Strategy & IS Practice Quizzes Full Test Bank Chapter 2

Package Title: Practice Questions

Course Title: Rainer, Introduction to Information Systems, Fifth Canadian Edition

Chapter Number: 02

Shuffle: No

Question type: True/False

1) “Business process” is defined as an ongoing collection of related activities that create a product/service for an organization.

Difficulty: Easy

Learning Objective 1: Discuss ways in which information systems enable cross-functional business processes and business processes for a single functional area.

Section Reference 1: Business Processes

AACSB: Reflective Thinking

Bloomcode: Knowledge

2) All business processes must be owned by one and only one functional area in any organization.

Difficulty: Easy

Learning Objective 1: Discuss ways in which information systems enable cross-functional business processes and business processes for a single functional area.

Section Reference 1: Business Processes

AACSB: Reflective Thinking

Bloomcode: Comprehension

3) According to McKinsey & Co., the root cause of companies’ inability to align their IT and their business goals is the lack of knowledge and communication.

Difficulty: Medium

Learning Objective 1: Discuss ways in which information systems enable cross-functional business processes and business processes for a single functional area.

Section Reference 1: Business Processes

AACSB: Technology

Bloomcode: Knowledge

4) BPR stands for Business Process Recovery.

Difficulty: Easy

Learning Objective 1: Differentiate between business process reengineering, business process improvement, and business process management.

Section Reference 1: Business Process Reengineering, Business Process Improvement, and Business Process Management

AACSB: Technology

Bloomcode: Knowledge

5) Business process management includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

Difficulty: Easy

Learning Objective 1: Differentiate between business process reengineering, business process improvement, and business process management.

Section Reference 1: Business Process Reengineering, Business Process Improvement, and Business Process Management

AACSB: Reflective Thinking

Bloomcode: Knowledge

6) An example of globalization is the Canada-United States-Mexico Agreement (CUSMA).

Difficulty: Easy

Learning Objective 1: Identify effective IT responses to different kinds of business pressures.

Section Reference 1: Business Pressures, Organizational Responses, and Information Technology Support

AACSB: Reflective Thinking

Bloomcode: Knowledge

7) Organizations depend on IT to facilitate their transition to the globalization of their operations.

Difficulty: Easy

Learning Objective 1: Identify effective IT responses to different kinds of business pressures.

Section Reference 1: Business Pressures, Organizational Responses, and Information Technology Support

AACSB: Reflective Thinking

Bloomcode: Knowledge

8) There are six (6) characteristics of effective business-IT alignment.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Technology

Bloomcode: Knowledge

9) 85% of business and IT executives agree that their companies have adequate alignment between IT and their business.

Difficulty: Medium

Learning Objective 1: Identify effective IT responses to different kinds of business pressures.

Section Reference 1: Business Pressures, Organizational Responses, and Information Technology Support

AACSB: Reflective Thinking

Bloomcode: Knowledge

10) The Internet reduces the barriers of entry for new competitors in an established industry.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Technology

Bloomcode: Knowledge

11) The Internet can both reduce and increase the bargaining power of suppliers, depending on the specific circumstances.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Technology

Bloomcode: Knowledge

12) Cost leadership strategy is one strategy to gain a competitive advantage.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Reflective Thinking

Bloomcode: Knowledge

13) Selecting and adhering to a single competitive strategy is sufficient to counter all of Porter’s five forces and be successful in the long term.

Difficulty: Medium

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Reflective Thinking

Bloomcode: Knowledge

Question type: Multiple Choice

14) Which of the following are examples of business processes?

a) managing cash receipts

b) collecting sales tax

c) processing bills of material

d) all of these

Difficulty: Easy

Learning Objective 1: Discuss ways in which information systems enable cross-functional business processes and business processes for a single functional area.

Section Reference 1: Business Processes

AACSB: Reflective Thinking

Bloomcode: Knowledge

15) A(n) ___ is a collection of related activities that produce a product or a service of value to an organization.

a) workflow pattern

b) business process

c) supply chain

d) information system

e) management technique

Difficulty: Easy

Learning Objective 1: Discuss ways in which information systems enable cross-functional business processes and business processes for a single functional area.

Section Reference 1: Business Processes

AACSB: Technology

Bloomcode: Knowledge

16) Business-IT alignment refers to the synchronization of a company’s IT operations with its

a) business processes.

b) business objectives.

c) infrastructure.

d) business environment.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Technology

Bloomcode: Knowledge

17) Business environment pressures can come from which of the following?

a) management restructuring

b) cost reductions

c) political change

d) quality control

Difficulty: Easy

Learning Objective 1: Identify effective IT responses to different kinds of business pressures.

Section Reference 1: Business Pressures, Organizational Responses, and Information Technology Support

AACSB: Reflective Thinking

Bloomcode: Comprehension

18) In today’s business environment, it is rare for a company not to have a significant Web presence. This trend can be attributed primarily to

a) social responsibility.

b) technological pressures.

c) government regulations.

d) none of these

Difficulty: Easy

Learning Objective 1: Identify effective IT responses to different kinds of business pressures.

Section Reference 1: Business Pressures, Organizational Responses, and Information Technology Support

AACSB: Reflective Thinking

Bloomcode: Knowledge

19) The term “digital divide” refers to the gap between

a) organizations that utilize wireless technologies and those that do not.

b) individuals who have access to information and communication technologies and those who do not.

c) the IT staff and the other employees who are not IT savvy.

d) both of the following: Organizations that utilize wireless technologies and those that do not; and individuals who have access to information and communication technologies and those who do not.

e) both of the following: Individuals who have access to information and communication technologies and those who do not; and the IT staff and the other employees who are not IT savvy.

Difficulty: Easy

Learning Objective 1: Identify effective IT responses to different kinds of business pressures.

Section Reference 1: Business Pressures, Organizational Responses, and Information Technology Support

AACSB: Technology

Bloomcode: Knowledge

20) The best-known framework for analyzing competitiveness is

a) Michael Porter’s value chain model.

b) Freidman’s ten flatteners.

c) Michael Porter’s competitive forces model.

d) competitive globalization model.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Reflective Thinking

Bloomcode: Knowledge

21) Two strategies that a company can use to gain a competitive advantage are

a) customer-orientation and operational effective strategy.

b) protection and innovation strategy.

c) mass customization and cost leadership strategy.

d) compliance and innovation strategy.

Difficulty: Easy

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

AACSB: Reflective Thinking

Bloomcode: Knowledge

Question type: Multiple-Selection

22) The goals of business process reengineering are to (check all that apply)

a) reduce waste.

b) increase customer satisfaction.

c) increase cycle time.

d) increase productivity.

e) optimize operations.

Answer 1: a

Answer 2: b

Answer 3: d

Answer 4: e

Difficulty: Easy

Learning Objective 1: Differentiate between business process reengineering, business process improvement, and business process management.

Section Reference 1: Business Process Reengineering, Business Process Improvement, and Business Process Management

AACSB: Reflective Thinking

Bloomcode: Knowledge

23) In recent years, companies such as Walmart and Amazon.com have offered streaming videos for rent on their websites. This is another example of how new technology has (check all that apply)

a) increased the threat of new entrants.

b) increased the threat of substitute products.

c) increased the supplier’s bargaining power.

d) decreased the buyer’s bargaining power.

Answer 1: a

Answer 2: b

Difficulty: Medium

Learning Objective 1: Describe the strategies that organizations typically adopt to counter Porter’s five competitive forces.

Section Reference 1: Competitive Advantage and Strategic Information Systems

Porter’s five competitive forces.

AACSB: Reflective Thinking

Bloomcode: Application