Question 1

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
A) customer intimacy
B) operational excellence
C) survival
D) improved reporting
E) improved decision making

Accepted Answer

The firm is investing in order to comply with federal legislation, indicating that failure to invest could result in legal consequences or even business failure. Therefore, the primary objective of this investment is survival.

Question 2

Developing a new product, hiring a new employee, and fulfilling an order are examples of business processes.

Accepted Answer

These are all examples of business processes as they involve a series of interrelated tasks and activities that work towards achieving a specific outcome or goal in a business setting.

Question 3

Internet advertising is growing at approximately 15 percent a year.

Accepted Answer

According to a report by eMarketer, internet advertising spending is projected to grow at a rate of 14.7% in 2021.

Question 4

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

Accepted Answer

This statement is true. A business model encompasses the strategies and tactics a company uses to generate revenue and profits. It outlines the value proposition, target customers, distribution channels, pricing strategy, cost structure, and revenue streams of the business.

Question 5

An example of a business using information systems to attain operational excellence is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) Citibank's ATMs.

Accepted Answer

Wal-Mart's Retail Link system is an information system that allows the company to track inventory levels, sales data, and customer buying patterns in real-time. This allows the company to improve its supply chain management, reduce costs, and improve customer satisfaction through better product availability. Wal-Mart has been able to attain operational excellence through the use of this system, as evidenced by their ability to offer lower prices than their competitors while still maintaining high levels of profitability.

Question 6

The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
E) improved business value.

Accepted Answer

The answer of The six important business objectives of information...

Question 7

Which of the following objectives best describes the business strategy behind the technologies implemented by the San Francisco Giants, as discussed in the chapter case?
A) customer and supplier intimacy
B) survival
C) competitive advantage
D) customer support
E) operational excellence

Accepted Answer

The San Francisco Giants' implementation of innovative technologies, such as using data analytics to improve player performance and enhance the fan experience, is indicative of a strategy focused on gaining a competitive advantage in the highly competitive world of Major League Baseball.

Question 8

Which of the following are key corporate assets?
A) intellectual property, core competencies, and financial and human assets
B) production technologies and business processes for sales, marketing, and finance
C) knowledge and the firm's tangible assets, such as goods or services
D) time and knowledge
E) significant business relationships

Accepted Answer

Intellectual property, core competencies, and financial and human assets are all critical corporate assets that provide a competitive advantage and contribute to the success of the organization. Production technologies, business processes, knowledge, and tangible assets are also important, but they are only a subset of the broader categories identified in option A. Time and significant business relationships may also be valuable, but they are not typically considered key corporate assets on their own.

Question 9

Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise real-time information illustrates which business objective?
A) improved flexibility
B) improved decision making
C) competitive advantage
D) survival
E) customer and supplier intimacy

Accepted Answer

Verizon's use of a digital dashboard to provide real-time information is aimed at improving decision making.

Question 10

Investment in IT is 33% of all invested capital.

Accepted Answer

The answer of Investment in IT is 33% of all...

Question 11

An example of a business using information systems to create new products and services is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) the San Francisco Giants play tracking system.

Accepted Answer

Apple Inc.'s iPod was created using information systems technology. The iPod was a breakthrough innovation that allowed customers to carry around their entire music collection on a portable device, access digital music stores, and sync their music across different devices. Information systems were used to design, develop, and market the iPod to customers.

Question 12

The Mandarin Oriental hotel's use of computer systems to keep track of guests' preferences is an example of
A) improved flexibility.
B) improved decision making.
C) improved efficiency.
D) customer and supplier intimacy.
E) operational excellence.

Accepted Answer

The Mandarin Oriental hotel's use of computer systems to keep track of guests' preferences is a way to achieve customer intimacy, which involves developing a deeper understanding of each individual customer's needs and preferences in order to tailor offerings and strengthen the relationship.

Question 13

All of the following are advantages, for a firm, of cloud computing except
A) ability to support mobile computing.
B) ability to support remote work.
C) ability to improve communication.
D) ability to rely on markets to build value.
E) ability to reduce data storage costs.

Accepted Answer

The answer of All of the following are advantages, for...

Question 14

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?
A) improved efficiency
B) customer and supplier intimacy
C) survival
D) competitive advantage
E) improved decision making

Accepted Answer

The answer of The move of retail banking to use...

Question 15

An example of a business using information systems for customer and supplier intimacy is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) Citibank's ATMs.

Accepted Answer

The answer of An example of a business using information...

Question 16

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
A) invest in technology.
B) assemble accurate data.
C) invest in complementary assets.
D) modernize their information value chain.
E) adopt a new business model.

Accepted Answer

The answer of Apple Computer dominates the online legal music...

Question 17

The use of information systems because of necessity describes the business objective of
A) operational excellence.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.
E) survival.

Accepted Answer

The use of information systems because of necessity implies that the business needs to implement these systems in order to survive. This objective is focused on the basic needs of the business, rather than strategic goals such as gaining a competitive advantage or improving business practices. Therefore, the best choice is E - survival.

Question 18

A fully digital firm produces only digital goods or services.

Accepted Answer

The answer of A fully digital firm produces only digital...

Question 19

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective?
A) customer and supplier intimacy
B) survival
C) operational excellence
D) improved decision making
E) new products and services

Accepted Answer

The answer of The temp agency that you own is...

Question 20

Which of the following choices may lead to competitive advantage?
1) new products, services, and business models; 2. charging less for superior products; 3. responding to customers in real time?
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3

Accepted Answer

Developing new products, services, and business models and responding to customers in real time are both ways to differentiate from competitors and create value for customers. Charging less for superior products may also create a competitive advantage, but it is not guaranteed to be sustainable in the long run. Therefore, choices 1 and 3 are the best options for creating a competitive advantage.

Quiz 1: Information Systems in Global Business Today

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?

Developing a new product, hiring a new employee, and fulfilling an order are examples of business processes.

Internet advertising is growing at approximately 15 percent a year.

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

An example of a business using information systems to attain operational excellence is

The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and

Which of the following objectives best describes the business strategy behind the technologies implemented by the San Francisco Giants, as discussed in the chapter case?

Which of the following are key corporate assets?

Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise real-time information illustrates which business objective?

Investment in IT is 33% of all invested capital.

An example of a business using information systems to create new products and services is

The Mandarin Oriental hotel's use of computer systems to keep track of guests' preferences is an example of

All of the following are advantages, for a firm, of cloud computing except

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?

An example of a business using information systems for customer and supplier intimacy is

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to

The use of information systems because of necessity describes the business objective of

A fully digital firm produces only digital goods or services.

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective?

Which of the following choices may lead to competitive advantage? 1) new products, services, and business models; 2. charging less for superior products; 3. responding to customers in real time?