Deck 2: Systems Characteristics and Considerations

Question 1

Michael Porter puts forward five forces that shape the industry in which a firm operates.Which of the following is NOT one of the forces?

A)Threat of new entrants
B)Legislative power of the government
C)Rivalry among existing competitors
D)Threat of substitute products or services

Answer 1

B

Question 2

Although ERP systems are built around the idea of best practice,some organisations will choose not to adopt the ERP best practice,seeking instead to modify the design of the system.The mostly likely reason for doing so is:

A)Modifying the ERP system will lower the cost of implementation because redundant features are removed.
B)The 'fit' between the system and the business processes needs to exist.Ii is easier to change the system than to change the organisational design.
C)The ERP system is unable to drive some of the organisation's unique business processes that provide distinct competitive advantage to the organisation.
D)Adopting an ERP system off the shelf erodes competitive advantage because everyone else has the same software at their disposal.

Answer 2

C

Question 3

An example of a strategic level decision would be:

A)Determining the quantity of raw materials to purchase
B)Appointing a new line manager responsible for running the delivery department
C)Reconfiguring the production line design to eliminate wasted time due to bottlenecks
D)Deciding whether or not to acquire the remaining shares of a partially owned subsidiary

Answer 3

D

Question 4

An emphasis on business processes is different to a functional perspective of the organisation because a business process emphasis:

A)Offers highly defined tasks and responsibilities.
B)Gives employees the freedom to do what they want in order to please the customer.
C)Acknowledges cross-functional communication and action is essential to the customer's needs.
D)Views the customer needs as secondary to those of the functional divisions.

Question 5

Which of the following is not a problem or limitation of a functionally based organisational design?

A)Not reflective of the reality of today
B)Lack of administrative power
C)Slow to react to the environment
D)Focuses on the wrong things

Question 6

Michael Porter sees the implementation and attainment of strategies as consisting of five steps.Which of the following is NOT one of the steps?

A)Fit
B)Uniqueness
C)Operational efficiency
D)Sustainability

Question 7

Which of the following is NOT a benefit of adopting a business process perspective within the organisation?

A)Better customer service and customer relations.
B)Greater efficiency and effectiveness in using resources.
C)Tighter organisational control.
D)Less non-value-adding activities.

Question 8

The business process can yield benefits for an organisation through:

A)Ignoring customer service and focussing on superior product design
B)offering customers cheaper prices
C)outsourcing all customer service activities
D)improved customer service and customer relations through a value adding emphasis

Question 9

A sales person is processing a credit sale.As per company policy,the sales person should conduct the credit check and forward the result to a supervisor,who would then make a decision on the creditworthiness of the applicant and send this back to the sales person.This scenario is more likely to happen in:

A)Functionally based organisation
B)Business process based organisation
C)Both functionally based organisation and business process based organisation
D)Neither functionally based organisation nor business process based organisation

Question 10

The logical consequence of Taylor's scientific management approach was that organisations:

A)Developed rigid hierarchies that sought to tightly control lower levels of the organisation.
B)Developed highly interactive and flexible structures that could easily adapt to changing environments.
C)Had employees who questioned procedures and sought to continually redefine their role.
D)Streamlined the information flows across the organisation.

Question 11

Which of the following is not a benefit of a functionally based organisational design?

A)Control and coordination
B)Stability
C)Communication efficiency
D)Task specificity

Question 12

The major difference between a business process and a business function is that:

A)business processes emphasises what gets done,business functions emphasise how it gets done
B)business process personnel are highly skilled specialists,business function personnel are generalists operating across numerous areas
C)business processes emphasise vertical structure and hierarchy,business functions emphasise the horizontal integration of the organisation
D)business processes are customer driven,business functions are task driven

Question 13

In the process perspective of the organisation,a flattened organisational design cannot:

A)Increase task specificity
B)Reduce bureaucracy
C)Create a more flexible organisation
D)Identify tasks and functions that do not add value

Question 14

What is a business process?

A)a series of interlocking activities that work together across the organisation to achieve some predetermined organisational goal.
B)any activity performed by a business
C)any core activity that produces a profit
D)any activity performed by a manufacturing company providing that it produces a profit

Question 15

An ERP system is:

A)A complex set of computer program modules that integrate the different functional areas of the organisation.
B)Developed around an information silo principle.
C)A system that integrates functional and proprietary information systems in different departments in an organisation.
D)Suitable for both large and small organisations.

Question 16

Which are the three levels that strategy can be seen to operate at?
(i)the internal level
(ii)the external level
(iii)the business portfolio level
(iv)the inter-organisation level
(v)the intra-organisation level
(vi)the competitive level

A)i,ii,vi
B)i,iii,vi
C)iii,iv,v
D)iv,v,iii

Question 17

Michael Porter sees a business as having two options when deciding on a strategy.These two options are:

A)Economies of scale and entry barrier
B)Economies of scope and differentiation
C)Price competition and product abundance
D)Differentiation and cost leadership

Question 18

Scientific management is concerned with:

A)Streamlined work flows across the organisation.
B)Hierarchical control of the organisation through three levels of management.
C)Clearly defining individual employee's responsibilities and tasks.
D)Dividing the business structure into the optimal number of functional divisions.

Question 19

Business processes can provide an organisation with a competitive advantage.This competitive advantage is more likely to come from:

A)The design of business processes that are more efficient and effective
B)The design of business processes that are unique or offer something different
C)The design of business processes that are more competitive and flexible
D)The design of business processes that have lower costs of execution

Question 20

There are two perspectives of organisational design:

A)Logical and physical
B)Internal and external
C)Functional and business process
D)Scientific and practical

Question 21

Vendor-managed inventory involves the buyer transferring the responsibility for:

A)physically holding inventory items.
B)storing,retrieving,and acquiring inventory items.
C)determining what,when and how much is purchased.
D)keeping the inventory at a fixed and predetermined level.

Question 22

The philosophy of TQM is geared around four main concepts.These concepts are:

A)Quality,process,organisations,and management
B)Quality,process,people,and management
C)Quality,people,organisations,and management
D)Quality,process,people,and organisation

Question 23

Benefits of a reengineered process from a customer's perspective do not include:

A)Better information availability.
B)More convenient way of participating in a process.
C)A specific reference point.
D)Friendlier customer service.

Question 24

In terms of BPR:

A)Job descriptions need not be adjusted.
B)The attainment of short-term wins is a form of positive feedback.
C)Once improvements are consolidated,further change should be avoided so that achieved improvements can be sustained.
D)Institutionalising the new approaches does not involve changes in organisational culture.

Question 25

The first stage in adopting a business process perspective is that:

A)it should focus on removing middle management
B)it must be represented in the design of the organisation.
C)it should emphasise the flattening of the organisational structure.
D)it must be reflected in the organisation's latest statements.

Question 26

Because of ERP's best practice approach,if all organisations adopt the ERP system and have the same underlying processes,they are less likely to distinguish themselves and gain a competitive advantage.This is likely a major reason for:

A)Not adopting ERP.
B)Adopting ERP before competitors do.
C)Configuring a business process around an ERP system.
D)Not configuring a business process around an ERP system.

Question 27

A process that has been reengineered will have less of a role for specialists because:

A)Specialists are made redundant through the cost-cutting emphasis of BPR.
B)Decisions that require specialists are removed from a process.
C)Generalists are trained and act as specialists through the assistance of decision aids.
D)Jobs are combined and key workers are given decision making responsibility.

Question 28

Which of the following statements regarding BPR is not true?

A)BPR is an attempt at downsizing.
B)Ethical issues are involved in BPR.
C)Social issues are involved in BPR.
D)Employees can be extremely wary when BPR is mentioned.

Question 29

Which of the following statements is NOT true about a reengineered process?

A)Jobs change and people are empowered.
B)Work units change from a functional to a process perspective.
C)Controls are increased to ensure smooth functioning.
D)Workers jobs are combined and workers are given decision rights.

Question 30

Which of the following is NOT a result of moving to a business process-based environment?

A)The way that the organisation is managed is changed.
B)Functional barriers are broken down.
C)The layer of middle management is thickened.
D)Employee resistance.

Question 31

Organisations will benefit most from the application of IT when:

A)They use the most advanced and latest IT.
B)All business processes are computerised.
C)IT costs are brought to the minimum.
D)The use of IT is driven by business needs and opportunities.

Question 32

An organisation is undergoing a major change to the way it does business,redesigning business processes and the use of IT within the processes.One of the suggested change approaches was TQM.In this case:

A)TQM would be ideal because it allows for all employees to offer suggestions and be involved in the changing of the organisation.
B)TQM would be ideal because its incremental approach to organisational change means that the change process would be well managed.
C)TQM would not be ideal because its incremental approach would mean that change would take a large amount of time.
D)TQM would not be ideal because its incremental approach is suited to gradual change rather than large scale change.

Question 33

Which one of the following technology is more likely to be used in the billing and cash receipts process by the seller of goods?

A)RFID
B)Electronic bill presentation and payment
C)Electronic bill payment
D)Evaluated receipts settlement

Question 34

An organisation is looking for a way to improve their accounts payable process.Someone suggested that they continue to send out paper invoices but allow customers to pay through their bank website and phone banking.This is an example of:

A)Electronic bill presentment
B)Electronic bill presentment and payment
C)Electronic bill payment
D)Neither electronic bill presentment nor payment

Question 35

Evaluated receipts settlement involves:

A)The purchaser paying for goods without receiving an invoice
B)The supplier issuing an invoice before goods have been delivered
C)Speeding up the accounts receivable process for a vendor
D)The electronic sending and payment of invoices

Question 36

Which one of the following is NOT a BPR principle in practice?

A)Combine jobs and let workers make decisions.
B)Perform process steps in a functionally logical order.
C)Allow processes to vary.
D)Reduce the impediment of controls and reconciliations.

Question 37

The first stage in adopting a business process perspective is:

A)securing customer approval
B)ensuring that the project is fully costed
C)ensuring that the company is currently using updated technology
D)that it must be represented in the design of the organisation

Question 38

Instead of turning up to work knowing that all they will be doing is one specific,narrowly defined task,employees become involved in a range of tasks and see how the tasks integrate with each other.This is a likely description of:

A)Employee empowerment.
B)A functional environment.
C)A business process oriented environment
D)Multitasking.

Question 39

In a BPR project:

A)A leadership team is "good to have" but not necessary.
B)A leadership team consists of company executives should be established to guide the project.
C)The leadership team may include some influential external stakeholders.
D)The leadership team members need not be of authority sufficient.

Question 40

People within the organisation need to be encouraged to provide feedback about the design of a process.This is particularly the case:

A)At the lower levels of the organisation.
B)At the line manager level of the organisation.
C)At the middle management level of the organisation.
D)At the executive level of the organisation.

Question 41

Briefly explain the management issues and the people issues when an organisation is moving to a business process-based environment.

Question 42

Identify and briefly explain the eight steps that should be followed to manage successfully the transformation of an organisation to a process prospective.

Question 43

Which of the following is NOT a central tenet of BPR?

A)Look for ways technology can potentially be applied to solve a business problem.
B)Look for ways technology can potentially be applied to create a unique strategic position for an organisation.
C)Look for ways technology can potentially be applied to help organisation grasp emergent opportunities.
D)Look for ways technology can potentially be applied to help organisation sustain competitive advantage.

Question 44

The design philosophy of ERP systems is centred on the idea of best practice.Discuss the disadvantages of this approach.

Question 45

Which of the following indicates that a company is using the internet effectively for its business processes?

A)A company has a home page,information only website.
B)Sales orders captured through the website feed automatically into the revenue cycle.
C)Customers can contact the company for more information through the website.
D)The company uses internet banking to pay invoices.

Question 46

The philosophy of TQM is geared around four main concepts.Explain.

Question 47

There are four main areas in which an organisation can benefit from the application of technology to its business processes.These areas do not include:

A)Transaction-based area
B)Change-based area
C)Strategy-based area
D)Marketing-based area

Question 48

Any benefits gained through improved resource efficiency in the process perspective could potentially be negated by the increased resources required to support the new IT within the organisation.This phenomenon is referred to as:

A)Spill-over effect
B)Productivity paradox
C)Rent misappropriation
D)Siphon effect

Question 49

Identify some of the risks associated with BPR.

Question 50

Normally,the first step in a BPR project is to:

Question 51

A business operates by sourcing data from various sources and compiling or customising it in a way that adds value for the end customer.This business is:

A)A compiler
B)A data miner
C)A customiser
D)An aggregator

Question 52

Compare and contrast business process with business function.

Question 53

The information business:

A)Cannot operate without modern information and communication technologies.
B)Cannot operate on a manual basis.
C)Is not popular because it adds middleman costs to final prices.
D)Is useful for both everyday consumers and enterprise-level customers.

Question 54

There are four key components of the definition of BPR.Explain.

Question 55

Which of the following statements is NOT true regarding Australian businesses?

A)More than 90% of businesses are using the Internet.
B)More than 80% of websites have some form of customer contact facility
C)More than 70% of businesses have incorporated Internet into business processes
D)The percentage of Australian businesses that have web presence has increased by 15% from 2003 to 2010.

Question 56

What are the reasons for adopting a business process perspective within an organisation?

Question 57

What are the benefits and problems of the functional perspective of the organisation?

Question 58

Michael Porter sees a business as having two options when deciding on a strategy: (1)cost leadership or (2)differentiation.Discuss the difference and the relationship between these two options.

Question 59

Which of the following is not a factor that is attributed to the uptake of the IT by many organisations?

A)Government support
B)Customer pressure
C)Ability to access technological support
D)Better socioeconomic environment