chapter 2 is 300

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True
answer

A business process has inputs and outputs
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True
answer

The activities of a business process can be measured
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False
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Cross-functional processes are executed within a single functional area.
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False
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The procurement process includes the sales function.
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True
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An organization’s business processes can create a competitive advantage
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False
answer

A business process always includes information systems.
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False
answer

BPR is a strategy for improving the efficiency of an organization’s data collection.
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False
answer

BPM is an implementation of BPR.
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True
answer

BPM can improve an organization’s flexibility
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False
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The overall performance of an organization has little to do with how well it manages its business processes.
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True
answer

Business process management includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.
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False
answer

Competitive advantage refers to making higher profits.
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False
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The business environment refers to the industry that a company is in
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True
answer

Globalization is the integration and interdependence of many facets of life made possible by rapid advances in information technology.
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False
answer

The information technology environment is the combination of social, legal, economic, physical, and political factors that affect business activities.
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True
answer

In general, labor costs are higher in developed countries than in developing countries.
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True
answer

Developed countries usually provide greater fringe benefits than developing countries.
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True
answer

Information technology is facilitating the entry of a wide variety of employees into the workforce.
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False
answer

Internet access in the United States is not particularly related to household income.
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False
answer

In general, government deregulation decreases competition.
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True
answer

Ethical issues are important because, if handled poorly, they can damage an organization’s image.
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False
answer

Build-to-stock is a strategy of producing customized products and services.
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True
answer

In mass production, a company produces a large quantity of identical items.
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True
answer

In mass customization, companies produce items in large quantity, but they tailor the items to meet the desires and needs of individual customers.
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True
answer

Customer intimacy is the process whereby a business learns as much as possible about its customers to better anticipate and address their needs
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True
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A growing IT initiative called green IT is enabling organizations to reduce their carbon footprint.
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False
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The digital divide is the gap between data and knowledge
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True
answer

The One Laptop per Child project aims to use technology to revolutionize how the world can educate its children
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True
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Competitive advantage helps a company function effectively within a market and generate larger-than-average profits.
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False
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An information system that helps an organization gain a competitive advantage is called a competitive information system.
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True
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Every competitive organization is driven by the competitive forces identified by Michael Porter.
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True
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Michael Porter concludes that the overall impact of the Internet is to increase competition, which generally diminishes a firm’s profitability.
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False
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The Internet increases traditional barriers to entry into a market.
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False
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The Internet decreases customers’ bargaining power.
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True
answer

Information-based industries face the greatest threat from substitutes.
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True
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The music industry is a good example of the extremely low variable costs of digital products
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True
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The introduction of the ATM in the banking industry is an example of the innovation strategy
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False
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An entry barrier is a long-term competitive advantage.
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True
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The bargaining power of suppliers is low when their buyers have many choices.
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False
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When there are many substitute products, a company can create a competitive advantage by increasing fees
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False
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Porter’s value chain model is a variation of his competitive advantage framework
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True
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The primary activities in the value chain create the value for which customers are willing to pay
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False
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It’s a good idea for a company to select two competitive advantage strategies
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E. A process cannot cross functional area boundaries
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Which of the following statements concerning business processes is false? A. A process has inputs. B. A process has outputs. C. A process has activities that can be measured. D. A process creates value. E. A process cannot cross functional area boundaries
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C. Marketing business process
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Applying copyrights and trademarks is an example of a(n): A. Accounting business process B. Finance business process C. Marketing business process D. Production business process E. Management information systems business process
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A. Accounting Business Process
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Reconciling bank accounts is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process
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B. Finance Business Process
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Managing account collections is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process
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C. Marketing Business Process
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Collecting sales tax is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process
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D. Production Business Process
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Managing purchasing is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Production Business Process E. Management Information Systems Business Process
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D. Human Resources Business Process
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Managing pay and payroll is an example of a(n): A. Accounting Business Process B. Finance Business Process C. Marketing Business Process D. Human Resources Business Process E. Management Information Systems Business Process
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A. Procurement
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Which of the following processes involves the warehouse, purchasing, and accounting functional areas? A. Procurement B. Fulfillment C. Order entry D. Accounts receivable E. Payroll
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B. Fulfillment
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Which of the following processes involves the warehouse, sales, and accounting functional areas? A. Procurement B. Fulfillment C. Order entry D. Accounts Receivable E. Payroll
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A. Establish standards
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Which of the following is not a role that information systems play in businesses processes? A. Establish standards B. Execute the process C. Capture and store process data D. Monitor process performance E. Detect problems with the process.
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E. Has a major impact on the corporate culture.
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For many organizations, business process reengineering A. Is easy to implement. B. Is not disruptive to implement. C. Has little impact on facilities. D. Is inexpensive. E. Has a major impact on the corporate culture.
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A. BPM is a task-oriented approach.
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Which of the following statements is false? A. BPM is a task-oriented approach. B. BPM can help companies reduce costs. C. BPM can help companies increase revenue. D. BPM can improve customer satisfaction. E. BPM can improve organizational flexibility
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E. Business activity monitoring is a type of scheduled reporting.
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Which of the following statements is false? A. BPM begins with process modeling. B. Process modeling is a graphical depiction of all the steps in a process. C. BPM uses Web-enabled technologies for user interfaces. D. Business activity monitoring is used to measure and manage business processes. E. Business activity monitoring is a type of scheduled reporting.
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D. Competitive advantage requires the use of technology.
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Which of the following statements is false? A. Competitive advantage is based on some measurement such as cost, quality, or speed. B. Competitive advantage enables a company to function effectively within a market. C. Competitive advantage leads to higher-than-average profits. D. Competitive advantage requires the use of technology. E. Competitive advantage applies to companies of all sizes.
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E. Changes in all of the above will create business pressures.
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Business pressures on organizations are created when there are changes in A. Social factors B. Economic factors C. Legal factors D. Political factors E. Changes in all of the above will create business pressures.
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A. the global economy
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Market pressures include which of the following? A. the global economy B. weak competition C. a homogeneous workforce D. weak customers E. high-cost offshore labor
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D. It includes fewer persons with disabilities.
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The workforce in developed countries is exhibiting all of the following trends except: A. It is becoming more diversified. B. It includes more women. C. It includes more single parents. D. It includes fewer persons with disabilities. E. It includes more minority-group members.
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D. higher expectations
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Today’s customers have ________ . A. less knowledge about products B. less sophistication C. difficulty in finding information about products D. higher expectations E. difficulty in comparing prices
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B. New technologies offer alternative service options
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Which of the following statements concerning technology pressures on modern businesses is true? A. Technology changes so rapidly that organizations should wait before they release new technology-based products. B. New technologies offer alternative service options. C. New technologies will never replace existing technologies. D. The amount of information on the Internet remains stable from year to year. E. The important information on the Internet is fee-based.
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D. Building computer applications that use less energy
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Which of the following is not an example of the growing initiative called green IT? A. Designing an IT infrastructure to support sustainability. B. Building systems that monitor carbon throughout the organization. C. Asking vendors about compliance on environmental standards. D. Building computer applications that use less energy E. Designing energy-efficient data centers.
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A. social responsibility
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The digital divide is an example of which type of societal pressure? A. social responsibility B. government regulations C. protection against terrorism D. ethics E. information overload
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B. Government deregulation reduces competition.
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Which one of the following statements is false? A. Businesses tend to view government regulations as expensive constraints on their activities. B. Government deregulation reduces competition. C. IT support is essential for compliance with many new regulations. D. IT has been used to identify patterns of behavior associated with terrorist activities. E. Information ethics can destroy the morale of a company’s employees.
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A. Delay releases of innovated products.
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Which of the following is not a Section Reference 1 by organizations to business pressures? A. Delay releases of innovated products. B. Build strategic systems that enable an organization to increase market share or profits. C. Provide tools that satisfy customers so they don’t go to a competitor. D. Manufacture customized goods at a lower cost. E. Conduct business electronically with customers and business partners.
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D. mass production.
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Producing identical items in large quantities is called: A. strategic systems. B. customer focus. C. continuous improvement. D. mass production. E. mass customization
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E. mass customization
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Producing customized items in large quantities is called: A. strategic systems. B. customer focus. C. continuous improvement. D. mass production. E. mass customization.
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D. mass customization.
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The Bodymetrics body scanner is best characterized as an example of: A. mass production. B. customer focus. C. real-time customer input. D. mass customization. E. continuous improvement
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D. threat of substitute products
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Information-based industries are most susceptible to which one of Porter’s five forces? A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products E. rivalry among existing firms in an industry
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C. Increased time to market
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Competitive advantage for an organization manifests itself as all of the following except: A. Lower costs B. Higher quality C. Increased time to market D. Increased profits E. Increased speed
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B. increases, decreasing
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For most companies, the Web _____ the threat that new competitors will enter the market by _____ traditional barriers to entry. A. decreases, increasing B. increases, decreasing C. increases, increasing D. decreases, decreasing
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B. An entry barrier
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_____ is a feature that must be offered by a competing organization in order to survive in the marketplace. A. Competitive advantage B. An entry barrier C. Strategic advantage D. Rapid time-to-market E. One-to-one marketing
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D. low, high
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The threat of competitors’ entering the automobile manufacturing industry is _____ because barriers to entry are so _____. A. low, low B. high, high C. high, low D. low, high
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E. intermediation, digital
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The threat of competitors’ entering a market is very high in industries that perform a(n) _____ role and in industries where the primary product or service is _____. A. intermediation, physical B. broker, physical C. sales, financial D. financial, digital E. intermediation, digital
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B. The Internet increases your bargaining power.
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How does the Internet affect the way you purchase your textbooks? A. The Internet gives you fewer choices. B. The Internet increases your bargaining power. C. The Internet provides you with less information. D. The Internet decreases your bargaining power. E. The Internet increases your switching costs.
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B. high, low
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Buyer power is _____ when buyers have many choices from whom to buy and _____ when buyers have few choices. A. high, the same B. high, low C. low, low D. low, high E. low, the same
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E. physical, digital
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The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel. A. e-commerce, digital B. digital, e-commerce C. digital, physical D. physical, financial E. physical, digital
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B. general strategies, activities
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Porter’s competitive forces model helps organizations identify _____, whereas his value chain model helps organizations identify specific _____. A. competitive opportunities, activities B. general strategies, activities C. activities, competitive opportunities D. activities, general strategies E. primary activities, support activities
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D. Primary, support
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_____ activities create value for which customers are willing to pay, whereas _____ activities do not add value directly to the firm’s products or services. A. Support, primary B. Human resource management, inbound logistics C. Procurement, operations D. Primary, support E. Accounting, outbound logistics
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A. many, high
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If there are _____ substitutes for an organization’s products or services, then the threat of substitutes is _____. A. many, high B. few, low C. few, high D. many, low E. few, negligible
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D. quickly, increases
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New technologies can produce new products very _____, which _____ the threat from substitute products. A. slowly, decreases B. slowly, increases C. slowly, does not affect D. quickly, increases E. quickly, does not affect
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E. rivalry among existing firms in an industry
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The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret. This is an example of which of Porter’s five forces? A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products E. rivalry among existing firms in an industry
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A. cost leadership
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Walmart’s automatic replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation
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B. differentiation
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Which strategy for competitive advantage involves offering different products, services, or product features? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation
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C. innovation
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Which strategy for competitive advantage involves introducing new products and putting new features in existing products? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation
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B. innovation
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The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage? A. cost leadership B. innovation C. differentiation D. operational effectiveness E. customer-orientation
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B. differentiation
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Southwest Airlines’ low-cost, short-haul strategy is an example of which strategy for competitive advantage? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation
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D. operational effectiveness
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Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation
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E. customer-orientation
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When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage? A. cost leadership B. differentiation C. innovation D. operational effectiveness E. customer-orientation
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C. managers can spend more time “putting out fires”
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IT will impact managers’ jobs in all of the following ways except: A. managers will have time to get into the field B. managers can spend more time planning C. managers can spend more time “putting out fires” D. managers can gather information more quickly E. none of the above
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D. competitive forces model, value chain model
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Porter’s _____ help(s) companies identify general strategies, whereas his _____ help(s) to identify specific activities where companies can use the strategies for greatest impact. A. value chain model, competitive forces model B. primary activities, support activities C. competitive forces model, primary activities D. competitive forces model, value chain model E. value chain model, support activities
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C. The company views IT as a way to support the business but not as a way to create new revenue streams.
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Which of the following is not an example of business – IT alignment? A. The company goals are clear to every IT and business employee. B. The company ensures that IT employees understand how the company makes money. C. The company views IT as a way to support the business but not as a way to create new revenue streams. D. IT professionals rotate into business departments. E. The company views customer service as extremely important.
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E. Lack of funds
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Which of the following is not a cause of inadequate alignment between IT and business? A. A lack of communication B. Different objectives C. Not understanding each group’s expertise D. Lack of IT knowledge on the part of the business executives E. Lack of funds
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C. It made it easy for people to find the products they remembered from TV.
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Refer IT’s About Business 2.1 – Before the Stores: What was Before the Store’s competitive advantage? A. It could supply products people wanted. B. It used Fulfillment by Amazon. C. It made it easy for people to find the products they remembered from TV. D. It was on the Web. E. It generated a profit
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D. Supply chaining
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Refer to IT’s About Business 2.2 – Sleek Audio: Which of Friedman’s flatteners applies to Sleek Audio’s decision to bring its manufacturing back to the United States? A. Offshoring B. Informing C. Work-flow software D. Supply chaining E. The Steroids
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A. Self-esteem
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Refer to IT’s About Business 2.3 – The Internet Facilitates Generosity: Sociologists argue that posting experiences on message boards can actually improve a person’s A. Self-esteem B. Independence C. Wealth D. Free time E. Social status
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E. rivalry among existing firms in an industry
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Refer to IT’s About Business 2.4 – Progressive: Progressive’s Name Your Price application is aimed at which of Porter’s five competitive forces? A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products E. rivalry among existing firms in an industry
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D. Merging two similar IT cultures.
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Refer to Closing Case – Two Financial Giants Merge: When Wells Fargo acquired Wachovia, it faced all of the following issues except: A. Convincing all employees to focus on the overall goal. B. Providing ongoing support for all existing applications during the merger. C. Merging strategic IT applications into one new strategic focus. D. Merging two similar IT cultures. E. Integrating IT by implementing the best existing application in each business area

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