Chapter 1 Strategic Business Objectives of Information Systems

lOMoARcPSD| 10757993 CHAPTER 1 1) Which of the following is not one of the six strategic business objectives of information systems? A) New products and services B) Improved decision making C) Improved community relations D) Competitive advantage E) Survival 2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following? A) Compliance with regulations B) Managerial decision making C) Efficiency in creation of new products D) Employee morale E) Intimacy with its suppliers 3) Which of the following 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 Answer: E 4) A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A) Operational excellence B) Improved decision making C) Competitive advantage D) Customer intimacy E) Survival 5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following? A) Improved flexibility B) Improved decision making C) Improved efficiency D) Customer intimacy E) Operational excellence 1 lOMoARcPSD| 10757993 6) Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case? A) Higher customer satisfaction levels B) Survival C) Improved employee morale D) Reduced delays in document management E) Reduced cost of supplies 7) Which of the following is an example of a business using information systems to improve customer and supplier intimacy? A) Walmart's Retail Link system B) The Mandarin Oriental's use of computers to keep track of guest preferences C) Verizon's use of a web-based digital dashboard to provide real-time company information for managers D) Apple's creation of the iPad E) PCL Construction's use of cloud computing 8) Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following? A) New products and services B) Operational efficiency C) Survival D) Customer intimacy E) Competitive advantage 9) To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) Customer intimacy B) Survival C) Operational excellence D) Improved decision making E) New products and services 10) All of the following are new technology-related trends in MIS except: A) cloud computing. B) big data. C) IoT. D) the mobile digital platform. E) co-creation of business value. 2 lOMoARcPSD| 10757993 11) Which of the following statements about digital firms is not true? A) In digital firms, time shifting and space shifting are the norm. B) Today, most firms are fully digital. C) Digital firms offer extraordinary opportunities for flexible global organization and management. D) Digital firms sense and respond to their environments more rapidly than traditional firms. E) Digital firms have more flexibility to survive in turbulent times. 12) A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective? A) Customer intimacy B) Operational excellence C) Survival D) Creation of new products E) Improved decision making 13) Which of the following is not one of the IT innovations changing the world of business today? A) IoT B) Big data C) The mobile digital platform D) Cloud computing E) Business intelligence 14) Which of the following is not one of the current changes taking place in information systems technology? A) Growing business use of big data B) Growth in cloud computing C) Growth in the PC platform D) Emerging mobile digital platform E) Increased usage of data generated by the Internet of Things 15) Thomas Friedman's description of the world as "flat" refers to: A) the flattening of economic and cultural advantages of developed countries. B) the use of the Internet and technology for instantaneous communication. C) the reduction in travel times and the ubiquity of global exchange and travel. D) the growth of globalization. E) the increased use of global currencies. 16) All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) reduction of labor costs through outsourcing. C) ability to find low-cost suppliers. D) increases in transaction costs. E) replication of business models in multiple countries. 3 lOMoARcPSD| 10757993 17) The three activities in an information system that produce the information organizations use to control operations are: A) information, research, and analysis. B) input, output, and feedback. C) data, information, and analysis. D) data analysis, processing, and feedback. E) input, processing, and output. 18) Data collected at checkout counters in a grocery store is an example of: A) output. B) processing. C) feedback. D) input. E) information systems. 19) The total number of food items with storage temperature problems is an example of which of the following? A) Input B) Raw data C) Meaningful information D) Feedback E) Processing 20) Output: A) is feedback that has been processed to create meaningful information that can be used by others. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transfers data to the people who will use it or to the activities for which it will be used. D) is the result of processing raw input data into meaningful information. E) converts raw input into a meaningful form. 21) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) analysis. 22) In a hierarchical organization, the upper level consists of: A) scientists. B) senior management. C) professional employees. D) data workers. E) knowledge workers. 4 lOMoARcPSD| 10757993 23) The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its: A) culture. B) environment. C) atmosphere. D) business process. E) mission. 24) Data management technology consists of which of the following? A) Physical hardware and media used by an organization for storing data B) Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system C) Two or more computers to share data or resources D) Hardware and software used to transfer data E) Software governing the organization of data on physical storage media 25) Which of the following statements best describes organizational culture? A) It encompasses the sum of beliefs and assumptions by all members. B) It enables the organization to transcend the different levels and specialties of its employees. C) It reflects the senior management's perspective on the organization and goals. D) It allows a company to achieve greater operational efficiency. E) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization. 26) Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's: A) data management environment. B) networked environment. C) information technology (IT) infrastructure. D) information system. E) culture. 27) Maintaining the organization's financial records is a central purpose of which main business function? A) Manufacturing and accounting B) Finance and accounting C) Sales and manufacturing D) Finance and sales E) Human resources 5 lOMoARcPSD| 10757993 28) All of the following are examples of environmental actors in an information system except: A) competitors. B) regulatory agencies. C) customers. D) suppliers. E) sales force. 29) Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system enables the firm to create new products and services. B) The system will create new value for the firm, beyond its costs. C) The system will automate key business processes. D) The system is in use by our primary competitors. E) The system integrates well with the Web. 30) Which of the following would not be a complementary asset for a solar panel manufacturer? A) International solar equipment certification standards B) Government funding for green technology C) Centralized hierarchical decision making D) Innovation-driven management team E) Subsidies for adoption of solar energy 31) In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business? A) Middle management B) Service workers C) Production management D) Operational management E) Knowledge workers 32) In ________, raw data is systematically acquired and transformed during various stages that add value to that information. A) an information value chain B) the firm value chain C) information processing D) the feedback process E) the dissemination process 33) A corporation that funds an employee training program to build computer skills could be seen as investing in which main category of complementary assets? A) Managerial B) Governmental C) Social D) Organizational E) Auxiliary 6 lOMoARcPSD| 10757993 34) Which of the following is an example of an organizational complementary asset? A) Choosing the appropriate business model B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure E) Strong senior management 35) Which of the following is an example of a social complementary asset? A) Technology and service firms in adjacent markets B) Training programs C) Distributed decision-making rights D) Incentives for management innovation E) A strong IS development team 36) Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems? A) Senior executives B) Sales executives C) Production workers D) Operational managers E) Knowledge workers 37) Which of the following would be used as an input for an information system? A) Sales by region report B) Sales for stores in a region C) Product ID, and price D) Year to date sales of products E) Marketing costs report for each product 38) The three principal levels within a business organization hierarchy are: A) senior management, operational management, and service workers. B) senior management, middle management, and operational management. C) senior management, operational management, and information systems. D) senior management, middle management, and service workers. E) senior management, data workers, and service workers. 39) Personnel who design new products or services for a firm belong to which level of a business hierarchy? A) Middle management B) Production workers C) Knowledge workers D) Data workers E) Service workers 7 lOMoARcPSD| 10757993 40) Which main business function is responsible for maintaining employee records? A) Sales and marketing B) Human resources C) Finance and accounting D) Manufacturing and production E) Middle management 41) Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) The specification of procedures for identifying packages with sender and recipient information B) Monitoring service levels C) Promoting the company strategy of low-cost, superior service D) The use of handheld computers and networks for managing package delivery E) A web-based Post Sales Order Management System 42) Which of the following constitutes a managerial element in the UPS tracking system described in the chapter? A) Taking inventory B) Providing package status reports to customers C) Using information to creating plans to deal with competitors D) In-house package tracking software E) Ability to embed UPS functions in external sites 43) Which of the following is a global network that uses universal standards to connect millions of different networks around the world? A) An extranet B) The World Wide Web C) The Internet D) An intranet E) Verizon 44) Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format? A) HTML B) The World Wide Web C) E-mail D) An extranet E) FTP 8 lOMoARcPSD| 10757993 45) Which of the following is a private corporate network extended to authorized users outside the organization? A) An intranet B) The World Wide Web C) The Internet D) An extranet E) FTP 46) Which of the following deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm? A) Information systems literacy B) Information systems architecture C) Business processes D) Information technology infrastructure E) Management information systems 47) Which field of study focuses on both a behavioral and technical understanding of information systems? A) Sociology B) Operations research C) Economics D) Computer science E) Management information systems 48) Disciplines that contribute to the technical approach to information systems include: A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering. E) economics, sociology, and psychology. 49) Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control? A) Management science B) MIS C) Computer science D) Utilization management E) Operations research 50) Sociologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology. 9 lOMoARcPSD| 10757993 51) Psychologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology. 10