Question 1

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 2

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 commonly used to describe the external forces that affect an organization's strategy and ability to compete. These forces include the bargaining power of suppliers, bargaining power of customers, threat of new entrants, threat of substitute products or services, and intensity of competitive rivalry. The other options are not directly related to this model.

Question 3

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. This means that the firm is seen as a collection of various individuals (such as owners, managers, employees, etc.) who have their own goals and interests, and who come together to create a contractual relationship. Under agency theory, there is a principal-agent relationship between these different individuals - the owners are the principals who hire the managers as their agents to run the company on their behalf. Therefore, agency theory emphasizes the potential conflict of interest that can arise between different individuals in the firm and the need for management practices that align their interests with those of the owners.

Question 4

As transaction costs decrease,firm size (the number of employees)should shrink because it becomes easier and cheaper for the firm to contract for the purchase of goods and services in the marketplace rather than to make the product or offer the service itself.

Accepted Answer

When transaction costs decrease, firms can easily reduce their size, as they don't need to keep a large workforce to manufacture or provide services. It is cost-effective to outsource production or services to third-party vendors. Thus, smaller firms with lower overhead costs can compete with larger firms, which may have higher transaction costs, resulting in higher prices. As a result, as transaction costs decrease, it is more likely that firm size will shrink.

Question 5

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 categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a professional bureaucracy. This type of structure emphasizes a high degree of specialization and standardization of skills and knowledge, with strict rules and procedures buttressed with a formal hierarchy of authority.

Question 6

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

Accepted Answer

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

Question 7

The interaction between information systems and organizations is influenced

Accepted Answer

The interaction between information systems and organizations is influenced by many factors including the structure of the organization, political environment, the culture of the organization, and its external environment. While the decision making of middle and senior managers as well as the organization's business processes and culture play a role, they are not the only determining factors.

Question 8

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

Accepted Answer

Starting a restaurant typically requires less capital than other industries, such as automotive or airline. It is also easier to obtain the necessary permits and licenses for a restaurant compared to industries that involve more complex regulations, such as computer chip manufacturing.

Question 9

An example of a divisionalized bureaucracy is a

Accepted Answer

A Fortune 500 firm is typically organized into divisions based on either geography, product lines, or customer segments. These divisions operate somewhat independently, with their own functional departments, and report to a central management team. This type of structure allows for specialization and a focus on the unique needs of each division's specific market or customer base.

Question 10

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

Accepted Answer

Information technology helps firms lower the cost of market participation, reduce internal management costs, and reduce transaction costs, making operations more efficient. However, it doesn't necessarily lead to firms expanding in size. In fact, through efficiencies and digital processes, firms can often operate more effectively with fewer resources or maintain a lean structure.

Question 11

An organization is a

Accepted Answer

All three options described in the answer choices are accurate and necessary for defining an organization. An organization must have a stable, formal social structure that takes resources from the environment and processes them to produce outputs in order to achieve its goals. It must also be a formal, legal entity with internal rules and procedures that must abide by laws. Lastly, an organization is made up of a collection of social elements, such as employees, stakeholders, and customers. Therefore, the best choice is E, as it covers all these aspects of an organization.

Question 12

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

Accepted Answer

The other three choices (suppliers, other competitors, customers) are all considered competitive forces that can affect a company's profitability and success. The external environment can also have an impact, but it is a more general factor that includes things like economic conditions, technological advancements, and government regulations, rather than a specific force that is competing with the company.

Question 13

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

This is because the characteristics mentioned (large bureaucracy, slowly changing environment, standard products, centralized management) are all indicative of a machine bureaucracy, which is one of the five types of organizational structure identified by Mintzberg. The other options (professional, divisionalized, and multidivisional) do not fit the given characteristics as well.

Question 14

Routines-sometimes called non-standard operating procedures-are precise rules,procedures,and practices that have been developed to cope with virtually all expected situations.

Accepted Answer

Routines, often referred to as standard operating procedures, are designed to handle routine or expected situations through established rules and practices, not non-standard or unexpected situations.

Question 15

According to research 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

The four components that must be changed in an organization to successfully implement a new information system are tasks, technology, people, and structure. These elements are crucial for integrating new systems effectively.

Question 16

Information systems are key instruments for environmental scanning,helping managers identify external changes that might require an organizational response.

Accepted Answer

Information systems provide managers with access to a broad range of information, including data about the external environment. This information can be used to scan for changes or trends that might affect the organization and to identify opportunities for growth or potential threats. Therefore, information systems are indeed key instruments for environmental scanning.

Question 17

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

Accepted Answer

Agency costs are not a feature of organizations but a concept in finance that refers to the costs incurred when someone (the principal) hires someone else (the agent) to act on their behalf but the interests of the principal and the agent may not always align. Business processes, environments, and goals are all major features of organizations that impact the use of information systems. Business processes refer to the series of activities and tasks that transform inputs into outputs. Environments refer to the external factors and conditions that affect the operation of an organization. Goals refer to the objectives that an organization aims to achieve.

Question 18

Business processes are collections of

Accepted Answer

The answer of Business processes are collections of
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Question 19

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 the time and resources expended in finding and evaluating suppliers, negotiating contracts, and monitoring performance, among others.

Question 20

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 the inputs and outputs of production, and how organizations use resources to create goods and services that satisfy consumer demands. This definition views organizations as economic entities that transform factors of production (such as labor, capital, and resources) into products and services that are consumed by the environment.

Quiz 3: Information Systems organizations and Strategy