Info Test Study Guide

1.

1 point

A firm's value chain is linked to the:

value webs of its industry.

value webs of its suppliers and distributors.

value chains of its suppliers, distributors, and customers

value chains of its suppliers and customers.

2.

1 point

Blockbuster's move to include online movie rental as a part of its services illustrates the use of information systems for:

survival.

competitive advantage.

new products and services.

customer intimacy.

3.

1 point

How are information systems used at the industry level to achieve strategic advantage?

By building industry-wide, IT-supported consortia and symposia

By enforcing standards that reduce the differences between competitors

By encouraging the entry of new competitors

By raising the bargaining power of suppliers

4.

1 point

Which of the following industries has the lowest barrier to entry?

Computer-Chip

Automotive

Airline

Restaurant

5.

1 point

To what competitive force did the printed encyclopedia industry succumb?

Positioning and rivalry among competitors

Customer's bargaining power

Low cost of entry

Substitute products or services

6.

1 point

In network economics, the value of a commercial software vendor's software products:

decreases according to the law of diminishing returns.

increases as more people use them.

decreases as more people use them.

increases due to higher marginal gain in output.

7.

1 point

In network economics, the value of a commercial software vendor's software products:

increases due to higher marginal gain in output.

decreases according to the law of diminishing returns.

increases as more people use them.

decreases as more people use them.

8.

1 point

A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively.

value web

consortia

value chain

business network

9.

1 point

The value chain model

categorizes four basic strategies a firm can use to enhance its value chain

sees the supply chain as the primary activity for adding value.

categorizes five related advantages for adding value to a firm's products or services

helps a firm identify points at which information technology can most effectively to enhance its competitive position.

10.

1 point

Network economics:

balances the high cost of adding new members to a community against the lower cost of using network infrastructure.

applies traditional economics to networked users.

applies the law of diminishing returns to communities of users.

sees the cost of adding new members as inconsequential.

11.

1 point

Benchmarking:

is used to measure the speed and responsiveness of information technology

compares the efficiency and effectiveness of your business processes against strict standards.

synchronizes the business processes of customers, suppliers, and trading partners.

allows industry participants to develop industry-wide standards

12.

1 point

The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.

multinational

domestic exporter

transnational

Franchise

13.

1 point

An information system can enable a company to focus on a market niche through:

intensive customer data analysis

complex trend forecasting.

intensive product trend analysis.

tailoring products to the client.

14.

1 point

Seeing quality as the responsibility of all people and functions in an organization is central to the concept of

quality control.

Six sigma.

TQM.

cycle time reduction

15.

1 point

Which of the following illustrates the use of information systems to achieve product differentiation?

A PC manufacturer's use of information systems in selling build-to-order PCs directly to customers.

An automobile manufacturer's use of information systems to facilitate direct access from suppliers to production schedules.

A retailer's use of information systems to produce products and services at a lower price than competitors.

A car dealer's use of information systems to determine which models and options its customers are most likely to buy.

16.

1 point

The Internet raises the bargaining power of customers by

making information available to everyone.

lowering transaction costs.

creating new opportunities for building loyal customer bases.

making more products available.

17.

1 point

Globalization allows:

businesses to sell their products on a global scale.

businesses to use the capabilities of other companies without being physically tied to those companies.

information systems to more fully utilize Internet capabilities.

information systems to enhance core competencies.

18.

1 point

The four basic strategies a company can employ to deal with competitive forces are:

(1) focus on market niche, (2) product differentiation, (3) mass customization, and (4) implement demand control.

(1) strengthen customer and supplier intimacy, (2) focus on market niche, (3) product differentiation, and (4) implement demand control.

1) strengthen customer and supplier intimacy, (2) focus on market niche, (3) product differentiation, and (4) low-cost leadership.

(1) increase process efficiency, (2) implement demand control, (3) focus on market niche, and (4) low-cost leadership.

19.

1 point

Which of the following is not a benefit of implementing CAD systems?

Ability to review designs for errors prior to production

Reducing the time spent on completing a design

Reducing the time spent on benchmarking

Ability to make changes to digital models without building physical prototypes

20.

1 point

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output is referred to as:

the point of no return.

the law of diminishing returns.

supply and demand.

inelasticity.

21.

1 point

Internet Technology:

makes it easy for rivals to compete on price alone.

imposes a significant cost of entry, due to infrastructure requirements.

increases the difference between competitors because of the wide availability of information.

makes it easy to sustain operational advantages.

22.

1 point

________ systems are those in which each foreign unit designs its own unique information system solutions.

Duplicated

Centralized

Networked

Decentralized

23.

1 point

________ typically develop a single information system, usually at the home base, and then replicate it around the world.

Multinational firms

Domestic exporters

Franchisers

Transnational firms

24.

1 point

________ systems are those in which systems development and operation occur totally at the domestic home base.

Networked

Centralized

Duplicated

Decentralized

25.

1 point

Which of the following can force a business and its competitors to compete on price alone?

Poor process efficiency

Demand control

High product differentiation

Transparent marketplace

26.

1 point

Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy?

Dell's use of information systems in selling made-to-order PCs directly to customers.

Chrysler Corporation's use of information systems to facilitate direct access from suppliers to production schedules.

AutoNation's use of information systems to determine which models and options they are most likely to buy.

Wal-Mart's use of information systems to produce products and services at a lower price than competitors.

27.

1 point

A substitute product of most concern for a cable TV distributor is:

Satellite TV

The Internet

Satellite Radio

Broadcast TV

28.

1 point

Streamlining the steps taken to complete a business task more efficiently is called:

workflow reengineering.

business process management.

workflow management.

business process reengineering.

29.

1 point

The support activities of a firm include:

organization infrastructure, human resources, sales and marketing, and technology.

inbound logistics, technology, outbound logistics, sales and marketing, and service.

organization infrastructure, human resources, technology, and procurement.

inbound logistics, organization infrastructure, outbound logistics, technology, and procurement.

30.

1 point

Which of the following illustrates the use of information systems to focus on market niche?

Dell's use of information systems in selling made-to-order PCs directly to customers.

AutoNation's use of information systems to determine which models and options they are most likely to buy.

Chrysler Corporation's use of information systems to facilitate direct access from suppliers to production schedules.

Wal-Mart's use of information systems to produce products and services at a lower price than competitors

31.

1 point

Which industries did the first wave of e-commerce transform?

Air travel, books, bill payments

Air travel, books, music

Real estate, books, bill payments

Real estate, air travel, books

32.

1 point

________ systems are those in which development occurs at the home base but operations are handed over to autonomous units in foreign locations.

Centralized

Duplicated

Networked

Decentralized

33.

1 point

The most successful solutions or methods for achieving a business objective are called

best practices.

benchmarks.

core processes.

best processes.

34.

1 point

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a:

mass customization strategy.

product differentiation strategy.

process efficiency strategy.

market niche strategy.

35.

1 point

The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin.

domestic exporter

franchise

multinational

transnational

36.

1 point

A firm can exercise greater control over its suppliers by having:

more suppliers

global suppliers

fewer suppliers

local suppliers

37.

1 point

Which competitive force best categorizes the threat Netflix posed to Blockbuster?

Substitute products and services

Threat of new market entrants

Rivalry among traditional competitors

Bargaining power of customers

38.

1 point

The primary activities of a firm include:

inbound logistics, operations, outbound logistics, sales and marketing, and service

procurement, inbound logistics, operations, technology, and outbound logistics.

inbound logistics, operations, outbound logistics, technology, and service.

procurement, operations, technology, sales and marketing, and service.

39.

1 point

The emergence of the World Wide Web acted as a disruptive technology for:

the typewriter industry

PC manufacturers

microprocessor firms.

print publishing.

40.

1 point

A virtual company:

provides entirely Internet-driven services, or virtual products.

uses the capabilities of other companies without being physically tied to those companies.

uses Internet technology to maintain a virtual storefront.

uses Internet technology to maintain a networked community of users

41.

1 point

Wal-Mart's continuous replenishment system allows it to:

strengthen customer intimacy

achieve economy of scale

Provide an efficient customer response system

Provide mass customization

42.

1 point

Many reengineering projects do not achieve breakthrough gains in performance because:

it is difficult to streamline many business processes.

workflow management is difficult to achieve.

organizational change is difficult to manage

document management is difficult to achieve.

43.

1 point

When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating:

value webs.

value chains.

core competencies.

synergies.

44.

1 point

Which of the following is not one of the competitive forces of Porter's model?

Other Competitors

Customers

External Environment

Suppliers

45.

1 point

________ is the ability to offer individually tailored products or services using the same production resources as bulk production.

Mass customization

Personalization

Size customization

Demand customization

46.

1 point

The greatest impact the Internet has had on globalization is in lowering the costs of:

telecommunications.

labor.

entry to global-scale operations.

network infrastructure.

47.

1 point

Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to:

increase efficiency

focus on market niche

differentiate their service.

strengthen customer intimacy

48.

1 point

An information system can enhance core competencies by:

allowing operational employees to interact with management.

creating educational opportunities for management.

encouraging the sharing of knowledge across business units.

providing better reporting facilities.

49.

1 point

A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?

Traditional Competitors

Low number of Suppliers

Product Differentiation

New Market Entrants

50.

1 point

Psychological aspects play a significant role in the definition of quality for:

neither customers nor producers.

both customers and producers.

customers only.

producers only.