Test Bank - Managing And Using Information Systems: A Strategic Approach, 8Th Edition By Pearlson, Saunders And Galletta, All 13 Chapters Covered, Verified Latest Edition

TEST BANK - MANAGING
AND USING INFORMATION
SYSTEMS: A STRATEGIC
APPROACH, 8TH EDITION
BY PEARLSON, SAUNDERS
AND GALLETTA, ALL 13
CHAPTERS COVERED,
VERIFIED LATEST EDITION
Test Bank: Managing and Using Information Systems
(8th Edition) — Sample Questions with Rationales

Chapter 1: The Information Systems Strategy Triangle
1. The Information Systems Strategy Triangle links which three components?

A. Hardware, software, and networks
B. Business strategy, organizational strategy, and information strategy
C. Data, information, and knowledge
D. Customers, employees, and suppliers

,Rationale: The IS Strategy Triangle in Figure 1.1 links business strategy with
organizational strategy and information strategy. All three points must be in balance for
optimal efficiency and effectiveness.

2. When a company's business strategy changes, what must managers evaluate?

A. Only the information systems strategy
B. Both the organizational strategy and information systems strategy
C. Only the organizational strategy
D. Nothing — the triangle remains balanced automatically

Rationale: If a change is made to one corner of the triangle, it is necessary to evaluate
the other two corners to ensure balance, or alignment, is maintained.

3. A company is out of "alignment" when:

A. Its IT department reports to the CFO
B. Its business strategy is not supported by the IS
C. It uses cloud computing instead of on-premises servers
D. It has more than 1,000 employees

Rationale: A company is out of alignment when its business strategy is not supported
by the IS. This can lead to organizational tension or crisis.

4. Which of the following is NOT a component of the information system?

A. Hardware
B. Software
C. Business strategy
D. Data

Rationale: The four components of the information system are hardware, software,
networking, and data. Business strategy is one corner of the IS Strategy Triangle, not a
component of the IS itself.

5. The managerial levers model is useful because:

A. It allows management to force employees to comply
B. It shows that management should align multiple issues (tasks, measures, values,
incentives) before making changes
C. It requires high financial leverage for system investments
D. It eliminates the need for organizational strategy

,Rationale: The managerial levers model links organizational structure, control, and
cultural variables. Decision makers can manipulate these levers to effect change within
the organization.




Chapter 2: Strategic Use of Information Resources
6. According to Porter's Generic Strategies Framework, a company that sells
products comparable in quality to competitors but at a lower price is pursuing:

A. Differentiation
B. Cost leadership
C. Focus
D. Blue ocean strategy

Rationale: Cost leadership means maintaining above-average performance by selling
products comparable in quality but at a lower price.

7. A differentiation strategy involves:

A. Selling products at the lowest possible price
B. Uniqueness of the product in some appreciable qualitative dimension
C. Targeting a specific market segment only
D. Reducing the number of product features

Rationale: Differentiation strategy involves uniqueness of the product in the
marketplace in some appreciable qualitative dimension.

8. The "blue ocean" strategy attempts to:

A. Steal market share from competitors in an existing market
B. Redefine or expand an industry by creating new products or product categories
C. Focus only on cost reduction
D. Imitate competitors' successful strategies

Rationale: A blue ocean approach attempts to redefine or even expand an industry by
creating new products or product categories, in contrast to the red ocean approach of
stealing market share.

9. Hypercompetition asserts that:

, A. Sustainable competitive advantage is the primary goal
B. It is more important to disrupt than to attempt to sustain an advantage
C. Companies should never change their strategies
D. Cost leadership always wins

Rationale: The hypercompetition concept asserts that it is more important to disrupt
than to attempt to sustain an advantage.

10. A business model is best described as:

A. The company's organizational chart
B. A blueprint of how a company conducts business to create and capture value
C. The IT infrastructure of the company
D. The marketing plan only

Rationale: A business model is one component of a business strategy. It is essentially a
blueprint of how a company conducts business and can be used to both create and
capture value.




Chapter 3: Organizational Strategy and Information
Systems
11. Information systems can impact organizational design by:

A. Only automating existing processes
B. Enabling flatter organizational structures and decentralized decision-making
C. Eliminating the need for management
D. Having no effect on organizational structure

Rationale: Information systems and organizational design are linked. IS can enable new
organizational forms, including flatter structures and different reporting relationships.

12. Management control systems are used to:

A. Replace all human decision-making
B. Ensure that organizational members behave in ways that support organizational
objectives