Deck 1: What Is Strategy and Why Is It Important

Question 1

Which information culture can cause an organization to have a great degree of difficulty operating?

A) Information-functional culture
B) Information-sharing culture
C) Information-inquiring culture
D) Information-discovery culture

Answer 1

A
Explanation: If an organization operates with an information-functional culture it will have a great degree of difficulty operating.

Question 2

Which of the following statements is true?

A) IS equals business success
B) IS equals business innovation
C) IS represents business success and innovation
D) IS enables business success and innovation

Answer 2

D
Explanation: IT is an important enabler of business success and innovation.

Question 3

Why do students need to study information technology?

A) Information technology is everywhere in business
B) Information technology is rarely discussed in business magazines
C) Information technology is rarely used in organizations
D) Information technology is found in only a few businesses

Answer 3

A
Explanation: Information technology is everywhere in business, see the Figure Technology in Business Week and Fortune.

Question 4

What can IT enable an organization to accomplish?

A) Reduce costs
B) Improve productivity
C) Generate growth
D) All of the above

Question 5

What did Thomas Friedman believe happened to the world because of the unplanned cascade of technological and social shifts?

A) The world became bigger
B) The world became flat
C) The world became larger
D) The world became more sophisticated

Question 6

What is any computer-based tool that people use to work with information and support the information and information-processing needs of an organization?

A) Information systems
B) Management information systems
C) Technology's role in business
D) Technology's impact on business

Question 7

Which of the following is considered information?

A) Quantity sold
B) Date sold
C) Best selling item by month
D) All of the above

Question 8

What is data that has been converted into meaningful and useful context?

A) Information
B) Knowledge
C) Information systems
D) All of the above

Question 9

Which of the following is not a department found in most businesses?

A) Human resources
B) Accounting
C) Management information systems (MIS)
D) Payroll

Question 10

What are raw facts that describe the characteristics of an event?

A) Information
B) Knowledge
C) Data
D) All of the above

Question 11

What is the name of a company's internal IT department?

A) Management information systems (MIS)
B) Information systems (IS)
C) Information technology (IT)
D) All of the above

Question 12

Which information culture allows employees across departments to use information (especially about problems and failures) to improve performance?

A) Information-functional culture
B) Information-sharing culture
C) Information-inquiring culture
D) Information-discovery culture

Question 13

Which information culture encourages employees across departments to be open to new insights about crisis and radical changes and seek ways to create competitive advantages?

A) Information-functional culture
B) Information-sharing culture
C) Information-inquiring culture
D) Information-discovery culture

Question 14

Which information culture allows employees across departments to search for information to better understand the future and align themselves with current trends and new directions?

A) Information-functional culture
B) Information-sharing culture
C) Information-inquiring culture
D) Information-discovery culture

Question 15

What is the function that plans for, develops, implements, and maintains IT hardware, software, and applications that people use to support the goals of an organization?

A) Information technology
B) Management information systems
C) Technology's role in business
D) Technology's impact on business

Question 16

Which of the following is considered data?

A) Quantity sold
B) Best customer by month
C) Best selling item by month
D) Worst selling item by month

Question 17

Which of the following represents the relationship between functional areas in a business?

A) Independent
B) Autonomous
C) Interdependent
D) Self-sufficient

Question 18

Which of the following information cultures would have the greatest negative impact on Apple's business?

A) Information-functional culture
B) Information-sharing culture
C) Information-inquiring culture
D) Information-discovery culture

Question 19

Which of the following is not one of Thomas Friedman's 10 forces that flattened the world?

A) Netscape IPO
B) Fall of the Berlin wall
C) Microsoft IPO
D) Wireless

Question 20

Which of the following represents the order of priority for the three primary organizational key resources?

A) Information systems, People, Processes
B) People, Processes, Information systems
C) Information systems, Processes, People
D) People, processes, profit

Question 21

Which of the following is an example of the way that information technology can reduce supplier power for an organization?

A) Switching costs
B) Reverse auction
C) Entry barrier
D) Loyalty program

Question 22

Which of the following represents buyer power in Porter's Five Forces Model?

A) Low when buyers have many choices of whom to buy from and high when their choices are few
B) High when buyers have many choices of whom to buy from and low when their choices are few
C) Low when buyers have many customers of whom to buy from and low when their customers are few
D) High when buyers have many customers of whom to buy from and low when their customers are few

Question 23

What is a competitive advantage?

A) A product that an organization's customers place a lesser value on than similar offerings from a competitor
B) A product or service that an organization's customers value more highly than similar offerings from a supplier
C) A service that an organization's customers place a lesser value on than similar offerings from a supplier
D) A product or service that an organization's customers place a greater value on than similar offerings from a competitor

Question 24

What is a business-to-business (B2B) marketplace in which a single buyer posts its needs and then opens the bidding to any supplier who would care to bid?

A) Reverse auction
B) Private exchange
C) Private auction
D) Reverse exchange

Question 25

What is an entry barrier?

A) A product feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
B) A service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
C) A product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
D) A product or service feature that customers no longer expect from organizations in a particular industry and do not need to be offered by an entering organization to compete and survive

Question 26

What is a business-to-business marketplace?

A) An Internet-based service that brings together many buyers
B) A personal business that brings together many sellers
C) An Internet-based service that brings together many buyers and sellers
D) A personal business that brings together many buyers and sellers

Question 27

What occurs when an organization can significantly impact its market share by being the first to market with a competitive advantage?

A) Private exchange
B) First-mover advantage
C) Environmental scanning
D) Loyalty program

Question 28

What is an auction format in which increasingly lower bids are solicited from organizations willing to supply the desired product or service at an increasingly lower price?

A) Reverse auction
B) Private exchange
C) Private auction
D) Reverse exchange

Question 29

Which of the following is Hyundai using as its generic strategy?

A) Broad cost leadership
B) Broad differentiation
C) Focused cost leadership
D) Focused differentiation

Question 30

Which company, in the text, uses environmental scanning to determine everything from how well competing products are selling to the strategic placement of its own products?

A) Kia
B) FedEx
C) Frito Lay
D) Audi

Question 31

All of the following are part of Porter's Three Generic Strategies, except:

A) Broad cost leadership
B) Broad differentiation
C) Focused strategy
D) Business process strategy

Question 32

Which of the following represents supplier power in Porter's Five Forces Model?

A) High when buyers have few choices of whom to buy from and low when their choices are many
B) Low when buyers have few choices of whom to buy from and high when their choices are many
C) High when buyers have many choices of whom to buy from and low when their choices are few
D) None of the above

Question 33

All of the following are common tools used in industry to analyze and develop competitive advantages, except:

A) Five Forces Model
B) Three Generic Strategies
C) Competitive analysis model
D) Value chain analysis

Question 34

What does the Five Forces Model help determine the relative attractiveness of?

A) An organization
B) A company
C) An industry
D) An investment

Question 35

Which of the following forces is commonly reduced through the use of switching costs?

A) Buyer power
B) Supplier power
C) Threat of substitute products or services
D) Rivalry among existing competitors

Question 36

What is the acquisition and analysis of events and trends in the environment external to an organization?

A) Private exchange
B) First-mover advantage
C) Environmental scanning
D) Loyalty program

Question 37

Which of the following forces is commonly reduced through the use of a loyalty program?

A) Buyer power
B) Supplier power
C) Threat of new entrants
D) Rivalry among existing competitors

Question 38

Which of the following is not one of Porter's Five Forces?

A) Buyer power
B) Supplier power
C) Threat of substitute buyers
D) Rivalry among existing competitors

Question 39

Which of the following is an example of a loyalty program?

A) Frequent-flier programs for airlines
B) Frequent-stayer programs for hotels
C) Frequent-dining programs for restaurants
D) All of the above

Question 40

What is high when competition is fierce in a market and low when competition is more complacent?

A) Buyer power
B) Supplier power
C) Threat of substitute products or services
D) Rivalry among existing competitors

Question 41

Information systems are implemented to support a company's competitive business ______________________.

A) Market share
B) Technology
C) Profitability
D) Strategy

Question 42

The threat of new entrants in the Five Forces Model is ______ when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.

A) low
B) high
C) unchanged
D) unaffected

Question 43

_______ in the Five Forces Model is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.

A) Buyer power
B) Supplier power
C) Threat of new entrants
D) Rivalry among existing competitors

Question 44

Which of the following companies uses the focused cost leadership strategy?

A) Hyundai
B) Audi
C) Kia
D) Tesla

Question 45

Which one of the following is used for decision making?

A) Information
B) Knowledge
C) Information systems
D) All of the above

Question 46

Which of the following supports the primary value activities in the value chain?

A) Primary value activities
B) Secondary value activities
C) Support value activities
D) None of the above

Question 47

Buyer power in the Porter's Five Forces Model is ________ when buyers have many choices of whom to buy from and low when their choices are few.

A) low
B) high
C) unchanged
D) unaffected

Question 48

Which of the following is considered a business process?

A) Processing a customer's order
B) Processing a customer's inquiry
C) Processing a customer's complaint
D) All of the above

Question 49

Which of the following companies uses the focused differentiation strategy?

A) Hyundai
B) Audi
C) Kia
D) Tesla

Question 50

Which of the following is considered knowledge?

A) Quantity sold
B) Date sold
C) Best selling item
D) Historical trend of quantity sold

Question 51

Which of the following is Hummer using as its generic strategy?

A) Broad cost leadership
B) Broad differentiation
C) Focused cost leadership
D) Focused differentiation

Question 52

Which of the following companies uses the broad cost leadership strategy?

A) Hyundai
B) Audi
C) Kia
D) Tesla

Question 53

______ in the Porter's Five Forces Model is high when buyers have many choices of whom to buy from and low when their choices are few.

A) Buyer power
B) Supplier power
C) Threat of new entrants
D) Rivalry among existing competitors

Question 54

Which part of the value chain includes firm infrastructure, human resources management, technology development, and procurement?

A) Primary value activities
B) Secondary value activities
C) Support value activities
D) None of the above

Question 55

Who is responsible for ensuring the ethical and legal use of information within an organization?

A) CIO
B) CTO
C) CPO
D) CSO

Question 56

Which one of the business functions receives the benefits the most from Information Systems when compared to others?

A) Security
B) Human Resources
C) IT Operations
D) Customer Service

Question 57

Which part of the value chain acquires raw materials and manufactures, delivers, markets, sells, and provides after-sales services?

A) Primary value activities
B) Secondary value activities
C) Support value activities
D) None of the above

Question 58

Which of the following companies uses the broad differentiation strategy?

A) Hyundai
B) Audi
C) Kia
D) Tesla

Question 59

Which approach views an organization as a series of process, each of which adds value to the product or service for each customer?

A) Low cost strategy
B) Business process
C) Value chain
D) First-mover advantage

Question 60

Which of the following can an organization use to evaluate the effectiveness of its business processes?

A) Porter's Five Forces Model
B) Three generic strategies
C) Value chain
D) First-mover advantage strategy

Question 61

Broad functions of a CIO include all of the following, except:

A) Ensuring the delivery of all IT projects, on time and within budget
B) Ensuring that the strategic vision of IT is in line with the strategic vision of the organization
C) Building and maintaining strong executive relationships
D) Building and maintaining strong customer processes

Question 62

Information systems are implemented to support a company's competitive business strategy.

Question 63

Which issue concerns CIOs the most?

A) Security
B) Budgeting
C) Enhancing customer satisfaction and retaining customers
D) Marketing

Question 64

Almost all organizations today have an internal IT department, often called Information Technology (IT), Information Systems (IS), or Management Information Systems (MIS).

Question 65

The three generic strategies are broad competitive approaches that organizations fall under.

Question 66

Managers need to understand that IS success is incredibly easy to measure.

Question 67

Who is responsible for ensuring the throughput, transaction speed, accuracy, system availability, and reliability of an organization's information technology?

A) CIO
B) CPO
C) CTO
D) CSO

Question 68

It is the responsibility of the CIO to ensure effective communications between business and IT personnel.

Question 69

_______ is high when buyers have few choices of whom to buy from and low when their choices are many.

A) Buyer power
B) Supplier power
C) Threat of new entrants
D) Rivalry among existing competitors

Question 70

Who is responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses?

A) CIO
B) CPO
C) CTO
D) CSO

Question 71

Who is responsible for collecting, maintaining, and distributing an organization's knowledge?

A) CIO
B) CSO
C) CTO
D) CKO

Question 72

The four common information sharing cultures include information-functional culture, information-sharing culture, information-inquiring culture, and information-discovery culture.

Question 73

Supplier power is high when buyers have ________ choices of whom to buy from and low when their choices are many.

A) more
B) few
C) many
D) too many

Question 74

The information which is actionable is referred to as knowledge.

Question 75

The Five Forces Model, the three generic strategies, and value chain analysis are all methods by which organizations can assess their competitive advantage.

Question 76

Three key resources-people, processes, and information systems, (in that order of priority)-are inextricably linked.If one fails, they all fail.

Question 77

Supplier power is _______ when buyers have few choices of whom to buy from and low when their choices are many.

A) low
B) high
C) unchanged
D) unaffected

Question 78

The Five Forces Model, the three generic strategies, and value chain analysis are all methods by which organizations can assess their _________________________.

A) Market share
B) Information systems
C) Profitability
D) Competitive advantage

Question 79

Information technology equals business success and innovation.

Question 80

Which of the following activities does a CIO perform?

A) Oversees all uses of information technology
B) Ensures the strategic alignment of IT with business goals
C) Ensures the strategic alignment of IT with business objectives
D) All of the above