LSUS MBA 703 FINAL EXAM HIGH-YIELD
BUDGETING, PERFORMANCE EVALUATION,
AND COST MANAGEMENT SUMMARY 2026
◉ procurement.
Answer: activities involved in acquiring the raw materials used in
the creation of products and services; IT impact - business-to-
business e-commerce
◉ Porter's Five Forces Model.
Answer: analyzes the competitive forces within the environment in
which a company operates to assess the potential for profitability in
an industry
◉ 5 forces in Porter's Five Forces Model.
Answer: 1. Threat of substitution 2. Bargaining power of suppliers 3.
Bargaining power of customers 4. Barriers to entry 5. Rivalry among
existing competitors
◉ Threat of substitute products or services.
Answer: the more types of products or services there are that can
meet a particular need, the less profitability there will be in an
industry
,◉ Bargaining power of suppliers.
Answer: When a company has several suppliers to choose from, it
can demand a lower price. When a sole supplier exists, then the
company is at the mercy of the supplier
◉ Bargaining power of customers.
Answer: the Internet has given customers many more options to
choose from
◉ barriers to entry.
Answer: the easier it is to enter an industry, the tougher it will be to
make a profit in that industry; easy to copy technology, so new
innovations will not last that long
◉ Rivalry among existing competitors.
Answer: One of Porter's five forces; high when competition is fierce
in a market and low when competitors are more complacent.
◉ strategic information system.
Answer: an information system that is designed specifically to
implement an organizational strategy meant to provide a
competitive advantage
,◉ Charles Wiseman.
Answer: "Creating Competitive Weapons from Information Systems"
◉ a strategic information systems attempts to do.
Answer: deliver a product or service at a lower cost; deliver a
product or service that is differentiated; help an organization focus
on a specific market segment; enable innovation
◉ Howard Smith and Peter Fingar "IT Doesn't Matter - Business
Processes Do".
Answer: argues that it is the integration of information systems with
business processes that leads to competitive advantage
◉ EDI (electronic data interchange).
Answer: the computer-to-computer exchange of business
documents in a standard electronic format between business
partners
◉ collaborative systems.
Answer: utilizing tools such as discussion boards, document sharing,
and video
◉ Google Drive.
, Answer: collaborative tool from Google; office applications that can
be shared between individuals; multiple users can edit the
documents at the same time and threaded comments are available
◉ Microsoft SharePoint.
Answer: collaborative tool that integrates with Microsoft Office
◉ Cisco WebEx.
Answer: has web conferencing and videoconferencing applications
and allows users to share screens; capability for text chat
◉ Atlassian Confluence.
Answer: all-in-one project management application that allows
users to collaborate on documents and communicate progress
◉ IBM Lotus Notes/Domino.
Answer: one of the first true "groupware" collaboration tools; Lotus
Notes and web-based cousin, Domino
◉ Decision Support System (DSS).
Answer: Models information to support managers and business
professionals during the decision-making process
BUDGETING, PERFORMANCE EVALUATION,
AND COST MANAGEMENT SUMMARY 2026
◉ procurement.
Answer: activities involved in acquiring the raw materials used in
the creation of products and services; IT impact - business-to-
business e-commerce
◉ Porter's Five Forces Model.
Answer: analyzes the competitive forces within the environment in
which a company operates to assess the potential for profitability in
an industry
◉ 5 forces in Porter's Five Forces Model.
Answer: 1. Threat of substitution 2. Bargaining power of suppliers 3.
Bargaining power of customers 4. Barriers to entry 5. Rivalry among
existing competitors
◉ Threat of substitute products or services.
Answer: the more types of products or services there are that can
meet a particular need, the less profitability there will be in an
industry
,◉ Bargaining power of suppliers.
Answer: When a company has several suppliers to choose from, it
can demand a lower price. When a sole supplier exists, then the
company is at the mercy of the supplier
◉ Bargaining power of customers.
Answer: the Internet has given customers many more options to
choose from
◉ barriers to entry.
Answer: the easier it is to enter an industry, the tougher it will be to
make a profit in that industry; easy to copy technology, so new
innovations will not last that long
◉ Rivalry among existing competitors.
Answer: One of Porter's five forces; high when competition is fierce
in a market and low when competitors are more complacent.
◉ strategic information system.
Answer: an information system that is designed specifically to
implement an organizational strategy meant to provide a
competitive advantage
,◉ Charles Wiseman.
Answer: "Creating Competitive Weapons from Information Systems"
◉ a strategic information systems attempts to do.
Answer: deliver a product or service at a lower cost; deliver a
product or service that is differentiated; help an organization focus
on a specific market segment; enable innovation
◉ Howard Smith and Peter Fingar "IT Doesn't Matter - Business
Processes Do".
Answer: argues that it is the integration of information systems with
business processes that leads to competitive advantage
◉ EDI (electronic data interchange).
Answer: the computer-to-computer exchange of business
documents in a standard electronic format between business
partners
◉ collaborative systems.
Answer: utilizing tools such as discussion boards, document sharing,
and video
◉ Google Drive.
, Answer: collaborative tool from Google; office applications that can
be shared between individuals; multiple users can edit the
documents at the same time and threaded comments are available
◉ Microsoft SharePoint.
Answer: collaborative tool that integrates with Microsoft Office
◉ Cisco WebEx.
Answer: has web conferencing and videoconferencing applications
and allows users to share screens; capability for text chat
◉ Atlassian Confluence.
Answer: all-in-one project management application that allows
users to collaborate on documents and communicate progress
◉ IBM Lotus Notes/Domino.
Answer: one of the first true "groupware" collaboration tools; Lotus
Notes and web-based cousin, Domino
◉ Decision Support System (DSS).
Answer: Models information to support managers and business
professionals during the decision-making process
