Deck 2: Decision and Processes: Value Driven Business

Question 1

Effectiveness MIS metrics include throughput, transaction speed, and system availability.

Answer 1

False
Explanation: Efficiency MIS metrics include throughput, speed, and availability.

Question 2

Measuring the amount of website traffic is the best way to determine a website's success.

Answer 2

False
Explanation: A large amount of website traffic does not indicate large revenues or website success.

Question 3

Intelligent systems are various commercial applications of artificial intelligence.

Answer 3

True
Explanation: Intelligent systems are various commercial applications of artificial intelligence

Question 4

MIS support systems rely on models for computational and analytical routines that mathematically express relationships among variables.

Question 5

Benchmarks are baseline values the system seeks to attain.

Question 6

Operational decisions or semistructured decisions arise in situations where established processes offer potential solutions.

Question 7

The manipulation of information to create business intelligence in support of strategic decision making is referred to as OLTP, or online transaction processing.

Question 8

Investment companies use genetic effectiveness metrics to help in trading decisions.

Question 9

Key performance indicators can focus on external and internal measurements.

Question 10

Sensitivity analysis, what-if analysis, optimization analysis, and market basket analysis are the common DSS analysis techniques.

Question 11

One of the most important and challenging question confronting managers today is how to lay the foundation for tomorrow's success while competing to win in today's business environment.

Question 12

At the strategic decision-making level, employees develop, control, and maintain core business activities.

Question 13

Managers use transactional information when making structured decisions at the operational level.

Question 14

The construction of a new city subway station and the processing of monthly payroll are both considered types of projects as defined in your text.

Question 15

The proportion of the market that a firm captures is called market share.

Question 16

The structure of a typical organization is similar to a pyramid, with different levels that require one consistent type of information to assist with all managerial decision making.

Question 17

Digital dashboards offer consolidation, drill-down, and slice-and-dice capabilities.

Question 18

A neural network is a category of efficiency metrics where it attempts to measure the way the human brain works.

Question 19

Streamlining information encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions.

Question 20

Unstructured decisions occur in situations in which no procedures or rules exist to guide decision makers toward the correct choice.

Question 21

Which of the following is an important challenge facing managers today?

A)Making business decision
B)Solving business problems
C)Competing to win in today's market
D)All of these

Question 22

Improving the efficiency and effectiveness of its business processes will improve a firm's value chain.

Question 23

At Microsoft's headquarters, to eliminate congestion and save on other business expenses, the company offered employees the option to work virtually from home.

Question 24

A business management system is a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint.

Question 25

Redundancy occurs when a task or activity is never repeated.

Question 26

Business process management systems evaluate and improve processes that include both person-to-person workflow and system-to-system communications.

Question 27

Business-facing processes, or back-office processes, are invisible to the external customer but essential to the effective management and operation of the business.

Question 28

Which of the following is not considered a challenge facing most managers today?

A)Managerial decisions must be made quickly.
B)Strategic decisions need to be made by applying analysis techniques.
C)Artificial intelligence is required by all managers to be successful.
D)Managerial decisions require large amounts of information to analyze.

Question 29

Business process reengineering is the analysis and redesign of workflow within and between enterprises.

Question 30

Which of the following is not included in the decision-making process?

A)Data collection
B)Solution benchmarking
C)Solution generation
D)Solution test

Question 31

The primary goal of an As-Is process model is to simplify, eliminate, and improve the To-Be processes.

Question 32

What must managers be able to do to compete in today's global marketplace?

A)Make decisions to gain competitive advantages
B)Make decision that can help forecast future business needs
C)Make decision that can help forecast future business requirements
D)All of these

Question 33

Strategic planning is a customer-facing business process.

Question 34

Business processes should never drive MIS choices and should be based on business strategies and goals.

Question 35

A shopping bot is one of the simplest examples of an intelligent agent.

Question 36

Product delivery is a customer-facing business process.

Question 37

When evaluating the five steps in the order-to-delivery business process, step one includes creating a campaign and checking inventory, which are both part of the sales function.

Question 38

BPM systems include advanced features such as enhanced process modeling, simulation, execution, and monitoring, providing a high level of flexibility while reducing costs.

Question 39

To-Be process models show the results of applying change improvement opportunities to the current (As-Is) process model.

Question 40

Which of the following is a not a type of organizational information system?

A)Executive information system
B)Decisions support system
C)Analysis processing system
D)Transactional processing system

Question 41

When evaluating the six-step decision making process, what occurs during the solution test step?

A)The process will begin again if the decisions made were incorrect.
B)The problem is defined as clearly and precisely as possible.
C)The details are presented of every solution possible, including ideas that seem far-fetched.
D)None of these

Question 42

Which of the following represents the three different levels of a company pyramid from the top to the bottom?

A)Managerial-strategic-operational
B)Strategic-managerial-operational
C)Operational-managerial-strategic
D)Strategic-operational-managerial

Question 43

Andy Benton works at the local Starbucks coffee shop, and his responsibilities include taking orders, fulfilling orders, and ringing in sales.At what level of the organizational pyramid would you categorize Andy?

A)Strategic
B)Owner
C)Operational
D)Managerial

Question 44

Which of the following key terms represents the types of decisions made at the operational, managerial, and strategic levels of a company?

A)Structured decisions
B)Unstructured decisions
C)Semistructured decisions
D)All of these

Question 45

When evaluating the six-step decision making process, what occurs during the solution selection step?

A)The process will begin again if the decisions made were incorrect.
B)The problem is defined as clearly and precisely as possible.
C)The details are presented of every solution possible, including ideas that seem far-fetched.
D)The solution that best solves the problem is selected.

Question 46

Which of the following is not considered a part of decision making at the managerial level?

A)Developing overall business goals and objectives
B)Creating a short-term budget
C)Allocating resources to a department
D)Monitoring performance of a project team

Question 47

Jenny Welch works at a retail store selling sports equipment.Her daily tasks include opening the store, creating the work schedules, processing payroll, overseeing sales and inventory, and training employees.At what level of the organizational pyramid would you categorize Jenny?

A)Managerial
B)Operational
C)Strategic
D)Owner

Question 48

CSFs and KPIs are two core metrics used to evaluate results and measure the progress of a project for a business.Which of the following represents the acronyms for CSF and KPI?

A)Continual success factors and key performance indicators
B)Critical success factors and key project ideas
C)Customer success findings and key project ideas
D)Critical success factors and key performance indicators

Question 49

Review the following statements.Which one does not represent an example of a structured decision?

A)Reordering inventory
B)Deciding to enter a new market
C)Creating the employee weekly staffing schedule
D)Creating the employee weekly production schedule

Question 50

Which of the following would you include as decisions and responsibilities typically found at the managerial level of a company?

A)Monthly plans
B)Monthly budgets
C)Weekly schedule
D)All of these

Question 51

Bill Schultz works at a high-power investment firm in Los Angeles.Bill is responsible for promoting the firm's vision and creating the companywide goals and strategies.He also monitors the overall strategic performance of the company and its direction for future business strategies.At what level of the organizational pyramid would you categorize Bill?

A)Strategic
B)Owner
C)Operational
D)Managerial

Question 52

The level where managers develop overall business strategies and monitor the performance of the organization and the competitive business environment is the ___________ level.

A)Operational
B)Strategic
C)Managerial
D)Communications

Question 53

Chuck Norris has been hired to oversee all of the plans that the city of Denver has created to expand its train transportation system by adding six more lines to the metro area.Chuck will be responsible for planning the project, managing the processes, and finalizing each new line as it is completed.How would you categorize the majority of the decisions Chuck will have to make to complete his job?

A)Unstructured decisions
B)Semistructured decisions
C)Structured decisions
D)Strategic decisions

Question 54

When evaluating the six-step decision making process, what occurs during the solution implementation step?

A)The process will begin again if the decisions made were incorrect.
B)The problem is defined as clearly and precisely as possible.
C)The details are presented of every solution possible, including ideas that seem far-fetched.
D)The solution that best solves the problem is selected.

Question 55

Which of the following represents the structure of a typical organization?

A)Flat line
B)Pyramid
C)Circle
D)Cube

Question 56

When evaluating the six-step decision making process, what occurs during the problem identification step?

A)The process will begin again if the decisions made were incorrect.
B)The problem is defined as clearly and precisely as possible.
C)The details are presented of every solution possible, including ideas that seem far-fetched.
D)The solution that best solves the problem is selected.

Question 57

What are measurements that evaluate results to determine whether a project is meeting its goals?

A)Models
B)Metrics
C)Benchmarks
D)Genetic algorithms

Question 58

Data collection, solution generation, and solution implementation are all concepts associated with the _________________.

A)The six-step problem-solving process
B)The six-step decision-making process
C)The four-step problem-solving process
D)The four-step decision-making process

Question 59

Review the following key terms.Which one defines an operational decision that involves situations where established processes offer potential solutions?

A)Optimization analysis decision
B)Artificial intelligence decision
C)Structured decision
D)Unstructured decision

Question 60

Which of the following would you include as decisions and responsibilities typically found at the operational level of a company?

A)Develop core business activities required to run the day-to-day operations
B)Control core business activities required to run the day-to-day operations
C)Maintain core business activities required to run the day-to-day operations
D)All of these

Question 61

According to Peter Drucker, what are managers who do the right things addressing?

A)Efficiency
B)Effectiveness
C)Both efficiency and effectiveness
D)Customer satisfaction only

Question 62

Todd Haitz is the marketing manager for the National Basketball Association.Todd analyzes and tracks his marketing campaigns to determine the best success rate per project for increasing ticket sales.Todd uses an internal KPI to track his marketing campaign success.Which of the following would be an internal KPI Todd would use to track his marketing campaigns?

A)Marketing campaign ROI
B)Marketing campaign percentage of fans purchasing Sports Illustrated magazine
C)Marketing campaign advertiser revenue sales
D)Marketing campaign market share

Question 63

What is measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer?

A)Usability
B)Customer satisfaction
C)Financial
D)Conversion rates

Question 64

What type of measurement is using market share as a KPI?

A)Fuzzy logic measurement
B)External measurement
C)Neural network measurement
D)Internal measurement

Question 65

Market share measures a firm's external performance relative to that of its competitors.Which of the following represents how a firm measures market share?

A)Multiplying the firm's sales by the industries total sales
B)Dividing the firm's sales by the total market sales for the entire industry
C)Subtracting your competitors sales from your total sales
D)Subtracting the industries total sales from the firm's total sales

Question 66

Anne-Marie Cole runs the sales division for a local auto insurance firm.One of her key duties is to calculate her company's market share.When evaluating the prior year numbers, she found that her firm achieved total sales of $3 million and the entire industry had $30 million in sales.What is Anne-Marie's current market share?

A)1%
B)10%
C)18%
D)20%

Question 67

Which of the following is a type of efficiency MIS metric?

A)Customer satisfaction
B)Conversion rates
C)Financial transactions
D)Web traffic

Question 68

Which of the following is a type of effectiveness MIS metric?

A)Transaction speed
B)System availability
C)Usability
D)Throughput

Question 69

What are the crucial steps companies perform to achieve their goals and objectives and implement their strategies?

A)Critical success factors
B)Crucial success factors
C)Key performance indicators
D)Key performance factors

Question 70

What could a manager use to measure the success of an MIS project?

A)Effectiveness MIS metrics, efficiency MIS metrics
B)Effectiveness MIS metrics, expert MIS metrics
C)Expert MIS metrics, executive MIS metrics
D)All of these

Question 71

Which of the following statements is accurate?

A)Key performance indicators can have no more than four critical success factors.
B)Critical success factors can have no more than four key performance indicators.
C)Key performance indicators can have several critical success factors.
D)Critical success factors can have several key performance indicators.

Question 72

Which term is used to describe the ease with which people perform transactions and/or find information?

A)Usability
B)Customer satisfaction
C)Financial
D)Conversion rates

Question 73

CSFs and KPIs are the two core metrics used within a business to track progress or success.What is the relationship between CSFs and KPIs?

A)CSFs are business strategy elements, where KPIs measure the progress of the CSFs.
B)CSFs build the business environment, where KPIs explain how to build the CSFs.
C)KPIs are used first, where CSFs are applied after.
D)KPIs promote employees on their performance, where CSFs demote employees based on their performance level.

Question 74

Which of the following is an example of a critical success factor?

A)Increase customer satisfaction
B)Number of new customers
C)Number of new products
D)Percentage of employee turnover

Question 75

According to Peter Drucker, what are managers who do things right addressing?

A)Efficiency
B)Effectiveness
C)Both efficiency and effectiveness
D)Customer satisfaction only

Question 76

Anne-Marie Cole runs the sales division for a local auto insurance firm.One of her key duties is to ensure the company has 10 percent market share by the end of the year.When evaluating the current sales numbers she determines that her sales division has total sales of $3 million and the entire industry has total sales of $50 million.What additional sales must Anne-Marie's division meet to ensure they have 10 percent of the market by the end of the year?

A)$1 million
B)$2 million
C)$5 million
D)$10 million

Question 77

Which of the following represents an internal KPI that indicates the earning power of a project?

A)Market share
B)Return on intelligent
C)Sensitivity analysis
D)Return on investment

Question 78

What types of metrics measure customer satisfaction?

A)Efficiency MIS metrics
B)Effectiveness MIS metrics
C)Both efficiency and effectiveness MIS metrics
D)Both ROI and market share

Question 79

Key performance indicators are the metrics a company uses to evaluate progress toward critical success factors.Which of the following represents a key performance indicator?

A)Creation of high-quality products
B)Reduction of product costs
C)Percentage of help desk calls answered in the first minute
D)Hiring the best business professionals

Question 80

What type of metrics measure throughput, transaction speed, and system availability?

A)Efficiency MIS metrics
B)Effectiveness MIS metrics
C)ROI
D)Benchmarks