MANG 420 – Flashcards
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All organizations have bedrock, unassailable assumptions that define their goals and products.
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-True
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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.
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-True
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A firm can be said to have competitive advantage when they have higher stock market valuation then their competitors.
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-True
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The competitive forces model can be used to analyze today's digital firm as well as traditional firms.
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-True
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Customers are one of the competitive forces that affect an organization's ability to compete.
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-True
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The effect of the Internet has been raise bargaining power over suppliers.
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-True
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In the strategy of product differentiation, information systems are used to enable new products and services.
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-True
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Mass customization is a form of mass production
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-True
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Business processes are collections of standard operating procedures.
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-True
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The value chain model classifies all company activities as either primary or support.
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-True
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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.
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-True
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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.
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-True
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In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software.
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-True
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Research has shown that only 25% of firms are able to align their information technology with their business goals.
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-True
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An adhocracy is a knowledge-based organization where goods, and service depend on the expertise and knowledge of professionals.
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-False
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A transparent marketplace meas that there is high product differentiation.
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-False
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In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries.
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-False
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Strong linkages to customers and suppliers decrease switching costs.
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-False
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The term business ecosystem describes the interplay between the various organizational forces within a firm.
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-False
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The use of Internet technologies allows companies to more easily sustain competitive advantage.
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-False
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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?
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-Customer and supplier intimacy
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The interaction between information systems and organizations is influenced
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-By many factors, including structure, politics, culture, and environment.
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An organization is a
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-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.
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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.
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-microeconomic
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How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?
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-It sees the inputs and outputs, labor and capital, as being infinitely malleable.
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All of the following are major features of organizations that impact the use of information systems except for
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-goals
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Business processes are collections of
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-routines
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Which of the following would not be considered a disruptive technology?
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-instant messaging
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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)
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-Professional bureaucracy
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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.
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-Machine
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An example of a divisionlized bureaucracy is a
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-Fortune 500 firm
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The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as
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-transaction costs
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Which of the following statements is not true about information technology's impact on business firms?
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-It helps firms expand in size
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According to agency theory, the firm is viewed as a(n)
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-"nexus of contract" among self-interested individuals
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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
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-tasks, technology, people, and structure
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The ______ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete.
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-competitive forces
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Which of the following industries has a low barrier to entry?
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-restaurant
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Which of the following is not one of the competitive forces?
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-external environment
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A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force.
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-new market entrants
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A substitute product of most concern for a cable TV distributor is
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-satellite TV
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Barnes and Noble's apps for its e-reader, the Nook, is an example of a firm using information systems to
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-strengthen ties to its customers
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A firm can exercise greater control over its suppliers by having
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-more suppliers
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Amazon's use of the Internet as a platform to sell more efficiently than traditional bookstores illustrates a use of information services for
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-low-cost leadership
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The four major types of completive strategy are
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-low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy
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Walmart's continuous replenishment system allows it to
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- provide an efficient customer response system
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When a firm provides a specialized product or service for a narrow target market better then competitors, they are using a _____strategy.
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-market niche
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______is the ability to offer individually tailored products or services using the same production resources as bulk production.
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-mass customization
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In environmental scanning, a firm may use information systems to
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-identify external events that may affect it
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An information system can enable a company to focus on a market niche through
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-intensive customer data analysis
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Which of the following best illustrate the use of information systems to focus on market niche?
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- a department store creating specialized products for small groups of customers.
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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.
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traditional competitors; product differentiation
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The Internet raises the bargaining power of customers by
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-making information available to everyone
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Which of the following industries has not been disrupted by the Internet?
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-Clothing
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What significant competitive force is challenging the publishing industry?
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-substitute products or services
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The value chain model
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- helps a firm identify points at which information technology can most effectively enhance its competitive position.
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The primary activities of a firm include
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-inbound logistics, operations, outbound logistics, sales and marketing, and service.
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Which of the following is one support activities in a firm's value chain?
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-technology
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Which of the following activities would you perform to measure and compare your business processes to similar processes of other companies within your industry?
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-benchmarking
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The most successful solutions or methods for achieving a business objectives are called
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-best practices
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How are information systems used at the industry level to achieve strategic advantage?
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-by building industry-wide, IT-supported consortia and symposia
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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)
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-value web
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If two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating
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-synergies
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An example of synergy in business is
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-JP Morgan Chase's mergers with other banks that provided JP Morgan with a network of retail brances in new regions.
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An information system can enhance core competencies by
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-encouraging the sharing of knowledge across business units
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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
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-the law of diminishing returns
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Networks economics
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-sees the cost of adding new member as inconsequential
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A virtual company
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-uses the capabilities of other companies without being physically tied to those companies
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An example of a keystone firm within a business ecosystem is
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-Apple and software application writers in the mobile platform ecosystem
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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?
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- Internet technologies are universal, and therefore usable by all companies.
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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?
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-Perform a strategic systems analysis
