Question 1

In cloud computing, employees use information systems that are ________.

Accepted Answer

A) designed to perform without an Internet connection 
B) installed locally within an organization 
C) hosted by a vendor in a data center 
D) more expensive than locally-hosted versions 
A) designed to perform without an Internet connection 
B) installed locally within an organization 
C) hosted by a vendor in a data center 
D) more expensive than locally-hosted versions

Question 2

How did online markets affect the dynamics between buyers and suppliers?

Accepted Answer

A) It decreased the threat of new entrants in many industries. 
B) It reduced the network effects of many products. 
C) It increased the costs of switching. 
D) It granted more power to the buyers. 
A) It decreased the threat of new entrants in many industries. 
B) It reduced the network effects of many products. 
C) It increased the costs of switching. 
D) It granted more power to the buyers.

Question 3

List Porter's five forces.

Accepted Answer

Porter's model includes five interrelate

Question 4

What impact do government policies have on business? How do businesses try to influence government policies?

Accepted Answer

Government policies and funding prioriti

Question 5

What is a disruptive innovation? How is it different from sustaining technologies?

Accepted Answer

A disruptive innovation is a new product

Question 6

Which of the following is a major ethical issue arising out of value chain extension?

Accepted Answer

A) Who is responsible when there is damage? 
B) How many members should there be in the chain? 
C) What should be the marketing strategy? 
D) Should the company make revenue by expansion? 
A) Who is responsible when there is damage? 
B) How many members should there be in the chain? 
C) What should be the marketing strategy? 
D) Should the company make revenue by expansion?

Question 7

Which of the following illustrates a sustaining technology?

Accepted Answer

A) Digital cameras replaced cameras that required film. 
B) Digital music sold over the Internet disallowed simultaneous downloads. 
C) LCD monitors were introduced to replace analog monitors. 
D) Car manufacturers invented airbags to improve safety of passengers. 
A) Digital cameras replaced cameras that required film. 
B) Digital music sold over the Internet disallowed simultaneous downloads. 
C) LCD monitors were introduced to replace analog monitors. 
D) Car manufacturers invented airbags to improve safety of passengers.

Question 8

Which of the following statements is true about the use of IT in nonprofit organizations?

Accepted Answer

A) Nonprofit organizations have no shareholders and do not require a dedicated IT strategy. 
B) Nonprofit organizations do not require significant IT support unless they are transformational in nature. 
C) Nonprofit organizations need IT support and strategy to achieve their objectives. 
D) Nonprofit organizations need not invest in IT if their organization objectives are not directly related to IT. 
A) Nonprofit organizations have no shareholders and do not require a dedicated IT strategy. 
B) Nonprofit organizations do not require significant IT support unless they are transformational in nature. 
C) Nonprofit organizations need IT support and strategy to achieve their objectives. 
D) Nonprofit organizations need not invest in IT if their organization objectives are not directly related to IT.

Question 9

Element Inc. manufactures a new range of smartphones to take on incumbent competitors. Element grabs a huge chunk of the market share in its first year because of its feature-rich smartphones. Element's smartphones come with bigger screen sizes, greater memory capacities, and a free online music subscription for two years. The competitors fail to lure customers despite massive price reductions. Which of the following strategies is being used by Element?

Accepted Answer

A) focused niche strategy 
B) loss leader strategy 
C) cost leadership strategy 
D) product differentiation 
A) focused niche strategy 
B) loss leader strategy 
C) cost leadership strategy 
D) product differentiation

Question 10

Explain the power of suppliers with an example.

Accepted Answer

The power of suppliers is the advantage

Question 11

Why do nonprofit organizations stand to gain from using information systems, just like business?

Accepted Answer

A) Nonprofits, like businesses, spend huge amounts on IT maintenance. 
B) Nonprofits and businesses have the same set of primary activities and secondary activities. 
C) Like business, nonprofits are answerable to shareholders and stakeholders. 
D) The operational requirements to run nonprofits are similar to the operational requirements for businesses. 
A) Nonprofits, like businesses, spend huge amounts on IT maintenance. 
B) Nonprofits and businesses have the same set of primary activities and secondary activities. 
C) Like business, nonprofits are answerable to shareholders and stakeholders. 
D) The operational requirements to run nonprofits are similar to the operational requirements for businesses.

Question 12

Which of the following is a fundamental characteristic of an ecosystem?

Accepted Answer

A) It opposes any moves to make fundamental changes in an industry. 
B) It decreases the impact of the five forces on an industry. 
C) It includes the related industries making complementary products and services, the competitors themselves, the suppliers, and the consumers. 
D) It groups together multiple unrelated industries to reduce a domino effect or a ripple effect. 
A) It opposes any moves to make fundamental changes in an industry. 
B) It decreases the impact of the five forces on an industry. 
C) It includes the related industries making complementary products and services, the competitors themselves, the suppliers, and the consumers. 
D) It groups together multiple unrelated industries to reduce a domino effect or a ripple effect.

Question 13

IT acts as a strategic enabler when ________.

Accepted Answer

A) a company's average IT spending per employee is very low 
B) it focuses on the growth of an organization 
C) it is used to create work schedules 
D) employees learn to use IT services 
A) a company's average IT spending per employee is very low 
B) it focuses on the growth of an organization 
C) it is used to create work schedules 
D) employees learn to use IT services

Question 14

Rivalry within an industry will be high if firms compete mainly on price.

Accepted Answer

A) True 
 B)False

Question 15

Since the operational requirements for nonprofits are completely different from businesses, information systems do not offer any strategic uses to nonprofits.

Accepted Answer

A) True 
 B)False

Question 16

Creative destruction refers to an innovation that fails miserably and leads to huge losses within the industry.

Accepted Answer

A) True 
 B)False

Question 17

Network effects refer to the ________.

Accepted Answer

A) increased value of a product or service because there are more people using it 
B) the additional costs incurred by customers when they change suppliers 
C) the leveraging influence of customers over suppliers 
D) ability of suppliers to charge more owing to the lack of competition 
A) increased value of a product or service because there are more people using it 
B) the additional costs incurred by customers when they change suppliers 
C) the leveraging influence of customers over suppliers 
D) ability of suppliers to charge more owing to the lack of competition

Question 18

Which of the following is the best example of an attempt to create network effects?

Accepted Answer

A) A fashion apparel outlet introduces a loyalty program for its customers. 
B) A retailer provides discounts on bulk purchases. 
C) A kitchenware manufacturer introduces a differentiated range of products. 
D) A telecom service provider introduces a family plan that provides free calls within the family. 
A) A fashion apparel outlet introduces a loyalty program for its customers. 
B) A retailer provides discounts on bulk purchases. 
C) A kitchenware manufacturer introduces a differentiated range of products. 
D) A telecom service provider introduces a family plan that provides free calls within the family.

Question 19

Which of the following is true of IT spending in an organization?

Accepted Answer

A) Increased IT spending is usually associated with investor dissatisfaction and reduces companies' market value. 
B) The funds used to run a business are mainly for the kinds of IT resources that now fall into the commodity category 
C) Since IT is only an operational requirement and not a strategy enabler, companies should seek to reduce IT spending. 
D) Organizations should spend money on things that create a comparative advantage rather than on IT. 
A) Increased IT spending is usually associated with investor dissatisfaction and reduces companies' market value. 
B) The funds used to run a business are mainly for the kinds of IT resources that now fall into the commodity category 
C) Since IT is only an operational requirement and not a strategy enabler, companies should seek to reduce IT spending. 
D) Organizations should spend money on things that create a comparative advantage rather than on IT.

Question 20

A company incorporates contributions from buyers who help add value to the company's products and services. Which of the following best describes this action?

Accepted Answer

A) creation of a supply chain 
B) performing a promotional activity 
C) creation of a value chain 
D) extension of the value chain 
A) creation of a supply chain 
B) performing a promotional activity 
C) creation of a value chain 
D) extension of the value chain

In cloud computing, employees use information systems that are ________.

How did online markets affect the dynamics between buyers and suppliers?

List Porter's five forces.

What impact do government policies have on business? How do businesses try to influence government policies?

What is a disruptive innovation? How is it different from sustaining technologies?

Which of the following is a major ethical issue arising out of value chain extension?

Which of the following illustrates a sustaining technology?

Which of the following statements is true about the use of IT in nonprofit organizations?

Explain the power of suppliers with an example.

Why do nonprofit organizations stand to gain from using information systems, just like business?

Which of the following is a fundamental characteristic of an ecosystem?

IT acts as a strategic enabler when ________.

Rivalry within an industry will be high if firms compete mainly on price.

Since the operational requirements for nonprofits are completely different from businesses, information systems do not offer any strategic uses to nonprofits.

Creative destruction refers to an innovation that fails miserably and leads to huge losses within the industry.

Network effects refer to the ________.

Which of the following is the best example of an attempt to create network effects?

Which of the following is true of IT spending in an organization?

A company incorporates contributions from buyers who help add value to the company's products and services. Which of the following best describes this action?

Information Systems and People

Information and Communications Technologies: The Enterprise Architecture

Databases and Datawarehouses

Information Systems for the Enterprise

The Web, E-Commerce, and M-Commerce

Business Intelligence and Decision Making

Collaborating With Technology

Knowledge Management and E-Learning

Ethics, Privacy, and Security

Systems Development and Procurement

Project Management and Strategic Planning

Filters

Exam 2: Information Systems and Strategy

In cloud computing, employees use information systems that are ________.

How did online markets affect the dynamics between buyers and suppliers?

List Porter's five forces.

What impact do government policies have on business? How do businesses try to influence government policies?

What is a disruptive innovation? How is it different from sustaining technologies?

Which of the following is a major ethical issue arising out of value chain extension?

Which of the following illustrates a sustaining technology?

Which of the following statements is true about the use of IT in nonprofit organizations?

Explain the power of suppliers with an example.

Why do nonprofit organizations stand to gain from using information systems, just like business?

Which of the following is a fundamental characteristic of an ecosystem?

IT acts as a strategic enabler when ________.

Rivalry within an industry will be high if firms compete mainly on price.

Since the operational requirements for nonprofits are completely different from businesses, information systems do not offer any strategic uses to nonprofits.

Creative destruction refers to an innovation that fails miserably and leads to huge losses within the industry.

Network effects refer to the ________.

Which of the following is the best example of an attempt to create network effects?

Which of the following is true of IT spending in an organization?

A company incorporates contributions from buyers who help add value to the company's products and services. Which of the following best describes this action?

Information Systems and People

Information and Communications Technologies: The Enterprise Architecture

Databases and Datawarehouses

Information Systems for the Enterprise

The Web, E-Commerce, and M-Commerce

Business Intelligence and Decision Making

Collaborating With Technology

Knowledge Management and E-Learning

Ethics, Privacy, and Security

Systems Development and Procurement

Project Management and Strategic Planning

Filters