TEST BANK FOR ESSENTIALS OF
MIS 14TH EDITION, BY KENNETH
LAUDON, JANE LAUDON
COMPLETE CHAPTERS| VERIFIED
QUESTIONS & CORRECT ANSWERS|
EXAM PREPARATION Q&AS| A+
PASS
Chapter 1: Information Systems in Global Business Today
1) The six important business objectives of information technology are new products, services, and
business models; customer and supplier intimacy; survival; competitive advantage; operational
excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
E) improved business value.
Answer: B
Rationale: The six strategic business objectives of information systems are: operational excellence; new
products, services, and business models; customer and supplier intimacy; improved decision making;
competitive advantage; and survival. Improved decision making is a key objective because information
systems provide managers with real-time data and analytics to make informed choices.
2) Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise real-
time information illustrates which business objective?
A) improved flexibility
B) improved decision making
C) competitive advantage
D) survival
E) customer and supplier intimacy
Answer: B
Rationale: A digital dashboard provides managers with real-time, precise information, which is a direct
example of using information systems to improve decision making. It allows managers to make better,
faster decisions based on current data rather than guesswork.
3) Which of the following choices may lead to competitive advantage?
, 1. new products, services, and business models; 2. charging less for superior products; 3.
responding to customers in real time?
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3
Answer: D
Rationale: New products, services, and business models (1) and responding to customers in real
time (3) are both established ways to achieve competitive advantage. Charging less for superior
products (2) is not a sustainable strategy for competitive advantage, as it usually leads to a price
war and erodes profits.
4) The use of information systems because of necessity describes the business objective of
A) operational excellence.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.
E) survival.
Answer: E
Rationale: The business objective of "survival" refers to the necessity of investing in information systems
to stay in business. This can be due to competitive pressure, industry-wide changes, or government
regulations that require companies to adopt new technologies.
5) The Mandarin Oriental hotel's use of computer systems to keep track of guests' preferences is an
example of
A) improved flexibility.
B) improved decision making.
C) improved efficiency.
D) customer and supplier intimacy.
E) operational excellence.
Answer: D
Rationale: By tracking guest preferences, the hotel can provide a more personalized experience, which
fosters a closer relationship with the customer. This is a classic example of using information systems to
achieve customer intimacy.
6) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of
information systems to achieve which business objective?
A) improved efficiency
B) customer and supplier intimacy
C) survival
D) competitive advantage
E) improved decision making
,Answer: C
Rationale: Once Citibank introduced ATMs, other banks were forced to adopt the technology to remain
competitive and retain their customers. This is a case of using information systems for survival—not
doing so would have put them at a severe disadvantage.
7) Which of the following objectives best describes the business strategy behind the technologies
implemented by the San Francisco Giants, as discussed in the chapter case?
A) customer and supplier intimacy
B) survival
C) competitive advantage
D) customer support
E) operational excellence
Answer: C
Rationale: The San Francisco Giants implemented a new information system to gain a competitive
advantage in the sports entertainment market. The system allowed them to better analyze data and
improve their on-field performance and fan experience, setting them apart from other teams.
8) An example of a business using information systems to create new products and services is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) the San Francisco Giants play tracking system.
Answer: D
Rationale: The iPod is a product that is entirely dependent on information technology. Its creation
represents a new product that was enabled by and is a part of the IT industry itself, making it a prime
example of using IS to create new products and services.
9) An example of a business using information systems to attain operational excellence is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) Citibank's ATMs.
Answer: A
Rationale: Wal-Mart's RetailLink system is a classic example of using information systems to achieve
operational excellence. It allows Wal-Mart to manage its supply chain with extreme efficiency, keeping
costs low and ensuring products are always in stock.
10) An example of a business using information systems for customer and supplier intimacy is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
, D) Apple Inc.'s iPod.
E) Citibank's ATMs.
Answer: B
Rationale: The Mandarin Oriental hotel uses a customer-preference tracking system to remember guest
details, which helps them provide superior, personalized service. This builds a strong relationship and
intimacy with the customer.
11) The temp agency that you own is having serious difficulties placing temps because few of them are
familiar with Internet research. Investing in training software to enhance your workers' skills is an
example of using technology to achieve which business objective?
A) customer and supplier intimacy
B) survival
C) operational excellence
D) improved decision making
E) new products and services
Answer: B
Rationale: The temp agency is facing a situation where a lack of IT skills is threatening its core business.
Investing in training is a necessary step to stay competitive and remain in business, which is the
objective of survival.
12) Apple Computer dominates the online legal music sales industry primarily because of a failure of
recording label companies to
A) invest in technology.
B) assemble accurate data.
C) invest in complementary assets.
D) modernize their information value chain.
E) adopt a new business model.
Answer: E
Rationale: The recording labels failed to adapt to the digital age and adopt a new business model for
online music distribution. Apple seized this opportunity with iTunes, creating a new business model that
met consumer demand.
13) All of the following are advantages, for a firm, of cloud computing except
A) ability to support mobile computing.
B) ability to support remote work.
C) ability to improve communication.
D) ability to rely on markets to build value.
E) ability to reduce data storage costs.
Answer: C
Rationale: While cloud computing can facilitate communication, improving communication is not a
direct or primary advantage of the cloud computing model itself. The main advantages are flexibility,
scalability, cost reduction, and supporting mobile/remote work. "Ability to rely on markets to build
value" refers to outsourcing, which is a related but distinct concept.
MIS 14TH EDITION, BY KENNETH
LAUDON, JANE LAUDON
COMPLETE CHAPTERS| VERIFIED
QUESTIONS & CORRECT ANSWERS|
EXAM PREPARATION Q&AS| A+
PASS
Chapter 1: Information Systems in Global Business Today
1) The six important business objectives of information technology are new products, services, and
business models; customer and supplier intimacy; survival; competitive advantage; operational
excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
E) improved business value.
Answer: B
Rationale: The six strategic business objectives of information systems are: operational excellence; new
products, services, and business models; customer and supplier intimacy; improved decision making;
competitive advantage; and survival. Improved decision making is a key objective because information
systems provide managers with real-time data and analytics to make informed choices.
2) Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise real-
time information illustrates which business objective?
A) improved flexibility
B) improved decision making
C) competitive advantage
D) survival
E) customer and supplier intimacy
Answer: B
Rationale: A digital dashboard provides managers with real-time, precise information, which is a direct
example of using information systems to improve decision making. It allows managers to make better,
faster decisions based on current data rather than guesswork.
3) Which of the following choices may lead to competitive advantage?
, 1. new products, services, and business models; 2. charging less for superior products; 3.
responding to customers in real time?
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3
Answer: D
Rationale: New products, services, and business models (1) and responding to customers in real
time (3) are both established ways to achieve competitive advantage. Charging less for superior
products (2) is not a sustainable strategy for competitive advantage, as it usually leads to a price
war and erodes profits.
4) The use of information systems because of necessity describes the business objective of
A) operational excellence.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.
E) survival.
Answer: E
Rationale: The business objective of "survival" refers to the necessity of investing in information systems
to stay in business. This can be due to competitive pressure, industry-wide changes, or government
regulations that require companies to adopt new technologies.
5) The Mandarin Oriental hotel's use of computer systems to keep track of guests' preferences is an
example of
A) improved flexibility.
B) improved decision making.
C) improved efficiency.
D) customer and supplier intimacy.
E) operational excellence.
Answer: D
Rationale: By tracking guest preferences, the hotel can provide a more personalized experience, which
fosters a closer relationship with the customer. This is a classic example of using information systems to
achieve customer intimacy.
6) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of
information systems to achieve which business objective?
A) improved efficiency
B) customer and supplier intimacy
C) survival
D) competitive advantage
E) improved decision making
,Answer: C
Rationale: Once Citibank introduced ATMs, other banks were forced to adopt the technology to remain
competitive and retain their customers. This is a case of using information systems for survival—not
doing so would have put them at a severe disadvantage.
7) Which of the following objectives best describes the business strategy behind the technologies
implemented by the San Francisco Giants, as discussed in the chapter case?
A) customer and supplier intimacy
B) survival
C) competitive advantage
D) customer support
E) operational excellence
Answer: C
Rationale: The San Francisco Giants implemented a new information system to gain a competitive
advantage in the sports entertainment market. The system allowed them to better analyze data and
improve their on-field performance and fan experience, setting them apart from other teams.
8) An example of a business using information systems to create new products and services is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) the San Francisco Giants play tracking system.
Answer: D
Rationale: The iPod is a product that is entirely dependent on information technology. Its creation
represents a new product that was enabled by and is a part of the IT industry itself, making it a prime
example of using IS to create new products and services.
9) An example of a business using information systems to attain operational excellence is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) Citibank's ATMs.
Answer: A
Rationale: Wal-Mart's RetailLink system is a classic example of using information systems to achieve
operational excellence. It allows Wal-Mart to manage its supply chain with extreme efficiency, keeping
costs low and ensuring products are always in stock.
10) An example of a business using information systems for customer and supplier intimacy is
A) Wal-Mart's Retail Link system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
, D) Apple Inc.'s iPod.
E) Citibank's ATMs.
Answer: B
Rationale: The Mandarin Oriental hotel uses a customer-preference tracking system to remember guest
details, which helps them provide superior, personalized service. This builds a strong relationship and
intimacy with the customer.
11) The temp agency that you own is having serious difficulties placing temps because few of them are
familiar with Internet research. Investing in training software to enhance your workers' skills is an
example of using technology to achieve which business objective?
A) customer and supplier intimacy
B) survival
C) operational excellence
D) improved decision making
E) new products and services
Answer: B
Rationale: The temp agency is facing a situation where a lack of IT skills is threatening its core business.
Investing in training is a necessary step to stay competitive and remain in business, which is the
objective of survival.
12) Apple Computer dominates the online legal music sales industry primarily because of a failure of
recording label companies to
A) invest in technology.
B) assemble accurate data.
C) invest in complementary assets.
D) modernize their information value chain.
E) adopt a new business model.
Answer: E
Rationale: The recording labels failed to adapt to the digital age and adopt a new business model for
online music distribution. Apple seized this opportunity with iTunes, creating a new business model that
met consumer demand.
13) All of the following are advantages, for a firm, of cloud computing except
A) ability to support mobile computing.
B) ability to support remote work.
C) ability to improve communication.
D) ability to rely on markets to build value.
E) ability to reduce data storage costs.
Answer: C
Rationale: While cloud computing can facilitate communication, improving communication is not a
direct or primary advantage of the cloud computing model itself. The main advantages are flexibility,
scalability, cost reduction, and supporting mobile/remote work. "Ability to rely on markets to build
value" refers to outsourcing, which is a related but distinct concept.
