IS 290 Cronk Test 1 – Flashcards
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Which four elements are included in systems thinking?
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Input, Process, Output, and Feedback
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The department within a company that performs the function of selling goods or services is called?
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sales
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Consider a washing machine as a system. Which of the following represents the process?
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The wash and rinse cycle
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When Friedman describes Globalization 3.0, he discusses 10 forces that _______ the world?
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flattened
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The sales department needs to rely on information from operations to understand _________?
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customer orders, demand forecasts, and inventory
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What is the name of a company's internal MIS department?
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IS, IT, MIS
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What is information collected from multiple sources - such as suppliers, customers competitors, partners, and industries - that analyzes patterns, trends, and relationships for strategic decision making?
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Business intelligence
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The department within a company that records, measures and reports monetary transactions is called?
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accounting
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Which of the following is not included as on of Friedman's 10 forces that flattened the world?
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Systems thinking
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Cheryl Steffan is the operations manager for Nature's Bread Company, which specializes in providing natural products for health-conscious individuals. Cheryl is responsible for compiling, analyzing, and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day. Which of the following is an example of a piece of data Cheryl would be using to successfully perform her job?
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Best-selling product by day
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How does the text recommend that a company operate if it wants to be successful in the information age?
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Interdependently between departments
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What is data converted into a meaningful and useful context?
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information
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MIS is a business function. Which of the following does MIS perform to help aid the company in decision making and problem solving?
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Moves information about products, moves information about people, moves information about processes across the company to improve systems
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Feedback is information that returns to its original transmitter and modifies the transmitter's actions. What would the original transmitter include?
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Input, Transform, Output
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Which of the following is considered data?
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Quantity sold
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Which of the following is a reason why competitive advantages are typically temporary?
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The competitor hiring your key employees, The competitor acquiring new technology, The competitor seeking ways to duplicate your business operations
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The Victory Wireless store in Denver is currently offering a fabulous marketing strategy for potential new iPhone customers. Victory Wireless offers customers who purchase an iPhone with a two-year subscription a free OtterBox phone case, car charger, ear phones, and speakers. In terms of Porter's Five Forces, what is Victory Wireless attempting to achieve with this marketing strategy?
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Decrease buyer power
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What are the two main categories in a value chain analysis?
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Primary value activities and support value activities
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Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents SUPPLIER power in the soft drink industry?
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Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases
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When evaluating the value chain, which of the following included in the support value activities?
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Firm infrastructure
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Your boss, Kerry Miller, has asked you to analyzed the soft drink industry using Porter's Five Forces Model. Which of the following represents BUYER power in the soft drink industry?
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Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store
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The goal of value chain analysis is to identify process in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or _________?
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cost advantage or product differentiation
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Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents SUPPLIER power in the music industry?
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Established record labels like EMI, Sony and Universal
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Steve Jobs and Apple created a big advantage in the technology industry with the introduction of the iPod, iPhone, and iPad. What are these all examples of?
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competitive advantage, competitive intelligence, first-mover advantage
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Kevin Campbell is an incoming freshman at your college. Kevin is frustrated by the cost of books, tuition, and expenses, and he also needs to purchase a rather expensive laptop. In an effort to save money, Kevin begins a Facebook group finding other college students who need to purchase laptops. Soon, Kevin's Facebook group has close to 100,000 students. Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount. What business strategy is Kevin using to purchase laptops?
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Increasing buyer power
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All of the following are common tools used in industry to analyze and develop competitive advantages except...?
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competitive analysis model
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Identifying competitive advantages can be difficult and explains why they are typically _______?
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temporary
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Which of the following represents a company in a supply chain?
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supplier and customer
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What is the support value activity that hires employees and provides them with training and compensation?
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human resources management
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Some industries' competition is much more intense than others. Retail grocery stores, such as Kroger, Safeway, and Albertson's in the US, experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces?
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Rivalry among existing competitors
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Which of the following statements is incorrect?
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CRM predicting technologies help organizations identify their customers across other applications
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What is another term that represents CRM analysis technologies that help organizations segment their customers into categories such as best and worst customers?
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Customer segmentation
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What is the formula that an organization can use to find its most valuable customers?
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RFM (recency, frequency, monetary value)
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What can effective and efficient supply chain management systems enable an organization to accomplish?
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Increase its buyer power
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What is enterprise-wide resource planning?
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integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations
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What is the term that identifies how frequently a customer purchases items?
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frequency
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What does supply chain management involve?
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the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
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What is business process reengineering?
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the analysis and redesign of workflow within and between enterprises
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Which of the following is not one of the questions asked during the predicting phase of CRM?
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What is the total revenue by the customer
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Which company used BPR to change its industry by implementing a mobile claims process?
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Progressive Insurance
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What are the three phases in the evolution of CRM?
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Reporting, analyzing, predicting
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Which of the following is an organizational result from an effective and efficient supply chain management system?
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create entry barriers, thereby reducing the threat of new entrants, increase efficiencies while seeking a competitive advantage through cost leadership, decrease the power of its buyers
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Which of the following is not a criterion to determine the importance of a process for reengineering practitioners?
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Does the process fall above best in class
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What is a customer-facing process?
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the result in a product or service that is received by an organization's external customer
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What is a business-facing process?
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An invisible process to the external customer but essential to the effective management of the business which includes goal setting, day-to-day planning, performance feedback, rewards, and resource allocation.
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What type of metrics includes number of prospective customer, number of new customers, and number of retained customers?
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CRM metrics
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What type of metrics includes number back order, customer order promised cycle time, and customer order actual cycle time?
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SCM metrics
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What do most companies measure to determine the success of their websites?
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traffic
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What types of metrics measure customer satisfaction?
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effectiveness MIS metrics
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What is a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser?
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click-through
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According to Peter Drucker, what are managers who do things right addressing?
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efficiency
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Which of the following is a type of metric based on website data?
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number of visits to a website, number of abandoned shopping carts, number of abandoned registrations
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What type of metrics includes number of marketing campaigns, new customer retention rates, and number of feedbacks by marketing campain?
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CRM metrics
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What is measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer?
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customer satisfaction
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What type of metrics measure throughput, speed, and availability?
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Efficiency MIS metrics
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What is eBay constantly benchmarking?
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MIS projects for efficiency and effectiveness
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Which term is used to describe the ease with which people perform transactions and/or find information?
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usability
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There is a rule for how many metrics, out of the hundreds of possible CRM metrics, should be tracked and analyzed at any given management level. What is the rule?
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Best practice is to track and analyze no more than seven (plus or minus two) metrics
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What is a management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action?
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the balanced scorecard
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Which of the following is not a type of effectiveness MIS metric?
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response time
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Jeremy Bridges is an executive for Green Web Designs, where his primary role is to ensure the security of business systems and develop strategies to protect the company from online viruses and hackers. What is Jeremy's role within the company?
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Chief Security Officer (CSO)
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Who is responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses
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CSO
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Which role within a company is responsible for overseeing all uses of MIS and ensuring that MIS strategy aligns with business goal and objectives?
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Chief Information Officer (CIO)
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Who is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organization's information technology?
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CTO
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The old business axiom "time is money" needs to be updated to more accurately reflect the crucial interdependence between IT and business processes. What is the recommended new phrase?
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"uptime is money"
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Which of the following activities does a CIO perform?
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ensures the strategic alignment of IT with business objectives, ensures the strategic alignment of IT with business goals, oversees all uses of information technology
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Trina Hauger works for Johnson Electric as a corporate lawyer, and part of her duties are to ensure the ethical and legal use of information within the company. Which of the following represents Trina's role at Johnson Electric?
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Chief Privacy Officer (CPO)
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Which of the following is one of the four categories of costs associated with downtime?
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financial performance, damaged reputation, revenue
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What is a broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization
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information security
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What gives a person the legal right to use copyrighted material in certain situations?
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fair use doctrine
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What are the principles and standards that guide our behavior toward other people?
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ethics
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What is the legal protection affording an expression of an idea?
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copyright
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Broad function of a CIO includes all of the following except...?
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building and maintaining strong customer processes
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What first-ever national appointment was made by President Obama?
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National Chief Technology Officer
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According to infonetics research, what is the leading cause of downtime?
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software failure followed by human error
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Data is useful for understanding individual sales, but to gain deeper insight into a business, data needs to be turned into information. Which of the following offers an example of turning data into information?
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What is my worst-selling product? What is my best-selling product? Who are my best customers?
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Shelby Black runs a successful hair salon in downtown Los Angeles. One of Shelby's tasks is to input positive and negative customer reviews into her computer system. What type of information is Shelby gathering?
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Feedback
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How are the majority of companies today typicaly organized?
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by departments or functional areas
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MIS is a business function, like accounting or sales, which moves information about people, products, and processes across the company to facilitate decision making and problem solving. What does MIS stands for?
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Management Information Systems
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IT enables business success and innovation?
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true
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Which of the following is considered information?
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best-selling item by month
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As companies move from data to knowledge, they start to include more and more variables for analysis, resulting in better, more precise support for _______?
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both decision making and problem solving
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The department within a company that supports sales by planning, pricing, and promoting goods or services is called _______?
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marketing
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Which of the following is included in Porter's Five Forces Model?
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the power of competitors
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Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents buyer power in the music industry?
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Walmart, Target, and iTunes
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Which of the following is similar to focused strategy versus broad strategy?
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Niche market versus large market
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Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers?
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Value Chain Analysis
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What is a standardized set of activities that accomplishes a specific task?
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Business process
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Shawn McGill is on the executive board for ABC Pharmaceuticals. The company produces the number-one-selling cancer-fighting drug on the market. Due to its incredible success, ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which force is ABC Pharmaceuticals using to increase its drug price?
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Supplier power
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Callie Crystal owns and operates one of the most successful local coffee shops in Denver, called The Edgewater Café. Each time a customer purchases their 100th cup of coffee at The Edgewater Café, they receive a free pound of coffee of their choice. What is Callie attempting to create with her unique "Free Pound of Coffee" marketing program?
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Reducing buyer power with a loyalty program
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A ________ advantage features a product or service on which customers place a greater value than they do on similar offerings from competitors?
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competitive
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_______ make customers reluctant to switch to another product or service?
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switching costs
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MIS can add value to both primary activities and support activities in the value chain. Which of the following is not an example of a company adding value by using MIS in a primary activity?
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Scottrade Corp. creating an online system for employees to track paychecks, benefits, the wellness-rewards program, and other employee benefit items
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When buyer power is low, supplier power is typically ______?
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high
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Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a differentiation strategy?
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British Airways, Singapore Airlines, and Virgin Atlantic
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What is the purpose of business process reengineering?
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to make all business process the best-in-class
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What is a business process?
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a standardized set of activities that accomplish a specific task, such as processing a customer's order
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What is another term that represents CRM reporting technologies that help organizations identify their customers across other applications?
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customer identification
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Which of the following is not one of the questions asked during the reporting phase of CRM?
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Who are our customers
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The balanced scorecard was developed by Drs. Robert Kaplan of the Harvard Business School and David Norton. Why systems does the balanced scorecard measure?
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BPR and ERP
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What type of metrics includes number of prospective customers, number of new customers, and number of retained customers?
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CRM metrics
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Which of the following is a type of SCM metric?
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Customer order actual cycle time, inventory replenishment cycle time, customer order promised cycle time
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Which of the following is not a typical CRM metric?
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Inventory metrics
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What type of metrics includes number of marketing campaigns, new customer retention rates, and number of feedbacks by marketing campaign?
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CRM metrics
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The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives. Which of the following is not one of the four perspectives in the balanced scorecard?
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The leading perspective
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Which issue concerns CIOs the most?
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Enhancing customer satisfaction
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What is the broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization?
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Information security
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What is an intangible creative work that is embodied in physical form?
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Intellectual property
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Broad functions of a CIO include all of the following except?
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building and maintaining strong customer processes
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MIS can be an important enabler of business success and innovation. Which of the below statements is accurate when referring to MIS?
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MIS is a valuable tool that can leverage the talents of people who know how to use and manage it effectively
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Consider a washing machine as a system. Which of the following represents the inputs?
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the dirty clothes, water, and detergent
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Which of the following represents the relationship between functional areas in a business?
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independent
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Which of the following provides an example of data?
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Who is customer number 12345XX?
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Greg works for Geneva Steel Corporation. Greg's duties include managing the overall processes for the company and transforming the steel resources into goods. Which department would Greg most likely work in?
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Operations Manager
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Consider a home theater system. Which of the following represents the input(s)?
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The DVD player, DVD movie, speakers, TV, and electricity
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The banking industry has implemented several competitive advantages, including ATMs, online bill-pay services, and electronic statements. Of course, these competitive advantages were quickly duplicated by any competitor that wanted to remain in the banking industry. These are examples of ___________?
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acquiring new technology products and services
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According to Porter, companies that wish to dominate broad markets should operate using a ______ strategy?
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cost leadership with a low cost
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What is one of the most common ways a company can decrease supplier power?
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charge lower prices
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When evaluating the value chain, all of the following are included in the primary value activities except?
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MIS development
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Competitive intelligence is the process of gathering information about the competitive environment, including ______?
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competitors' differentiated processes; competitors' plans; competitors' employees
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Greg Provenzo owns and runs a Blockbuster video store. Greg is implementing a drive-thru rental process that is the same as you would find at a fast-food restaurant. Customers can pick up and drop off their videos without leaving their cars. Greg's new system has become so popular that Videos Plus, a competitor down the street, is attempting to re-create Greg's video drive-thru rental process. Greg's system is an example of a _________?
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first-mover advantage
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If a supplier has high power, what can it do to influence its industry?
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Limit quality or services; shift costs to industry participants; charge higher prices
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What is the key word in ERP?
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Planning; Enterprise; Resource
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Which of the following is a business-facing process?
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Budget forecasting
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Which of the following is not one of the questions asked during the analyzing phase of CRM?
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What customers are at risk of leaving?
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What is CRM?
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Both a technology and a strategy
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Which of the following is a customer-facing process?
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Order shipping
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According to Peter Drucker, what are managers who do the right things addressing?
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Effectiveness
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What do most companies measure to determine the success of their website?
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traffic
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A system is a collection of parts that link together to ______?
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achieve a common purpose
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Which of the below is the key term that defines the confirmation or validation of an event or object?
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fact
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One challenge that companies today sometimes have is that they are departmentalized and the departments act independently of each other. One solution that can help a company work interdepartmentally includes ___________?
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Management information systems
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Which of the following is not included as one of Friedman's 10 forces that flattened the world?
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supply-chaining
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John Cleaver is the CEO of Tech World, which is a retail store that sells computers, monitors, cameras, televisions, and many other electronic products. John and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic the product of a competitor that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, John determines that all of the forces are high in this new industry. What should John do?
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Not introduce the product. Because all five forces are strong, introducing the product would be a highly risky business strategy
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In the bookstore industry, some of today's businesses compete with different business strategies and cost strategies. Which of the following is using a broad market competitive scope along with a low cost strategy?
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Amazon.com
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Imagine you are creating a new product to sell in an up and coming market. Which of the following statements indicates that it would be easy for you, as the new entrant, to compete in this market?
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the threat of new entrants is high in the up and coming market
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Broad differentiation, broad cost leadership and _______ are the three generic strategies identified by Porter?
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narrow market leadership
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If a business is following a focused strategy, then its competitive scope is _____?
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narrow market
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Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joing a market?
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threat of new entrants
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What type of system did Kaiser Permanente implement in order to improve and prolong the lives of diabetics?
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enterprise resource planning
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What is the term that defines how recently a customer purchased items?
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Recency
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The quantifiable metrics a company uses to evaluate progress toward critical success factors are called _____?
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key performance indicators
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On the graph depicting the interrelationships between efficiency and effectiveness, where does an organization ideally want to operate?
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Upper right-hand corner
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What is a broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization?
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privacy
