Business driven information systems 4th edition test bank

None of the above Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.

What would Jennifer determine The Museum Company is using as its generic strategy? Broad market, low cost. Narrow market, high cost. Broad market, high cost. Narrow market, low cost. Cost leadership with a low cost B. Differentiation with a low cost C. Cost leadership with a high cost D.

Which of the following demonstrates a company that has implemented a low cost, broad market strategy? The Sharper Image. Broad market. Narrow market. Broad range products. Broad range of services.

Broad market — high cost strategy. Narrow market — low cost strategy. Narrow market — high cost strategy. Broad market — low cost strategy. Which of the following is using a broad market competitive scope along with a low cost strategy? Any local independent book store that specializes in antique books.

Borders books. Which of the below is similar to focused strategy versus broad strategy? Large market versus leadership.

Large market versus uniqueness. Niche market versus large market. Niche market versus generic. Which of the following companies are using a cost leadership strategy? Southwest, Horizon, Frontier, JetBlue. Sky Taxi — a rent by the hour personal plane service. Which of the following companies are using a differentiation strategy? Which of the following companies are using a focused strategy?

Inbound logistics. Outbound logistics. Which of the below represents procurement as part of the support value activities in a value chain analysis? Purchases inputs such as raw materials, resources, equipment and supplies.

Applies MIS to processes to add value. Distributes goods and services to customers. Promotes, prices, and sells products to customers. What includes support value activities and primary value activities and is used to determine how to create the greatest possible value for customers?

Operations management. The Value Chain analysis. What is a standardized set of activities that accomplishes a specific task? Business strategy. Business outcome. Business process. Knowledge process. Product analysis. Primary supplier power. Value chain analysis. Buyer chain analysis. Focused strategy, product differentiation B. Focused strategy, cost advantage C. Cost advantage, primary value activities D.

Cost advantage, product differentiation What are the two main categories in a value chain analysis? Which of the following is not considered a category within the primary value activities in a value chain analysis? Firm infrastructure.

Which of the following is not considered a category within the support value activities in a value chain analysis? Technology development. Human resource management. What is the support value activity that provides employees with training, hiring, and compensation? Operations resource management. Where in the value chain is Sandy adding value? The primary value activity outbound logistics. The primary value activity inbound logistics.

The primary value activity marketing and sales. The primary value activity operations. When evaluating the value chain, all of the following are included in the primary value activities except: A. Inbound activities. MIS development. When evaluating the value chain, which of the following is included in the support value activities?

Marketing and sales. Finance and sales. Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers? Target high value-adding activities to further enhance their value. Target low value-adding activities to increase their value. Perform some combination of the two.

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 the use of MIS in a primary activity? Scottrade Corp. A system for the sales and marketing departments to track specific sales targets and follow up processes.

An easy electronic survey, similar to the survey monkey, to be sent to the customer right after a service was completed. Royal Crest Dairy using their custom order and delivery system through an easily accessible Web portal for the customer to track delivery status. MIS can add value to both primary and support activities within a business.

Which of the following is not an example of a company adding value by the use of MIS in a support activity? Netflix creating a business strategy for the video rental market that delivers videos via the mail. The human resources department creates a tracking system to efficiently reward employees based on their performance. The University of Forks creates a program to automatically order office supplies such as pens and pads of paper for its employees.

Companies are organized by departments. Michael Porter identified pressures that can hurt potential sales. Describe the information age and the differences between data, information, business intelligence, and knowledge. Identify the different departments in a company and why they must work together to achieve success. Explain systems thinking and how management information systems enable business communications.

Explain why competitive advantages are temporary. Disruptive technology tends to provide us with better, faster, and cheaper products. Disruptive and new technologies typically cut into the low-end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies.

Dell computer ranks highest on the list for expecting returns from new investments. Ebusiness is the buying and selling of goods and services over the Internet. Ebusiness is something that a business can just go out and buy. Future managers and workers need to understand the benefits MIS and ebusiness can offer a company if it wants to take advantage of sustaining technologies.

A disruptive technology is a new way of doing things that initially does not meet the needs of existing customers. A sustaining technology produces an improved product customers are eager to buy, such as a faster car or larger hard drive. A sustaining technology is a new way of doing things that initially does not meet the needs of existing customers.

A disruptive technology produces an improved product customers are eager to buy, such as a faster car or larger hard drive. The Internet provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML. The WWW provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML. The Internet is a massive network that connects computers all over the world and allows them to communicate with one another.

Hypertext markup language HTML links documents, allowing users to move from one to another simply by clicking on a hot spot or link. Hypertext transport protocol HTTP is the Internet protocol web browsers use to request and display web pages using universal resource locators.

A universal resource locator URL is the address of a file or resource on the web such as www. URLs use domain names to identify particular websites. Domain name hosting web hosting is a service that allows the owner of a domain name to maintain a simple website and provide email capacity. A URL is a program that runs within another application such as a website. Ecommerce is the buying and selling of goods and services over the Internet.

Ecommerce refers only to online transactions. Ecommerce includes ebusiness along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information.

During Web 1. A paradigm shift occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave.

A few examples of ebusiness advantages can include opening new markets, reducing costs, and expanding global reach. Intermediaries occur when a customer sells directly to another customer online cutting out the intermediary. Interactivity measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the advertisement.

Information richness refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information. Information richness measures the number of people a firm can communicate with all over the world. Cybermediation refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness, including comparison-shopping sites such as Kelkoo and bank account aggregation services such as Citibank.

In Reintermediation steps are removed from the value chain as new players find ways to add value to the business process. Information reach refers to the number of people a business can communicate with, on a global basis. An ebusiness model is a plan that details how a company creates, delivers, and generates revenues.

Content providers are companies that generate revenue by providing digital content such as news, music, photos, or videos and examples include Netflix and iTunes.

Transaction brokers process online sales transactions. Business-to-consumer applies to any business that sells its products or services directly to consumers online. A click-and-motor business operates on the Internet only without a physical store. A business model is a plan that details how a company creates, delivers, and generates revenues. A business model is a plan that details how a company creates, delivers, and generates revenues on the Internet. Dot-com was the original term for a company operating on the Internet.

A search engine is website software that finds other pages based on keyword matching similar to Google. Search engine ranking evaluates variables that search engines use to determine where a URL appears on the list of search results. Search engine optimization SEO combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking.

Pay-per-click generates revenue each time a user clicks on a link that takes the user directly to an online agent waiting for a call. Pay-per-conversion generates revenue each time a website visitor is converted to a customer. Taxonomy is the set of ideas about how all information in a given context should be organized.

A Webinar is a form of Web conferencing, which blends videoconferencing with document sharing and allows the user to deliver a presentation over the Web to a group of geographically dispersed participants. Many businesses are using instant messaging as a way to answer and resolve questions or problems quickly. An Internet service provider ISP is a company that provides access to the Internet for a monthly fee. Real-time communication occurs when a system updates information at the same rate it receives it.

Instant messaging IMing is a service that enables instant or real-time communication between people. Instant messaging converts an audio broadcast to a digital music player. A videoconference allows people at two or more locations to interact via two-way video and audio transmissions simultaneously as well as share documents, data, computer displays, and whiteboards.

Point-to-point videoconferences connect two people, and multipoint conferences connect more than two people at multiple locations. Managing consumer trust is not a challenge for ebusinesses participants as the Internet has numerous security technologies in place to completely protect consumers and their online transactions.

The Internet marketplace is free of most forms of traditional sales tax. The Internet uses such strong security technologies that ensuring consumer protection is not a challenge for ebusinesses. Web 2.

Source code is software made available free for any third party to review and modify. The most common form of collective intelligence found outside the organization is crowdsourcing, or the wisdom of the crowd.

An open system consists of nonproprietary hardware and software based on publicly known standards that allows third parties to create add-on products to plug into or interoperate with the system.

An open system contains instructions written by a programmer specifying the actions to be performed by computer software. Open source refers to any software whose source code is made available free not on a fee or licensing basis as in ebusiness for any third party to review and modify.

User-contributed content or user-generated content is created and updated by many users for many users. User-contributed content is a set of tools that supports the work of teams or groups by facilitating the sharing and flow of information. Open systems tap into the core knowledge of all employees, partners, and customers.

Knowledge can be a real competitive advantage for an organization. The most common form of collective intelligence found inside the organization is knowledge management KM , which involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. A knowledge management system KMS supports the capturing, organization, and dissemination of knowledge i.

Tacit knowledge consists of anything that can be documented, archived, and codified, often with the help of MIS. Examples of explicit knowledge are assets such as patents, trademarks, business plans, marketing research, and customer lists. Social media refers to websites that rely on user participation and user-contributed content, such as Facebook, YouTube, and Digg. Social tagging is similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system.

A social network is an application that connects people by matching profile information. Providing individuals with the ability to network is by far one of the greatest advantages of Business 2. Social media maps group contacts personal and professional identifying who knows each other and who works together. In a company it can provide a vision of how employees work together. Tags are specific keywords or phrases incorporated into website content for means of classification or taxonomy.

Social tagging describes the collaborative activity of marking shared online content with keywords or tags as a way to organize it for future navigation, filtering, or search. A social bookmark is a locally stored URL or the address of a file or Internet page saved as a shortcut. Social bookmarking allows users to share, organize, search, and manage bookmarks. The three Business 2.

A wiki is a Hawaiian word for quick and is a type of a collaborative Web page that allows users to add, remove, and change content. RSS allows a website to constantly feed information and news to consumers instead of having the consumer search for it.

Microblogging is the practice of sending brief posts to characters to a personal blog, either publicly or to a private group of subscribers who can read the posts as IMs or as text messages. The network effect describes how products in a network increase in value to users as the number of users increases. A mashup is a website or web application that uses content from more than one source to create a completely new product or service.

The term is typically used in the context of music; putting Jay-Z lyrics over a Radiohead song makes something old new. The web version of a mashup allows users to mix map data, photos, video, news feeds, blog entries, and so on to create content with a new purpose. Content used in mashups is typically sourced from an RSS, which is a set of routines, protocols, and tools for building software applications.

Open source and sharing are both advantages and disadvantages of Business 2. Copyright laws protect collaborative websites like blogs and wikis allowing users to reuse material freely and easily.

Tim Berners-Lee was one of the founders of the Internet. Egovernment involves the use of strategies and technologies to transform government by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government.

Web 3. Mobile banking and mobile sales are both a part of the emerging mbusiness. Which of the following terms implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction? Collective intelligence B. Digital Darwinism C. Joint venture D. Sole proprietorship Which of the following produces an improved product customers are eager to buy, such as a faster car or larger hard drive? Sustaining technology B.

Disruptive technology C. Reputation system D. Personalization Which of the follow represents a form of disruptive technology? Enter the marketplace at the low end B. Tend to open new markets and destroy old ones D.

All of the above are included Which of the following is challenge of sustaining technology? Provides a cheaper product for current customers B. Provides a better product for current customers D. Provides a faster product for current customers Which of the following is not included in the top five companies that are expecting future growth to be generated from new investments? Sears C. Dell D. Existing investments C. Collective intelligence D.

Disruptive technology Which of the following began as an essential emergency military communications system operated by the U. Internet B. Ecommerce C. Ebusiness D. WWW Which of the following terms could you use synonymously when referring to the Web? Network, Paradigm shift B. Web browser, Blog At a local marketing firm, Steve is the lead Web developer and is responsible for working with customers on their Web designs, development, and graphics.

Which of the following would be a critical skill Steve must have to be able to perform his job? Understanding that he must create a unique domain name for each client B. Understanding of the World Wide Web and how hyperlinks work D. Which of the following is not a reason for the explosive growth of the WWW? Basic Web pages are easy to create and extremely flexible B.

The microcomputer revolution made it possible for an average person to own a computer C. Digital Darwinism D. The speed, convenience, and low cost of email Which term describes the WWW during its first few years of operation between and ? Web 1. Eshop C. Open source D. What is the difference between ecommerce and ebusiness? Ecommerce includes Internet network effects; ebusiness includes ecommerce and all activities related to internal and external business operations B. Ecommerce is buying and selling of goods or services online; ebusiness includes ecommerce and all activities related to internal and external business operations C.

Ecommerce includes ecommerce and all activities related to internal and external business operations; ebusiness includes all of the knowledge of management systems D. Ebusiness is buying and selling of goods or services online; ecommerce includes ecommerce and all activities related to internal and external business operations What is the Internet protocol Web browsers use to request and display Web pages using universal resource locators?

URL C. DARPA What allows user to access the WWW? Web conferencing B. Web browser C. Web business Which of the following is a type of Web browser? Microsoft Word and Excel B. Internet Explorer and Mozilla Firefox C. Facebook and MySpace D. What caused Polaroid to go bankrupt? It failed to have innovative technology and a captive customer base B.

One-hour film processing and digital cameras stole its market share C. People who want instant access to their pictures also want a third party involved D. Internet websites such as Flickr and Facebook stole its market share Many social media sites today allow you to customize your Web address, for example www. What is an alternate name for a Web address such as www. Digital bookmark B. Internet bookmark C. Universal resource locator D. Web browser Many industries have been forced to change due to technology advances.

Which of the below industries has felt the lowest amount of economic impact from ebusiness? Auto industry B. Retail industry C. Travel industry D. Waste or recycling industry Universities were among some of the first users of the Internet.

What was the Internet first called? HTML B. OPT D. WWO What is the address of a file or resource on the web such as www. Hypertext markup language B. Hypertext transport protocol D. Universal resource locator What links documents, allowing users to move from one to another simply by clicking on a hot spot or link?

What allows users to access the WWW? What is the Internet protocol web browsers use to request and display web pages using universal resource locators? What identifies a URL address and in the previous example apple. URLs use domain names to identify particular websites?

Domain name B. Domain name hosting C. Applet D. Paradigm shift What is a service that allows the owner of a domain name to maintain a simple website and provide email capacity? What is a program that runs within another application such as a website? What occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave? What does digital Darwinism imply? Organizations that can adapt to the new demands placed on them for surviving in the information age are doomed to extinction B.

Organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction C. Organizations that can adapt to new information systems are doomed to extinction D.

Organizations that cannot adapt to new information systems are doomed to exile Which of the following is an example of a disruptive technology? Which of the following is an example of a sustaining technology? Which company is expecting to gain the majority of its returns on existing investments? Dell Computer B. Phillips Petroleum Which company is expecting to gain the majority of its returns on new investments? General Motors B.

Sears Roebuck C. Dell Computer D. Which of the following is a reason for the growth of the World Wide Web? The microcomputer revolution B. Advancements in networking hardware C. Web pages being easy to create and flexible D. What is information richness? A global public network of computer networks that pass information from one to another using common computer protocols B.

Refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information C. Refers to the number of people a business can communicate with, on a global basis D. Occurs when those with access to technology have great advantages over those without access to technology What is information reach?

Refers to the depth and breadth of information transferred between customers and businesses C. Measures the number of people a firm can communicate with all over the world D. Easy to compile B. Improved content C. Digital divide D. Increased richness What are agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together?

Intermediaries B. Disintermediation C. Reintermediation D. Cybermediation What occurs when a business sells directly to the customer online and cuts out the middle man? What occurs when steps are added to the value chain as new players find ways to add value to the business process?

What refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness, including comparison-shopping sites such as Froogle and bank account aggregation services such as Citibank?

Both individuals and organizations have embraced ebusiness to do which of the following? Enhance productivity B. Maximize convenience C. Improve communication D. SKU Skip to the end of the images gallery.

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Operational level B. Managerial level C. Strategic level D. At which level of an organization do employees develop, control, and maintain core business activities required to run the day-to-day operations? CSFs and KPIs are two core metrics used to evaluate results and measure the progress of a project for a business. Continual success factors and key performance indicators B.

Critical success factors and key project ideas C. Customer success findings and key project ideas D. Critical success factors and key performance indicators. What are measurements that evaluate results to determine whether a project is meeting its goals?

Models B. Metrics C. Benchmarks D. Genetic algorithms. What are the crucial steps companies perform to achieve their goals and objectives and implement their strategies? Critical success factors B. Crucial success factors C. Key performance indicators D. Key performance factors. Which of the below is an example of a critical success factor? Increase customer satisfaction B. Number of new customers C. Number of new products D. Percentage of employee turnover. Which of the below statements is accurate?

Key performance indicators can have no more than four critical success factors B. Critical success factors can have no more than four key performance indicators C. Key performance indicators can have several critical success factors D. Critical success factors can have several key performance indicators.

Key performance indicators are the metrics a company uses to evaluate progress toward critical success factors. Which of the below represents a key performance indicator?

Create high-quality products B. Reduce product costs C. Percentage of help desk calls answered in the first minute D. Hire the best business professionals. KPIs promote employees on their performance where CSFs demote employees based on their performance level. Which of the following represents how a firm measures market share?

Subtracting your competitors sales from your total sales D. Anne-Marie Cole runs the sales division for a local auto insurance firm. One of her key duties is to ensure the company has 10 percent market share by the end of the year.

What type of measurement is using market share as a KPI? Fuzzy logic measurement B. External measurement C. Neural network measurement D. Internal measurement.

Which of the below represents an internal KPI that indicates the earning power of a project? Market share B. Return on intelligent C. Sensitivity analysis D. Return on investment. Todd Haitz is the marketing manager for the National Basketball Association.

Todd analyzes and tracks his marketing campaigns to determine the best success rate per project for increasing ticket sales.

Todd uses an internal KPI to track his marketing campaign success. Which of the below would be an internal KPI Todd would use to track his marketing campaigns? Marketing campaign ROI B. Marketing campaign percentage of fans purchasing Sports Illustrated magazine C.

Marketing campaign advertiser revenue sales D. Marketing campaign market share. What could a manager use to measure the success of an MIS project? What type of metrics measure throughput, transaction speed, and system availability?

Efficiency MIS metrics B. Effectiveness MIS metrics C. ROI D. What types of metrics measure customer satisfaction? Both efficiency and effectiveness MIS metrics D.

Both ROI and market share. According to Peter Drucker, what are managers who do things right addressing? Efficiency B. Effectiveness C. Both efficiency and effectiveness D. Customer satisfaction only. According to Peter Drucker, what are managers who do the right things addressing? Which of the following is a type of effectiveness MIS metric? Transaction speed B. System availability C.

Usability D. Which of the following is a type of efficiency MIS metric? Customer satisfaction B. Conversion rates C. Financial transactions D. Web traffic. Usability B. Customer satisfaction C. Financial D. Conversion rates. What is measured by benchmarks such as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer? What would a company like eBay or Amazon be constantly benchmarking?

MIS efficiency B. MIS effectiveness C. Usability metrics only. When considering the graph depicting the interrelationships between efficiency and effectiveness, where does an organization ideally want to operate? Upper right-hand corner B. Lower right-hand corner C. Upper left-hand corner D. Lower left-hand corner. Which of the following would efficiency MIS metrics measure? Response time B. Transaction speed D.

Which of the following are the four common types of effectiveness MIS metrics? Unstructured decisions, customer satisfaction, conversion rates, financial B. Usability, customer service, conversion rates, fiscal year revenue C.

Usability, customer satisfaction, conversion rates, financial D. Usability, customer satisfaction, conversion rates, affordability. Drew Savage is an MIS manager for an international consulting firm. Drew travels to different European countries where he implements news response tracking systems.

Some of the metrics he uses to track the performance of his system include tracking the response time it takes to respond to Twitter posts mentioning the news station, as well as the speed and accuracy of content posted on numerous websites and social media sites. What type of metrics is Drew using to measure his system?

Customer satisfaction metrics B. Efficiency metrics C. Effectiveness metrics D. Benchmarking metrics. Efficiency MIS metrics focus on the extent to which a firm is using its resources in an optimal way, while effectiveness MIS metrics focus on. Understanding how successful a firm is at achieving its goals and objectives B. Analyzing if a firm is doing the right things C.

Setting the right goals and ensuring they are accomplished D. Which of the below describes the efficiency MIS metric of throughout? The number of hours a system is available for users B. The time it takes to respond to user interactions such as a mouse click C.