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Test Bank for Managing and Using Information Systems: A Strategic Approach, 7th Edition (Chapters 1-13)

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    TEST BANK for Managing and Using Information Systems: A Strategic Approach, 7th Edition by Keri E. Pearlson, Carol S. Saunders and Dennis F. Galletta. All 13 Chapters

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    Chapter 0 (Introduction) Multiple Choice 1. What requires a unit of analysis, has been processed, and requires human mediation? a) Data b) Information c) Knowledge d) Legacy e) None of the above Ans: b (Medium) Response: See page 11 2. Roles that managers fill, according to Mintzberg, include all of the following except: a) Figurehead b) Disseminator c) Disciplinarian d) Entrepreneur e) Resource Allocator Ans: c (Hard) Response: See page 9 3. Which of the following is not a Decisional role? a) Entrepreneur b) Disturbance handler

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    c) Negotiator d) Resource allocator e) Spokesperson Ans: e (Medium) Response: See page 9 4. What skills would be required to be a visionary manager? a) Communication and Information gathering b) Flexibility and creativity c) Analytical and organizational d) All of the above e) None of the above Ans: b (Easy) Response: See page 7 5. Define Wisdom: a) knowledge infused with intuition and judgment that facilitates the ability to make decisions b) a process c) all forms of technology used to create data d) anything that makes a person clever e) only d and b Ans: a (Easy) Response: See page 12 6. Data is: a) information endowed with relevance and purpose b) set of specific objective facts or observations c) some information d) all of the above e) only a and c

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    Ans: b (Medium) Response: See pages 10-12 True/False 7. Information systems (IS) managers should participate in all of the important IS decisions, even if those decisions do not impact the IS department. Ans: True (Easy) Response: See page 2 8. Information for top management is usually based on a long time horizon, with great detail and high structuredness. Ans: False (Medium) Response: See page 11 Short Answer 9. Pricing of things is most often based on while pricing of information goods is most often based on Ans: cost, value (Hard) Response: See page 13 10. If a manager exhibits creativity, curiosity, and confidence, we would say that he or she supports the role of very well. Ans: visionary (Hard)

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    Response: See page 7 11. The Chief Technology Officer of Wal-Mart states that every company is becoming a company. Ans: tech or technology (Medium) Response: page 4 Essay 11. Provide two examples of how the economics of things are different from the economics of information. 12. Provide two reasons business managers should participate in information systems decisions. 13. How does a functional view differ from a process view of a firm?

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    Chapter One (The Information Systems Strategy Triangle) Multiple Choice 1. The "Managerial Levers" concept is useful for the following reasons: a) Management can find what "levers" to push to force people to do what they want. b) Management should not make a change unless they align multiple issues, such as tasks, measures, values, incentives, etc. c) System investments need to be financially highly leveraged. d) All of the above e) None of the above Ans: b (Medium) Response: See page 26 2. All of the following are likely causes of Kaiser Permanente’s difficulties before their new KPHealthConnect EXCEPT for: a) Bonus incentives not matching strategy b) The alignment of the Information Systems Strategy Triangle c) The failure of automated systems

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    d) The leadership and organizational culture e) Patient service processes needing to be updated and streamlined Ans: c (Medium) Response: See pages 17-18 3. A general manager should: a) Rely on IS personnel to make IS decisions b) Ignore how IS are used and managed c) Have a deep technical knowledge of IS d) Understand the use and consequences of technologies relevant to the business e) Not be expected to ask or understand technology related questions Ans: d (Easy) Response: See pages 20,25 4. When a company’s business strategy and technology strategy are intertwined, this situation is known as . a) convergence b) alignment c) dynamic d) differentiation e) technologically adjusted Ans: a (Hard) Response: See page 19

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    5. Organizational, cultural, and control variables are considered the used by decision makers to effect change in their organization. a) collaboration tools b) managerial levers c) events d) IS e) organization objectives Ans: b (hard) Response: See pages 9-10 6. The is a plan articulating where a business seeks to go and how it expects to get there. a) vision statement b) mission statement c) stakeholder statement d) stockholder statement e) business strategy Ans: e (Medium) Response: See page 20 7. Organizations seek to gain a competitive advantage by differentiation, cost, or . a) service b) focus c) profit

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    d) value e) speed Ans: b (Easy) Response: See pages 21-22 8. Google has disrupted a number of industries, particularly the advertising and software industries. Google's ability to quickly and aggressively provide new products and services is best described by: a) Porter’s Generic Strategies b) The Hypercompetition Model c) The Information Systems Strategy Triangle d) The Social Business Strategy e) Customer Relationship Management Ans: b (Easy) Response: See page 23 9. Through the use of various technologies, a ski resort tracks the slopes each customer skis and the times he or she skis them. Skiers then have the ability to view this information online, and can choose to seamlessly share their accomplishments on Facebook. In addition, photographers positioned at the resort post pictures on Facebook for the skier. This ski resort has worked hard to develop a strong: a) IS Strategy b) Social business strategy

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    c) Business strategy d) Organizational strategy e) Customer strategy Ans: b (Hard) Resposne: See page 27 10. The organizational strategy should ideally the IS strategy. a) drive b) complement c) dictate d) ignore e) sustain Ans: b (Easy) Response: See page 18 11. The general manager for a retail clothing outlet was recently cited as saying, “IT is the cornerstone of our company. All of our decisions are based on the sophisticated systems that we have deployed throughout our organization. IT drives our decisions.” What position should the manager hold regarding IT and its influence on decision making? a) IT should drive business decisions. b) Organizational goals should drive IT decisions. c) Organizational strategy should drive IS decision making. d) Business strategy should drive IS decision making e) All strategy should be driven by IT strategy. Ans: d (Hard)

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    Response: See page 18 12. To remain competitive, an organization’s business strategy must adapt and respond to all of the following variables. Which variable in particular does IS help to determine? 1. Market forces 2. Customer demands 3. The capabilities of the organization 4. The organization’s mission 5. Organizational design Ans: c (Hard) Response: See pages 26-27 13. The physical means by which information is exchanged among hardware components is called . a) hardware b) software c) networking d) personnel e) data Ans: c (Medium) Response: See page 27 14. Significant changes in IS should trigger a reassessment of the . a) business strategy

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    b) social strategy c) process strategy d) data strategy e) system strategy Ans: a (Medium) Response: See page 25 15. A social business strategy is designed to use social IT tools for all of the following EXCEPT: a) Collaborating with stakeholders b) Building deeper connections with stakeholders c) Innovating with stakeholders d) Excluding stakeholders e) Networking with employees, customer and/or suppliers Ans: d (Easy) Response: See page 27 16. General managers should take an active role in decisions about information systems. This is vital because: a) The IS department cannot be trusted to make good decisions. b) The IS department has not been trained to make general business decisions. c) The IS department does not have the company’s best interests as its focus. d) Information systems are designed to support business objectives. e) Information systems are normally incongruent with business strategies.

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    Ans: d (Medium) Response: See page 19

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    17. This framework is called the because it relates business strategy with IS strategy and organizational strategy. a) Porter’s Generic Framework b) Hypercompetition Model c) Information Technology Matrix d) IS Strategy Model e) Information Systems Strategy Triangle Ans: e (Easy) Response: See page 18 18. Before Kaiser Permanente adopted its new business strategy, its IS Strategy Triangle was out of . a) control b) alignment c) adjustment d) scope e) specification Ans: b (Medium) Response: See pages 17-18 19. By using IS to achieve economies of scale and generate operating efficiencies, Walmart epitomizes which one of Porter's generic strategies? a) Differentiation b) Focus

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    c) Cost leadership

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    d) Broad focus e) Cost differentiation Ans: c (Easy) Response: See page 22 20. A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. This unique service demonstrates the bank’s desire to practice which one of Porter’s strategies? a) Differentiation b) Focus c) Cost leadership d) Broad focus e) Cost differentiation Ans: a (Medium) Response: See page 22 21. The managerial levers identifies the crucial, interrelated components for designing an organization. The components include all of the following EXCEPT: a) Decision rights b) Social media c) Business processes d) Incentives and rewards e) Performance measurement and evaluation

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    Ans: b (Medium)

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    Response: See page 26 22. Technology guru Tim O'Reilly said this about the publishing industry: "To adapt, publishers need to cannibalize their own business, experimenting with new forms, new formats, and new business models." This statement is consistent with: a) Generic framework b) Focus strategy c) Hypercompetition d) Direct strategy e) Porter’s generic strategies Ans: c (Medium) Response: See pages 23-24 23. L.L. Bean is an online/catalog retail company that aggressively uses tools like instant messaging to communicate with customers regarding potential purchases and uses Facebook for branding activities. This use of technology supports which strategy? a) IS strategy b) Business strategy c) Organizational strategy d) Mission strategy e) Social business strategy Ans: e (Medium) Response: See page 27

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    24. GE recognized that it could only sustain its competitive advantage for a limited time as competitors attempted to outmaneuver them. What was the model that Welch applied to help solve this problem? a) Destroy your organization b) Grow your organization c) Destroy your system d) Grow your system e) Destroy your business Ans: e (Medium) Response: See page 24 25. Business strategies based on hypercompetition focus on customer satisfaction and profit maximization but also build in a component of business intelligence. Business intelligence helps an agile organization to: a) Predict and respond to new opportunities b) Use current information technologies less extensively c) Manage internal challenges d) React to supplier demands e) Collaborate Ans: a (Medium) Response: See pages 1-30 26. Which one of the following is NOT part of the information systems strategy matrix?

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    a) Hardware

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    b) Software c) Networking d) Personnel e) Data Ans: d (Medium) Response: See page 27 27. Which is not a question that can be used to understand organizational design? a) Who holds the decision rights to critical decisions? b) What are the characteristics, experiences, and skill levels of the people within the organization? c) Where is the organization's headquarters located? d) What are the key business processes? e) What is the culture of the organization? Ans: c (Medium) Response: See page 26 28. When an organization qualifies its product or service in a way that allows it to appear unique in the marketplace, this is called: a) Focus b) Differentiation c) Cost Leadership d) Business Strategy e) Mission Ans: b (Easy)

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    Response: See page 22

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    29. The plan an organization uses to provide information systems and services: a) Cost Leadership b) Differentiation c) Focus d) IS Strategy e) Business Diamond Ans: d (Easy) Response: See page 26 True/False 30. Hypercompetition refers to where a firm obtains more than 5 strong competitors. Ans: False

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    Response: pages 23-24

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    31. Apple’s introduction of the iPhone while iPod sales were still very strong is an example of DYB. Ans: True Response: See page 24 32. Once a firm is out of alignment, it does not mean that it has to stay that way. Ans: True Response: See page 19 33. A social business strategy needs to align itself with the organization’s IT strategy but not the business strategy. Ans: False Response: See page 27

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    34. There has been accelerated competition among market leaders concurrent with the increases in the quality and quantity of IT investments. Ans: True

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    Response: See page 24 35. To avoid unwanted consequences, altering the IT Strategy requires adjustments to the organizational strategy. Ans: True Response: See page 18 36. The IS strategy drives the business strategy. Ans: False Response: See page 18 Short Answer

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    37. The framework suggests that the speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are “rapidly created and eroded.”

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    Ans: hypercompetition Response: See page 23 38. The managerial lever includes organization, control, and . Ans: culture Response: See page 26 39. A clear and compelling statement that unifies an organization’s efforts and describes what the organization is all about is called its . Ans: mission Response: See page 19 40. According to Porter’s Generic Strategies Framework, a company that limits its scope to a narrower segment of the market is exercising this type of strategy. Ans: focus

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    Response: See page 22

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