Question 1

IT governance aims to add value while ______:
A)Balancing risk versus return over IT and its processes.
B)Maximizing profit.
C)Minimizing cost.
D)Creating a friendly environment

Accepted Answer

IT governance involves balancing the risks and returns of IT processes in order to maximize value and ensure alignment with organizational objectives. Maximizing profit or minimizing cost may be important considerations, but they are not the sole focus of IT governance. Creating a friendly environment may be a desirable outcome of good governance practices, but it is not the primary aim.

Question 2

Southwest Airlines' low-cost, short-haul strategy is an example of which strategy for competitive advantage?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

The answer of Southwest Airlines' low-cost, short-haul strategy is an...

Question 3

Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

Operational effectiveness involves improving the internal business processes of an organization to enhance efficiency and productivity, ultimately leading to a competitive advantage. Cost leadership focuses on reducing costs, differentiation focuses on providing unique products or services, innovation involves introducing new products or services, and customer-orientation involves providing superior customer service.

Question 4

When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness
E)Customer-orientation

Accepted Answer

Amazon's use of customer data to personalize the user experience is an example of customer-orientation strategy. By welcoming the user back by name, Amazon is demonstrating its commitment to understanding and meeting the needs of its customers.

Question 5

Which of the following is not an example of business - IT alignment?
A)The company goals are clear to every IT and business employee.
B)The company ensures that IT employees understand how the company makes money.
C)The company views IT as a way to support the business but not as a way to create new revenue streams.
D)IT professionals rotate into business departments.
E)The company views customer service as extremely important.

Accepted Answer

Option C states that the company views IT as a way to support the business but not as a way to create new revenue streams. However, business-IT alignment is about ensuring that IT goals and objectives are aligned with overall business goals and objectives, including the generation of revenue. Therefore, option C does not align with the concept of business-IT alignment. The other options are examples of business-IT alignment.

Question 6

Alignment between IT and business is characterized by a __________ of the IT function with strategy, mission, and goals of the organization.
A)tight integration
B)loose integration
C)replacement
D)upgrade

Accepted Answer

Tight integration means the IT function is closely connected with the organization's overall strategy, mission, and goals. This alignment ensures that technology investments and solutions are directly supporting the business objectives and delivering value. Loose integration, on the other hand, means the IT function is not directly connected with the organization's strategy, mission, and goals, leading to technology solutions that may not be relevant or effective. Replacement and upgrade do not relate to the alignment between IT and business.

Question 7

In the airline industry, ________ is an example of differentiation strategy as it offers regional service at low cost.
A)Air Canada
B)Air Quebec
C)WestJet
D)EastJet

Accepted Answer

WestJet offers regional service at low cost which is an example of differentiation strategy.

Question 8

The bargaining power of buyers is ___________ when buyers have many choices and ________ when buyers have few choices.
A)High, high
B)High, low
C)Low, low
D)Low, high

Accepted Answer

When buyers have many choices, they can easily switch to alternative products or services, and this increases their bargaining power. On the other hand, when buyers have few choices, they are more likely to accept the available options and have less bargaining power. Therefore, the best answer is B, where the first blank represents high and the second blank represents low.

Question 9

Alignment between IT and business is difficult because ________.
A)the objectives of business managers and IT managers are so comprehensive.
B)the business and IT departments know little of the other group's expertise.
C)communicate well but find it hard to implement projects that are discussed.
D)All of the above are reasons alignment is difficult.

Accepted Answer

The answer of Alignment between IT and business is difficult...

Question 10

Which of the following is NOT a characteristic of excellent alignment between IT and business?
A)Organizations create a vibrant and inclusive company culture.
B)Organizations ensure business and IT professionals communicate solely from their area of expertise.
C)Organizations ensure that IT employees understand how the company makes (or loses)money.
D)Organizations view their internal and external customers and their customer service function as supremely important.

Accepted Answer

Excellent alignment between IT and business involves effective communication between professionals from both disciplines. It is important for them to communicate in a way that is tailored to the listener's level of understanding, which may involve avoiding technical jargon or providing additional context. However, communicating "solely from their area of expertise" would not promote this kind of effective communication and collaboration.

Question 11

Porter's _____ help(s)companies identify general strategies, whereas his _____ help(s)to identify specific activities where companies can use the strategies for greatest impact.
A)Value chain model, competitive forces model
B)Primary activities, support activities
C)Competitive forces model, primary activities
D)Competitive forces model, value chain model
E)Value chain model, support activities

Accepted Answer

Porter's competitive forces model helps companies identify general strategies by analyzing the external factors affecting their industry, while his value chain model helps to identify specific activities within the company where they can create the most value and gain the greatest competitive advantage.

Question 12

The threat of substitute products or services is _______ when there are many substitutes for an organization's products or services and ________ when there are few substitutes.
A)High, high
B)High, low
C)Low, low
D)Low, high

Accepted Answer

A high threat of substitute products or services exists when there are many substitutes available for an organization's products or services, as consumers have more options to choose from. This leads to increased competition and price sensitivity. Conversely, a low threat of substitutes occurs when there are few substitutes available, making it easier for the organization to maintain its market share and pricing power.

Question 13

___________ is a website where potential donors can decide where their money can be directed, stating whether it goes to a particular disaster relief fund.
A)GiftFlow.org
B)RedCross.ca
C)Microsoft.ca
D)Kiva.org

Accepted Answer

RedCross.ca is associated with the Canadian Red Cross, which is involved in disaster relief and allows donors to specify where their contributions should be directed, including to specific disaster relief efforts.

Question 14

Which strategy for competitive advantage improves the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals?
A)Cost leadership
B)Differentiation
C)Innovation
D)Operational effectiveness

Accepted Answer

The strategy for competitive advantage that improves the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals is operational effectiveness. This involves optimizing internal processes and systems to increase efficiency, reduce costs, and improve quality. This strategy can lead to cost savings that can be passed on to customers or reinvested in the business to improve competitiveness.

Question 15

The internet ________ buyers' access to information, __________ buyer power.
A)Decreases, decreasing
B)Decreases, increasing
C)Increases, decreasing
D)Increases, increasing

Accepted Answer

With the advent of the internet, buyers have access to a vast amount of information, which increases their bargaining power. Therefore, the correct answer is D, which indicates that the internet both increases buyers' access to information and increasing buyer power.

Question 16

Which of the following is not a cause of inadequate alignment between IT and business?
A)A lack of communication
B)Different objectives
C)Not understanding each group's expertise
D)Lack of IT knowledge on the part of the business executives
E)Lack of funds

Accepted Answer

While a lack of funds can certainly impact the level of alignment between IT and business, it is not considered a cause of inadequate alignment in and of itself. The other options listed (lack of communication, different objectives, not understanding each group's expertise, and lack of IT knowledge on the part of business executives) are all key contributors to alignment challenges.

Question 17

IT will impact managers' jobs in all of the following ways except:
A)Managers will have time to get into the field
B)Managers can spend more time planning
C)Managers can spend more time "putting out fires"
D)Managers can gather information more quickly
E)None of these

Accepted Answer

IT (Information Technology) enables managers to be more efficient and effective in their roles. It helps in quick information gathering (D) and provides tools for better planning (B), thus allowing managers more time to engage in strategic activities or fieldwork (A). The phrase "putting out fires" refers to dealing with emergencies or urgent problems, which ideally should decrease with the effective use of IT for planning and problem-solving, making option C the correct answer as it does not align with the positive impacts of IT on managerial jobs.

Question 18

The Lululemon Athletica Inc.( HYPERLINK "http://www.lululemon.com" www.lululemon.com)focused on creating:
A)Brand environment
B)Culture of high quality
C)Uniqueness
D)enhanced customer service with IT
E)All of the above

Accepted Answer

Lululemon Athletica Inc. focuses on creating a brand environment, culture of high quality, uniqueness, and enhanced customer service with IT. Therefore, all of the above options are the best choice(s).

Question 19

According to "The Internet Facilitates Generosity" case, what is the order in which people most readily share?
A)Information, Physical goods, Time
B)Information, Time, Physical goods
C)Time, Information, Physical goods
D)Time, Physical goods, Information

Accepted Answer

According to the case, people most readily share information, followed by time and then physical goods. Therefore, option B is the correct order.

Question 20

The rivalry among firms in an industry is __________ when there is fierce competition and ___________ when competition is among fewer firms.
A)High, high
B)High, low
C)Low, low
D)Low, high

Accepted Answer

Rivalry is high when there is fierce competition among many firms and low when competition is among fewer firms.

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

IT governance aims to add value while ______:

Southwest Airlines' low-cost, short-haul strategy is an example of which strategy for competitive advantage?

Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes?

When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage?

Which of the following is not an example of business - IT alignment?

Alignment between IT and business is characterized by a __________ of the IT function with strategy, mission, and goals of the organization.

In the airline industry, ________ is an example of differentiation strategy as it offers regional service at low cost.

The bargaining power of buyers is ___ when buyers have many choices and when buyers have few choices.

Alignment between IT and business is difficult because ________.

Which of the following is NOT a characteristic of excellent alignment between IT and business?

Porter's _ help(s) companies identify general strategies, whereas his _ help(s) to identify specific activities where companies can use the strategies for greatest impact.

The threat of substitute products or services is _ when there are many substitutes for an organization's products or services and __ when there are few substitutes.

___________ is a website where potential donors can decide where their money can be directed, stating whether it goes to a particular disaster relief fund.

Which strategy for competitive advantage improves the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals?

The internet buyers' access to information, __ buyer power.

Which of the following is not a cause of inadequate alignment between IT and business?

IT will impact managers' jobs in all of the following ways except:

The Lululemon Athletica Inc.( HYPERLINK "http://www.lululemon.com" www.lululemon.com) focused on creating:

According to "The Internet Facilitates Generosity" case, what is the order in which people most readily share?

The rivalry among firms in an industry is when there is fierce competition and _ when competition is among fewer firms.