Question 1

Which of the following is not one of the competitive forces?

Accepted Answer

The external environment is not considered a competitive force in Porter's Five Forces model. The other four forces are the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants, and the threat of substitute products or services.

Question 2

All of the following are major features of organizations that impact the use of information systems except for

Accepted Answer

Business processes, environments, and goals are all major features of organizations that have a direct impact on the use of information systems. Agency costs, however, are not a feature of organizations but rather a concept related to the costs incurred when trying to align the interests of principals and agents within an organization. While agency costs may indirectly impact the use of information systems, they are not a direct feature of organizations themselves.

Question 3

A substitute product of most concern for a cable TV distributor is

Accepted Answer

Satellite TV is the most direct substitute for cable TV, offering similar programming and delivery method. Broadcast TV and satellite radio do not offer the same variety of programming and the Internet often requires a different type of viewing experience.

Question 4

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?

Accepted Answer

The answer of How does the technical view of organizations...

Question 5

A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.

Accepted Answer

The deep-sea oil rig industry has high barriers to entry due to the significant capital investment and expertise required, making new market entrants less of a concern.

Question 6

According to agency theory, the firm is viewed as a(n)

Accepted Answer

Agency theory views the firm as a "nexus of contracts" among self-interested individuals, where each individual (or "agent") has their own goals and objectives. The theory suggests that conflicts may arise between the agents and the principal (usually the owner of the firm) because their interests may not always align.

Question 7

The ________ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete.

Accepted Answer

The competitive forces model, also known as Porter's Five Forces model, is used to analyze the competitive environment of an industry and the potential impact of external forces on an organization's strategy and ability to compete. The model identifies five key forces: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. This model helps organizations to understand their competitive position and make informed strategic decisions.

Question 8

Which of the following would not be considered a disruptive technology?

Accepted Answer

The answer of Which of the following would not be...

Question 9

An example of a divisionalized bureaucracy is a

Accepted Answer

A Fortune 500 firm is more likely to have a complex organizational structure with multiple divisions or departments specializing in specific functions or products. This type of structure is typical of a divisionalized bureaucracy. Start-up firms and midsize manufacturers are less likely to have such complex structures, while universities typically have a more decentralized structure organized around academic departments rather than traditional business functions.

Question 10

According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment.

Accepted Answer

The microeconomic definition of organizations focuses on their role in transforming inputs (such as labor and capital) into outputs (goods or services) that are consumed by the environment (customers or clients). This definition emphasizes the organization's economic function and its relationship to the broader market. The other options listed focus on other aspects of organizations, such as their social or technological dimensions, which are not central to this definition.

Question 11

Which of the following statements is not true about information technology's impacts on business firms?

Accepted Answer

Information technology can help firms expand in size, but this is not a direct impact like the reduction of costs or improvement in efficiency. The other options directly relate to cost reduction and efficiency improvements facilitated by IT.

Question 12

A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy.

Accepted Answer

A bureaucracy that produces standard products in a slowly changing environment and is dominated by centralized management is a machine bureaucracy.

Question 13

As discussed in the chapter opening case, which of the four generic strategies did Sears employ to combat the competition offered by Target, Walmart, and Macy's?

Accepted Answer

The answer of As discussed in the chapter opening case,...

Question 14

Business processes are collections of

Accepted Answer

The answer of Business processes are collections of
...

Question 15

According to Leavitt's model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are

Accepted Answer

Leavitt's model of organizational resistance identifies tasks, technology, people, and structure as the four components that need to be changed for successful implementation of a new information system.

Question 16

Which of the following industries has a low barrier to entry?

Accepted Answer

The restaurant industry typically has a lower barrier to entry compared to other industries, such as automotive or computer chip manufacturing which require significant investment in specialized equipment and technology. While starting a restaurant still requires capital for rent, equipment, and supplies, it often does not require the same level of technical expertise or large-scale infrastructure as other industries.

Question 17

An organization is a

Accepted Answer

An organization is all of the options listed. It is a stable, formal social structure that processes resources to produce outputs. It is also a formal, legal entity with internal rules and procedures that must abide by laws. Additionally, it is a collection of social elements, such as employees or members, who work together towards a common goal.

Question 18

The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as

Accepted Answer

The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as transaction costs. These costs include search and information costs, negotiation costs, contract costs, and enforcement costs.

Question 19

Mintzberg's classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n)

Accepted Answer

Mintzberg's classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a professional bureaucracy. This type of organization relies on a high degree of standardization of skills and knowledge and a strict hierarchy of authority to control and coordinate work.

Question 20

The interaction between information systems and organizations is influenced

Accepted Answer

The interaction between information systems and organizations is influenced by many factors such as structure, politics, culture, and environment. While middle and senior managers play a role, it is not the only factor and the microeconomic forces of capital and labor are not the primary drivers. The organization's business processes and culture also play a part, but again, not the only factors influencing the interaction between information systems and organizations.

Quiz 3: Information Systems, Organizations, and Strategy