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| 1 | |
As explained in the real world case in the text, a 2003 article, "IT Doesn't Matter," provided a perception of IT clearly endorsed by chief executive officers and chief information officers of very large companies and organizations. |
| | A) | True |
| | B) | False |
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| 2 | |
A company implements information systems linked by the Internet and extranets to support strategic business relationships with customers, suppliers and other business partners. This is an example of using information technology to pursue an alliance strategy. |
| | A) | True |
| | B) | False |
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| 3 | |
A company implements information systems to make radical changes to the business processes. These changes dramatically shorten the time to produce their goods and improve quality. This is an example of pursuing an innovation strategy. |
| | A) | True |
| | B) | False |
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| 4 | |
A firm can create barriers to entry that would discourage customers from entering a market by increasing the amount of investment or complexity of technology to compete in an industry or market segment. |
| | A) | True |
| | B) | False |
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| 5 | |
The value chain framework can be used to view a firm as a series, or chain, or network of basic activities that add value to its products and services, and thus add a margin of value to the firm. |
| | A) | True |
| | B) | False |
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| 6 | |
The value chain concept views some business activities as primary processes and others as support processes. When using the value chain concept, managers should seek to develop strategic information systems for those activities that they view as the "weakest link" in the value chain. |
| | A) | True |
| | B) | False |
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| 7 | |
The value chain concept can help managers decide where and how to apply the strategic capabilities of information technology. It can also show how various information technologies might be applied to specific business processes to help a firm gain competitive advantage. |
| | A) | True |
| | B) | False |
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| 8 | |
Business process reengineering (BPR) combines a strategy of promoting business innovation with a strategy of making major improvements to business operations so that a company can become a much stronger and more successful competitor in the marketplace. |
| | A) | True |
| | B) | False |
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| 9 | |
One common approach to business process reengineering is the use of self-directed cross functional teams or multi-disciplinary process teams. An example would be the use of case managers, who handle almost all tasks in a business process, instead of splitting tasks among many different specialists. |
| | A) | True |
| | B) | False |
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| 10 | |
To be an agile company, a business must implement four basic strategies of agile competition that include: enrich customers with solutions to their problems, organize to master change and uncertainty, cooperate to enhance competitiveness, and leverage the impact of people and information. |
| | A) | True |
| | B) | False |
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| 11 | |
What type of systems can be considered a strategic information system? |
| | A) | TPS. |
| | B) | MIS |
| | C) | TPS, MIS or DSS. |
| | D) | Any type of system can be a strategic system. |
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| 12 | |
What can be said about barriers to entry: |
| | A) | Companies must work to create significant barriers to entry of new competition. |
| | B) | Barriers are a nature of the business sector a company competes in and can rarely be affected by individual companies. |
| | C) | Barriers are created by an industry as a whole in order to keep new companies from entering a business sector. |
| | D) | Barriers to entry are generally a short term solution to keep other companies from entering a business sector for a relatively short period of time. |
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| 13 | |
Information technology can be used to implement one or more of the five basic business strategies. Which of the following is NOT one of the strategies? |
| | A) | Lower costs. |
| | B) | Differentiate. |
| | C) | Innovate. |
| | D) | Technological superiority. |
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| 14 | |
Innovative information systems linking suppliers and customers to a business can make business partners dependent on each other. What strategy is this using? |
| | A) | Lower costs. |
| | B) | Switching costs. |
| | C) | Innovate. |
| | D) | Technological superiority. |
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| 15 | |
Which of the following is a strategic use of information technology for a value chain support activity? |
| | A) | Manage a warehousing operation. |
| | B) | Using Web portals to improve human resources recruiting effectivness. |
| | C) | Develop a state of the art logistics system that will make it possible for a company to reduce the expense associated with transportation of a company's products. |
| | D) | All of the answers are correct. |
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| 16 | |
Business process reengineering is: |
| | A) | The process by which a company can determine the best system to purchase for future needs. |
| | B) | A process of overhauling the manufacturing and engineering functions of a business to improve the business processes associated with these functions. |
| | C) | Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. |
| | D) | A side benefit of implementing a new ERP system. |
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| 17 | |
In business process reengineering case managers: |
| | A) | Handle almost all the tasks in a business process, instead of splitting tasks among many different specialists. |
| | B) | Are consultants that work a specific case of BPR. |
| | C) | Deal with specific cases of inter-business commerce that need to be dealt with during the BPR process. |
| | D) | None of the answers are correct. |
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| 18 | |
Agile companies can: |
| | A) | Support short product life cycles. |
| | B) | Produce orders in individual or arbitrary lot sizes. |
| | C) | Make a profit with broad product ranges. |
| | D) | All the choices are correct. |
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| 19 | |
One of the four basic strategies that an agile company must implement is to leverage: |
| | A) | The impact of its people and the knowledge they possess. |
| | B) | The IT resources that it has purchased. |
| | C) | The resources it has both financial and human in the information technology department. |
| | D) | None of the answers are correct. |
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| 20 | |
People are forming virtual companies: |
| | A) | To reduce the expense associated with office space for a company's employees. |
| | B) | As the best way to implement key business strategies and alliances that promise to ensure success in today's business climate. |
| | C) | To allow employees to telecommute. |
| | D) | To make interoffice communication easier for a company's employees. |
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