MBA 651 EXAM 1 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
· Reasons why manager should participate in IS decisions - Answers o Critical for success
o Can damage their reputation if not
o Technology is intertwined with all functions of business
o Can cause a firm to fail to meet corporate objectives
· Opportunities and new strategies derived from rapid changes in technology - Answers o Manager's
role is to frame these opportunities so that others can understand them, evaluate them against
existing business needs and choices, and then pursue those that fir with an articulated business
strategy
· Information hierarchy and characteristics across hierarchy levels - Answers § Easily structured, easily
captured on machines, often quantified, easily transferred, mere facts
§ Example: daily inventory report of all inventory items sent to the CEO of a large manufacturing
company
o Information- data endowed with relevance and purpose. - Answers § Requires unit of analysis, data
that have been processed, human mediation necessary
o Knowledge- information that is synthesized and contextualized to provide value. - Answers § Hard
to structure, difficult to capture on machines, often tacit, hard to transfer
§ Example: inventory manager's knowledge of which items need to be reordered in light of daily
inventory report, anticipated labor, strikes, and a flood in Brazil that affects the supply of a major
component
· Skills for successful IT use by managerial role - Answers o Visionary: creativity, curiosity, confidence,
focus on business solutions, flexibility
o Informational and interpersonal: communication, listening, information gathering, interpersonal
skills
o Structural: project management, analytical, organizational, planning, leading, controlling
· Proves view vs. functional view of the firm - Answers o Functional view: information flows vertically
up and down between line positions and management; after analysis, it may be transmitted across
other functions for use elsewhere in the company. Useful when similar activities must be explained,
coordinated, executed, or communicated
o Process view: takes into account the activities in each functional area that are needed to complete a
process, and any organization can be described by the processes it performs. Useful when examining
the flow of information throughout a business
· Economics of things vs. information - Answers o Things: wear out, are replicated at the expense of
the manufacturer, exist in a tangible location, when sold possession changes hands, price based on
production costs, are based on a physical infrastructure, are fixed units each needing physical
handling, usually cannot be combined to operate with other physical units
o Information: doesn't wear out but can become obsolete or untrue, is replicated at almost zero cost
without limit, does not physically exist, when sold seller may still possess and sell again, price based
on value to consumer, is based on digital infrastructure, can be repackaged/customized/generated on
demand, requires only translation software to be combined with or augmented by other data
Digital Immigrants - Answers people born before the 1990s, weren't always around computers
· IS strategy triangle - Answers o Business strategy, organizational strategy, information strategy
Business Model - Answers o blueprint of how a company does business
Business Strategy - Answers o : a plan articulating where a business seeks to go and how it expects to
get there
Strategy - Answers o Coordinated set of actions to fulfill objectives, purposes, and goals
Mission - Answers o A clear and compelling statement that unifies an organization's efforts and
describes what the firm is all about
· Porter's strategies for achieving competitive advantage - Answers o Cost leadership, Differentiation,
Focus
o Firms achieve competitive advantage through cost leadership, differentiation, and focus
o Understanding which strategy is chosen by a firm is critical to choosing IS to complement the
strategy
· Dynamic environment strategies & hypercompetition - Answers o Suggest that the speed and
aggressiveness of the moves and countermoves in a highly competitive and turbulent market create
an environment in which advantages are rapidly created and eroded
· Reasons why manager should participate in IS decisions - Answers o Critical for success
o Can damage their reputation if not
o Technology is intertwined with all functions of business
o Can cause a firm to fail to meet corporate objectives
· Opportunities and new strategies derived from rapid changes in technology - Answers o Manager's
role is to frame these opportunities so that others can understand them, evaluate them against
existing business needs and choices, and then pursue those that fir with an articulated business
strategy
· Information hierarchy and characteristics across hierarchy levels - Answers § Easily structured, easily
captured on machines, often quantified, easily transferred, mere facts
§ Example: daily inventory report of all inventory items sent to the CEO of a large manufacturing
company
o Information- data endowed with relevance and purpose. - Answers § Requires unit of analysis, data
that have been processed, human mediation necessary
o Knowledge- information that is synthesized and contextualized to provide value. - Answers § Hard
to structure, difficult to capture on machines, often tacit, hard to transfer
§ Example: inventory manager's knowledge of which items need to be reordered in light of daily
inventory report, anticipated labor, strikes, and a flood in Brazil that affects the supply of a major
component
· Skills for successful IT use by managerial role - Answers o Visionary: creativity, curiosity, confidence,
focus on business solutions, flexibility
o Informational and interpersonal: communication, listening, information gathering, interpersonal
skills
o Structural: project management, analytical, organizational, planning, leading, controlling
· Proves view vs. functional view of the firm - Answers o Functional view: information flows vertically
up and down between line positions and management; after analysis, it may be transmitted across
other functions for use elsewhere in the company. Useful when similar activities must be explained,
coordinated, executed, or communicated
o Process view: takes into account the activities in each functional area that are needed to complete a
process, and any organization can be described by the processes it performs. Useful when examining
the flow of information throughout a business
· Economics of things vs. information - Answers o Things: wear out, are replicated at the expense of
the manufacturer, exist in a tangible location, when sold possession changes hands, price based on
production costs, are based on a physical infrastructure, are fixed units each needing physical
handling, usually cannot be combined to operate with other physical units
o Information: doesn't wear out but can become obsolete or untrue, is replicated at almost zero cost
without limit, does not physically exist, when sold seller may still possess and sell again, price based
on value to consumer, is based on digital infrastructure, can be repackaged/customized/generated on
demand, requires only translation software to be combined with or augmented by other data
Digital Immigrants - Answers people born before the 1990s, weren't always around computers
· IS strategy triangle - Answers o Business strategy, organizational strategy, information strategy
Business Model - Answers o blueprint of how a company does business
Business Strategy - Answers o : a plan articulating where a business seeks to go and how it expects to
get there
Strategy - Answers o Coordinated set of actions to fulfill objectives, purposes, and goals
Mission - Answers o A clear and compelling statement that unifies an organization's efforts and
describes what the firm is all about
· Porter's strategies for achieving competitive advantage - Answers o Cost leadership, Differentiation,
Focus
o Firms achieve competitive advantage through cost leadership, differentiation, and focus
o Understanding which strategy is chosen by a firm is critical to choosing IS to complement the
strategy
· Dynamic environment strategies & hypercompetition - Answers o Suggest that the speed and
aggressiveness of the moves and countermoves in a highly competitive and turbulent market create
an environment in which advantages are rapidly created and eroded
