizza House worker know s his address, his usual order, and wha t credit card to bill. The streamlined ordering and fulfillment effic iency give the Pizza House _______ ___. a. A strategic plan b. A strategic model c. A competitive advantage d. A sustainably business edge Answer: C Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identi fy the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 12 32. IT functions that do not provide a competitive advantage, such as computers, databases, and network services are examples of _____ ______. a. commodities b. specialties c. niche functions d. apps Answer: A Difficulty: Easy Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 33. SWOT Analysis involves analyzing a company’s competitive situation on each of the following factors except : a. Strengths b. Weakness c. Opportunities d. Technology Answer: D Difficulty: Easy Section Ref erence: The Power of Competit ive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Use of information technology 34. Price wars or other fierce reactions by competitors are examples of: a. Strengths b. Weaknesses c. Opportunities d. Threats Answer: D Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinkin g skills 13 35. The _________ _ process is designed to provide answers to the following types of questions:  What is the long -term direction of our business?  What is the overall plan for deploying our resources?  How do we achieve competitive advantage over rivals in order to achieve or maximize profitability? a. Enterprise resource planning b. Profit margin analysis c. Strategic planning d. Market research Answer: C Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 36. According to the business strategy model developed by Harvard University Business professor Michael Porter’s, an industry’s profit potential is largely determined by _____________. a. The intensity of competitive forces within the industry b. Availability of necessary resources to produce the product/service c. Technological proficiency of companies in the industry d. Availability of skilled and unskilled labor Answer: A Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 37. Acco rding to the Five Forces Model developed by Harvard University Business professor Michael Porter, all of the following are major factors that determine a company’s standing in an industry, except: a. Threat of entry of new competitors b. Political and/or economic factors c. Bargaining power of suppliers d. Threat of substitute products/services 14 Answer: B Difficulty: Hard Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 38. According to the Five Forces Model developed by Harvard University Business professor Michael Porter, all of the following are major factors that determine a company’s standing in an industry, except: a. Competitive rivalry among firms existing in the industry b. Bargaining power of suppliers c. Bargaining power of customers or buyers d. Technological (IT) superiority Answer: D Difficulty: Hard Section Ref erence: The Power of Competitive Advantage Learni ng Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 39. Harvard University Business professor Michael Porter proposed that companies could follow one of three different competitive strategies. Which of the following is not one of Porter’s recommended strategies? a. Low price strategy b. Cost leadership strategy c. Differentiation strategy d. Niche strategies Answer: A Difficulty: Hard Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces of competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 15 40. Primary activities are those business activities through which a company produces goods, thus creating value for which customers are willing to pay. They include all of the following except: a. Inbound logistics , or acquiring and receiving of raw materials and other inputs b. Human Resources , including hiring, compensation and negotiating labor disputes c. Outbound logistics , which includes packaging, storage, delivery, and distribution d. Marketing and sales to customers Answer: B Difficulty: Medium Section Ref erence: The Power of Competitive Advantage Learning Objective: Identify the five forces o f competitive advantage and evaluate how they are reinforced by IT. AACSB: Reflective thinking skills 41. iTunes was a significant breakthrough that forever changed the music industry and the first representation of Apple's ________. a. IT consumerization b. Sustainable competitive advantage c. Incompatibility with Windows d. future outside its traditional computing product line Answer: D Difficulty: Hard Section Ref erence: Enterprise Technology Trends Learning Objective: Describe enterprise technology trends and e xplain how they influence strategy and operations. AACSB: Use of information technology 42. Which of the following is not one of the IT directions or trends for the late 2010s? a. Financial industry faces less regulation of communicating with customers via social media b. Transition away from the traditional desktop and documents era and toward business apps in the cloud c. Customers who are more socially engaged and intolerant of delays d. More NFC applications in products and services Answer: A Difficulty: Medium Section Ref erence: Enterprise Technology Trends Learning Objective: Describe enterprise technology trends and explain how they influence strategy and operations.