BADM 7050 EXAM 1 QUESTIONS AND ANSWERS
convergence - Answer -A state in which business strategy and tech strategy are
intertwined, and the leadership team members operate almost interchangeable.
Purpose and type of managerial levers - Answer -o Framework to evaluate various
aspects of organizational design. It can assess which components are missing and what
future options are available.
▪ Organizational (strategy):
● Decision Rights
● Business Processes
● Formal reporting relationships
● Informal networks
▪ Control (organizational effectiveness):
● Availability of data
● Nature and quality of planning
● Effectiveness of performance measurement and evaluation systems
● Incentives
▪ Cultural
● Values of the organization
● Locus - Location, national, and regional culture
Relationship between business and IT decision making - Answer -o Business strategy
should drive information systems strategy (IS).
o IS strategy should complement business strategy.
o Changes in business strategy should entail reassessment of IS.
Variables that a business strategy must adapt and respond to (to remain competitive),
and the variable that IS helps to determine - Answer -o Market forces - creates the
competitive context.
o Customer demands - comprise the wants and needs of customers.
o Organizational capabilities - skills and experience that add value in the marketplace.
IS helps determine/complement a business strategy's capabilities
● Why should general managers take an active role in making decisions about
information systems? - Answer -o Information systems are designed to support
business objectives.
● Know the elements and use of the information systems strategy triangle. - Answer -o
Business Strategy: A plan articulating where a business seeks to go and how it expects
to get there.
o Operational strategy: Organization's design and choices it makes to define, set up,
coordinate, and control its work processes.
Information strategy: A plan an organization uses to provide information services
,IS strategy matrix - Answer -Hardware - Physical devieces
Software - programs, apps, etc
Networking - the way hardware is conected to other hardware
Data - bits of info in system
Define co-opetition - Answer -o A strategy whereby companies cooperate and compete
at the same time with companies in their value net, creating the best possible outcome
for a business by optimally combining competition and cooperation.
Difference between primary and secondary value activities and definitions for all the
activities - Answer -o Primary relates directly to the value created in a product or
service.
▪ Inbound logistics, Operations, Outbound logistics, Marketing and Sales, and Service
o Support relates to making the primary possible to exist and remain coordinated.
▪ Organization, HR, Technology, and Purchasing
Understand the risk of awakening a sleeping giant - Answer -o Unauthorized
disclosure, modification, or destruction of information
o Unintentional errors and omissions
o IT disruptions due to natural or man-made disasters
o Failure to exercise due care and diligence in the implementation and operation of the
IT system
o Example: A firm releases a new technology only to have a competitor implement a
similar technology with more features and value to the customer.
What does the resource-based view tell us - Answer -o Used to determine whether a
firm's strategy has created value by using IT.
o Concentrate on resources that the firm can manage strategically in a rapidly changing
competitive advantage.
o Resources to attain competitive advantage (value and rarity): considered valuable
when it enables the firm to become more efficient, effective, or innovative.
● Identify and define the elements of Porter's Five Competitive Forces model - Answer
-o Potential threat of new entrants
▪ Strategic Use: switching costs, access to distribution channels, economies of scale.
o Bargaining Power of Buyers
▪ Strategic Use: buyer selection, switching costs, differentiation.
o Bargaining Power of Suppliers
▪ Strategic Use: selection of suppliers, thread of backward integration (dependency)
o Threat of Substitute Products:
▪ Strategic Use: redefine products and services, improve price/performance.
o Industry Competitors
▪ Strategic Use: cost effectiveness, market access, product differentiation
● According to Porter's value chain framework, where does a competitive advantage
come from? - Answer -o Information resources
, ● What are the strengths and weaknesses of a matrix organization? - Answer -o
Improve access to resources.
o Bring flexibility with multiple stakeholders.
o Build broader people capabilities.
o Accountability and authority can be less clear and often shared.
o Meetings and bureaucracy can increase as communication increases.
o More people become involved in decision processes which can slow things down.
o Ambiguity increases with competing goals.
o Possibility for more resource conflict
Hierarchial org structure - Answer -Bureacratic form with defined levels of management
divison of labor
stable
cntralized
Flat org structure - Answer -decision making pushed down to lowest level of
organizaiton
informal roles
very loose
decentralized
matrix organizational structure - Answer -workers assigned to muliple supervisors
dual reporting relaationships
dynamic
function and purpose
networked organizational structure - Answer -foral and informal comm networks that
connects all parts of the company
flexible
networks
distributed
What are the three roles that IS plays in organizations - Answer -o Data collection -
enables collection of information to help managers determine if they are statistically
progressing towards the organization's mission and goals.
o Evaluation - facilitates comparison of actual performance versus desired performance.
o Communication - speeds up the flow of information to allow analysis of the situation
and correct problems.
● What should a manager do when using information technology to collect data for the
purpose of monitoring workers? - Answer -o Embed monitoring tasks within everyday
work while reducing negative impact on employees.
o Balance privacy rights of employees with the needs of the business
o Utilize the information collected to provide feedback.
convergence - Answer -A state in which business strategy and tech strategy are
intertwined, and the leadership team members operate almost interchangeable.
Purpose and type of managerial levers - Answer -o Framework to evaluate various
aspects of organizational design. It can assess which components are missing and what
future options are available.
▪ Organizational (strategy):
● Decision Rights
● Business Processes
● Formal reporting relationships
● Informal networks
▪ Control (organizational effectiveness):
● Availability of data
● Nature and quality of planning
● Effectiveness of performance measurement and evaluation systems
● Incentives
▪ Cultural
● Values of the organization
● Locus - Location, national, and regional culture
Relationship between business and IT decision making - Answer -o Business strategy
should drive information systems strategy (IS).
o IS strategy should complement business strategy.
o Changes in business strategy should entail reassessment of IS.
Variables that a business strategy must adapt and respond to (to remain competitive),
and the variable that IS helps to determine - Answer -o Market forces - creates the
competitive context.
o Customer demands - comprise the wants and needs of customers.
o Organizational capabilities - skills and experience that add value in the marketplace.
IS helps determine/complement a business strategy's capabilities
● Why should general managers take an active role in making decisions about
information systems? - Answer -o Information systems are designed to support
business objectives.
● Know the elements and use of the information systems strategy triangle. - Answer -o
Business Strategy: A plan articulating where a business seeks to go and how it expects
to get there.
o Operational strategy: Organization's design and choices it makes to define, set up,
coordinate, and control its work processes.
Information strategy: A plan an organization uses to provide information services
,IS strategy matrix - Answer -Hardware - Physical devieces
Software - programs, apps, etc
Networking - the way hardware is conected to other hardware
Data - bits of info in system
Define co-opetition - Answer -o A strategy whereby companies cooperate and compete
at the same time with companies in their value net, creating the best possible outcome
for a business by optimally combining competition and cooperation.
Difference between primary and secondary value activities and definitions for all the
activities - Answer -o Primary relates directly to the value created in a product or
service.
▪ Inbound logistics, Operations, Outbound logistics, Marketing and Sales, and Service
o Support relates to making the primary possible to exist and remain coordinated.
▪ Organization, HR, Technology, and Purchasing
Understand the risk of awakening a sleeping giant - Answer -o Unauthorized
disclosure, modification, or destruction of information
o Unintentional errors and omissions
o IT disruptions due to natural or man-made disasters
o Failure to exercise due care and diligence in the implementation and operation of the
IT system
o Example: A firm releases a new technology only to have a competitor implement a
similar technology with more features and value to the customer.
What does the resource-based view tell us - Answer -o Used to determine whether a
firm's strategy has created value by using IT.
o Concentrate on resources that the firm can manage strategically in a rapidly changing
competitive advantage.
o Resources to attain competitive advantage (value and rarity): considered valuable
when it enables the firm to become more efficient, effective, or innovative.
● Identify and define the elements of Porter's Five Competitive Forces model - Answer
-o Potential threat of new entrants
▪ Strategic Use: switching costs, access to distribution channels, economies of scale.
o Bargaining Power of Buyers
▪ Strategic Use: buyer selection, switching costs, differentiation.
o Bargaining Power of Suppliers
▪ Strategic Use: selection of suppliers, thread of backward integration (dependency)
o Threat of Substitute Products:
▪ Strategic Use: redefine products and services, improve price/performance.
o Industry Competitors
▪ Strategic Use: cost effectiveness, market access, product differentiation
● According to Porter's value chain framework, where does a competitive advantage
come from? - Answer -o Information resources
, ● What are the strengths and weaknesses of a matrix organization? - Answer -o
Improve access to resources.
o Bring flexibility with multiple stakeholders.
o Build broader people capabilities.
o Accountability and authority can be less clear and often shared.
o Meetings and bureaucracy can increase as communication increases.
o More people become involved in decision processes which can slow things down.
o Ambiguity increases with competing goals.
o Possibility for more resource conflict
Hierarchial org structure - Answer -Bureacratic form with defined levels of management
divison of labor
stable
cntralized
Flat org structure - Answer -decision making pushed down to lowest level of
organizaiton
informal roles
very loose
decentralized
matrix organizational structure - Answer -workers assigned to muliple supervisors
dual reporting relaationships
dynamic
function and purpose
networked organizational structure - Answer -foral and informal comm networks that
connects all parts of the company
flexible
networks
distributed
What are the three roles that IS plays in organizations - Answer -o Data collection -
enables collection of information to help managers determine if they are statistically
progressing towards the organization's mission and goals.
o Evaluation - facilitates comparison of actual performance versus desired performance.
o Communication - speeds up the flow of information to allow analysis of the situation
and correct problems.
● What should a manager do when using information technology to collect data for the
purpose of monitoring workers? - Answer -o Embed monitoring tasks within everyday
work while reducing negative impact on employees.
o Balance privacy rights of employees with the needs of the business
o Utilize the information collected to provide feedback.
