Deck 1: The Importance of MIS

Question 1

An organization's goals and objectives are determined by its:

A) industry structure
B) value chains
C) competitive structure
D) information systems

Answer 1

C

Question 2

The importance of non-routine cognitive skills will decrease in the future

Answer 2

False

Question 3

Information systems are typically acquired off-the-shelf in time of need.

Answer 3

False

Question 4

Business processes can influence the design of information systems.

Question 5

Information systems and computer technology provide job and wage benefits
beyond just IS professionals.

Question 6

Future business professionals need to be able to access,evaluate,and apply emerging information technology to business.

Question 7

Like business processes,information systems need to be monitored to ensure that they continue to meet their requirements.

Question 8

An information system is a collection of components,including a computer,that stores and retrieves data and produces information.

Question 9

The increasing growth of technologies such as social media is an example of how Moore's Law can impact the business environment.

Question 10

Experimentation increases the fear of failure.

Question 11

Because of Moore's Law,the cost of data processing,communications,and storage is essentially zero.

Question 12

Effective collaboration is all about being cordial to one's team members.

Question 13

A process may use multiple information systems,and an information system may touch many different processes.

Question 14

Processes,systems,and information need to be created by a company to avoid "falling behind the technology curve."

Question 15

Moore's Law helps explain why any routine skill will be outsourced to the lowest bidder.

Question 16

Throughout your career,in whatever field you choose,you will likely take an active role with the management of processes,information systems,and information.

Question 17

As a result of Moore's Law,the ratio of price to performance of computers has increased dramatically over the years.

Question 18

MIS is defined as the management and use of processes,information systems,and information to help organizations achieve their strategies.

Question 19

Focusing on business processes is key to improving organizational effectiveness and efficiency.

Question 20

Critical feedback undermines collaboration.

Question 21

Cost is what it takes to produce a product or service.

Question 22

It is wrong for a company to try more than one competitive strategy at a time.

Question 23

The cost or differentiation strategy must be employed across an entire industry and cannot be tailored to specific industry segments.

Question 24

A business with a differentiation strategy will add cost to an activity as long as the activity has a positive margin.

Question 25

Competition from rivals is particularly high when industry growth is slow and when exit barriers are high.

Question 26

If a firm's competitive strategy is to be a cost leader,then business activities need to be developed to provide essential functions at the lowest possible cost.

Question 27

In the value chain,the primary activity of sales and marketing is the collection,storage,and physical distribution of products to buyers.

Question 28

Competitive strategy determines the structure,features,and functions of every information system.

Question 29

Porter's five forces model is also referred to as the value chain model.

Question 30

Porter defined value as the amount of money that a customer is willing to pay for a resource,product,or service.

Question 31

A company that states a strategy of low cost leadership and a differentiation on customer service simultaneously is most likely to achieve a strong competitive advantage.

Question 32

A business that selects a differentiation strategy would necessarily structure itself around least-cost activities.

Question 33

All processes,information systems,and information must be constructed to facilitate an organization's competitive strategy.

Question 34

A substitute performs different functions as an industry's product by another means.

Question 35

Porter's five forces determines the characteristics of the industry,how profitable it is,and how sustainable that profitability will be.

Question 36

According to Porter,only one company in an industry can be the cost leader.

Question 37

Organizational strategy begins with an assessment of the fundamental characteristics and structure of an industry.

Question 38

Low customer switching costs are a threat to new entrants in an established industry.

Question 39

The difference between the value that an activity generates and the cost of the activity is called value-addition.

Question 40

The strength of the bargaining power of suppliers and customers depends on the switching costs and product differentiation.

Question 41

Support activities in a value chain include the processes of finding vendors,setting up contractual arrangements,and negotiating prices.

Question 42

Which of the following trends driven by the Moore's Law is changing the way businesses use information technology (IT)?

A) the rapid growth of Internet accessibility
B) the decrease in data produced each year
C) the decrease in usage of mobile devices
D) the frequent increase in communication costs

Question 43

Which of the following results is attributed to Moore's Law?

A) The price of software has come down drastically.
B) The ratio of price to performance of computers has fallen drastically.
C) The risk of technology becoming obsolete has decreased.
D) Piracy of software has increased.

Question 44

The central idea of a business process design is that organizations should automate or improve existing functional systems.

Question 45

Because of Moore's Law,the cost of data processing,communications,and storage _________________.

A) has increased exponentially
B) has remained unchanged
C) is witnessing an upward trend
D) is essentially zero

Question 46

Each stage of the value chain accumulates costs and adds value to the product.

Question 47

Value chains and linkages have led to the creation of integrated,cross-departmental business systems.

Question 48

Information system managers should support strategy,but it should never influence strategy.

Question 49

Which of the following statements best describes Moore's Law?

A) A computer processor becomes obsolete within 18 months.
B) The speed of a computer processor doubles every 18 months.
C) The number of transistors per square inch on an integrated chip doubles every 18 months.
D) The total number of transistors produced in the world doubles every 18 months.

Question 50

Which of the following is a nonroutine cognitive skill that would provide one with job security?

A) abstract reasoning
B) tax accounting
C) communication skills
D) computer knowledge

Question 51

In the value chain,the primary activity of customer service is to assist customers in their use of the product,and thus maintain and enhance the product's value.

Question 52

________ is the ability to make and manipulate models.

A) Abstract reasoning
B) Systems thinking
C) Collaboration
D) Experimentation

Question 53

Manufacturing systems use linkages to reduce inventory costs.

Question 54

Inbound logistics involves receiving,storing,and disseminating inputs to products.

Question 55

A company's strategy should stay the same and never change.

Question 56

It is difficult to calculate the margin of supporting activities because the specific value added by supporting activities is difficult to know.

Question 57

Business processes determine the scope and requirements of each organization's information systems.

Question 58

Supporting functions of the value chain add value indirectly,and hence do not incur costs.

Question 59

The support activities in the generic value chain contribute directly to the production,sale,and service of the product.

Question 60

Which of the following is a misinterpretation of Moore's Law?

A) A computer processor becomes obsolete within 18 months.
B) The total number of transistors produced in the world doubles every 18 months.
C) The number of transistors per square inch on an integrated chip doubles every 18 months.
D) The speed of a computer processor doubles every 18 months.

Question 61

________ determines the structure,features,and functions of every information system.

A) Differentiation strategy
B) Competitive strategy
C) Organizational culture
D) Organizational objective

Question 62

Ellen is the marketing manager of Qtopia Inc.She often develops ideas and plans with the help of her colleagues,and provides and receives critical feedback.According to Reich's four critical skills,Ellen is displaying ________ skills.

A) collaboration
B) systems thinking
C) abstract reasoning
D) experimentation

Question 63

Staples sells office supplies and machines,furniture,and business services both in stores and online.It sells every kind of stationery that one can imagine.It has over 2,000 stores worldwide in 26 countries.This is most likely an example of a(n)________.

A) industry-wide differentiation strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) industry-wide cost leadership strategy

Question 64

A(n)________ involves finding potential customers,contacting them,and assigning a sales person.

A) value chain
B) information system
C) business process
D) differentiation strategy

Question 65

Which of the following is a key for companies when choosing a competitive strategy?

A) It is essential for companies to commit to more than one strategy at a time.
B) The competitive strategy of companies must be distinctive and maintainable.
C) Companies must sell products at the highest price to become a cost leader.
D) Companies should try to imitate the competitive strategies of competitors.

Question 66

Which of the following is not one of the four fundamental competitive strategies:

A) lowest cost across an industry
B) better product/service across an industry
C) lowest cost within an industry segment
D) low cost and differentiation within an industry segment

Question 67

Which of the following is the first stage in the sequence of how organizational strategy determines MIS?

A) formulate the business process
B) formulate a competitive strategy
C) determine the industry structure
D) determine the value chain structure

Question 68

Which of the following is a necessary condition for effective collaboration?

A) the ability to be cordial at all times
B) the ability to manipulate models
C) the ability to give and receive critical feedback
D) the ability to dominate group members

Question 69

A car rental company operates in two cities and offers rental cars at low rates specifically to college students from these areas.This is an example of a(n)________.

A) industry-wide differentiation strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) industry-wide cost leadership strategy

Question 70

________ is the ability to model the components of a system and to connect the inputs and outputs among those components into a sensible whole,one that explains the phenomenon observed.

A) Abstract reasoning
B) Systems collaboration
C) Systems thinking
D) Experimentation

Question 71

As a candidate at a job interview for the position of video and graphic designer,Steve is asked to create a design using Corel VideoStudio X3,a relatively new software that he has not learned yet.Which of the following skills is the interviewer trying to test?

A) systems thinking
B) abstract reasoning
C) collaboration
D) ability to experiment

Question 72

Willoughby Inc.,a large chain of superstores,sources its products from thousands of suppliers who have limited product differentiation.The products stored at the superstores are also available at smaller convenience stores with a marginal price differentiation.In this case,which of the following competitive forces is most likely to be a threat to the company?

A) threat of substitutions
B) bargaining power of suppliers
C) threat of new entrants
D) bargaining power of customers

Question 73

________ is defined as making a careful and reasoned analysis of an opportunity,envisioning potential products or solutions or applications of technology,and then developing those ideas that seem to have the most promise,consistent with the resources one has.

A) Collaboration
B) Systems thinking
C) Abstract reasoning
D) Experimentation

Question 74

Miguel proposes a new design idea for an automobile to his boss.He illustrates the model through a presentation,describes how the firm could profit from it,and how it meets customers' needs.Which of Reich's four critical skills is Miguel exhibiting?

A) abstract reasoning
B) systems thinking
C) collaboration
D) process orientation

Question 75

According to Porter's five forces model,established companies face stronger threats from substitutes if the substitute's ________.

A) price is lower
B) benefits are different
C) switching cost is higher
D) functions are different

Question 76

The intensity of Porter's five forces model determines ________.

A) the exact number of customers a company will have
B) the exit strategy of a firm
C) how sustainable an industry's profitability will be
D) how to achieve a monopoly in the market

Question 77

Which of the following appropriately justifies a company's decision to develop an information system?

A) to project a modern and progressive image
B) to achieve organizational strategy
C) for the sake of exploring technology and being innovative
D) to avoid falling behind the technology curve

Question 78

Which of the following is an industry barrier for new entrants in an established market?

A) low financial investments
B) government policies
C) low customer switching costs
D) accessible distribution channels

Question 79

Which of the following is NOT the most significant determinant of employment and salary today:

A) ability to interpret data mining results for improved marketing
B) knowing how to use information systems to improve business process quality
C) education and industry
D) ability to apply emerging information systems technology to business.

Question 80

Which of the following statements regarding an information system is true?

A) It does not produce data, but merely retrieves it.
B) It is synonymous with business processes.
C) It stores and retrieves data.
D) It can use only a single business process.