Deck 1: The Importance of Mis

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

Experimentation increases the fear of failure.

Question 13

Critical feedback undermines collaboration.

Question 14

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

Question 15

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

Question 16

Business processes can influence the design of information systems.

Question 17

Because of Moore's Law,any routine skill can and will be outsourced to the lowest bidder.

Question 18

A substitute performs different functions as an industry's products.

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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 28

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 29

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

Question 30

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 31

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

Question 32

It is always wrong to try to do more than one competitive strategy at a time.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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 42

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

Question 43

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 44

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 45

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 46

Manufacturing systems use linkages to reduce inventory costs.

Question 47

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 48

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

Question 49

________ is the ability to make and manipulate models.

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

Question 50

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 51

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

Question 52

________ 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 53

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 54

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

Question 55

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 56

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

Question 57

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 58

Which of the following trends driven by the Moore's Law is changing the way businesses use 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 59

________ 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 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

A ________ is defined as a network of value-creating activities.

A) value segment
B) value pyramid
C) value chain
D) value system

Question 62

Which activity of the value chain includes inducing a customer to purchase a product?

A) inbound logistics
B) operations/manufacturing
C) outbound logistics
D) sales and marketing

Question 63

Ben is in charge of the delivery process at a local store.After going through the week's delivery schedule,he calls his team and assigns territories for each individual.He contacts the supervisor to arrange the necessary transport.Which activity of the value chain is Ben executing?

A) marketing
B) inbound logistics
C) outbound logistics
D) operations

Question 64

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 65

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 66

Which activity of the value chain includes ordering and receiving raw materials for manufacturing?

A) inbound logistics
B) operations
C) outbound logistics
D) marketing

Question 67

The difference between the total value added and the total costs incurred is called the ________ of the value chain.

A) revenue
B) break-even point
C) total margin
D) total premium

Question 68

Staples sells office supplies and machines,furniture,and technology 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 69

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

A) margin
B) revenue
C) break-even point
D) value-addition point

Question 70

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.

Question 71

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 72

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

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

Question 73

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 74

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

A) formulating the business process
B) formulating a competitive strategy
C) determining the industry structure
D) determining the value chain structure

Question 75

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 76

Which of the following is a support activity in the value chain that includes activities within the firm for developing new techniques,methods,and procedures?

A) technology
B) human resources
C) firm infrastructure
D) procurement

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

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

A) margin
B) value
C) premium
D) cost

Question 79

Which of the following is a support activity in the value chain?

A) receiving inputs for production
B) distributing products to buyers
C) helping customers use a product
D) negotiating prices with vendors

Question 80

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