How does the text recommend that a company operate if it wants to be successful in the information age?
interdependently between departments
Consider a washing machine as a system. Which of the following represents the output?
the clean clothes
Consider an oven as a system. Which of the following represents the input?
the uncooked food
Consider a home theater system. Which of the following represents the input(s)?
The DVD player, DVD movie, speakers, TV, and electricity.
Which of the following provides an example of information?
What is my worst-selling product?
Feedback is information that returns to its original transmitter and modifies the transmitter's actions. What would the original transmitter include
input, transform, output
Which of the following represents the relationship between functional areas in a business?
interdependent
Consider a washing machine as a system. Which of the following represents feedback?
The light indicating that the washer is off balance and has stopped.
MIS can be an important enabler of business success and innovation. Which of the below statements is accurate when referring to MIS?
MIS is a valuable tool that can leverage the talents of people who know how to use and manage it effectively.
The department within a company that performs the function of selling goods or services is called _______________.
sales
Which of the following does not offer a good example of a system?
a pencil
What is a way of monitoring the entire system in a company by viewing the multiple inputs being processed to produce outputs?
systems thinking
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?
feedback
Why do students need to study information technology?
Information technology is everywhere in business.
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?
Who are my best customers? What is my best-selling product? What is my worst-selling product?
Which of the following statements is true?
IT enables business success and innovation.
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?
Operations manager
Which of the following provides an example of data?
Who is customer number 12345XX?
What is the name of a company's internal MIS department?
management information systems, information systems, information technology
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 ___________.
management information systems
Consider oven as a system. Which of the following represents the output?
the cooked food
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?
business intelligence
The department within a company that records, measures, and reports monetary transactions is called _______________.
accounting
Which of the following represents the department that maintains policies, plans, and procedures for the effective management of employees?
human resources
Which of the following is included as one of Friedman's 10 forces that flattened the world?
wireless technologies
Which of the following is not included as one of Friedman's 10 forces that flattened the world?
systems thinking
Consider an oven as a system. Which of the following represents the process?
The oven running at 350 degrees for 20 minutes.
Which of the following is typically performed by the sales or marketing department?
maintain transactional data
Which of the following is considered data?
quantity sold
A system is a collection of parts that link to achieve a common purpose. Systems thinking is a way of monitoring ________________.
the entire system
Which of the following is considered information?
best-selling item by month
Consider a home theater system. Which of the following represents the output(s)?
Playing the movie, including the audio through the speakers and the video on the TV.
The department within a company that supports sales by planning, pricing, and promoting goods or services is called ___________.
marketing
Which of the following provides an accurate definition of systems thinking?
A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs, while continuously gathering feedback on each part.
What is data converted into a meaningful and useful context?
information
Consider a washing machine as a system. Which of the following represents the process?
the wash and rinse cycle
Consider a home theater system. Which of the following represents the process?
Spinning the disk to play, pause, rewind, or fast forward
Most companies are organized by departments or functional areas. Which of the following is not a common department found in a company?
payroll
What does MIS stand for?
Management Information Systems
The sales department needs to rely on information from operations to understand _________.
inventory, customer orders, and demand forecasts
Which of the following is not a topic associated with the information age?
college statistics for data
As companies move from data to knowledge, they start to include more and more variables for analysis, resulting in better, more precise support for _____________.
both decision making and problem solving
When Friedman describes Globalization 3.0, he discusses 10 forces that ________ the world.
flattened
Information technology can enable departments to more efficiently and effectively perform their core _____________.
business operations
Which of the below is the key term that defines the confirmation or validation of an event or object?
fact
Which four elements are included in systems thinking?
input, process, output, feedback
A system is a collection of parts that link together to ___________.
achieve a common purpose
MIS is a business function. Which of the following does MIS perform to help aid the company in decision making and problem solving?
moves information about people, Moves information about processes across the company to improve systems, moves information about products
Business intelligence is information collected from multiple sources. Which of the following provides an example of a source that would be included in business intelligence?
suppliers, customers, competitors
How are the majority of companies today typically organized?
by departments or functional areas
A business strategy achieves a specific set of goals, which include __________.
attracting new customers and developing new products or services
Which of the following is included in Porter's Five Forces Model?
the power of competitors
Which of the following represents procurement as part of the support value activities in a value chain analysis?
Purchases inputs, such as raw materials, resources, equipment, and supplies.
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 joining a market?
threat of new entrants
Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents buyer power in the soft drink industry?
Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
Amazon.com uses a customer-profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?
product differentiation
All of the following are common tools used in industry to analyze and develop competitive advantages, except:
competitive analysis tool
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?
Scottrade Corp. creating an online system for employees to track paychecks, benefits, the wellness-rewards program, and other employee benefit items.
Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is one of the potential pressures that can hurt sales?
Suppliers can drive down profits by charging more for supplies, New market entrants can steal potential investment capital, Substitute products can steal customers
When applying Porter's three generic strategies, Tiffany & Co. has a competitive scope and cost strategy that is a __________.
narrow market, high cost strategy
What is one of the most common ways a company can decrease supplier power?
use MIS to find and create alternative products
Which of the following is a tool a manager can use to analyze competitive intelligence and identify competitive advantages?
the three generic strategies
When evaluating the value chain, all of the following are included in the primary value activities except:
MIS development
The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a ________ or ________________.
cost advantage, product differentiation
Which of the following is not considered a category within the support value activities in a value chain analysis?
outboud logistics
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?
established record labels like EMI, Sony, and Universal.
According to Porter's value chain analysis, which of the following provides customer support after the sale of goods and services?
service
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?
Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
which of the following is not considered a category within the primary value activities in a value chain analysis?
Firm infrastructure
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 focused strategy?
Sky Taxi, a rent-by-the-hour personal plane service.
The process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed is the definition of ___________.
feedback
Which of the following represents a typical supply chain?
Suppliers - Company - Customers.
A __________ advantage features a product or service on which customers place a greater value than they do on similar offerings from competitors.
competitive
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?
competitive advantage
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?
British Airways, Singapore Airlines, and Virgin Atlantic
if a supplier has high power, what can it do to influence its industry?
charge higher prices, shift costs to industry participants, limit quality or service
Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented. Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent
narrow market, high cost strategy
Which of the following offers an example where Porter's five forces are mostly weak and competition is low?
An international hotel chain purchasing milk.
Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents a substitute product in the soft drink industry?
Vitamin water, fruit juice, and coffee
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?
increasing buyer power
What is the support value activity that hires employees and provides them with training and compensation?
human resource management
Which of the following is similar to focused strategy versus broad strategy?
niche market versus large market
broad differentiation, broad cost leadership, and _________ are the three generic strategies identified by Porter.
focused strategy
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
Not introduce the product. Because all five forces are strong, introducing the product would be a highly risky business strategy.
When evaluating the value chain, which of the following is included in the support value activities?
firm infrastructure
What includes support-value activities and primary-value activities and is used to determine how to create the greatest possible value for customers?
value chain analysis
Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?
supplier cost differentiation
Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents the threat of substitute products or services in the music industry?
Game systems like Wii and social networks like Facebook.
What is a standardized set of activities that accomplishes a specific task?
business process
Identifying competitive advantages can be difficult and explains why they are typically _______.
temporary
Competitive intelligence is the process of gathering information about the competitive environment, including _________.
competitors' employees, competitors' differentiated processes, competitors' plans
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?
amazon.com
If a business is following a focused strategy, then its competitive scope is ________.
narrow market
Updating business strategies is a continuous undertaking, as internal and external environments ________.
rapidly change
Which of the following offers an example where Porter's five forces are mostly strong and competition is high?
a dog walking business
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 sy
first-mover advantage
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
supplier power
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
decrease buyer power
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.
Which of the following analyzes a company's business processes and is useful for determining how to create the greatest possible value for customers?
value chain analysis
What is a feature of a product or service that customers have come to expect and that entering competitors must match if they want to survive?
entry barrier
Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents rivalry in the soft drink industry?
Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.
According to Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?
a niche market
Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a product or service that will bring an added value to its customers to increase the company's revenue. Sandy determines that the bes
The primary value activity outbound logistics.
When buyer power is low, supplier power is typically ______.
high
Which of the following is not a typical way that a company would duplicate a competitive advantage?
carrying large product inventories
___________ make customers reluctant to switch to another product or service.
switching costs
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?
The threat of new entrants is high in the up and coming market.
Callie Crystal owns and operates one of the most successful local coffee shops in Denver, called The Edgewater Caf�. Each time a customer purchases their 100th cup of coffee at The Edgewater Caf�, they receive a free pound of coffee of their choice. What
Reducing buyer power with a loyalty program
What are the two main categories in a value chain analysis?
Primary value activities and support value activities.
Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents a threat of a new entrant in the soft drink industry?
Zevia Natural Diet Soda begins selling directly over the Internet.
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
Which of the following demonstrates a company that has implemented a low-cost, broad-market strategy?
Walmart
Which of the following is a reason why competitive advantages are typically temporary?
The competitor hiring your key employees, The competitor seeking ways to duplicate your business operations, The competitor acquiring new technology
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 bankin
acquiring new technology products and services
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?
Walmart, Target, and iTunes.
In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?
Buyer power, supplier power, threat of new entrants, and threat of substitute products or services
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 difficult for you to enter this new market?
The threat-of-new-entrants is low in the up and coming market.
How can a company reduce the threat of substitute products or services?
Offer additional value through wider product distribution.
What includes all parties involved, directly or indirectly, in obtaining raw materials or a product?
supply chain
Some industries' competition is much more intense than others. Retail grocery stores, such as Kroger, Safeway, and Albertson's in the United States, experience fierce competition and offer similar marketing campaigns to compete. What is this an example of
rivalry among existing competitors
What is a competitive advantage?
A feature of a product or service on which customers place a greater value than on similar offerings from competitors.
Paula Logston is the owner and operator of a high-end online custom clothing company. Paula has never heard of Porter's Five Forces Model, and she wants to understand why she should perform an analysis using it. If you were tasked with explaining Porter's
To help Paula evaluate the attractiveness of the clothing industry.
According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.
cost leadership with a low cost
Which of the following represents a company in a supply chain?
supplier and customer
Gina Brooks works for Aquarium Retail Services selling high-end saltwater fish and tank supplies. Aquarium Retail Services is the current market leader in Gina's city. Gina has recently been approached by Deep Blue Incorporated with an opportunity to run
advantage
Which of the following offers an example of a company operating in a narrow, focused market operating as the low-cost provider?
Payless Shoes
When a company is the first to market with a competitive advantage, this is called a first-mover advantage. All of the following companies were first-movers except ____________.
Microsoft - Bing search engine
Which of the following is not one of the questions asked during the reporting phase of CRM?
Who are our customers?
What is business process reengineering?
The analysis and redesign of workflow within and between enterprises.
What is a customer-facing process?
The result in a product or service that is received by an organization's external customer.
What is another term that represents CRM reporting technologies that help organizations identify their customers across other applications?
Customer identification
What is the purpose of business process reengineering?
To make all business processes the best-in-class.
Which of the following is not a criterion to determine the importance of a process for reengineering practitioners?
Does the process fall above best in class?
Which of the following is not one of the questions asked during the predicting phase of CRM?
What is the total revenue by customer?
What is a business process?
A standardized set of activities that accomplish a specific task, such as processing a customer's order.
What does supply chain management involve?
The management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
What is the term that defines how recently a customer purchased items?
recency