Question 1

Which of the following is a characteristic of excellent business-information technology alignment?&#10;A) Organizations consider customer service to be a secondary function.&#10;B) Organizations create a culture that makes each department autonomous.&#10;C) Organizations want their information technology employees to focus on their jobs than focus on their functional departments.&#10;D) Organizations view information technology as an engine of innovation that continually transforms the business, often creating new revenue streams.

Accepted Answer

Excellent business-information technology alignment involves viewing information technology as a key driver of innovation and business transformation, which can lead to the creation of new revenue streams. A focus on customer service and collaboration between departments is also essential, but the emphasis on innovation and revenue generation is a key characteristic of alignment. Options A, B, and C are not indicative of a successful alignment between business and technology.

Question 2

There are six characteristics of excellent business-information technology alignment.

Accepted Answer

The six characteristics of excellent business-information technology alignment are clear understanding of business strategy, strong leadership, effective communication, shared goals and objectives, joint accountability, and mutual respect and trust.

Question 3

Which of the following can create business pressures on organizations?&#10;A) Effective management restructuring&#10;B) Cost reductions&#10;C) Significant changes in political factors&#10;D) Quality control

Accepted Answer

Significant changes in political factors can create business pressures on organizations by altering regulatory environments, affecting trade policies, and impacting economic conditions. Choices A, B, and D are typically responses to business pressures rather than causes of them.

Question 4

All of the following are strategies for competitive advantage except _____.&#10;A) Differentiation&#10;B) Innovation&#10;C) Operational effectiveness&#10;D) Customer leadership

Accepted Answer

Customer leadership is not a commonly recognized strategy for achieving competitive advantage. Instead, companies generally focus on differentiation (offering a unique product or service), innovation (introducing new and improved products or processes), and operational effectiveness (streamlining internal processes to reduce costs and improve quality) to gain an edge over their competitors.

Question 5

Competitive advantage refers to the wide gap between those individuals who have access to information and communications technology and those who do not.

Accepted Answer

Competitive advantage refers to the attributes that allow an organization to outperform its competitors, not the gap in technology access, which is described as the digital divide.

Question 6

STriVR Labs and EON Sports provide virtual reality experiences for professional, college, and high school football programs.

Accepted Answer

Both STriVR Labs and EON Sports provide virtual reality experiences for football programs.

Question 7

Which of the following are two strategies that a company can use to gain a competitive advantage?&#10;A) Customer orientation strategy and operational effectiveness strategy&#10;B) Protection strategy and innovation strategy&#10;C) Mass customization strategy and cost leadership strategy&#10;D) Compliance strategy and innovation strategy

Accepted Answer

Customer orientation strategy focuses on understanding and meeting the needs and wants of customers better than competitors, while operational effectiveness strategy involves improving efficiency and productivity to reduce costs and improve quality. By combining these two strategies, a company can create a competitive advantage by delivering superior value to customers at a lower cost. Option B is incorrect because protection strategy does not help a company gain a competitive advantage as it involves protecting existing market share rather than growing it. Option C is incorrect because mass customization strategy and cost leadership strategy are not mutually exclusive and can be combined to create a competitive advantage, but they are not the only strategies available. Option D is incorrect because compliance strategy is necessary for legal and ethical reasons, but it does not help a company gain a competitive advantage.

Question 8

According to Michael Porter, the Web _____ competition, which generally _____ a firm's profitability.&#10;A) increases; increases&#10;B) increases; decreases&#10;C) decreases; increases&#10;D) decreases; decreases

Accepted Answer

Michael Porter argued that the Web increases competition by making it easier for new entrants to enter the market and for existing competitors to expand their offerings. This increased competition generally leads to a decrease in a firm's profitability, as firms must spend more to differentiate themselves and attract customers.

Question 9

Which of the following is a major type of business pressure?&#10;A) Market&#10;B) Ethics&#10;C) Globalization&#10;D) Industrialization

Accepted Answer

Market pressure refers to the pressure businesses face to maintain their market share, meet customer demands, and stay competitive in the industry. This is a major type of business pressure. Ethics, globalization, and industrialization are also important factors that affect businesses, but they are not considered major types of business pressure.

Question 10

Cost leadership strategy is one of the strategies to gain a competitive advantage.

Accepted Answer

Cost leadership strategy involves being the lowest cost producer in the industry, which allows a company to offer lower prices to customers and thus gain a competitive advantage.

Question 11

Any information system can provide a competitive advantage if it is used properly.

Accepted Answer

The answer of Any information system can provide a competitive...

Question 12

Which of the following is an example of a technology pressure faced by businesses?&#10;A) Globalization&#10;B) Powerful customers&#10;C) Information overload&#10;D) Social responsibility

Accepted Answer

The answer of Which of the following is an example...

Question 13

Which of the following are organizational responses to various business pressures? (select all that apply)&#10;A) Information overload&#10;B) Strategic systems&#10;C) Social responsibility&#10;D) Mass customization&#10;E) Globalization

Accepted Answer

The answer of Which of the following are organizational responses...

Question 14

Which of the following pressures do businesses mostly experience?&#10;A) The pressure to contribute to their communities&#10;B) The pressure to outsource employees&#10;C) The pressure of information overload&#10;D) The pressure to be politically correct

Accepted Answer

The answer of Which of the following pressures do businesses...

Question 15

According to Porter's Value Chain Model, which of the following are considered support activities? (select all that apply)&#10;A) Procurement&#10;B) Operations&#10;C) Marketing and sales&#10;D) Customer service&#10;E) Product and technology development

Accepted Answer

The answer of According to Porter's Value Chain Model, which...

Question 16

Many economists classify the financial crisis of 2002 as the worst financial crisis since the Great Depression of the 1930s.

Accepted Answer

The answer of Many economists classify the financial crisis of...

Deck 2: Organizational Strategy, Competitive Advantage, and Information Systems