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Test Bank Managing and Using Information Systems A Strategic Approach 6th Edition

Managing and Using Information Systems A Strategic Approach 6th Edition test bank

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)
Response: See page 11
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)
Response: See page 9
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)
Response: See page 9
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)
Response: See page 7
5. Define Wisdom:
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 d and b
Ans: a (Easy)
Response: See page 12
6. Data is:
a) information endowed with relevance and purpose
b) set of specific objective facts or observations
c) some information
d) all of the above
e) only a and c
Ans: b (Medium)
Response: See pages 10-12
True/False
7. 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)
Response: See page 2
8. Information for top management is usually based on a long time
horizon, with great detail and high structuredness.
Ans: False (Medium)
Response: See page 11
Short Answer
9. Pricing of things is most often based on _____ while pricing of information goods is
most often based on _____
Ans: cost, value (Hard)
Response: See page 13
10. If a manager exhibits creativity, curiosity, and confidence, we would say that he or
she supports the role of ______ very well.
Ans: visionary (Hard)
Response: See page 7
11. The Chief Technology Officer of Wal-Mart states that every company is becoming a
______ company.
Ans: tech or technology (Medium)
Response: page 4
Essay
11. Provide two examples of how the economics of things are different from the
economics of information.
12. Provide two reasons business managers should participate in information systems
decisions.
13. How does a functional view differ from a process view of a firm?
Chapter One
File: 6e 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)
Response: See page 26
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)
Response: See pages 17-18
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)
Response: See pages 20,25
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)
Response: See page 19
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)
Response: See pages 9-10
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)
Response: See page 20
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)
Response: See pages 21-22
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)
Response: See page 23
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)
Resposne: See page 27
10. The organizational strategy should ideally _____ the IS strategy.
a) drive
b) complement
c) dictate
d) ignore
e) sustain
Ans: b (Easy)
Response: See page 18
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)
Response: See page 18
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)
Response: See pages 26-27
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)
Response: See page 27
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)
Response: See page 25
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)
Response: See page 27
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)
Response: See page 19
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)
Response: See page 18
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)
Response: See pages 17-18
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)
Response: See page 22
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)
Response: See page 22
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)
Response: See page 26
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)
Response: See pages 23-24
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)
Response: See page 27
24. GE recognized that it could only sustain its competitive advantage for a limited time as
competitors attempted to outmaneuver them. What was the model that Welch applied to help
solve this problem?
a) Destroy your organization
b) Grow your organization
c) Destroy your system
d) Grow your system
e) Destroy your business
Ans: e (Medium)
Response: See page 24
25. Business strategies based on hypercompetition focus on customer satisfaction and profit
maximization but also build in a component of business intelligence. Business intelligence helps
an agile organization to:
a) Predict and respond to new opportunities
b) Use current information technologies less extensively
c) Manage internal challenges
d) React to supplier demands
e) Collaborate
Ans: a (Medium)
Response: See pages 1-30
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)
Response: See page 27
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 are the characteristics, experiences, and skill levels of the people within the
organization?
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)
Response: See page 26
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)
Response: See page 22
29. The plan an organization uses to provide information systems and services:
a) Cost Leadership
b) Differentiation
c) Focus
d) IS Strategy
e) Business Diamond
Ans: d (Easy)
Response: See page 26
True/False
30. Hypercompetition refers to where a firm obtains more than 5 strong
competitors.
Ans: False
Response: pages 23-24
31. Apple’s introduction of the iPhone while iPod sales were still very strong is an example of
DYB.
Ans: True
Response: See page 24
32. Once a firm is out of alignment, it does not mean that it has to stay that way.
Ans: True
Response: See page 19
33. A social business strategy needs to align itself with the organization’s IT strategy but not the
business strategy.
Ans: False
Response: See page 27
34. There has been accelerated competition among market leaders concurrent with the
increases in the quality and quantity of IT investments.
Ans: True
Response: See page 24
35. To avoid unwanted consequences, altering the IT Strategy requires adjustments to the
organizational strategy.
Ans: True
Response: See page 18
36. The IS strategy drives the business strategy.
Ans: False
Response: See page 18
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
Response: See page 23
38. The managerial lever includes organization, control, and ___________________________.
Ans: culture
Response: See page 26
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
Response: See page 19
40. According to Porter’s Generic Strategies Framework, a company that limits its scope to a
narrower segment of the market is exercising this type of strategy.
Ans: focus
Response: See page 22
41. GE employees develop a DYB strategy to destroy an existing competitive advantage so that
they can then find fresh new ways to serve the customer by next applying a ________ strategy.
Ans: Grow your business or GYB
Response: See page 24
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
Response: See page 27
43. CRM stands for ________________.
Ans: Customer Relationship Management
Response: See page 23
44. Social business opportunities fall into one of three categories: collaboration, engagement or
______.
Ans: innovation
Response: See page 27
45. The IS strategy can affect and is affected by changes in a company’s business and _______
strategies.
Ans: organizational
Response: See page 18
46. According to Porter, a company that makes its services available 24/7 would be practicing a
_________ strategy.
Ans: differentiation
Response: See page 22
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.
Chapter Two
File: 6e 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)
Response: See page 48
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)
Response: See page 49
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)
Response: See page 47
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)
Response: See page 47
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)
Response: See page 38
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)
Response: See pages 33, 34, 40, 42, 43, 46, 47
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)
Response: See page 41
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)
Response: See page 49
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)
Response: See page 49
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)
Response: See page 45
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)
Response: See page 48
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)
Response: See page 49
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 from which competitive force since the beginning?
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)
Response: See page 38
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)
Response: See page 38
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)
Response: See page 41
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)
Response: See page 41
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)
Response: See page 41 (Figure 2.5)
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)
Response: See page 45
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)
Response: See pages 41, 42
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)
Response: See page 32
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)
Response: See page 38
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)
Response: See page 41
23. An inter-organizational relationship that affords one or more companies in
the relationship a strategic advantage:
a) Co-opetition
b) Customer Relationship Management (CRM)
c) Supply Chain Management (SCM)
d) Information Resources
e) Strategic Alliance
Ans: e (Medium)
Response: See pages 47-48
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)
Response: See page 38
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)
Response: See page 38
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)
Response: See page 41
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)
Response: See page 41
28. A strategy where companies cooperate and compete at the same time with companies in its
value net:
a) Co-opetition
b) Teamwork
c) Classwork
d) Strategic Alliance
e) Risk
Ans: a (Easy)
Response: See page 48