Graded 18/20
MBA6207 Chapter 1 quiz: Principles of Information Systems 14th edition
•
• Question 1
0 out of 1 points
A high-level IS manager has his firm utilize sophisticated information systems to digitally design
its products so that design defects can be detected and removed early in the process, reducing
development cost. What business strategy does this represent?
Selected a.
Answer: focus
Answers: a.
focus
b.
cost leadership
c.
high standards
d.
differentiation
Answer Boeing employs sophisticated information systems that enable the
Feedback:
digital design of various aircraft-related systems. These systems allow
early detection and removal of design defects and reduce development
cost and time.
Response Rationale:
Feedback: A competitive advantage can be gained in one of three ways: (1) by providing the
same value as competitors but at a lower price (cost leadership), (2) by charging
higher prices for providing products that are perceived by the customer as being
better (differentiation), or (3) by understanding and servicing a target market better
than anyone else (focus). Boeing employs sophisticated information systems that
enable the digital design of various aircraft-related systems. These systems allow
early detection and removal of design defects and reduce development cost and
time.
• Question 2
1 out of 1 points
A senior IS manager decides to invest in an information system that will reduce subcontractor
labor costs for her organization by facilitating relocation of tools and materials to more optimal
locations while rearranging workflows. What business strategy does this represent?
Selected b.
Answer: cost leadership
Answers: a.
differentiation
b.
cost leadership
c.
focus
, d.
high standards
Answer Skanska USA, a construction firm, employs an information system to
Feedback:
track and analyze the movement and tasks of subcontractors on the job.
With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building
process and to reduce labor costs.
Response Skanska USA, a construction firm, employs an information system to
Feedback:
track and analyze the movement and tasks of subcontractors on the job.
With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building
process and to reduce labor costs.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the
same value as competitors but at a lower price (cost leadership), (2) by charging
higher prices for providing products that are perceived by the customer as being
better (differentiation), or (3) by understanding and servicing a target market better
than anyone else (focus). Skanska USA, a construction firm, employs an
information system to track and analyze the movement and tasks of subcontractors
on the job. With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building process
and to reduce labor costs.
• Question 3
1 out of 1 points
A senior IS manager implements a vendor-managed inventory system that reduces both the
administrative costs of managing inventory and inventory holding costs. What business strategy
does this represent?
Selected b.
Answer: cost leadership
Answers: a.
focus
b.
cost leadership
c.
high standards
d.
differentiation
Answer Walmart, well known for its cost leadership, employs a vendor-
Feedback:
managed inventory system to streamline product flow and better
manage its store inventories. This system reduces the administrative
costs of managing inventory, lowers inventory holding costs, and
increases sales through reductions of out-of-stock situations in its
stores.
MBA6207 Chapter 1 quiz: Principles of Information Systems 14th edition
•
• Question 1
0 out of 1 points
A high-level IS manager has his firm utilize sophisticated information systems to digitally design
its products so that design defects can be detected and removed early in the process, reducing
development cost. What business strategy does this represent?
Selected a.
Answer: focus
Answers: a.
focus
b.
cost leadership
c.
high standards
d.
differentiation
Answer Boeing employs sophisticated information systems that enable the
Feedback:
digital design of various aircraft-related systems. These systems allow
early detection and removal of design defects and reduce development
cost and time.
Response Rationale:
Feedback: A competitive advantage can be gained in one of three ways: (1) by providing the
same value as competitors but at a lower price (cost leadership), (2) by charging
higher prices for providing products that are perceived by the customer as being
better (differentiation), or (3) by understanding and servicing a target market better
than anyone else (focus). Boeing employs sophisticated information systems that
enable the digital design of various aircraft-related systems. These systems allow
early detection and removal of design defects and reduce development cost and
time.
• Question 2
1 out of 1 points
A senior IS manager decides to invest in an information system that will reduce subcontractor
labor costs for her organization by facilitating relocation of tools and materials to more optimal
locations while rearranging workflows. What business strategy does this represent?
Selected b.
Answer: cost leadership
Answers: a.
differentiation
b.
cost leadership
c.
focus
, d.
high standards
Answer Skanska USA, a construction firm, employs an information system to
Feedback:
track and analyze the movement and tasks of subcontractors on the job.
With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building
process and to reduce labor costs.
Response Skanska USA, a construction firm, employs an information system to
Feedback:
track and analyze the movement and tasks of subcontractors on the job.
With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building
process and to reduce labor costs.
Rationale:
A competitive advantage can be gained in one of three ways: (1) by providing the
same value as competitors but at a lower price (cost leadership), (2) by charging
higher prices for providing products that are perceived by the customer as being
better (differentiation), or (3) by understanding and servicing a target market better
than anyone else (focus). Skanska USA, a construction firm, employs an
information system to track and analyze the movement and tasks of subcontractors
on the job. With this system, Skanska can relocate tools and materials to more
optimal locations and rearrange workflows to speed up the building process
and to reduce labor costs.
• Question 3
1 out of 1 points
A senior IS manager implements a vendor-managed inventory system that reduces both the
administrative costs of managing inventory and inventory holding costs. What business strategy
does this represent?
Selected b.
Answer: cost leadership
Answers: a.
focus
b.
cost leadership
c.
high standards
d.
differentiation
Answer Walmart, well known for its cost leadership, employs a vendor-
Feedback:
managed inventory system to streamline product flow and better
manage its store inventories. This system reduces the administrative
costs of managing inventory, lowers inventory holding costs, and
increases sales through reductions of out-of-stock situations in its
stores.
