Test Bank for Managing and Using Information Systems: A Strategic Approach, 7th Edition (Chapters 1-13)

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TEST BANK for Managing and Using InformationSystems: A Strategic Approach, 7th Edition by Keri E.Pearlson, Carol S. Saunders and Dennis F. Galletta.All 13 Chapters

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Chapter 0 (Introduction)Multiple Choice1.What requires a unit of analysis, has been processed, and requires human mediation?a)Datab)Informationc)Knowledged)Legacye)None of the aboveAns: b (Medium)Response: See page 112.Roles that managers fill, according to Mintzberg, include all of thefollowing except:a)Figureheadb)Disseminatorc)Disciplinariand)Entrepreneure)Resource AllocatorAns: c (Hard)Response: See page 93.Which of the following is not a Decisional role?a)Entrepreneurb)Disturbance handler

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c)Negotiatord)Resource allocatore)SpokespersonAns: e (Medium)Response: See page 94.What skills would be required to be a visionary manager?a)Communication and Information gatheringb)Flexibility and creativityc)Analytical and organizationald)All of the abovee)None of the aboveAns: b (Easy)Response: See page 75.Define Wisdom:a)knowledge infused with intuition and judgment that facilitates the ability to makedecisionsb)a processc)all forms of technology used to create datad)anything that makes a person clevere)only d and bAns: a (Easy)Response: See page 126.Data is:a)information endowed with relevance and purposeb)set of specific objective facts or observationsc)some informationd)all of the abovee)only a and c

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Ans: b (Medium)Response: See pages 10-12True/False7.Information systems (IS) managers should participate in all of the important ISdecisions, even if those decisions do not impact the IS department.Ans: True (Easy)Response: See page 28.Information for top management is usually based on a long timehorizon, with great detail and high structuredness.Ans: False (Medium)Response: See page 11Short Answer9.Pricing of things is most often based onwhile pricing of information goods ismost often based onAns: cost, value (Hard)Response: See page 1310.If a manager exhibits creativity, curiosity, and confidence, we would say that he orshe supports the role ofvery well.Ans: visionary (Hard)

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Response: See page 711.The Chief Technology Officer of Wal-Mart states that every company is becoming acompany.Ans: tech or technology (Medium)Response: page 4Essay11.Provide two examples of how the economics of things are different from theeconomics of information.12.Provide two reasons business managers should participate in information systemsdecisions.13.How does a functional view differ from a process view of a firm?

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Chapter One (The InformationSystems Strategy Triangle)Multiple Choice1.The "Managerial Levers" concept is useful for the following reasons:a)Management can find what "levers" to push to force people to dowhat they want.b)Management should not make a change unless they alignmultiple issues, such as tasks, measures, values, incentives, etc.c)System investments need to be financially highly leveraged.d)All of the abovee)None of the aboveAns: b (Medium)Response: See page 262.All of the following are likely causes of KaiserPermanente’sdifficulties before their newKPHealthConnect EXCEPT for:a)Bonus incentives not matching strategyb)The alignment of the Information Systems Strategy Trianglec)The failure of automated systems

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d)The leadership and organizational culturee)Patient service processes needing to be updated and streamlinedAns: c (Medium)Response: See pages 17-183.A general manager should:a)Rely on IS personnel to make IS decisionsb)Ignore how IS are used and managedc)Have a deep technical knowledge of ISd)Understand the use and consequences of technologies relevant to the businesse)Not be expected to ask or understand technology related questionsAns: d (Easy)Response: See pages 20,254.When acompany’sbusiness strategy and technology strategy are intertwined, this situation isknown as.a)convergenceb)alignmentc)dynamicd)differentiatione)technologically adjustedAns: a (Hard)Response: See page 19

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5.Organizational, cultural, and control variables are considered theused by decisionmakers to effect change in their organization.a)collaboration toolsb)managerial leversc)eventsd)ISe)organization objectivesAns: b (hard)Response: See pages 9-106.Theis a plan articulating where a business seeks to go and how it expects toget there.a)vision statementb)mission statementc)stakeholder statementd)stockholder statemente)business strategyAns: e (Medium)Response: See page 207.Organizations seek to gain a competitive advantage by differentiation, cost, or.a)serviceb)focusc)profit

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d)valuee)speedAns: b (Easy)Response: See pages 21-228.Google has disrupted a number of industries, particularly the advertising and softwareindustries. Google's ability to quickly and aggressively provide new products and services is bestdescribed by:a)Porter’sGeneric Strategiesb)The Hypercompetition Modelc)The Information Systems Strategy Triangled)The Social Business Strategye)Customer Relationship ManagementAns: b (Easy)Response: See page 239.Through the use of various technologies, a ski resort tracks the slopes each customer skis andthe times he or she skis them. Skiers then have the ability to view this information online, andcan choose to seamlessly share their accomplishments on Facebook. In addition, photographerspositioned at the resort post pictures on Facebook for the skier. This ski resort has worked hardto develop a strong:a)IS Strategyb)Social business strategy

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c)Business strategyd)Organizational strategye)Customer strategyAns: b (Hard)Resposne: See page 2710.The organizational strategy should ideallythe IS strategy.a)driveb)complementc)dictated)ignoree)sustainAns: b (Easy)Response: See page 1811.The general manager for a retail clothing outlet was recently cited as saying, “IT is thecornerstone of our company. All of our decisions are based on the sophisticated systems that wehave deployed throughout our organization. IT drives ourdecisions.”What position should themanager hold regarding IT and its influence on decision making?a)IT should drive business decisions.b)Organizational goals should drive IT decisions.c)Organizational strategy should drive IS decision making.d)Business strategy should drive IS decision makinge)All strategy should be driven by IT strategy.Ans: d (Hard)

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Response: See page 1812.To remain competitive, anorganization’sbusiness strategy must adapt and respond to all ofthe following variables. Which variable in particular does IS help to determine?1.Market forces2.Customer demands3.The capabilities of the organization4.Theorganization’smission5.Organizational designAns: c (Hard)Response: See pages 26-2713.The physical means by which information is exchanged among hardware components iscalled.a)hardwareb)softwarec)networkingd)personnele)dataAns: c (Medium)Response: See page 2714.Significant changes in IS should trigger a reassessment of the.a)business strategy

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b)social strategyc)process strategyd)data strategye)system strategyAns: a (Medium)Response: See page 2515.A social business strategy is designed to use social IT tools for all of the following EXCEPT:a)Collaborating with stakeholdersb)Building deeper connections with stakeholdersc)Innovating with stakeholdersd)Excluding stakeholderse)Networking with employees, customer and/or suppliersAns: d (Easy)Response: See page 2716.General managers should take an active role in decisions about information systems. This isvital because:a)The IS department cannot be trusted to make good decisions.b)The IS department has not been trained to make general business decisions.c)The IS department does not have thecompany’sbest interests as its focus.d)Information systems are designed to support business objectives.e)Information systems are normally incongruent with business strategies.

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Ans: d (Medium)Response: See page 19

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17.This framework is called thebecause it relates business strategywith IS strategy and organizational strategy.a)Porter’sGeneric Frameworkb)Hypercompetition Modelc)Information Technology Matrixd)IS Strategy Modele)Information Systems Strategy TriangleAns: e (Easy)Response: See page 1818.Before Kaiser Permanente adopted its new business strategy, its IS Strategy Triangle was outof.a)controlb)alignmentc)adjustmentd)scopee)specificationAns: b (Medium)Response: See pages 17-1819.By using IS to achieve economies of scale and generate operating efficiencies, Walmartepitomizes which one of Porter's generic strategies?a)Differentiationb)Focus

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c)Cost leadership

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d)Broad focuse)Cost differentiationAns: c (Easy)Response: See page 2220.A bank provides its customers mobile applications that significantly simplify traditionalbanking activities. For example, a customer can use a smartphone to take a picture of a checkand electronically deposit into an account. This unique service demonstrates thebank’sdesire topractice which one of Porter’s strategies?a)Differentiationb)Focusc)Cost leadershipd)Broad focuse)Cost differentiationAns: a (Medium)Response: See page 2221.The managerial levers identifies the crucial, interrelated components for designing anorganization. The components include all of the following EXCEPT:a)Decision rightsb)Social mediac)Business processesd)Incentives and rewardse)Performance measurement and evaluation

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Ans: b (Medium)

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Response: See page 2622.Technology guru Tim O'Reilly said this about the publishing industry:"To adapt, publishersneed to cannibalize their own business, experimenting with new forms, new formats, and newbusiness models." This statement is consistent with:a)Generic frameworkb)Focus strategyc)Hypercompetitiond)Direct strategye)Porter’sgeneric strategiesAns: c (Medium)Response: See pages 23-2423.L.L. Bean is an online/catalog retail company that aggressively uses tools like instantmessaging to communicate with customers regarding potential purchases and uses Facebook forbranding activities. This use of technology supports which strategy?a)IS strategyb)Business strategyc)Organizational strategyd)Mission strategye)Social business strategyAns: e (Medium)Response: See page 27

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24.GE recognized that it could only sustain its competitive advantage for a limited time ascompetitors attempted to outmaneuver them. What was the model that Welch applied to helpsolve this problem?a)Destroy your organizationb)Grow your organizationc)Destroy your systemd)Grow your systeme)Destroy your businessAns: e (Medium)Response: See page 2425.Business strategies based on hypercompetition focus on customer satisfaction and profitmaximization but also build in a component of business intelligence. Business intelligence helpsan agile organization to:a)Predict and respond to new opportunitiesb)Use current information technologies less extensivelyc)Manage internal challengesd)React to supplier demandse)CollaborateAns: a (Medium)Response: See pages 1-3026.Which one of the following is NOT part of the information systems strategy matrix?

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a)Hardware

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b)Softwarec)Networkingd)Personnele)DataAns: d (Medium)Response: See page 2727.Which is not a question that can be used to understand organizational design?a)Who holds the decision rights to critical decisions?b)What are the characteristics, experiences, and skill levels of the people within theorganization?c)Where is the organization's headquarters located?d)What are the key business processes?e)What is the culture of the organization?Ans: c (Medium)Response: See page 2628.When an organization qualifies its product or service in a way that allows it to appear uniquein the marketplace, this is called:a)Focusb)Differentiationc)Cost Leadershipd)Business Strategye)MissionAns: b (Easy)

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Response: See page 22

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29.The plan an organization uses to provide information systems and services:a)Cost Leadershipb)Differentiationc)Focusd)IS Strategye)Business DiamondAns: d (Easy)Response: See page 26True/False30.Hypercompetition refers to where a firm obtains more than 5 strongcompetitors.Ans: False

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Response: pages 23-24

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31.Apple’sintroduction of the iPhone while iPod sales were still very strong is an example ofDYB.Ans: TrueResponse: See page 2432.Once a firm is out of alignment, it does not mean that it has to stay that way.Ans: TrueResponse: See page 1933.A social business strategy needs to align itself with theorganization’sIT strategy but not thebusiness strategy.Ans: FalseResponse: See page 27

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34.There has been accelerated competition among market leaders concurrent with theincreases in the quality and quantity of IT investments.Ans: True

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Response: See page 2435.To avoid unwanted consequences, altering the IT Strategy requires adjustments to theorganizational strategy.Ans: TrueResponse: See page 1836.The IS strategy drives the business strategy.Ans: FalseResponse: See page 18Short Answer

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37.Theframework suggests that the speed and aggressiveness of the movesand countermoves in any given market create an environment in which advantages are“rapidlycreated and eroded.”

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Ans: hypercompetitionResponse: See page 2338.The managerial lever includes organization, control, and.Ans: cultureResponse: See page 2639.A clear and compelling statement that unifies anorganization’sefforts and describes whatthe organization is all about is called its.Ans: missionResponse: See page 1940.According toPorter’sGeneric Strategies Framework, a company that limits its scope to anarrower segment of the market is exercising this type of strategy.Ans: focus

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