Deck 1: Introduction to MIS

Question 1

Critical feedback undermines collaboration.

Answer 1

False

Question 2

Each of the three competitive forces in Porter's five forces model concerns the danger of customers taking their business elsewhere.

Answer 2

True

Question 3

Effective collaboration is all about being cordial to your team members.

Answer 3

False

Question 4

An information system is a collection of components, including a computer, that stores and retrieves data and produces information.

Question 5

An example of abstract reasoning skills is the ability to construct a model.

Question 6

Systems thinking is the ability to model the components of a system and to connect the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed.

Question 7

The assessment of each of Porter's five forces determines the characteristics of an industry, how profitable it is, and how sustainable that profitability will be.

Question 8

Moore's Law states that the speed of a computer doubles every 18 months.

Question 9

Experimentation increases the fear of failure.

Question 10

A process may use multiple information systems and an information system may touch many different processes.

Question 11

Even if one is not technically qualified, one is still required to take an active role in specifying process, system, and information requirements and in helping manage development projects to create or adapt them.

Question 12

Processes, systems, and information need to be created by a company to avoid falling behind the technology curve.

Question 13

Moore's Law states that the number of transistors per square inch on an integrated chip doubles every 18 months.

Question 14

MIS is defined as the management and use of processes, information systems, and information to help organizations achieve their strategies.

Question 15

Because of Moore's Law, any routine skill can and will be outsourced to the lowest bidder.

Question 16

The competitive strategy of an organization determines its value chain, which, in turn, determines its business processes.

Question 17

The phenomenal growth of YouTube, Facebook, and Twitter are examples of how Moore's Law can impact the business environment.

Question 18

MIS exists to help people who work in a business to achieve the strategies of that business.

Question 19

Business processes are synonymous with information systems.

Question 20

As a result of Moore's Law, the ratio of price to performance of computers has increased dramatically over the years.

Question 21

The difference between the value that an activity generates and the cost of the activity is called value-addition.

Question 22

An organization becomes a cost leader by focusing on adding value to its products to differentiate them from those of the competition.

Question 23

Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

Question 24

Inbound logistics involves receiving, storing, and disseminating inputs to the product.

Question 25

An organization becomes a cost leader by providing products at the highest prices in the industry.

Question 26

The support activities in the generic value chain contribute directly to the production, sale, and service of the product.

Question 27

An organization responds to the structure of its industry by choosing a competitive strategy.

Question 28

A business that selects a differentiation strategy would necessarily structure itself around least-cost activities.

Question 29

Porter's five forces model is also referred to as the value chain model.

Question 30

In the value chain, the primary activity of customer service is to assist customers in their use of the product and thus maintain and enhance the product's value.

Question 31

A focused differentiation strategy involves offering a better product or service across the industry.

Question 32

In the value chain, the primary activity of sales and marketing is the collection, storage, and physical distribution of products to buyers.

Question 33

In the value chain, Porter defined "firm infrastructure" to include activities within the firm for developing new techniques, methods, and procedures.

Question 34

Each stage of the value chain accumulates costs and adds value to the product.

Question 35

If a firm's competitive strategy is to be a cost leader, then business activities need to be developed to provide essential functions at the lowest possible cost.

Question 36

The cost or differentiation strategy must be employed across an entire industry and cannot be tailored to specific industry segments.

Question 37

The threat of a substitute is stronger if the substitute's price is higher and if the perceived benefits of the substitute are similar.

Question 38

An apparel company that focuses on high-end customers is following an industry-wide differentiation strategy.

Question 39

A business with a differentiation strategy will add cost to an activity as long as the activity has a positive margin.

Question 40

Porter defines value as the amount of money that a customer is willing to pay for a resource, product, or service.

Question 41

________ is the ability to make and manipulate models.

A) Abstract reasoning
B) Systems thinking
C) Collaboration
D) Experimentation

Question 42

Which of the following is a key element in the definition of MIS?

A) efficiency
B) abstract reasoning
C) organizational strategy
D) ability to experiment

Question 43

Which of the following results is attributed to Moore's Law?

A) The price of software has come down drastically.
B) The ratio of price to performance of computers has fallen drastically.
C) The risk of technology becoming obsolete has decreased.
D) Piracy of software has increased.

Question 44

If a value chain's margin is negative, either the value must be increased, or the costs of the value chain need to be reduced.

Question 45

Manufacturing systems use linkages to reduce inventory costs.

Question 46

Ellen is the marketing manager of Qtopia Inc. She often develops ideas and plans with the help of her colleagues and provides and receives critical feedback. According to Reich, Ellen is displaying ________ skills.

A) collaboration
B) systems thinking
C) abstraction
D) experimentation

Question 47

Which of the following statements best describes Moore's Law?

A) A computer processor becomes obsolete within 18 months.
B) The speed of a computer processor doubles every 18 months.
C) The number of transistors per square inch on an integrated chip doubles every 18 months.
D) The total number of transistors produced in the world doubles every 18 months.

Question 48

As a candidate at a job interview for a video and graphic designer, Steve is asked to create a design using Corel VideoStudio X3, a relatively new software which Steve is not familiar with. Which of the following skills is the interviewer trying to test?

A) systems thinking
B) abstract reasoning
C) collaboration
D) ability to experiment

Question 49

Which of the following is necessary condition for effective collaboration?

A) the ability to be cordial at all times
B) the ability to manipulate models
C) the ability to give and receive critical feedback
D) the ability to overcome the fear of failure

Question 50

Most of the value in a service company is generated by inbound and outbound logistics.

Question 51

Value chains do not exist in service-oriented companies.

Question 52

How is Moore's Law commonly misinterpreted?

A) A computer processor becomes obsolete within 18 months.
B) The total number of transistors produced in the world doubles every 18 months.
C) The number of transistors per square inch on an integrated chip doubles every 18 months.
D) The speed of a computer processor doubles every 18 months.

Question 53

________ is the ability to model the components of a system and to connect the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed.

A) Abstract reasoning
B) Collaboration
C) Systems thinking
D) Experimentation

Question 54

Which of the following is a nonroutine cognitive skill that would provide one with job security?

A) abstract reasoning
B) tax accounting
C) communication skills
D) computer knowledge

Question 55

________ is defined as making a careful and reasoned analysis of an opportunity, envisioning potential products or solutions or applications of technology, and then developing those ideas that seem to have the most promise, consistent with the resources one has.

A) Collaboration
B) Systems thinking
C) Abstraction
D) Experimentation

Question 56

Because of Moore's Law, the cost of data communications and data storage ________.

A) has increased exponentially
B) has remained unchanged
C) is witnessing an upward trend
D) is essentially zero

Question 57

Supporting functions of the value chain add value indirectly and hence do not incur costs.

Question 58

Which of the following statements regarding an information system is true?

A) It does not produce data, but merely retrieves it.
B) It is synonymous with business processes.
C) It stores data and produces information.
D) It is tied to a single business process.

Question 59

It is difficult to calculate the margin of supporting activities because the specific value added by supporting activities is difficult to know.

Question 60

Miguel proposes a new design idea for an automobile to his boss. He illustrates the model through a presentation and describes how the firm could profit from it and how it meets customers' needs. Which of Reich's four critical skills is Miguel exhibiting?

A) abstraction
B) systems thinking
C) collaboration
D) process orientation

Question 61

Which of the following is a support activity in the value chain?

A) receiving inputs for production
B) distributing products to buyers
C) helping customers use a product
D) setting up contractual arrangements for production

Question 62

The intensity of Porter's five forces determines ________.

A) the exact number of customers a company will have
B) the exit strategy of a firm
C) how sustainable an industry's profitability will be
D) how to achieve a monopoly in the market

Question 63

For a fast food chain, McDonalds, Burger King, and Wendy's would be categorized under which of the following forces in Porter's model?

A) competition from existing rivals
B) bargaining power of customers
C) bargaining power of suppliers
D) competition from new competitors

Question 64

A ________ is defined as a network of value-creating activities.

A) value network
B) value pyramid
C) value chain
D) value system

Question 65

Porter defined ________ as the amount of money that a customer is willing to pay for a resource, product, or service.

A) price
B) value
C) premium
D) cost

Question 66

Which of the following appropriately justifies a company's decision to develop an information system?

A) to project a modern and progressive image
B) to achieve organizational strategy
C) for the sake of exploring technology and being innovative
D) to avoid falling behind the technology curve

Question 67

Which activity of the value chain includes ordering and receiving raw materials for manufacturing?

A) inbound logistics
B) operations/manufacturing
C) outbound logistics
D) marketing

Question 68

The ________ activities in the generic value chain contribute indirectly to the production, sale, and service of a product.

A) primary
B) direct
C) support
D) principal

Question 69

A car rental company operates in two cities and offers low-rental cars specifically to college students from these areas. This is an example of a(n)________.

A) industry-wide differentiation strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) industry-wide cost leadership strategy

Question 70

The difference between the value that an activity generates and the cost of the activity is called the ________.

A) margin
B) revenue
C) break-even point
D) value-addition

Question 71

In the process of determining a firm's management information systems, after developing a competitive strategy, a firm determines ________.

A) the industry structure
B) its value chain
C) its information requirements
D) its business processes

Question 72

The difference between the total value added and the total costs incurred is called the ________ of the value chain.

A) revenue
B) break-even point
C) total margin
D) total premium

Question 73

Ben is in charge of the delivery process at the local Sony dealer. After going through the week's delivery schedule, he calls his team and assigns territories for each individual. He contacts the supervisor to arrange the necessary transport. Which activity of the value chain is Ben executing?

A) marketing
B) inbound logistics
C) outbound logistics
D) operations

Question 74

Which of the following has the highest threat of substitution?

A) Apple iPod
B) a Chanel No. 5 perfume
C) a Rolls-Royce Phantom
D) Tide detergent powder

Question 75

Which activity of the value chain includes inducing a customer to purchase a product?

A) inbound logistics
B) operations/manufacturing
C) outbound logistics
D) sales and marketing

Question 76

Staples sells office supplies and machines, furniture, and technology and business services both in stores and online. It sells every kind of stationery that one can imagine. It has over 2,000 stores worldwide in 26 countries. This is an example of a(n)________.

A) industry-wide differentiation strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) industry-wide cost leadership strategy

Question 77

Apple Mac computers and Mercedes-Benz automobiles are examples of the successful use of which of Porter's four competitive strategies?

A) industry-wide cost leadership
B) industry-wide differentiation
C) focused cost leadership
D) focused differentiation

Question 78

Qtopia Inc. wants to increase customer loyalty toward its currently one-of-a-kind software, ET Fonome. It does so by offering additional services like automatic updates and free upgrades. Which of the following forces in Porter's model is Qtopia Inc. addressing in this situation?

A) competition from vendors of substitutes
B) competition from new competitors
C) bargaining power of suppliers
D) bargaining power of customers

Question 79

Which of the following is the first stage in the sequence of how organizational strategy determines MIS?

A) business process
B) competitive strategy
C) industry structure
D) value chain

Question 80

The success of SouthWest airlines is an example of which of Porter's four competitive strategies?

A) industry-wide cost leadership
B) industry-wide differentiation
C) focused cost leadership
D) focused differentiation