Question 1

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 structures categorizes the knowledge-based organization as a professional bureaucracy. In this type of structure, the organization is highly centralized, with power resting at the top, and decision-making is based on the expertise of professionals, such as doctors, lawyers, and accountants. The structure emphasizes formal rules and regulations to guide the work of professionals and ensure consistency in their decision-making.

Question 2

Old Dutch Potato Chips has just installed a new state-of-the art information system that allows them to track delivery of their potato chips in real time to all of their customers.This information system is attempting to add value to which part of their value chain?

Accepted Answer

The real-time tracking of delivery to customers falls under the category of outbound logistics, which involves delivering the product or service to the customer. By providing this information system, Old Dutch Potato Chips is attempting to add value to their outbound logistics, making their delivery process more efficient and effective.

Question 3

Chapters.Indigo.ca keeps track of user preferences for book and CD purchases and can recommend titles purchased by others to its customers.Strong linkages to customers and suppliers increase switching costs.Chapters.Indigo.ca is utilizing which source of competitive advantage?

Accepted Answer

Chapters.Indigo.ca is utilizing strengthening customer and supplier intimacy as a source of competitive advantage by keeping track of user preferences and recommending titles to its customers based on the purchases of others. This increases the linkages with customers and suppliers, making it harder for customers to switch to another provider.

Question 4

An example of a professional bureaucracy is a

Accepted Answer

A school system is an example of a professional bureaucracy because it has a clear hierarchy with specialized roles for teachers, administrators, and support staff. There are also strict regulations and requirements for qualifications and training in this field.

Question 5

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

Accepted Answer

The external environment includes various factors such as technological advancements, economic conditions, and social and cultural changes that can impact the competitive environment, but it is not considered one of the competitive forces. The other options - suppliers, other competitors, and customers - are all considered competitors or factors that affect competition in the industry.

Question 6

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, is a framework for understanding the competition and pressures in an industry. It considers five external forces that affect an organization's ability to compete: the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitute products or services, and the intensity of competitive rivalry. This model helps organizations to identify their strengths and weaknesses in relation to these forces and develop effective strategies to stay competitive.

Question 7

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

Accepted Answer

Information technology often allows firms to operate more efficiently and effectively, but it does not necessarily lead to an expansion in size. Instead, it can enable firms to optimize their operations and potentially reduce the need for physical expansion.

Question 8

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 to successfully implement a new information system.

Question 9

Jean uses his loyalty rewards program card to buy gas from the Shell Oil Company,he only needs 300 more points to get a free flight to Calgary.This illustrates Shell Oil dealing with the competitive force of ________.

Accepted Answer

The loyalty rewards program card used by Jean implies that Shell Oil is dealing with the competitive force of customers. The loyalty program is a tactic used by Shell Oil to attract and retain customers, which can be considered a response to customer preferences and behavior. By offering loyalty rewards such as free flights, Shell Oil is incentivizing customers like Jean to continue using their services and giving them a competitive advantage.

Question 10

Ontario Iron Works Ltd.has just located a Web portal that gives access to many companies from which they can purchase their raw material from;this illustrates the competitive force of ________.

Accepted Answer

The scenario describes the access to a web portal that gives access to suppliers, implying that the competitive force of suppliers is at play.

Question 11

Business processes are collections of

Accepted Answer

The answer of Business processes are collections of
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Question 12

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

Accepted Answer

Agency theory posits that the firm is a "nexus of contracts" among self-interested individuals, such as shareholders, managers, and employees, who are motivated by their own interests rather than the overall interests of the firm. Therefore, the emphasis is on managing the agency relationship between these individuals to ensure that they act in the best interests of the firm as a whole.

Question 13

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

Accepted Answer

A manufacturer of deep-sea oil rigs is least concerned about new market entrants because it requires a significant amount of capital, expertise, and technology to enter the market. Thus, the barrier to entry is high, and the manufacturer has less competition to worry about.

Question 14

Rogers Cable was the sole supplier of iPhones in Canada for two years,but now Telus and Bell can market iPhones in Canada;this illustrates the competitive force of ________.

Accepted Answer

The entry of Telus and Bell into the iPhone market in Canada represents the competitive force of new market entrants, as there were previously no other companies offering iPhones in Canada besides Rogers Cable. Customers are not necessarily a competitive force in this scenario, as they did not cause the entry of Telus and Bell into the market. Substitute products and services and suppliers are also not relevant in this specific example.

Question 15

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 large bureaucracy producing standard products with centralized management is best classified as a machine bureaucracy according to Mintzberg's organizational configurations. The other options are not as applicable to the scenario described.

Question 16

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.

Question 17

Marie has developed a unique patented process to manufacture metal picture frames.This unique process allows Marie to use less raw materials and less labour than her competitors.Marie is utilizing which source of competitive advantage?

Accepted Answer

Marie is utilizing low-cost leadership as her unique process allows her to use fewer raw materials and less labor, reducing costs compared to her competitors.

Question 18

John has opened a new Web-based retail book store.John stocks,sells,and specializes on only technical engineering books and manuals.John is utilizing which source of competitive advantage?

Accepted Answer

John is utilizing a focus on market niche as he specializes in technical engineering books and manuals, catering to a specific segment of the market.

Question 19

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

Accepted Answer

While agency costs may impact the use of information systems in organizations, they are not a major feature of organizations in themselves. Business processes, environments, and goals are all fundamental aspects of organizational structure and functioning that shape the use and effectiveness of information systems.

Question 20

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

Accepted Answer

Satellite TV is the best choice as a substitute product for a cable TV distributor as it offers similar services and can be accessed in the same way by the customer. Other options like broadcast TV, satellite radio, and the Internet do not offer the same services as a cable TV distributor and may not be direct substitutes.

Quiz 3: Information Systems, organizations, and Strategy