Deck 1: Information Systems in Global Business Today

Question 1

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

Answer 1

True

Question 2

Computers are only part of an information system.

Answer 2

True

Question 3

A substantial part of management responsibility is creative work driven by new knowledge and information.

Answer 3

True

Question 4

Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments.

Question 5

Knowledge workers assist with paperwork at all levels of the firm.

Question 6

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

Question 7

Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.

Question 8

Intranets allow firms to work easily with third-party suppliers and vendors.

Question 9

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.

Question 10

A firm that invests in efficient business processes is making an investment in organizational complementary assets.

Question 11

Internet advertising is growing at approximately 10 percent a year.

Question 12

A fully digital firm produces only digital goods or services.

Question 13

The dimensions of information systems are management, organizations, and information technology.

Question 14

An IT infrastructure provides the platform on which the firm can build its information systems.

Question 15

There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.

Question 16

The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.

Question 17

In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.

Question 18

Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less.

Question 19

Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.

Question 20

UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.

Question 21

In a hierarchical organization, the upper levels consist of

A) managerial and professional employees.
B) managerial, professional, and technical employees.
C) professional and operational employees.
D) managerial, professional, and operational employees.

Question 22

Data management technology consists of the

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) software governing the organization of data on physical storage media.
D) hardware and software used to transfer data.

Question 23

The three activities in an information system that produce the information organizations use to control operations are

A) information retrieval, research, and analysis.
B) input, output, and feedback.
C) input, processing, and output.
D) data analysis, processing, and feedback.

Question 24

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.

Question 25

Thomas Friedman's declaration that the world was now "flat" meant that

A) the Internet has reduced the economic advantages of developed countries.
B) globalization is starting to offer less advantage to large corporations.
C) the global economy is increasingly commanded by fewer and larger corporations.
D) global capitalism is homogenizing culture and business practices throughout the world.

Question 26

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) values.

Question 27

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

A) survival.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.

Question 28

Converting raw data into a more meaningful form is called

A) capturing.
B) processing.
C) organizing.
D) feedback.

Question 29

Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium?

A) competitive advantage
B) improved decision making
C) new products and services
D) survival

Question 30

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

Question 31

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of

A) improved flexibility.
B) improved decision making.
C) improved efficiency.
D) customer and supplier intimacy.

Question 32

The average number of tickets sold daily online is an example of

A) input.
B) raw data.
C) meaningful information.
D) feedback.

Question 33

The field that 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 is called

A) information systems literacy.
B) information systems architecture.
C) management information systems.
D) information technology infrastructure.

Question 34

The hardware and software used to transfer data in an organization is called

A) data management technology.
B) networking and data management technology.
C) data and telecommunications technology.
D) networking and telecommunications technology.

Question 35

Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case?

A) operational excellence
B) new products and services
C) competitive advantage
D) customer support

Question 36

Output

A) is feedback that has been processed to create meaningful information.
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) transfers processed information to the people who will use it or to the activities for which it will be used.

Question 37

Order data for baseball tickets and bar code data are examples of

A) raw input.
B) raw output.
C) customer and product data.
D) sales information.

Question 38

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, 2, and 3

Question 39

An example of raw data from a national chain of automobile stores would be

A) an average of 13 Toyotas are sold daily in Kentucky.
B) 30 percent increase in Toyota RAV 4 sales during September in Kentucky.
C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky.
D) all of the above.

Question 40

Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?

A) improved flexibility
B) improved business practices
C) competitive advantage
D) survival

Question 41

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

A) invest in technology.
B) adopt a new business model.
C) invest in complementary assets.
D) modernize their information value chain.

Question 42

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.

Question 43

Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below?

A) Use IT to increase supplier loyalty.
B) Use IT to increase operational efficiency.
C) Use IT to create new products and business models.
D) Use IT to help survive government reporting requirements.
E) Use IT to achieve customer intimacy.

Question 44

The costs for firms operating on a global scale have been drastically reduced by

A) networking technology.
B) investments in organizational complementary assets.
C) the Internet.
D) the rise of digital content.

Question 45

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) competitive advantage
D) improved decision-making

Question 46

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.

Question 47

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is

A) management science.
B) MIS.
C) operations research.
D) utilization management.

Question 48

An example of an organizational complementary asset is

A) using the appropriate business model.
B) a collaborative work environment.
C) laws and regulations.
D) all of the above.

Question 49

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) IT infrastructure.
D) information system.

Question 50

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.

Question 51

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?

A) managerial
B) governmental
C) social
D) organizational

Question 52

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is

A) middle management.
B) service workers.
C) production management.
D) operational management.

Question 53

An example of a social complementary asset is

A) technology and service firms in adjacent markets.
B) training programs.
C) distributed decision-making rights.
D) all of the above.

Question 54

Which of the following are environmental actors that interact with an organization and its information systems?

A) customers
B) suppliers
C) regulatory agencies
D) all of the above

Question 55

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

Question 56

Disciplines that contribute to the technical approach to information systems are

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.

Question 57

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

Question 58

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called

A) the information value chain.
B) the IT value chain.
C) information processing.
D) feedback.

Question 59

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

Question 60

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

Question 61

Investments in organization and management, such as investments in new business models and training, are also known as ________.

Question 62

The key elements of an organization are its people, structure, business processes, politics, and ________.

Question 63

Which of the following would NOT be used as an input for an information system?

A) digital dashboard
B) handheld computer
C) bar-code scanner
D) cell phone

Question 64

________ is a global network that uses universal standards to connect millions of different networks around the world.

Question 65

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.

Question 66

A managerial element in the UPS tracking system described in the chapter is

A) taking inventory.
B) providing package status reports to customers.
C) the decision to use automation.
D) in-house package tracking software.

Question 67

________ is data that has been shaped into a form that is meaningful to human beings.

Question 68

________ makes long-range strategic decisions about the firm's products and services.

Question 69

________ is output returned to appropriate members of the organization to help them evaluate or correct the input stage.

Question 70

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

Question 71

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

Question 72

Which field of study focuses on both a behavioral and technical understanding of information systems?

A) sociology
B) operations research
C) economics
D) management information systems

Question 73

________ are private corporate networks extended to authorized users outside the organization.

Question 74

In a(n) ________ perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained.

Question 75

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

Question 76

Computer ________ consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.

Question 77

Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having

A) poor relationships with suppliers.
B) poor relationships with customers.
C) inadequate information.
D) a surplus of information.

Question 78

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

Question 79

Engineers, scientists, or architects, 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

Question 80

The ________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format.