MANG 420 – MIS Chapter 3 answers

All organizations have bedrock, unassailable assumptions that define their goals and products.
-True
From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor.
-True
A firm can be said to have competitive advantage when they have higher stock market valuation then their competitors.
-True
The competitive forces model can be used to analyze today’s digital firm as well as traditional firms.
-True
Customers are one of the competitive forces that affect an organization’s ability to compete.
-True
The effect of the Internet has been raise bargaining power over suppliers.
-True
In the strategy of product differentiation, information systems are used to enable new products and services.
-True
Mass customization is a form of mass production
-True
Business processes are collections of standard operating procedures.
-True
The value chain model classifies all company activities as either primary or support.
-True
In the value chain model, primary activities are most directly related to the production and distribution of the firm’s product and services that create value for the customer.
-True
The idea driving synergies is that when the output of some units can be used as inputs to other units. the relationship can lower cost and generate profits.
-True
In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software.
-True
Research has shown that only 25% of firms are able to align their information technology with their business goals.
-True
An adhocracy is a knowledge-based organization where goods, and service depend on the expertise and knowledge of professionals.
-False
A transparent marketplace meas that there is high product differentiation.
-False
In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries.
-False
Strong linkages to customers and suppliers decrease switching costs.
-False
The term business ecosystem describes the interplay between the various organizational forces within a firm.
-False
The use of Internet technologies allows companies to more easily sustain competitive advantage.
-False
As discussed in the chapter opening case, which of the four generic strategies did Sears employ to combat the competition offered by Target, Walmart, and Macy’s?
-Customer and supplier intimacy
The interaction between information systems and organizations is influenced
-By many factors, including structure, politics, culture, and environment.
An organization is a
-Stable, formal social structure that takes resources from the environment and processes them to produce outputs.
-formal, legal entity with internal rules and procedures that must abide by laws.
-collection of social elements.
According to the _______ definition of organizations, an organization seen as a means by which primary production factors are transformed into outputs consumed by the environment.
-microeconomic
How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?
-It sees the inputs and outputs, labor and capital, as being infinitely malleable.
All of the following are major features of organizations that impact the use of information systems except for
-goals
Business processes are collections of
-routines
Which of the following would not be considered a disruptive technology?
-instant messaging
Mintzberg’s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n)
-Professional bureaucracy
A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a _____ bureaucracy.
-Machine
An example of a divisionlized bureaucracy is a
-Fortune 500 firm
The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as
-transaction costs
Which of the following statements is not true about information technology’s impact on business firms?
-It helps firms expand in size
According to agency theory, the firm is viewed as a(n)
-“nexus of contract” among self-interested individuals
According to Leavitt’s model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are
-tasks, technology, people, and structure
The ______ model is used to describe the interaction of external forces that affect an organization’s strategy and ability to compete.
-competitive forces
Which of the following industries has a low barrier to entry?
-restaurant
Which of the following is not one of the competitive forces?
-external environment
A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.
-new market entrants
A substitute product of most concern for a cable TV distributor is
-satellite TV
Barnes and Noble’s apps for its e-reader, the Nook, is an example of a firm using information systems to
-strengthen ties to its customers
A firm can exercise greater control over its suppliers by having
-more suppliers
Amazon’s use of the Internet as a platform to sell more efficiently than traditional bookstores illustrates a use of information services for
-low-cost leadership
The four major types of completive strategy are
-low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy
Walmart’s continuous replenishment system allows it to
– provide an efficient customer response system
When a firm provides a specialized product or service for a narrow target market better then competitors, they are using a _____strategy.
-market niche
______is the ability to offer individually tailored products or services using the same production resources as bulk production.
-mass customization
In environmental scanning, a firm may use information systems to
-identify external events that may affect it
An information system can enable a company to focus on a market niche through
-intensive customer data analysis
Which of the following best illustrate the use of information systems to focus on market niche?
– a department store creating specialized products for small groups of customers.
As described in the chapter case, the competitive force of____ resulted in Starbuck’s downturn in 2008, and it employed information systems in a strategy of _____ to combat this force.
traditional competitors; product differentiation
The Internet raises the bargaining power of customers by
-making information available to everyone
Which of the following industries has not been disrupted by the Internet?
-Clothing
What significant competitive force is challenging the publishing industry?
-substitute products or services
The value chain model
– helps a firm identify points at which information technology can most effectively enhance its competitive position.
The primary activities of a firm include
-inbound logistics, operations, outbound logistics, sales and marketing, and service.
Which of the following is one support activities in a firm’s value chain?
-technology
Which of the following activities would you perform to measure and compare your business processes to similar processes of other companies within your industry?
-benchmarking
The most successful solutions or methods for achieving a business objectives are called
-best practices
How are information systems used at the industry level to achieve strategic advantage?
-by building industry-wide, IT-supported consortia and symposia
A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)
-value web
If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating
-synergies
An example of synergy in business is
-JP Morgan Chase’s mergers with other banks that provided JP Morgan with a network of retail brances in new regions.
An information system can enhance core competencies by
-encouraging the sharing of knowledge across business units
The more any given reason is applied to production, the lower the marginal gain in output, untill a point is reached where the additional inputs produce no additional output. That is referred to as
-the law of diminishing returns
Networks economics
-sees the cost of adding new member as inconsequential
A virtual company
-uses the capabilities of other companies without being physically tied to those companies
An example of a keystone firm within a business ecosystem is
-Apple and software application writers in the mobile platform ecosystem
The emergence, for Amazon.com, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage?
– Internet technologies are universal, and therefore usable by all companies.
You are consulting for a beverage distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step?
-Perform a strategic systems analysis

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