(Test Bank) Managing and Using Information Systems: A Strategic Approach

Pearlson,Saunders,Galletta, 7

Computer Science & Engineering

Test Bank

7th Edition

• $10.00 $35.00

---

Description

Test Bank for Managing and Using Information Systems: A Strategic Approach, The downloadable file consists of 159 pages, and the total size of the file is 1.8 MB. Purchase now only for highly discounted price.

Author(s): Pearlson, Saunders, Galletta

---

---

Study Note Preview

File: 6e c00 introTestBank.docx, Chapter 0, Introduction Multiple Choice 1. What requires a unit of analysis, has been processed, and requires human mediation? a) Data b) Information c) Knowledge d) Legacy e) None of the above Ans: b (Medium) 2. Roles that managers fill, according to Mintzberg, include all of the following EXCEPT: a) Figurehead b) Disseminator c) Disciplinarian d) Entrepreneur e) Resource Allocator Ans: c (Hard) 3. Which of the following is NOT a Decisional role? a) Entrepreneur b) Disturbance handler c) Negotiator d) Resource allocator e) Spokesperson Ans: e (Medium) 4. What skills would be required to be a visionary manager? a) Communication and Information gathering b) Flexibility and creativity c) Analytical and organizational d) All of the above e) None of the above Ans: b (Easy) 5. Wisdom can be defined as: a) knowledge infused with intuition and judgment that facilitates the ability to make decisions. b) a process. c) all forms of technology used to create data. d) anything that makes a person clever. e) only b and d Ans: a (Easy) 6. Data is: a) information endowed with relevance and purpose. b) a set of specific objective facts or observations. c) some information. d) all of the above e) only a and c Ans: b (Medium) 7. Cisco estimates that by 2021 what percentage global internet traffic will be the data transmitted by “things”? a) 2% b) 5% c) 8% d) 11% e) 14% Ans: b (Medium) True/False 8. Information systems (IS) managers should participate in all of the important IS decisions, even if those decisions do not impact the IS department. Ans: True (Easy) 9. Information for top management is usually based on a long time horizon, with great detail and high structuredness. Ans: False (Medium) 10. A successful process begins only once a company has access to a variety of sophisticated technologies. Ans: False (Easy) 11. For companies to stay current and success, they must adopt traditional information retrieval systems that are similar to those they’ve used in the past. Ans: False (Medium) Short Answer 12. Pricing of things is most often based on _____, while pricing of information goods is most often based on _____. Ans: cost; value (Hard) 13. If a manager exhibits creativity, curiosity, and confidence, we would say that he or she supports the role of ______ very well. Ans: visionary (Hard) 14. The Chief Technology Officer of Walmart states that every company is becoming a ______ company. Ans: tech or technology (Medium) 15. While digital natives grew up in an era with Internet availability, digital grew up at a time when computer access wasn’t available or common. Ans: immigrants (Medium) Essay 16. Provide two examples of how the economics of things are different from the economics of information. 17. Provide two reasons business managers should participate in information systems decisions. 18. How does a functional view differ from a process view of a firm? File: 7e chapter1TestBank.docx, Chapter 1, The Information Systems Strategy Triangle Multiple Choice 1. The “Managerial Levers” concept is useful for the following reasons: a) Management can find what “levers” to push to force people to do what they want. b) Management should not make a change unless they align multiple issues, such as tasks, measures, values, incentives, etc. c) System investments need to be financially highly leveraged. d) All of the above e) None of the above Ans: b (Medium) 2. All of the following are likely causes of Kaiser Permanente’s difficulties before their new KPHealthConnect EXCEPT for: a) Bonus incentives not matching strategy b) The alignment of the Information Systems Strategy Triangle c) The failure of automated systems d) The leadership and organizational culture e) Patient service processes needing to be updated and streamlined Ans: c (Medium) 3. A general manager should: a) Rely on IS personnel to make IS decisions b) Ignore how IS are used and managed c) Have a deep technical knowledge of IS d) Understand the use and consequences of technologies relevant to the business e) Not be expected to ask or understand technology related questions Ans: d (Easy) 4. When a company’s business strategy and technology strategy are intertwined, this situation is known as _______. a) convergence b) alignment c) dynamic d) differentiation e) technologically adjusted Ans: a (Hard) 5. Organizational, cultural, and control variables are considered the ________ used by decision makers to effect change in their organization. a) collaboration tools b) managerial levers c) events d) IS e) organization objectives Ans: b (hard) 6. The ____________ is a plan articulating where a business seeks to go and how it expects to get there. a) vision statement b) mission statement c) stakeholder statement d) stockholder statement e) business strategy Ans: e (Medium) 7. Organizations seek to gain a competitive advantage by differentiation, cost, or _________. a) service b) focus c) profit d) value e) speed Ans: b (Easy) 8. Google has disrupted a number of industries, particularly the advertising and software industries. Google's ability to quickly and aggressively provide new products and services is best described by: a) Porter’s Generic Strategies b) The Hypercompetition Model c) The Information Systems Strategy Triangle d) The Social Business Strategy e) Customer Relationship Management Ans: b (Easy) 9. Through the use of various technologies, a ski resort tracks the slopes each customer skis and the times he or she skis them. Skiers then have the ability to view this information online, and can choose to seamlessly share their accomplishments on Facebook. In addition, photographers positioned at the resort post pictures on Facebook for the skier. This ski resort has worked hard to develop a strong: a) IS Strategy b) Social business strategy c) Business strategy d) Organizational strategy e) Customer strategy Ans: b (Hard) 10. The organizational strategy should ideally _____ the IS strategy. a) drive b) complement c) dictate d) ignore e) sustain Ans: b (Easy) 11. The general manager for a retail clothing outlet was recently cited as saying, “IT is the cornerstone of our company. All of our decisions are based on the sophisticated systems that we have deployed throughout our organization. IT drives our decisions.” What position should the manager hold regarding IT and its influence on decision making? a) IT should drive business decisions. b) Organizational goals should drive IT decisions. c) Organizational strategy should drive IS decision making. d) Business strategy should drive IS decision making e) All strategy should be driven by IT strategy. Ans: d (Hard) 12. To remain competitive, an organization’s business strategy must adapt and respond to all of the following variables. Which variable in particular does IS help to determine? 1. Market forces 2. Customer demands 3. The capabilities of the organization 4. The organization’s mission 5. Organizational design Ans: c (Hard) 13. The physical means by which information is exchanged among hardware components is called _______. a) hardware b) software c) networking d) personnel e) data Ans: c (Medium) 14. Significant changes in IS should trigger a reassessment of the _____________. a) business strategy b) social strategy c) process strategy d) data strategy e) system strategy Ans: a (Medium) 15. A social business strategy is designed to use social IT tools for all of the following EXCEPT: a) Collaborating with stakeholders b) Building deeper connections with stakeholders c) Innovating with stakeholders d) Excluding stakeholders e) Networking with employees, customer and/or suppliers Ans: d (Easy) 16. General managers should take an active role in decisions about information systems. This is vital because: a) The IS department cannot be trusted to make good decisions. b) The IS department has not been trained to make general business decisions. c) The IS department does not have the company’s best interests as its focus. d) Information systems are designed to support business objectives. e) Information systems are normally incongruent with business strategies. Ans: d (Medium) 17. This framework is called the ____________________ because it relates business strategy with IS strategy and organizational strategy. a) Porter’s Generic Framework b) Hypercompetition Model c) Information Technology Matrix d) IS Strategy Model e) Information Systems Strategy Triangle Ans: e (Easy) 18. Before Kaiser Permanente adopted its new business strategy, its IS Strategy Triangle was out of __________. a) control b) alignment c) adjustment d) scope e) specification Ans: b (Medium) 19. By using IS to achieve economies of scale and generate operating efficiencies, Walmart epitomizes which one of Porter's generic strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: c (Easy) 20. A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. This unique service demonstrates the bank’s desire to practice which one of Porter’s strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: a (Medium) 21. The managerial levers identifies the crucial, interrelated components for designing an organization. The components include all of the following EXCEPT: a) Decision rights b) Social media c) Business processes d) Incentives and rewards e) Performance measurement and evaluation Ans: b (Medium) 22. Technology guru Tim O'Reilly said this about the publishing industry: "To adapt, publishers need to cannibalize their own business, experimenting with new forms, new formats, and new business models." This statement is consistent with: a) Generic framework b) Focus strategy c) Hypercompetition d) Direct strategy e) Porter’s generic strategies Ans: c (Medium) 23. L.L. Bean is an online/catalog retail company that aggressively uses tools like instant messaging to communicate with customers regarding potential purchases and uses Facebook for branding activities. This use of technology supports which strategy? a) IS strategy b) Business strategy c) Organizational strategy d) Mission strategy e) Social business strategy Ans: e (Medium) 24. All of the following are examples of revenue models EXCEPT: a) All-you-can-eat b) Cost plus c) Licensing d) Cost displacement e) Freemium Ans: d (Medium) 25. A data facilitator is: a) a firm funds a project or creates a new service by cost savings. b) a company that sells big data that they have harvested. c) a company that supplies data users and suppliers with dig data infrastructure solutions. d) a company that leverages big data for internal purposes to improve their operations e) a web-based tool provided to merchants, enablings information to flow without any manual intervention. Ans: c (Medium) 26. Which one of the following is NOT part of the information systems strategy matrix? a) Hardware b) Software c) Networking d) Personnel e) Data Ans: d (Medium) 27. Which is not a question that can be used to understand organizational design? a) Who holds the decision rights to critical decisions? b) What control systems (management and measurement systems) are in place? c) Where is the organization's headquarters located? d) What are the key business processes? e) What is the culture of the organization? Ans: c (Medium) 28. When an organization qualifies its product or service in a way that allows it to appear unique in the marketplace, this is called: a) Focus b) Differentiation c) Cost Leadership d) Business Strategy e) Mission Ans: b (Easy) 29. The plan an organization uses to provide information systems and services is called: a) Cost Leadership b) Differentiation c) Focus d) IS Strategy e) Business Diamond Ans: d (Easy) True/False 30. Hypercompetition refers to where a firm obtains more than 5 strong competitors. Ans: False 31. Kaiser Permanente’s HealthConnect is an example of a digital strategy. Ans: True 32. Once a firm is out of alignment, it does not mean that it has to stay that way. Ans: True 33. A social business strategy needs to align itself with the organization’s IT strategy but not the business strategy. Ans: False 34. There has been accelerated competition among market leaders concurrent with the increases in the quality and quantity of IT investments. Ans: True 35. To avoid unwanted consequences, altering the IT Strategy requires adjustments to the organizational strategy. Ans: True 36. The IS strategy drives the business strategy. Ans: False Short Answer 37. The _______________ framework suggests that the speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are “rapidly created and eroded.” Ans: hypercompetition 38. The managerial lever includes organization, control, and ___________________________. Ans: culture 39. A clear and compelling statement that unifies an organization’s efforts and describes what the organization is all about is called its _________. Ans: mission 40. According to Porter’s Generic Strategies Framework, a company that limits its scope to a narrower segment of the market is exercising a type of strategy. Ans: focus 41. The technology and business capability to deliver efficient and reliable core operations is referred to as the . Ans: operational backbone 42. In order to assess the critical issues in information management, a manager should know the IS infrastructure components. These are hardware, software, network and _______. Ans: data 43. CRM stands for ________________. Ans: Customer Relationship Management 44. Social business opportunities fall into one of three categories: collaboration, engagement or ______. Ans: innovation 45. The IS strategy can affect and is affected by changes in a company’s business and _______ strategies. Ans: organizational 46. According to Porter, a company that makes its services available 24/7 would be practicing a _________ strategy. Ans: differentiation Essay 47. List the three categories of social business opportunities and give an example of each. 48. Dell's original business strategy was to only sell custom-built computer systems directly to customers. Dell now sells to major retail outlets such as Walmart and Best Buy. Which one of Porter’s generic strategies was Dell exhibiting when only selling directly to the customer? And which one of Porter’s generic strategies is Dell demonstrating today? Explain your answers. 49. Is a company more likely to adjust its mission statement or its business strategy? Explain your answer. 50. What is alignment in the context of the Information Systems Strategy Triangle and why is it important for a business to be in alignment? 51. Today’s market place is considered to be a very competitive and dynamic environment. Explain what this means and give examples of this competitive dynamic. 52. Match the following goals with the UPS strategy it represents. Business Strategy Securely provide specialized transportation and logistics services to individuals and businesses. IS Strategy Create technologies and logistics systems that support efficient flow of information and packages worldwide. Organizational Strategy Empower employees to ensure safe transport of goods and to value commitment to teamwork. File: 7e chapter2TestBank.docx, Chapter 2, Strategic Use of Information Resources Multiple Choice 1. Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as: a) Co-opetition b) Strategic alliance c) Competition d) Collaboration e) Business strategy Ans: a (Medium) 2. While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk? a) Awaking a sleeping giant b) Implementing IS poorly c) Demonstrating bad timing d) Running afoul of the law e) Mobile-based alternative removes advantages Ans: b (Medium) 3. Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition Ans: a (Medium) 4. The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition Ans: a (Medium) 5. Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter's 5 competitive forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry collaboration Ans: b (Medium) 6. Zara strategically uses information technologies to do all of the following EXCEPT: a) Bring new products quickly to market, meeting customer demands b) Support a continuous flow of information from stores to manufacturers to distributors c) Maintain a rich, centralized repository of customer data d) Build silos of responsibilities with limited interaction between store managers, designers and market specialists e) Keep its inventory levels very low (relative to other retailers) Ans: d (hard) 7. Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter's value chain activities? a) Outbound Logistics b) Marketing & Sales c) Operations d) Service e) Human resources Ans: b (Medium) 8. Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care? a) Demonstrating bad timing b) Awakening a sleeping giant c) Mobile-based alternative removes advantages d) Running afoul of the law e) Implementing IS poorly Ans: d (Medium) 9. A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk? a) Demonstrating bad timing b) Awakening a sleeping giant c) Mobile-based alternative removes advantages d) Running afoul of the law e) Implementing IS poorly Ans: b (Medium) 10. Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage? a) Porter’s Competitive Forces b) Porter’s Value Chain c) The Information Systems Strategy Triangle d) The Network Effect e) The Resource-Based View Ans: e (Medium) 11. Partnering with a competitor is becoming more and more common in today's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as: a) Co-opetition b) Integrated supply chain c) Business process d) Strategic alliance e) Value proposition Ans: a (Medium) 12. This risks of using information resources include all of the following EXCEPT: a) Demonstrating bad timing b) Awakening a sleeping giant c) Implementing IS poorly d) Missing cooperative opportunities e) Failing to deliver what users want Ans: d (Easy) 13. Facebook has for some years offered services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself well since the beginning from which competitive force? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry collaboration Ans: c (Medium) 14. A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter's Five Competitive Forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: a (Medium) 15. The ____________ view considers activities that create, deliver, and support a company’s product or service. a) product and service b) creation, delivery, and support model c) Asset-based d) Resource-based e) Porter value chain Ans: e (Easy) 16. Which one of the following is not considered to be a primary activity of the value chain of a firm? a) Inbound Logistics b) Service c) Sales & Marketing d) Technology e) Operations Ans: d (Medium) 17. Which part of the value chain includes the manufacturing of goods? a) Inbound Logistics b) Outbound Logistics c) Operations d) Service e) Organization Ans: c (Easy) 18. Which “view,” applied in the area of Information Systems, helps identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term? a) Resource-Based View b) Information-System View c) Information-Resource View d) System-Based View e) Organization View Ans: a (Medium) 19. Porter’s value chain framework suggests that a competitive advantage can stem from: a) Lowering costs and adding value b) Reducing isolated costs c) Disregarding customer data d) Optimizing internal costs e) Improving customer service Ans: a (Medium) 20. All of the following benefit from the network effect EXCEPT: a) Wikis b) Twitter c) Email d) Facebook e) Network bandwidth Ans: e (Medium) 21. Porter's five “Forces,” used so often in the text for analysis of IT applications, include all of the following except: a) Threat of substitute products b) Bargaining power of suppliers c) Bargaining power of customers d) New entrants e) Switching costs Ans: e (Easy) 22. The supply chain: a) Points out the concept of weak link in an ordering process b) Helps us understand how value is built inside a single firm. c) Is composed of several value chains linked into a larger chain (a chain within a chain). d) All of the above e) None of the above Ans: c (Medium) 23. An inter-organizational relationship that affords one or more companies in the relationship a strategic advantage is in: a) Co-opetition b) Customer Relationship Management (CRM) c) Supply Chain Management (SCM) d) Information Resources e) Strategic Alliance Ans: e (Medium) 24. Which is not a prescribed area of focus for gaining competitive advantage? a) Strongholds b) Cost/Quality c) Deep Pockets d) Timing/Know-how e) Insider Information Ans: e (Easy) 25. Which is not a competitive force: a) Bargaining power of buyers b) Bargaining power of competitors c) Threat of substitute products or services d) Rivalry among existing firms e) Threat of entry of new competition Ans: b (Medium) 26. Which of the following is NOT a primary activity of the Value Chain model? a) Inbound Logistics b) Operations c) Outbound Logistics d) Purchasing e) Marketing and Sales Ans: d (Medium) 27. Which of the following is a support activity of the Value Chain Model? a) Operations b) Facilities c) Organization d) Informatics e) Outbound Logistics Ans: c (Medium) 28. A strategy where companies cooperate and compete at the same time with companies in its value net is called: a) Co-opetition b) Teamwork c) Classwork d) Strategic Alliance e) Risk Ans: a (Easy) True/False 29. Unlike most assets, information resources do not lose value over time. Ans: False (Medium) 30. Supply Chain Management (SCM) consists of technological components as well as a process that brings together information about customers, sales, and marketing. Ans: False (Medium) 31. A firm that acquires a supplier is looking to reduce the “bargaining power of suppliers” force. Ans: True (Medium) 32. Zara’s use of information resources has given it a substantial advantage over its competitors. Ans: True (Easy) 33. Salesforce.com is an example of SAAS (software as a service). Ans: True (Easy) 34. The three major categories of IT capabilities are technical skills, management skills, and relationship skills. Ans: True (Medium) 35. A link between a firm’s IS strategy and business strategy focuses more on its external requirements than internal requirements. Ans: True (Medium) 36. A link between a firm’s IS strategy and organizational strategy focuses more on its external requirements than internal requirements. Ans: False (Medium) 37. In order to maximize the effectiveness of an organization’s business strategy, the manager must be able to identify and use information resources. Ans: True (Medium) Short Answer 38. SCM stands for ________________. Ans: supply chain management 39. is a collection of firms that, using technology, extend their business relationships and connect their value chains. Ans: Value system 40. List the three IS tools used to optimize the operations of a firm’s value chain. Answ: ERP, SCM, CRM 41. The IT asset known as is business data that has been captured, organized, and made available to an organization. Ans: information repository 42. List the four support activities of the value chain. Ans: Organization, Human Resources, Technology, Purchasing 43. Information resources are defined as the available data, technology, people, and ______ available in an organization to be used by managers to complete business tasks. Ans: Processes 44. IT resources consist of IT assets and IT _______. Ans: capabilities