Question 1

Data is information that has been processed in some way.

Accepted Answer

Information is data that has been processed in some way.Information is data that have a particular meaning within a specific context.

Question 2

Your business had two strategic initiatives this year.One initiative focused on improving customer satisfaction.The second focused on providing customers with their purchase history from any Internet site in the world.If you were to allocate 15% of your IT budget to the first initiative and 25% to the second initiative,what type of strategy are you applying?

Accepted Answer

The run-grow-transform (RGT)framework is an approach in which you allocate in terms of percentages how you will spend your IT dollars on various types of business strategies.

Question 3

Doodle Corp.wants to increase customer loyalty toward its currently one-of-a-kind software,Bonkers EP.It does so by offering additional services like automatic updates and free upgrades.Which of the following forces in Porter's model is Doodle Corp.addressing in this situation?

Accepted Answer

The threat of new entrants in the Five Forces Model is high when it is easy for new competitors to enter a market,and low when there are significant entry barriers to entering a market.

Question 4

In the soft drink industry,Coca Cola,Pepsi,and Dr Pepper Snapple Group would be categorized under which of the following forces in Porter's model?

Accepted Answer

The rivalry among existing competitors in the Five Forces Model is high when competition is fierce in a market,and low when competition is more complacent.

Question 5

Under the RGT framework,which of the following strategies innovates business processes and/or products and services in a completely new way,moving into seemingly different markets?

Accepted Answer

"Transform" innovates business processes and/or products and services in a completely new way,moving into seemingly different markets,and so on.It seeks organizational growth through new and different means.

Question 6

A statement that the average daily wage of all the construction workers in New York is $350 is an example of information.

Accepted Answer

Information is data that have a particular meaning within a specific context.The current temperature becomes information if you're deciding what to wear;in deciding what to wear,the data describing the price of a movie rental are not pertinent information (and therefore only data in that context).

Question 7

Carrio Arrento,a car rental company,operates in two cities and offers low-rental cars specifically to college students from these areas.This is an example of a(n)_______.

Accepted Answer

Focus as a strategy is usually defined as focusing on offering products and services (1)to a particular market segment or buyer group, (2)within a segment of a product line,and/or (3)to a specific geographic market.

Question 8

The "run" strategy in the RGT framework is similar in many ways to which of Porter's generic strategies?

Accepted Answer

The RGT framework is similar in many ways to Porter's three generic strategies: "Run" is similar to overall cost leadership,"Grow" is similar to focus and differentiation,and "Transform" is similar to (new)differentiation.

Question 9

The three important organizational resources involved in management information systems include - information,information technology,and people.

Accepted Answer

MIS deals with the coordination and use of three very important organizational resources-information,people,and information technology.People use information technology to work with information.

Question 10

Under the RGT framework,which of the following strategies applies to a business that offers products and services faster and cheaper than the competition?

Accepted Answer

"Run" optimizes the execution of activities and processes already in place.It seeks organizational growth through offering products and services faster and cheaper than the competition.

Question 11

According to Porter's Five Forces Model,the rivalry among existing competitors is high when:

Accepted Answer

The rivalry among existing competitors in the Five Forces Model is high when competition is fierce in a market,and low when competition is more complacent.Simply put,competition is more intense in some industries than in others,although the overall trend is toward increased competition in just about every industry.

Question 12

Mary wishes to upgrade her current home communications system.She wants to replace her current Internet,TV,and phone to a fiber optics system.As a buyer,Mary needs to consider the ___.

Accepted Answer

Ideally,your organization would like to be a supplier organization in a market in which there are few substitutes for the products and services you offer.Of course,that's seldom possible in any market today,but you can still create a competitive advantage by increasing switching costs.Switching costs are costs that make customers reluctant to switch to another product or service supplier.What you need to realize is that a switching cost does not necessarily have to be an actual monetary cost.

Question 13

Data and information are the same.

Accepted Answer

Data are raw facts that describe a particular phenomenon whereas information is data that have a particular meaning within a specific context.

Question 14

Under the RGT framework,which of the following strategies applies to a business that increases their customer base by taking it from the competition?

Accepted Answer

"Grow" increases market reach,product and service offerings,expand market share,and so on.It seeks organizational growth by taking market share from the competition (i.e. ,get a bigger piece of the pie).

Question 15

If you were to create a unique industry Web site for your customers that allowed them to build virtual communities with other customers by sharing information,how would you be enhancing your competitive strategy?

Accepted Answer

Differentiation is defined by Porter as offering a product or service that is perceived as being "unique" in the marketplace.

Question 16

_____ is defined by Porter as offering the same or better quality product or service at a price that is less than what any of the competition is able to do.

Accepted Answer

Overall cost leadership is defined by Porter as offering the same or better quality product or service at a price that is less than what any of the competition is able to do.

Question 17

Which of the following auto manufacturers use an overall cost leadership strategy?

Accepted Answer

Automobile makers Hyundai and Kia similarly attempt to sell reliable low-cost vehicles to a wide audience,in contrast to Rolls-Royce,Aston Martin,Hummer and Mercedes-Benz which have no overall cost leadership strategy.

Question 18

Management information systems deal with the use of information technology tools to help people perform tasks related to information processing.

Accepted Answer

Management information systems (MIS)deals with the planning for,development,management,and use of information technology tools to help people perform all tasks related to information processing and management.

Question 19

_____ is an approach in which you allocate in terms of percentages how you will spend your IT dollars on various types of business strategies.

Accepted Answer

A helpful conceptual framework for viewing the bigger organizational picture and determining the use of IT in it is the run-grow-transform (RGT)framework,an approach in which you allocate in terms of percentages how you will spend your IT dollars on various types of business strategies.

Question 20

Which of the following has the highest threat of substitution?

Accepted Answer

The threat of substitute products or services in the Five Forces Model is high when there are many alternatives to a product or service,and low when there are few alternatives from which to choose.

Quiz 1: The Information Age in Which You Live: Changing the Face of Business