Exam (elaborations) ACCOUNTING all (Managing and Using Information Systems ) (ACCOUNTING all (Managing and Using Information Systems ))

Managing and Using Information Systems: A Strategic Approach, 6th Edition Complete Test Bank Chapter 0 (Introduction) File: 6e c00 introTestB, Chapter 0, Introduction Multiple Choice 1. What requires a unit of analysis, has been processed, and requires human mediation? a) Data b) Information c) Knowledge d) Legacy e) None of the above Ans: b (Medium) Response: See page 11 2. Roles that managers fill, according to Mintzberg, include all of the following except: a) Figurehead b) Disseminator c) Disciplinarian d) Entrepreneur e) Resource Allocator Ans: c (Hard) Response: See page 9 3. Which of the following is not a Decisional role? a) Entrepreneur b) Disturbance handler c) Negotiator d) Resource allocator e) Spokesperson Ans: e (Medium) Response: See page 9 4. What skills would be required to be a visionary manager? a) Communication and Information gathering b) Flexibility and creativity c) Analytical and organizational d) All of the above e) None of the above Ans: b (Easy) Response: See page 7 5. Define Wisdom: a) knowledge infused with intuition and judgment that facilitates the ability to make decisions b) a process c) all forms of technology used to create data d) anything that makes a person clever e) only d and b Ans: a (Easy) Response: See page 12 6. Data is: a) information endowed with relevance and purpose b) set of specific objective facts or observations c) some information d) all of the above e) only a and c Ans: b (Medium) Response: See pages 10-12 True/False 7. Information systems (IS) managers should participate in all of the important IS decisions, even if those decisions do not impact the IS department. Ans: True (Easy) Response: See page 2 8. Information for top management is usually based on a long time horizon, with great detail and high structuredness. Ans: False (Medium) Response: See page 11 Short Answer 9. Pricing of things is most often based on _____ while pricing of information goods is most often based on _____ Ans: cost, value (Hard) Response: See page 13 10. If a manager exhibits creativity, curiosity, and confidence, we would say that he or she supports the role of ______ very well. Ans: visionary (Hard) Response: See page 7 11. The Chief Technology Officer of Wal-Mart states that every company is becoming a ______ company. Ans: tech or technology (Medium) Response: page 4 Essay 11. Provide two examples of how the economics of things are different from the economics of information. 12. Provide two reasons business managers should participate in information systems decisions. 13. How does a functional view differ from a process view of a firm? Chapter One File: 6e chapter1TestB, Chapter 1, The Information Systems Strategy Triangle Multiple Choice 1. The "Managerial Levers" concept is useful for the following reasons: a) Management can find what "levers" to push to force people to do what they want. b) Management should not make a change unless they align multiple issues, such as tasks, measures, values, incentives, etc. c) System investments need to be financially highly leveraged. d) All of the above e) None of the above Ans: b (Medium) Response: See page 26 2. All of the following are likely causes of Kaiser Permanente’s difficulties before their new KPHealthConnect EXCEPT for: a) Bonus incentives not matching strategy b) The alignment of the Information Systems Strategy Triangle c) The failure of automated systems d) The leadership and organizational culture e) Patient service processes needing to be updated and streamlined Ans: c (Medium) Response: See pages 17-18 3. A general manager should: a) Rely on IS personnel to make IS decisions b) Ignore how IS are used and managed c) Have a deep technical knowledge of IS d) Understand the use and consequences of technologies relevant to the business e) Not be expected to ask or understand technology related questions Ans: d (Easy) Response: See pages 20,25 4. When a company’s business strategy and technology strategy are intertwined, this situation is known as _______. a) convergence b) alignment c) dynamic d) differentiation e) technologically adjusted Ans: a (Hard) Response: See page 19 5. Organizational, cultural, and control variables are considered the ________ used by decision makers to effect change in their organization. a) collaboration tools b) managerial levers c) events d) IS e) organization objectives Ans: b (hard) Response: See pages 9-10 6. The ____________ is a plan articulating where a business seeks to go and how it expects to get there. a) vision statement b) mission statement c) stakeholder statement d) stockholder statement e) business strategy Ans: e (Medium) Response: See page 20 7. Organizations seek to gain a competitive advantage by differentiation, cost, or _________. a) service b) focus c) profit d) value e) speed Ans: b (Easy) Response: See pages 21-22 8. Google has disrupted a number of industries, particularly the advertising and software industries. Google's ability to quickly and aggressively provide new products and services is best described by: a) Porter’s Generic Strategies b) The Hypercompetition Model c) The Information Systems Strategy Triangle d) The Social Business Strategy e) Customer Relationship Management Ans: b (Easy) Response: See page 23 9. Through the use of various technologies, a ski resort tracks the slopes each customer skis and the times he or she skis them. Skiers then have the ability to view this information online, and can choose to seamlessly share their accomplishments on Facebook. In addition, photographers positioned at the resort post pictures on Facebook for the skier. This ski resort has worked hard to develop a strong: a) IS Strategy b) Social business strategy c) Business strategy d) Organizational strategy e) Customer strategy Ans: b (Hard) Resposne: See page 27 10. The organizational strategy should ideally _____ the IS strategy. a) drive b) complement c) dictate d) ignore e) sustain Ans: b (Easy) Response: See page 18 11. The general manager for a retail clothing outlet was recently cited as saying, “IT is the cornerstone of our company. All of our decisions are based on the sophisticated systems that we have deployed throughout our organization. IT drives our decisions.” What position should the manager hold regarding IT and its influence on decision making? a) IT should drive business decisions. b) Organizational goals should drive IT decisions. c) Organizational strategy should drive IS decision making. d) Business strategy should drive IS decision making e) All strategy should be driven by IT strategy. Ans: d (Hard) Response: See page 18 12. To remain competitive, an organization’s business strategy must adapt and respond to all of the following variables. Which variable in particular does IS help to determine? 1. Market forces 2. Customer demands 3. The capabilities of the organization 4. The organization’s mission 5. Organizational design Ans: c (Hard) Response: See pages 26-27 13. The physical means by which information is exchanged among hardware components is called _______. a) hardware b) software c) networking d) personnel e) data Ans: c (Medium) Response: See page 27 14. Significant changes in IS should trigger a reassessment of the _____________. a) business strategy b) social strategy c) process strategy d) data strategy e) system strategy Ans: a (Medium) Response: See page 25 15. A social business strategy is designed to use social IT tools for all of the following EXCEPT: a) Collaborating with stakeholders b) Building deeper connections with stakeholders c) Innovating with stakeholders d) Excluding stakeholders e) Networking with employees, customer and/or suppliers Ans: d (Easy) Response: See page 27 16. General managers should take an active role in decisions about information systems. This is vital because: a) The IS department cannot be trusted to make good decisions. b) The IS department has not been trained to make general business decisions. c) The IS department does not have the company’s best interests as its focus. d) Information systems are designed to support business objectives. e) Information systems are normally incongruent with business strategies. Ans: d (Medium) Response: See page 19 17. This framework is called the ____________________ because it relates business strategy with IS strategy and organizational strategy. a) Porter’s Generic Framework b) Hypercompetition Model c) Information Technology Matrix d) IS Strategy Model e) Information Systems Strategy Triangle Ans: e (Easy) Response: See page 18 18. Before Kaiser Permanente adopted its new business strategy, its IS Strategy Triangle was out of __________. a) control b) alignment c) adjustment d) scope e) specification Ans: b (Medium) Response: See pages 17-18 19. By using IS to achieve economies of scale and generate operating efficiencies, Walmart epitomizes which one of Porter's generic strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: c (Easy) Response: See page 22 20. A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. This unique service demonstrates the bank’s desire to practice which one of Porter’s strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: a (Medium) Response: See page 22 21. The managerial levers identifies the crucial, interrelated components for designing an organization. The components include all of the following EXCEPT: a) Decision rights b) Social media c) Business processes d) Incentives and rewards e) Performance measurement and evaluation Ans: b (Medium) Response: See page 26 22. Technology guru Tim O'Reilly said this about the publishing industry: "To adapt, publishers need to cannibalize their own business, experimenting with new forms, new formats, and new business models." This statement is consistent with: a) Generic framework b) Focus strategy c) Hypercompetition d) Direct strategy e) Porter’s generic strategies Ans: c (Medium) Response: See pages 23-24 23. L.L. Bean is an online/catalog retail company that aggressively uses tools like instant messaging to communicate with customers regarding potential purchases and uses Facebook for branding activities. This use of technology supports which strategy? a) IS strategy b) Business strategy c) Organizational strategy d) Mission strategy e) Social business strategy Ans: e (Medium) Response: See page 27 24. GE recognized that it could only sustain its competitive advantage for a limited time as competitors attempted to outmaneuver them. What was the model that Welch applied to help solve this problem? a) Destroy your organization b) Grow your organization c) Destroy your system d) Grow your system e) Destroy your business Ans: e (Medium) Response: See page 24 25. Business strategies based on hypercompetition focus on customer satisfaction and profit maximization but also build in a component of business intelligence. Business intelligence helps an agile organization to: a) Predict and respond to new opportunities b) Use current information technologies less extensively c) Manage internal challenges d) React to supplier demands e) Collaborate Ans: a (Medium) Response: See pages 1-30 26. Which one of the following is NOT part of the information systems strategy matrix? a) Hardware b) Software c) Networking d) Personnel e) Data Ans: d (Medium) Response: See page 27 27. Which is not a question that can be used to understand organizational design? a) Who holds the decision rights to critical decisions? b) What are the characteristics, experiences, and skill levels of the people within the organization? c) Where is the organization's headquarters located? d) What are the key business processes? e) What is the culture of the organization? Ans: c (Medium) Response: See page 26 28. When an organization qualifies its product or service in a way that allows it to appear unique in the marketplace, this is called: a) Focus b) Differentiation c) Cost Leadership d) Business Strategy e) Mission Ans: b (Easy) Response: See page 22 29. The plan an organization uses to provide information systems and services: a) Cost Leadership b) Differentiation c) Focus d) IS Strategy e) Business Diamond Ans: d (Easy) Response: See page 26 True/False 30. Hypercompetition refers to where a firm obtains more than 5 strong competitors. Ans: False Response: pages 23-24 31. Apple’s introduction of the iPhone while iPod sales were still very strong is an example of DYB. Ans: True Response: See page 24 32. Once a firm is out of alignment, it does not mean that it has to stay that way. Ans: True Response: See page 19 33. A social business strategy needs to align itself with the organization’s IT strategy but not the business strategy. Ans: False Response: See page 27 34. There has been accelerated competition among market leaders concurrent with the increases in the quality and quantity of IT investments. Ans: True Response: See page 24 35. To avoid unwanted consequences, altering the IT Strategy requires adjustments to the organizational strategy. Ans: True Response: See page 18 36. The IS strategy drives the business strategy. Ans: False Response: See page 18 Short Answer 37. The _______________ framework suggests that the speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are “rapidly created and eroded.” Ans: hypercompetition Response: See page 23 38. The managerial lever includes organization, control, and ___________________________. Ans: culture Response: See page 26 39. A clear and compelling statement that unifies an organization’s efforts and describes what the organization is all about is called its _________. Ans: mission Response: See page 19 40. According to Porter’s Generic Strategies Framework, a company that limits its scope to a narrower segment of the market is exercising this type of strategy. Ans: focus Response: See page 22 41. GE employees develop a DYB strategy to destroy an existing competitive advantage so that they can then find fresh new ways to serve the customer by next applying a ________ strategy. Ans: Grow your business or GYB Response: See page 24 42. In order to assess the critical issues in information management, a manager should know the IS infrastructure components. These are hardware, software, network and _______. Ans: data Response: See page 27 43. CRM stands for ________________. Ans: Customer Relationship Management Response: See page 23 44. Social business opportunities fall into one of three categories: collaboration, engagement or ______. Ans: innovation Response: See page 27 45. The IS strategy can affect and is affected by changes in a company’s business and _______ strategies. Ans: organizational Response: See page 18 46. According to Porter, a company that makes its services available 24/7 would be practicing a _________ strategy. Ans: differentiation Response: See page 22 Essay 47. List the three categories of social business opportunities and give an example of each. 48. Dell's original business strategy was to only sell custom-built computer systems directly to customers. Dell now sells to major retail outlets such as Walmart and Best Buy. Which one of Porter’s generic strategies was Dell exhibiting when only selling directly to the customer? And which one of Porter’s generic strategies is Dell demonstrating today? Explain your answers. 49. Is a company more likely to adjust its mission statement or its business strategy? Explain your answer. 50. What is alignment in the context of the Information Systems Strategy Triangle and why is it important for a business to be in alignment? 51. Today’s market place is considered to be a very competitive and dynamic environment. Explain what this means and give examples of this competitive dynamic. 52. Match the following goals with the UPS strategy it represents. Business Strategy Securely provide specialized transportation and logistics services to individuals and businesses. IS Strategy Create technologies and logistics systems that support efficient flow of information and packages worldwide. Organizational Strategy Empower employees to ensure safe transport of goods and to value commitment to teamwork. Chapter Two File: 6e chapter2TestB, Chapter 2, Strategic Use of Information Resources Multiple Choice 1. Two automobile manufacturers are working together to develop hybrid technology. This type of relationship between the two automobile manufacturers is best described as: a) Co-opetition b) Strategic alliance c) Competition d) Collaboration e) Business strategy Ans: a (Medium) Response: See page 48 2. While information systems can be used to gain a strategic advantage, they have inherent risks. Hershey Foods, for example, crippled its Halloween sales when its complex IS system failed to support its supply and inventory needs during peak production season. This is an example of which specific IS risk? a) Awaking a sleeping giant b) Implementing IS poorly c) Demonstrating bad timing d) Running afoul of the law e) Mobile-based alternative removes advantages Ans: b (Medium) Response: See page 49 3. Suppose Zara has a linked supply chain with Silk City, a fabric supplier. Zara and Silk City use IT to seamlessly exchange data, communicating requirements as well as delivery expectations. The relationship between Zara and Silk City is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition Ans: a (Medium) Response: See page 47 4. The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as: a) Strategic alliance b) Co-opetition c) Collaboration d) Dependence e) Competition Ans: a (Medium) Response: See page 47 5. Kodak was once the largest supplier of photographic film. In 2004 it was dropped from the Dow Jones Industrial Average after having been listed for 74 years. Kodak failed to use IT to fend off which one of the following of Porter's 5 competitive forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry collaboration Ans: b (Medium) Response: See page 38 6. Zara strategically uses information technologies to do all of the following EXCEPT: a) Bring new products quickly to market, meeting customer demands b) Support a continuous flow of information from stores to manufacturers to distributors c) Maintain a rich, centralized repository of customer data d) Build silos of responsibilities with limited interaction between store managers, designers and market specialists e) Keep its inventory levels very low (relative to other retailers) Ans: d (hard) Response: See pages 33, 34, 40, 42, 43, 46, 47 7. Many companies like Zara use POS to capture information on what has sold, to whom and when. This use of technology to realize efficiencies supports which one of Porter's value chain activities? a) Outbound Logistics b) Marketing & Sales c) Operations d) Service e) Human resources Ans: b (Medium) Response: See page 41 8. Which one of the following risks can threaten the IS of a company in a highly regulated industry such as financial services or health care? a) Demonstrating bad timing b) Awakening a sleeping giant c) Mobile-based alternative removes advantages d) Running afoul of the law e) Implementing IS poorly Ans: d (Medium) Response: See page 49 9. A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk? a) Demonstrating bad timing b) Awakening a sleeping giant c) Mobile-based alternative removes advantages d) Running afoul of the law e) Implementing IS poorly Ans: b (Medium) Response: See page 49 10. Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage? a) Porter’s Competitive Forces b) Porter’s Value Chain c) The Information Systems Strategy Triangle d) The Network Effect e) The Resource-Based View Ans: e (Medium) Response: See page 45 11. Partnering with a competitor is becoming more and more common in today's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as: a) Co-opetition b) Integrated supply chain c) Business process d) Strategic alliance e) Value proposition Ans: a (Medium) Response: See page 48 12. This risks of using information resources include all of the following except: a) Demonstrating bad timing b) Awakening a sleeping giant c) Implementing IS poorly d) Missing cooperative opportunities e) Failing to deliver what users want Ans: d (Easy) Response: See page 49 13. Facebook has for some years offered services that many individuals have adapted to, making it difficult for them to choose another social networking site. It can be said that Facebook has protected itself well from which competitive force since the beginning? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry collaboration Ans: c (Medium) Response: See page 38 14. A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter's Five Competitive Forces? a) Bargaining power of suppliers b) Threat of substitute products c) Potential threat of new entrants d) Bargaining power of buyers e) Industry competitors Ans: a (Medium) Response: See page 38 15. The ¬¬¬¬¬____________ view considers activities that create, deliver, and support a company’s product or service. a) product and service b) creation, delivery, and support model c) Asset-based d) Resource-based e) Porter value chain Ans: e (Easy) Response: See page 41 16. Which one of the following is not considered to be a primary activity of the value chain of a firm? a) Inbound Logistics b) Service c) Sales & Marketing d) Technology e) Operations Ans: d (Medium) Response: See page 41 17. Which part of the value chain includes the manufacturing of goods? a) Inbound Logistics b) Outbound Logistics c) Operations d) Service e) Organization Ans: c (Easy) Response: See page 41 (Figure 2.5) 18. Which "view," applied in the area of Information Systems, helps identify two subsets of information resources: those that enable a firm to attain competitive advantage and those that enable a firm to sustain the advantage over the long-term? a) Resource-Based View b) Information-System View c) Information-Resource View d) System-Based View e) Organization View Ans: a (Medium) Response: See page 45 19. Porter’s value chain framework suggests that a competitive advantage can stem from: a) Lowering costs and adding value b) Reducing isolated costs c) Disregarding customer data d) Optimizing internal costs e) Improving customer service Ans: a (Medium) Response: See pages 41, 42 20. All of the following benefit from the network effect EXCEPT: a) Wikis b) Twitter c) Email d) Facebook e) Network bandwidth Ans: e (Medium) Response: See page 32 21. Porter's five "Forces," used so often in the text for analysis of IT applications, include all of the following except: a) Threat of substitute products b) Bargaining power of suppliers c) Bargaining power of customers d) New entrants e) Switching costs Ans: e (Easy) Response: See page 38 22. The supply chain: a) Points out the concept of weak link in an ordering process b) Helps us understand how value is built inside a single firm. c) Is composed of several value chains linked into a larger chain (a chain within a chain). d) All of the above e) None of the above Ans: c (Medium) Response: See page 41 23. An inter-organizational relationship that affords one or more companies in the relationship a strategic advantage: a) Co-opetition b) Customer Relationship Management (CRM) c) Supply Chain Management (SCM) d) Information Resources e) Strategic Alliance Ans: e (Medium) Response: See pages 47-48 24. Which is not a prescribed area of focus for gaining competitive advantage? a) Strongholds b) Cost/Quality c) Deep Pockets d) Timing/Know-how e) Insider Information Ans: e (Easy) Response: See page 38 25. Which is not a competitive force: a) Bargaining power of buyers b) Bargaining power of competitors c) Threat of substitute products or services d) Rivalry among existing firms e) Threat of entry of new competition Ans: b (Medium) Response: See page 38 26. Which of the following is NOT a primary activity of the Value Chain model? a) Inbound Logistics b) Operations c) Outbound Logistics d) Purchasing e) Marketing and Sales Ans: d (Medium) Response: See page 41 27. Which of the following is a support activity of the Value Chain Model? a) Operations b) Facilities c) Organization d) Informatics e) Outbound Logistics Ans: c (Medium) Response: See page 41 28. A strategy where companies cooperate and compete at the same time with companies in its value net: a) Co-opetition b) Teamwork c) Classwork d) Strategic Alliance e) Risk Ans: a (Easy) Response: See page 48 True/False 29. Unlike most assets, information resources do not lose value over time. Ans: False (Medium) Response: See page 34 30. Supply Chain Management (SCM) consists of technological components as well as a process that brings together information about customers, sales and marketing. Ans: False (Medium) Response: See pages 42, 48 31. A firm that acquires a supplier is looking to reduce the "bargaining power of suppliers" force. Ans: True (Medium) Response: See page 38 32. Zara’s use of information resourses has given it a substantial advantage over its competitors. Ans: True (Easy) Response: See page 40 33. S is an example of SAAS (Software as a service). Ans: True (Easy) Response: See page 36 34. The three major categories of IT capabilities are technical skills, management skills, and relationship skills. Ans: True (Medium) Response: See page 36 35. A link beween a firm’s IS strategy and business strategy focuses more on its external requirements than internal requirements. Ans: True (Medium) Response: See page 36 36. A link between a firm’s IS strategy and organizational strategy focuses more on its external requirements than internal requirements. Ans: False (Medium) Response: See page 36 37. In order to maximize the effectiveness of an organization’s business strategy, the manager must be able to identify and use information resources. Ans: True (Medium) Response: See page 36 Short Answer 38. SCM stands for ________________. Ans: Supply chain management Response: See page 42 39. This is a collection of firms that, using technology, extend their business relationships and connect their value chains. Ans: Value system Response: See page 42 40. List the three IS tools used to optimize the operations of a firm’s value chain. Answ: ERP, SCM, CRM Response: See page 42 41. This IT asset is business data that has been captured, organized and made available to an organization. Ans: Information repository Response: See page 36 42. List the four support activities of the value chain. Ans: Organization, Human Resources, Technology, Purchasing Response: See pages 41, 43 43. Information resources are defined as the available data, technology, people, and ______ available in an organization to be used by managers to complete business tasks. Ans: Processes Response: See page 36 44. IT resources consist of IT assets and IT _______. Ans: Capabilities Response: See page 36 45. For a company whose main product is information (like a financial services company), the company must co-create its ________ strategy and ________ strategy. Ans: Business, IS Response: See page 50 Essay 46. List one externally managed IT resource a company may use and how it provides a strategic advantage. 47. Explain why relationship skills are becoming more important to IS managers in today’s economy. 48. Provide an example of two companies that have built a strategic alliance. Briefly explain the benefits of the relationship. 49. Provide an example of two companies that have built an effective co-opetition. Briefly explain the benefit of the relationship. 50. List a Web 2.0 technology and how it benefits from the network effect. 51. Give an example of a company whose switching costs are too high, effectively keeping its customer captive. How is this company using technology to maintain high switching costs? 52. Explain how Zara has aligned its information systems strategy with its business strategy 43. Why is it that more and more firms need to co-create their business and IS strategy? Matching 54. Over the different eras, organizations have adapted their information systems strategy as technologies have matured. Place these different needs satisfied by information systems in order of maturity. In other words, which need is most likely the first need to be satisfied by an organization? First Need to lower existing transaction costs Second Need to innovate and create opportunities Third Need to use social IT platforms to collaborate and engage stakeholders 55. Match the technology with the era it dominated. Era I 1960s Centralized mainframe Era II 1970s Centralized minicomputers Era III 1980s Decentralized minicomputers and personal computers Era IV 1990s Client server Era V 2000s The Internet Era VI 2010+ Social networks, mobility and cloud computing 56. Starbucks allows customers in the US to use smartphones to pay for their purchases in an effort to drive sales. Starbucks uses a reader in the store to scan a bar code displayed on the customer's smartphone screen. While this use of information resources may be used to gain a strategic advantage, there are possible risks. Match the potentially harmful experience below with the IT risk it represents: Implementing IS poorly Someone reported that the use of the mobile payment application was causing longer lines at the cash register. Demonstrate bad timing A very small percentage of customers use the service because few have mobile devices and even fewer are able to download and use the application. Awaking a sleeping giant A large credit card processing agency deploys a smartphone application for mobile payments that can be used in any retail environment. 57. Identify each resource below as an IT asset or an IT capability. IT asset Information repository IT asset IT infrastructure IT asset Software IT asset Network IT capability Ability to design, develop and implement IS IT capability Project management IT capability Relationship skills 58. Match an organization’s activity with the competitive force it has successfully influenced. Threat of new entrants Walmart’s massive, complex inventory control system is hard for others to replicate and gain the same economies of scale. Bargaining power of the buyer Amazon’s One Click ordering system makes buying online easy, enticing the customer to return for other purchases. Threat of substitute product Apple’s ability to create new products even at the risk of cannibalizing existing products. Bargaining power of suppliers Amazon’s purchase of Zappos. 59. Match Zara’s use of IT to the competitive force it influences. Threat of new entrants Zara has a highly collaborative group of designers, sales people and manufacturing planners who are supported by a unique IT that is hard for any retailer to replicate. Threat of substitute product IT enables Zara to turn around new products, reacting within 3 weeks to customer’s likes and dislikes. Bargaining power of suppliers Zara cuts and dyes much of its fabric, making it less dependent on those that provide fabric. 60. Match Zara’s primary activity to the Porter’s value chain activity it represents. Inbound logistics Zara receives fabric from a supplier. Outbound logistics Using automated conveyer belts, finished clothes are sorted and shipped to stores. Operations Fabric is cut and sewn and the finished clothes are packaged. Marketing & Sales POS capture what has been sold. 61. Match Zara’s support activity to the Porter’s value chain activity it represents. Human Resources Store managers are trained to not only service customers but also discover what the customer wants but is unable to find. Technology Zara works with hardware and software vendors to develop and design automated systems that support activities like the distribution of goods and the cutting of fabrics. Purchasing Fabric suppliers are paid for the fabric Zara has purchased. 62. Social capital is a valuable resource for businesses. Match the category of social capital with the questions is seeks to answer. Structural Who is connected to whom? Relational How do connected people interact? Cognitive How do the connected individuals think? 63. Match the methodology used to align a firm’s business strategy with its information strategy. Porter’s 5 Competitive Forces Information resources should be used to strategically alter the marketplace while benefiting the firm’s position in the industry. Porter’s Value Chain Framework Information can lower cost of business and strategically adds value to the firm’s internal operations. Resource-Based View Leverage IT resources that are identified to create and sustain a strategic advantage for the firm. File: 6e chapter3TestB, Chapter 3, Organizational Strategy and Information Systems Multiple Choice 1. Cognizant’s organizational structure was ________, but realized as its organization grew and its services became more complicated that a __________ structure for the organization was more appropriate. a) hierarchical, networked b) matrix, networked c) flat, matrix d) hierarchical, matrix e) flat, hierarchical Ans: d (Hard) Response: See page 55, 56, 61 2. The organizational structure of Tata Consulting Services (TCS) is a ___________ organizational structure. a) hierarchical b) networked c) matrix d) flat e) zero time Ans: a (Hard) Response: See pages 56, 57 3. All statements below are true about a matrix organization structure EXCEPT: a) The design supports both function and purpose. b) Operating complexities can be reduced by sharing information among management. c) Workers are assigned to two or more managers. d) One weakness is that multiple dimensions of a business are not integrated well with a matrix organization e) Confusion must be dealt with through frequent meetings and conflict resolution sessions. Ans: d (Medium) Response: See page 61 4. This type of organizational structure is based upon the concepts of division of labor, specialization, and unity of command. Key decisions are made at the top and filter down through the organization. a) Hierarchical b) Networked c) Flat d) Matrix e) Social Ans: a (Medium) Response: See page 60 5. This newer organizational design is designed to be highly flexible so that resources can be configured quickly to respond to changing demands. a) Up time organization b) Social networked organization c) Hierarchical organization d) Matrix organization e) Elastic enterprise Ans: e (Hard) Response: See page 62 6. IS plays three important roles in management control processes. These processes are data collection, evaluation, and _______________. a) transformation b) management c) communication d) implementation e) conversion Ans: c (Medium) Response: See pages 63-64 7. Organizational design is all about making sure that _________ are properly allocated, reflecting the structure of formal reporting relationships. a) decision rights b) business processes c) values d) incentives e) IS Ans: a (Medium) Response: See page 58 8. Traditional organizations have one of four types of organizational design. What are these four structure types? a) Traditional, flat, matrix, technology b) Hierarchical, flat, matrix, networked c) Matrix, networked, flat, information d) Matrix, flat, networked, traditional e) Social, networked, matrix, hierarchical Ans: b (Medium) Response: See page 59 9. In which type of organizational design do middle managers do the primary information processing and communication function, telling subordinates what to do and then reporting the outcome to senior management? a) Flat b) Networked c) Hierarchical d) Matrix e) Hybrid Ans: c (Medium) Response: See page 60 10. In which type of organizational structure will employees report to two or more supervisors? a) Hierarchical b) Networked c) Flat d) Matrix e) Functional Ans: d (Medium) Response: See page 61 11. In which type of organizational structure is power centralized and the type of environment best supported stable and certain? a) Flat b) Networked c) Hierarchical d) Matrix e) Traditional Ans: c (Medium) Response: See page 60 12. In which type of organizational structure is power distributed, and particularly suited for an environment that is dynamic and unstable? a) Flat b) Networked c) Hierarchical d) Matrix e) Hybrid Ans: b (Medium) Response: See page 61 13. A networked organizational structure feels both like a_______ and a_______ organizational structure because it supports a rigid structure with well-connected communication networks. a) matrix, flat b) flat, hierarchical c) hierarchical, hybrid d) flat, networked e) matrix, traditional Ans: b (Medium) Response: See page 61 14. When using information technologies to collect data for the purpose of monitoring workers, a manager should do all of the following EXCEPT: a) Inform employees when and what is being monitored. b) Consider the privacy rights of individuals. c) Ensure monitoring is meaningful to the organization’s mission. d) Capture qualitative inputs in addition to quantitative data. e) Require workers to complete additional tasks. Ans: e (Hard) Response: See page 64 15. At Zara, decision rights for ordering have been granted to whom? a) Regional managers b) Headquarters c) Store managers d) Central production e) The commercial team Ans: c (Medium) Response: See page 59 16. Zara’s store managers place orders that reflect their localized needs. However, order fulfillment is ultimately the responsibility of the commercial team in headquarters because: a) Store managers have no real decision rights. b) The commercial team does not trust the store managers. c) Store managers do not have visibility into regional demands but the commercial team does. d) The commercial team has more direct contact with the designers and production. e) Store managers have no access to sales information for their store. Ans: c (Hard) Response: See page 59 17. All of the following help to develop informal networks that play an important role in an organization EXCEPT for: a) Job rotation b) Company softball team c) Virtual communities d) Performance reviews e) Attendance at a conference Ans: d (Hard) Response: See page 62-63 18. The dimensions of national culture include all of the following EXCEPT: a) The distribution of power in society b) The extent to which society tolerates uncertainty c) Avoidance of uncertainty d) The acceptance of technology by society e) The degree to which society engages in future-oriented behaviors Ans: d (Medium) Response: See page 69 19. Effective, cross-cultural communication in today’s global and “flattened” world is: a) Easy to achieve b) Difficult to achieve c) Of little consequence to the organizational strategy d) Achieved by using the best available technologies e) No longer an issue for managers Ans: b (Medium) Response: See pages 70-71 20. The negative consequences of monitoring an employee’s discrete tasks include all of the following EXCEPT: a) The worker can become disconnected from the larger business process. b) There can be less of an opportunity for the worker to broaden his/her skills. c) The worker feels empowered to make significant contributions to the business. d) The personal freedoms of the worker may be intruded upon. e) The privacy rights of an employee may be violated. Ans: c (Medium) Response: See pages 64-65 21. A matrix organization: a) Can involve multiple bosses and multiple teams b) Requires quite a bit of communication to be successful c) Were rare for quite a while but have become more common in recent years d) All of the above e) None of the above Ans: d (Medium) Response: See page 55 22. Which of the following is not an organizational design variable? a) IT Infrastructure b) Decision rights c) Informal networks d) Structure e) Formal reporting relationships Ans: a (Hard) Response: See page 55 23. Which of the following is not an organizational structure? a) Hierarchical b) Flat c) Power Distant d) Matrix e) Networked Ans: c (Medium) Response: See page 59 24. Which organization structure typically assigns workers two or more supervisors in an effort to make sure multiple dimensions of the business are integrated? a) Hierarchical b) Flat c) Matrix d) Networked e) Informal Ans: c (Easy) Response: See page 59 True/False 25. Cognizant needed to reinvent its organizational structure many times to make sure that it properly facilitates the flow of information between employees. Ans: True (Medium) Response: See page 55 26. Different organization structures reflect the different organizational strategies that are used by firms to implement their business strategy. Ans; True (Medium) Response: See page 57 27. An organization feels hierarchical when IT is used primarily as a communication vehicle. Ans: False (Medium) Response: See page 61 28. A firm is usually a mix of different organizational structures, known as a hybrid structure. Ans: True (Medium) Response: See page 62 29. The use of performance data by managers is generally welcomed by workers and nonthreatening to workers when the data is used for compensation rather than to improve performance. Ans: False (Medium) Response: See page 65 30. National culture no longer predisposes workers to act in a certain way. Ans: False Response: See pages 66-67 31. Differences in organizational and national culture normally do not affect system development and use. Ans: False (Medium) Response: See pages 66-68 32. If a technology is to be successfully implemented into an organization, either the technology must fit the organization’s culture or the culture must be shaped to fit the behavioral requirements of the technology. Ans: True (Hard) Response: See page 66-68 Short Answer 33. The three components of the organizational strategy are organizational design, management control systems and _________. Ans: Organizational culture Response: See page 57 34. A ________ organization allows a firm to concentrate on both function and purpose. Ans: Matrix Response: See page 59 35. ________ reduces the operating complexity of a matrix organization. Ans: IS Response: See page 61 36. IS makes it possible to evaluate performance by capturing current data in addition to analyzing historical data. Often managers are faced with an overwhelming volume of data and analyzing it becomes very time consuming, a situation known as ____________. Ans: Analysis paralysis Response: See page 65 37. A corporate culture is a firm’s set of shared values and _______ Ans: beliefs Response: See page 66 38. This term is used to describe a situation where technology enables individuals from all parts of the organization to reach and communicate with all other parts of the organization. Ans: Technological leveling Response: See pages 61-62 39. Ideally, the person who has the most information about a decision and who is in the best position to understand the relevant issues is the person with __________ for the decision. Ans: Decision Rights. Response: See page 58 40. This IT-enabled network links individuals together, regardless of location, so that they may get to know people and find useful information. Ans: Social network Response: See page 63 Essay 41. Cognizant moved to a matrix organization to “foster continuous operational implementations and better bottom-line results for clients.” Explain how the change of organizational design allowed Cognizant to succeed. 42. Compare and contrast the organizational structures of Cognizant (after restructuring) and that of Tata Consultancy Services (TCS). 43. How does IS impact the 3 managerial levers: organizational, control and cultural? 44. Explain how Cognizant’s “10/10/10” program is designed, its cultural impact and the role IS plays in supporting it. 45 Assume you are a manager of a local doctor’s office. How could you use IS to help monitor the performance of the nurses and doctors? State the benefits as well as the challenges. 46. List some examples of informal networking that occurs in organizations. How can management utilize informal networks to the organization’s advantage? 47. Give an example of a tool or virtual community that enables a large, global informal network. What is its value to a participant and the participant’s firm? 48. What recommendations would you give a manager who supports a team of individuals with a multitude of cultural differences? Matching 49. Match the organizational structure to the statement that best represents it. Networked organization Decision rights are highly decentralized. Flat organization Decision rights are not clearly defined. Matrix organization Decision rights are shared between managers. Hierarchical organization Decision rights are highly centralized. 50. Match the organizational structure to the power structure it supports. Centralized Hierarchical organization Decentralized Flat organization Distributed Matrix organization Distributed Networked organization 51. Match the organizational structure that you would find supporting the organization strategy of the following firms: Flat organization A start-up venture in its first few years of existence Matrix organization A multi-national organization with regional and functional divisions Hierarchical organization A military organization like the Navy 52. Match the organizational variable to its description. Decision Rights The authority to make decisions necessary to plan and run the business. Business processes The set of tasks needed to complete key objectives of the business. Formal reporting relationships The structure set up to ensure coordination with the organization. Informal networks The mechanisms used to develop organizational relationships outside of the formal reporting relationships. 53. Match a firm’s actions with the cultural layer it helps to define. Low power distance Invest heavily in training Values Believe in helping employees to develop so they can perform better in the future Assumptions Workers inherently know that customer issues take precedence 54. Hofstede identified cultural dimensions and researched expected behaviors within that society. Match the cultural dimension to the organizational impact it can have. Uncertainty Avoidance The willingness to take risk or avoid risk. Power Distance The likeliness of innovation Individualism/Collectivism The propensity to hire from within the organization Masculinity/Femininity The level of conflict to be anticipated Confucian Work Dynamism The willingness to delay gratification File: chapter4TestB, Chapter 4, Information Systems and the Design of Work Multiple Choice 1. What was involved in the American Express BlueWork program? a) A system that tracks the hours each employee works in a given day b) Employees are provided with opportunities for flexible arrangements c) Employees are provided with better office facilities so they stay in the office longer d) Employees can work on tasks they choose, as long as they are in the office e) Employees who are wary of newer technologies Ans: b (Medium) Response: See page 75 2. All of the following are new types of jobs created by the growing reliance on technology EXCEPT: a) Database administrator b) Web site designers c) Network security advisor d) Editors/writers e) Social media specialists Ans: d (easy) Response: See pages 78, 79 3. Which one of the following is a valid statement? a) The cost to access information has risen. b) It takes more time to access information. c) Personal productivity has dropped as a result of technology. d) Traditional job roles have not changed much as a result of technology. e) Most jobs today have a significant information systems component. Ans: e (easy) Response: See page 80 4. IBM has implemented a social network analysis tool that maps the _________ and the connections of IBM employees, supporting innovation by allowing employees to find others in the company with particular skills, interests or expertise. a) knowledge b) IS c) friendships d) departments e) job descriptions Ans: a (Hard) Response: See page 84 5. The concept of “jobs” is being replaced with the concept of work, requiring a framework that links the IS Strategy with the organization strategy to answer all of the following EXCEPT: a) What work will be performed? b) Who is going to do the work? c) Where will the work be performed? d) When will the work be performed? e) Who will develop the IS? Ans: e (Easy) Response: See page 77 6. Which collaboration technology is becoming more and more popular both inside and outside organizations, consuming much of our attention on a day-to-day basis? a) Intranet b) Wikis c) VoIP d) Social networking on mobile devices e) Talking on mobile phones Ans: d (Easy) Response: See page 83 7. The main benefit of ________________ is that users can work collaboratively to easily create and edit Web pages, and link them to useful resources. a) a Wiki b) Groupware c) RSS (web feeds) d) Social networking sites e) a Virtual Private Network Ans: a (Medium) Response: See page 82 8. This model suggests that employee attitudes may change if they think the new system will help them to do more or better work for the same effort, and that it’s easy to use. Employee participation in the system’s design and implementation also helps. a) Information Management Model (IMM) b) Employee Technology Model (ETM) c) Capability Maturity Model (CMM) d) Computer Access Model (CAM) e) Technology Acceptance Model (TAM) Ans: e (Medium) Response: See page 95 9. The Department of Veterans Affairs (VA) realized it did not have adequate policies, education or technology in place for remote workers when: a) An employee whose laptop carrying unencrypted, sensitive military personnel information was stolen. b) Because of lack of coordination, all remote workers were not available for an extended period of time. c) Employees posted sensitive data on a public social networking site. d) Employees copied sensitive data over an unsecured network. e) A virus from an employee’s remote computer crashed the VA’s intranet. Ans: a (Medium) Response: Pages 90-91 10. Shoshana Zuboff studied how papermakers’ jobs were changed by the introduction of computers. What was one of her findings? a) Web portals were useful in a manufacturing context b) The workers felt empowered by the technology c) The workers sabotaged the technology d) The managers were unable to take their typical shortcuts e) The workers were no longer able to smell and squeeze the pulp, resulting in lower productivity Ans: e (easy) Response: See page 79 11. Steve works for a pharmaceutical company and he specializes in marketing and sales. He generally works from home. According to the text, what type of worker is Steve? a) Telecommuter b) Mobile device c) Global worker d) Vagabond worker e) Contract worker Ans: a (easy) Response: See pages 76, 86 12. Which one of the following is NOT a factor driving the use of telecommuting? a) Geographic flexibility b) Higher productivity c) Higher job satisfaction d) Lower employee turnover e) Stronger sense of company culture Ans: e (Medium) Response: See page 91 13. Team members who are _______________ and prefer to do several activities at one time may want to have IM or VOIP available to them so that they can communicate with their colleagues and still work on other tasks. a) bichronous b) monochronous c) asynchronous d) synchronous e) polychronous Ans: e (Medium) Response: See page 94 14. Which virtual team challenge is more difficult for managers to manage/manipulate since there may be a great deal of difference between groups and individuals? a) communication b) technology c) diversity d) management e) location Ans: c (Medium) Response: See page 91 15. IT has altered employees and the way they work by doing all of the following EXCEPT: a) Creating new types of jobs b) Greatly changing day-to-day tasks c) Supporting new ways to manage talent d) Needing more technically knowledgeable individuals e) Providing distinct lines between work and play Ans: e (Medium) Response: See page 83 16. The qualities found in a successful remote worker include all of the following EXCEPT: a) Self-discipline b) Socialized into the corporate culture c) Self-starter d) Ineffective communicator e) Proficient in a wide range of technologies Ans: d (easy) Response: See page 90 17. To help employees accept new technologies like an information system, a manager will do all of the following EXCEPT: a) Ensure employees find the system easy to use b) Demonstrate that the system will allow them do more or better work for the same amount of effort c) Train the user on the new system d) Reward users of the new system e) Provide minimal rationale for the new system Ans: e (easy) Response: See page 96 18. Diversity in virtual teams increases the communication challenges. However, virtual teams with diversity have demonstrated which of the following? a) More creative solutions. b) Better compliance with deadlines. c) Equitable performance management. d) Tighter security policies. e) A high degree of self-reliance. Ans: a (Medium) Response: See page 94 19. While there are many advantages to working remotely, there are some potential problems. For example, once work has been successfully performed remotely, a company may find economic reasons to let go of workers and choose to _______ the work abroad. a) Outplace b) Offshore c) Automate d) Recruit e) Isolate Ans: b (Medium) Response: See page 91 20. Managers in today’s global, virtual workforce must rethink how they break from traditional methods of managing, particularly in the all of the following ways EXCEPT: a) Hiring new employees b) Evaluating an employee’s contribution to a team and the company c) Creating individual-based rewards and compensation policies d) Setting strategic objectives e) Supervising employees Ans: d (Hard) Response: See page 84 21. The type of controls that will be most likely be used for remote workers is: a) Behavior b) Electric shock c) Outcome d) All of the above e) None of the above Ans: c (Easy) Response: See page 85 True/False 22. One of the best examples of outcome controls is the re-hiring of Steve Jobs by Apple as CEO Ans: False Response: This is an example of personnel controls. See page 84 23. The Technology Acceptance Model states that the two main drivers of system use are management mandates and incentives. Ans: False Response: See page 95 24. According to Thomas Friedman, collaboration is the way that small companies can “act big” and flourish in today’s flat world. Ans: True (Easy) Response: See page 81 25. Virtual teams and remote work have advantages but no known disadvantages over face-to-face teams and showing up at an office. Ans: False (Medium) Response: See pages 91-96 26. Knowledge-based work allows employees to work remotely rather than having to physically be present at a store, manufacturing facility or office building. True (Medium) Response: See page 87 27. As a result of increased flow of information, firms have seen an increase in middle managers. Ans: False (Medium) Response: See pages 81-82 28. The Internet greatly enhances collaboration. Ans; True (easy) Response: See page 83 29. Teams operate in one of four ways, which are represented by combinations of two dimensions: “place” vs “time,” and each dimension is either “same” or “different.” Ans: True (Medium) Response: See page 82. 30. Digital natives are willing to take a lower-paying job with better social media access, device choice, and mobility over a higher-paying job with less technological flexibility. Ans: True (Medium) Response: See page 83 Short Answer 31. This is a list of activities on a Web site that briefly highlights what individuals are doing, thinking, and updating and in return gives the community a sense of what is happening. Ans: activity stream Response: See page 84 32. Two dimensions of considering virtual team activity are: same or different ______ and same or different ______. Ans: place, time Response: See page 82 33. The traditional approach uses subjective observation while the digital approach involves ____________ Ans: objective assessment Response: See page 85 34. Telecommuting is (more/less) accepted by people in countries such as Japan and China Ans: less Response: See page 89 35. Technology today has increased the ways work blends together with other aspects of life. This is very similar to how work was configured in ____________ societies. Ans: Preindustrial or agricultural Response: See page 76 36. Employees may resist a change in IS by: denying that the system is up and running, trying to convince others it has no value, refusing to use the system, and/or _________ the system by distorting or altering inputs. Ans: sabotaging Response: See page 94 37. Today’s IT increases the effectiveness of workers, particularly with the use of both ________ tools and collaboration tools. Ans: Communication Response: See page 96 38. What do we call members of the generation that’s grown up using computers, the Web and social network sites as a normal, integrated part of their lives? Ans: Digital natives Response: See page 86 39. The factors driving the emergence of telecommuting include: changing demographics and lifestyle preferences, more powerful technologies, increasing reliance on web-based technologies, and _____________________. Ans: a shift to knowledge-based work or energy concerns Response: See pages 88-89 40. An advantage of virtual teams is that members in different parts of the world can cooperate to get work done faster due to time zone differences. Teams can upload their results every evening and another distant team can download those files immediately, in what is the start of their day. What is this called? Ans: Following the sun. Response: See page 91 41. A virtual team is faced with communication, technology and ______ challenges. Ans: Diversity or cultural Response: See page 92. Essay 42. Why are teams using collaborative tools like groupware and wikis to coordinate their work rather than a communication tool like e-mail? 43. Explain how IS radically changed the paper maker’s work at a paper mill. 44. Describe one job that once existed but today is obsolete (or is slowly becoming obsolete) because of technology. 45. List the challenges that a global, virtual team must overcome to be successful. 46. How have hiring practices been impacted by IT? 47. Data entry has always been a challenge in many business processes. There are technologies that have removed this challenge by allowing data to be captured at the time it is created, reducing the need for data entry clerks. List a specific example of this technology and the impact it has had on a particular industry. Matching 48. Identify the following technologies as primarily supporting either communication or collaboration efforts. Communication tool E-mail Communication tool Instant messaging Communication tool Video teleconferencing Collaboration tool Social networking sites Collaboration tool Blogs Collaboration tool Groupware 49. Identify the following technologies as primarily supporting either communication or collaboration efforts. Communication tool Google Gmail Communication tool Twitter Communication tool RSS feed from Yahoo! Collaboration tool Linked-In Collaboration tool SharePoint 50. Match the technology with its classification. Skype Voice over Internet Protocol (VoIP) Wikipedia Wiki SharePoint Groupware FTP File Transfer Facebook Social networking site 52. The life cycle of a virtual team consists of 5 phases. List these phases in the order they occur in the life cycle. 1st Preparation 2nd Launch 3rd Performance management 4th Team development 5th Disbanding 53. Match the factor driving the use of telecommuting with its effect. Shift to knowledge-based work Removes the requirement to perform work at a specific location. Changing demographics and lifestyle preferences Provides workers with geographic and time-shifting flexibility. Reliance on Web Provides workers with the ability to stay connected to co-workers and customers Energy concerns Reduces the costs of commuting and maintaining office space, and can reduce travel. New technologies Makes working remotely practical and cost effective. 54. Match the scenarios below as either representative of a virtual team or a more traditional team (non-virtual team). Virtual team Scheduling meetings is difficult because of different time zones. Traditional team Teams often have face-to-face discussions. Virtual team Reliance on technology to support team effectiveness. Traditional team Easily formed group identity. Virtual team It’s necessary for individuals to have strong communication skills. Virtual team More likely to be diverse. 55. Lewin’s change model to gain acceptance of new technology is based on 3 stages. Match the stage to its objective. Unfreezing Motivate employees for the new technology. Changing Provide employees with the new technology. Refreezing Reinforce the value of the new technology by highlighting successes. 56. Lewin’s change model to gain acceptance of new technology is based on 3 stages. Order the stages based on the stage a manager would seek to achieve 1st and so on. 1st Unfreezing 2nd Changing 3rd Refreezing