· Web viewIt reduces world timber prices ... measurements so customers can have made-to-measure...

Package Title: Test BankCourse Title: MIS 4th Edition, Rainer & PrinceChapter Number: 2

Multiple Choice:1) The Hyperion software used to make Big Hero 6 focused on making digital _______

more realistic.a. Fireb. Hair c. Lightd. Water

Answer: CDifficulty: EasySection: Opening CaseLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

2) The animation software Hyperion was used to produce _________.a. Big Hero 6b. Carsc. Frozend. The Incredibles

Answer: ADifficulty: EasySection: Opening CaseLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

3) It took ________ to develop Hyperion, Disney’s new animation software.a. 2 monthsb. 6 monthsc. 1 yeard. 2 years

Answer: DDifficulty: HardSection: Opening CaseLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

4) Which of the following is NOT a major type of business pressure?

a. Globalb. Marketc. Technologyd. Societal

Answer: ADifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

5) Globalization is a type of __________ pressure.a. Economic b. Marketc. Technologyd. Societal

Answer: BDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

6) Your company’s target market is located in China, India, Russia, and the US. This means your business is engaged in ____________.

a. Digital divide managementb. Globalizationc. Government complianced. Innovation

Answer: BDifficulty: MediumSection: 2.1Learning Objective: 2.1Bloom: Knowledge, ComprehensionAACSB: Technology

7) Globalization ____________ competition.a. has no effect onb. has nothing to do withc. is decreasingd. is increasing

Answer: D

Difficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

8) Labor costs are ________ in developed countries. IT has made it ____________ to move operations to countries with low labor costs.

a. higher; easierb. higher; harderc. lower; easierd. lower; harder

Answer: ADifficulty: MediumSection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

9) Which of the following is NOT a market pressure?a. Globalizationb. Information overloadc. Powerful customersd. The changing nature of the workforce


10) BYOD is a phenomenon associated with __________ pressures.a. Globalb. Marketc. Technologyd. Societal

Answer: CDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

11) Which of the following is a disadvantage of BYOD?a. Costb. Productivityc. Satisfactiond. Security

Answer: DDifficulty: MediumSection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

12) The amount of information on the Internet _________ approximately every year.a. Doublesb. Triplesc. Quadruplesd. Stays about the same

Answer: ADifficulty: MediumSection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

13) Which of the following is NOT a societal pressure?a. Ethical issuesb. Government regulationc. Powerful customersd. Terrorism


14) Green IT is a type of ______ pressure.a. Economicb. Marketc. Technologyd. Societal

Answer: D


15) ____________ refers to the wide gap between those individuals who have access to information and communications technology and those who do not.

a. BYODb. Digital dividec. HIPAAd. Internet divide


16) In mass ____________, a company produces a large quantity of identical items.a. Customizationb. Identificationc. Productiond. Quantification


17) _________ describes the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

a. E-businessb. E-commercec. E-entrepreneurshipd. E-innovation


18) The Rainforest Connection uses _____________ to help stop illegal logging.a. Facebook’s Aquila dronesb. Google’s Project Loon balloonsc. GPS trackersd. old smartphones

Answer: DDifficulty: EasySection: IT’s About Business 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

19) Which of the following is FALSE of illegal logging?a. It accounts for 25 to 50 percent of all trees harvested.b. It causes about 17 percent of greenhouse gas emissions.c. It costs the global industry $10 billion every year.d. It reduces world timber prices by about 15 percent.

Answer: ADifficulty: HardSection: IT’s About Business 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

20) ____ percent of people in Bangladesh have regular internet connections.a. 3b. 25c. 57d. 89

Answer: ADifficulty: EasySection: IT’s About Business 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

21) Internet is available in rural Bangladesh because of ___________.a. Facebook’s Aquila dronesb. Google’s Project Loon balloonsc. Infoladies cycling to villages with the technologyd. the Rainforest Connection delivering old smartphones

Answer: CDifficulty: EasySection: IT’s About Business 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

22) ___________ uses airport visitors’ smartphone Wi-Fi to track their movements in the Helsinki airport.

a. Digital Wayb. Safranc. Thalesd. Walkbase

Answer: DDifficulty: EasySection: IT’s About Business 2.2Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

23) ____________ is a biometric system to confirm passenger identity.a. Digital Wayb. Safranc. Thalesd. Walkbase


24) __________ has developed software to analyze the large amount of data being collected on airline passengers to identify potential terrorists or organized criminals.

a. Digital Wayb. Safranc. Thalesd. Walkbase

Answer: BDifficulty: EasySection: IT’s About Business 2.2Learning Objective: 2.1Bloom: Knowledge

AACSB: Technology

25) ___________ has set the industry standard on returns, pioneering no-cost shipping and handling for returns.

a. Clothes Horseb. LoveThatFitc. Virtusized. Zappos

Answer: DDifficulty: MediumSection: IT’s About Business 2.3Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

26) ___________ asks for measurements of a favorite piece of clothing to create a comparison silhouette on the website.



27) _____________ allows consumers to upload a full body image taken in tightly fitting clothing so they can “see” themselves in the clothes before purchasing.


Answer: BDifficulty: EasySection: IT’s About Business 2.3Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

28) ___________ provides a “body scanner” to capture more than 150 measurements so customers can have made-to-measure jeans and swimsuits.

a. Bodymetricsb. Clothes Horsec. LoveThatFitd. Virtusize

Answer: ADifficulty: EasySection: IT’s About Business 2.3Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

29) The best-known framework for analyzing competitiveness is Michael Porter’s ________.a. Business-IT alignment modelb. Competitive forces modelc. Strategic categories modeld. Value chain model


30) Porter concludes that the overall impact of the web is to _________ competition, which generally ___________ a firm’s profitability.

a. decrease; diminishesb. decrease; improvesc. increase; diminishesd. increase; improves


31) Entry barriers impact the ___________ in Porter’s competitive forces model.a. Bargaining power of customersb. Bargaining power of suppliersc. Rivalry among existing firms in the industryd. Threat of entry of new competitorse. Threat of substitute products or services

Answer: DDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

32) Information-based industries experience the greatest threat from the _________ in Porter’s competitive forces model.

a. Bargaining power of customersb. Bargaining power of suppliersc. Rivalry among existing firms in the industryd. Threat of entry of new competitorse. Threat of substitute products or services

Answer: EDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

33) You want to open a bank, so you know you have to offer online banking at a minimum. This is an example of the __________ in Porter’s competitive forces model.


Answer: DDifficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: Knowledge, ApplicationAACSB: Technology

34) You want to open your own restaurant. You know you will be able to purchase foods from many different distributors. You have evaluated the _________ in Porter’s competitive forces model.


Answer: BDifficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: Knowledge, ApplicationAACSB: Technology

35) You want to start a lawn care business in the town of Rural, USA with only 100 residents. There are currently no other lawn care businesses, so homeowners will have no other choice but to use your service. You have evaluated the ________ in Porter’s competitive forces model.


Answer: ADifficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: Knowledge, ApplicationAACSB: Technology

36) In your industry, the businesses compete essentially on price. This is an example of the _______ in Porter’s competitive forces model.


Answer: CDifficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: Knowledge, ApplicationAACSB: Technology

37) Loyalty programs reduce _________.a. Buyer powerb. Entry barriersc. Substitute productsd. Supplier power

Answer: A


38) Organizations use Porter’s ___________ model to design general strategies and use Porter’s _______ model to identify specific activities where they can use competitive strategies for greatest impact.

a. competitive forces; strategic categoriesb. competitive forces; value chainc. value chain; competitive forcesd. value chain; strategic categories


39) For most businesses, __________ is a support activity according to Porter’s value chain model.

a. Customer serviceb. ITc. Logisticsd. Operations


40) For most businesses, _________ is a primary activity according to Porter’s value chain model.

a. HRb. ITc. Marketingd. Procurement

Answer: CDifficulty: EasySection: 2.2Learning Objective: 2.2

Bloom: KnowledgeAACSB: Technology

41) Which of the following is the correct order of primary activities for manufacturing companies according to Porter’s value chain model?

a. inbound logistics, operations, marketing and sales, outbound logistics, servicesb. inbound logistics, operations, outbound logistics, marketing and sales, servicesc. operations, inbound logistics, outbound logistics, marketing and sales, servicesd. operations, inbound logistics, marketing and sales, outbound logistics, services


42) “I can sell at a lower cost than you can” is a strategy for ___________.a. Cost leadershipb. Customer orientedc. Differentiationd. Innovatione. Operational effectiveness


43) “I am better because I am different” is a strategy for ___________.a. Cost leadershipb. Customer orientedc. Differentiationd. Innovatione. Operational effectiveness


44) “I’m doing something new and you can’t catch up” is a strategy for ___________.

a. Cost leadershipb. Customer orientedc. Differentiationd. Innovatione. Operational effectiveness

Answer: DDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

45) “I can do the same thing more efficiently than you can” is a strategy for ___________.a. Cost leadershipb. Customer orientedc. Differentiationd. Innovatione. Operational effectiveness

Answer: EDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

46) “I treat my customers better than you do” is a strategy for ___________.a. Cost leadershipb. Customer orientedc. Differentiationd. Innovatione. Operational effectiveness


47) JIT [reduces inventory costs, so it] is part of a _________ strategy. [NOTE: the brackets can be removed if the students have been exposed to the concept. It is in Chapter 13.]

a. Cost leadershipb. Customer orientedc. Differentiation

d. Innovatione. Operational effectiveness

Answer: ADifficulty: Easy (or Hard without brackets)Section: 2.2Learning Objective: 2.2Bloom: Knowledge, SynthesisAACSB: Technology

48) Professional, college, and high school football programs are using ___________ to enhance their training regimens.

a. ERP systemsb. green ITc. RFIDd. virtual reality

Answer: DDifficulty: EasySection: Closing Case 1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

49) STriVR Labs and EON Sports started with the __________ position in _________ for their virtual reality software.

a. pitcher; baseballb. quarterback; footballc. short stop; baseballd. wide receiver; football

Answer: BDifficulty: EasySection: Closing Case 1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

50) It takes STriVR and EON ___________ to deliver VR footage to the teams.a. Hoursb. Daysc. Weeksd. Months

Answer: CDifficulty: Hard

Section: Closing Case 1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

51) ____________ received $45 billion in bailout funds during the financial crisis of 2007-2008 and later paid a further $17 billion to settle charges of mortgage fraud stemming from poor lending practices leading up to the financial crisis.

a. Bank of Americab. Citibankc. SunTrustd. Wells Fargo

Answer: ADifficulty: EasySection: Closing Case 2Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

52) Bank of America implemented a ______ cloud as part of its IT infrastructure standardization procedure.

a. Googleb. Hybridc. Privated. Public

Answer: CDifficulty: HardSection: Closing Case 2Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

53) _________ is NOT part of Bank of America’s innovative customer service.a. Account information and transactional capabilitiesb. Cloud computing for credit card securityc. Mobile payments and commerced. Travel notifications via mobile device

Answer: BDifficulty: MediumSection: Closing Case 2Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

True/False:1) Disney used a supercomputer composed of three server farms and developed Hyperion to

produce Big Hero 6.

Answer: TrueDifficulty: EasySection: Opening CaseLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

2) Any information system can be strategic if it is used properly.

Answer: TrueDifficulty: EasySection: IntroductionLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

3) Since technology is so expensive, entrepreneurs won’t be able to leverage technology for competitive advantage in the early stages of their business.

Answer: FalseDifficulty: MediumSection: IntroductionLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

4) Globalization is decreasing competition.

Answer: FalseDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

5) In general, the internet has made customers more powerful.

Answer: TrueDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: Knowledge

AACSB: Technology

6) BYOD is a challenge for IT departments.

Answer: TrueDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

7) BYOD is not desirable for employees.


8) The digital divide is decreasing over time.

Answer: FalseDifficulty: HardSection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

9) Mass production is an attempt to perform make-to-order on a large scale.


10) E-business and e-commerce are synonymous.


11) E-business is a broader concept than e-commerce.


12) The Rainforest Connection uses old smartphones placed in high trees with solar panels on them to pick up the sound of chainsaws cutting down trees illegally.

Answer: TrueDifficulty: EasySection: IT’s About Business 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

13) The Infoladies earn more money than most farmers in Bangladesh.

Answer: TrueDifficulty: EasySection: IT’s About Business 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

14) The innovative technologies for airlines and airports are examples of strategic information systems.

Answer: TrueDifficulty: HardSection: IT’s About Business 2.2Learning Objective: 2.1Bloom: EvaluationAACSB: Technology

15) When shopping for clothes online, the biggest problem for retailers is keeping credit card numbers secure.

Answer: FalseDifficulty: MediumSection: IT’s About Business 2.3Learning Objective: 2.1


16) The only goal of a competitive strategy is to plan your own moves.


17) Porter’s competitive forces model applies to local governments.

Answer: TrueDifficulty: HardSection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

18) Porter concludes that the overall impact of the web is to increase competition.


19) Loyalty programs are designed to reduce buyer power and rivalry.

Answer: TrueDifficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

20) Porter’s competitive forces model has four main forces.

Answer: FalseDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: Knowledge

AACSB: Technology

21) Primary activities do not add value directly to the firm’s products or services.


22) Customers are willing to pay for primary activities but not support activities.


23) Business and IT managers have similar objectives, so it makes business-IT alignment simple.


24) Many organizations fail to achieve close business-IT alignment.


25) While virtual reality software is available to football teams, no professional teams are currently using it because it is too risky.

Answer: FalseDifficulty: EasySection: Closing Case 1Learning Objective: 2.1


26) Bank of America laid off many employees as part of their IT transformation.

Answer: TrueDifficulty: MediumSection: Closing Case 2Learning Objective: 2.1Bloom: Knowledge, ComprehensionAACSB: Technology

Fill-in-the-Blank:1) Competitive ______________________ refers to any assets that provide an organization

with an edge against its competitors in some measure such as cost, quality, or speed.

Answer: advantageDifficulty: EasySection: IntroductionLearning Objective: 2.1Bloom: KnowledgeAACSB: Technology

2) IT has made it ______________ to move operations to low labor cost countries like _________________.

Answer: easier; China, Bangladesh, El Salvador, India, etc. (any developing country)Difficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

3) _________________________ refers to the policy of permitting employees to bring personally owned mobile devices to the workplace and to use those devices to connect to the corporate network as well as for personal use.

Answer: BYOD or bring your own deviceDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

4) The digital divide refers to the _______________ between those individuals who have access to information and communications technology and those who do not.

Answer: wide gapDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

5) Mass ____________________ is an attempt to perform make-to-order on a large scale.

Answer: customizationDifficulty: EasySection: 2.1Learning Objective: 2.1Bloom: KnowledgeAACSB: Technology

6) Any information system that helps an organization either achieve a competitive advantage or reduce a competitive disadvantage qualifies as a ________________.

Answer: strategic information system or SISDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

7) A ________________ is a sequence of activities through which the organization’s inputs, whatever they are, are transformed into more valuable outputs, whatever they are.

Answer: value chainDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

8) Business-IT __________ is the tight integration of the IT function with the organization’s strategy, mission, and goals.

Answer: alignmentDifficulty: EasySection: 2.2Learning Objective: 2.2Bloom: KnowledgeAACSB: Technology

Essay Questions:1) Suppose you want to start a business that sells eyeglasses to low-income, uninsured

individuals. Discuss the three market pressures you will encounter.

Answer:Globalization – the student may want to provide glasses to individuals in other countries or must at least consider the possibility of getting glasses from developing countries where they are cheaper; the student should also discuss the competition from similar companies throughout the worldChanging nature of the workforce – the student should discuss the types of employees that could be employed and how IT can be used to integrate people (e.g. telecommuting from home in US or having employees in other locations)Powerful customers – customers have opportunities to look for eyeglasses from many different companies (compare prices, get information, etc.), the student should discuss customer intimacyDifficulty: MediumSection: 2.1Learning Objective: 2.1Bloom: Knowledge, Comprehension, ApplicationAACSB: Technology, Reflective Thinking

2) Suppose you want to start a business that sells cleaning products for household and business use. Discuss the four societal pressures you will encounter.

Answer:Social responsibility – need to consider green products (chemicals that won’t hurt the environment) as well as green IT (facilities design and management, carbon management, laws), may need to consider giving some products to charity (or how to provide to low-income individuals), digital divide – how will the business reach people who don’t have internetCompliance with government regulations – this product deals heavily with health, safety, and environmental protection, so the student should discuss how chemicals will be handled in regard to employees as well as for customers and the environment; the student should also discuss equal opportunity, Sarbanes-Oxley Act (financial accountability) and HIPAA (healthcare)Terrorist attacks – this may be the least discussed; the student may discuss employees that are in the reserves or potentially terrorists trying to purchase the products to engage in terrorist activity (so attempting to identify terrorists may be useful)Ethical issues – the company needs to protect customer information (addresses, credit cards, etc.)Difficulty: MediumSection: 2.1Learning Objective: 2.1Bloom: Knowledge, Comprehension, ApplicationAACSB: Technology, Reflective Thinking

3) List and describe Porter’s Competitive Forces model. How has the web influenced each of these forces? Pick one industry and evaluate each of the forces for that industry.

Answer:Threat of new entry – what a company has to offer at a minimum to get into the industry; web increases because easy to create a website but decreases because may not be a nontrivial requirementBargaining power of suppliers – how many upstream companies sell the product/raw goods; web is mixed because more alternatives are available online but integrating supply chains reduces choiceBargaining power of customers – how many downstream companies purchase the product; web increases because more alternatives but can be decreased through loyalty programsThreat of substitute products – products available outside the industry (e.g. substitutes for the airline industry include cars, buses, trains, etc.); web increases particularly for information-based industriesRivalry among existing firms in the industry – intensity of competition; web increases because fewer differences between competitors but can use technology to differentiateDifficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: Knowledge, Comprehension, Application, EvaluationAACSB: Technology, Reflective Thinking, Analytic

4) List and describe the five strategies for competitive advantage. Explain if and how Porter’s Value Chain model would be different for each strategy.

Answer: Cost leadership – sell at a lower cost; wouldn’t put much money into support activities, would put money into primary activities to squeeze pennies out of itDifferentiation – better because different; would spend lots of money on product and technology development and the primary activities would be focused on being better/different than competition (better customer service)Innovation – doing something new that others can’t copy; would spend a lot on product and technology developmentOperational effectiveness – doing things more efficiently than competitors; focus on making the primary and support activities as smooth as possibleCustomer oriented – treat customers better; focus on customer service (maybe marketing and sales)Difficulty: MediumSection: 2.2Learning Objective: 2.2Bloom: Knowledge, Comprehension, SynthesisAACSB: Technology, Analytic

5) What are the six characteristics of excellent alignment? What are the three major reasons alignment is difficult? Integrate these two lists by discussing why each characteristic may be difficult to achieve given the major reasons alignment is so difficult.

Answer:

6 characteristics:i. Organizations view IT as an engine of innovation that continually transforms the

business, often creating new revenue streamsii. Organizations view their internal and external customers and their customer service

function as supremely importantiii. Organizations rotate business and IT professionals across departments and job functionsiv. Organizations provide overarching goals that are completely clear to each IT and

business employeev. Organizations ensure that employees understand how the company makes (or loses)

moneyvi. Organizations create a vibrant and inclusive company culture

3 reasons:i. Business and IT managers have different objectivesii. The business and IT departments are ignorant of the other group’s expertiseiii. A lack of communication

6i – the student could discuss 3ii since business would have to know what IT can do (which also ties to 3iii for communication)6ii – the student could discuss 3i since IT often doesn’t have an external focus6iii – all three reasons could be discussed here since rotation has to be desired by both, understood by both, and needs communication6iv – same as 6iii6v – same as 6iii6vi – same as 6iiiDifficulty: Hard (for the third point…the other two questions are Easy)Section: 2.2Learning Objective: 2.2Bloom: Knowledge, Comprehension, SynthesisAACSB: Technology, Analytic

· Web viewIt reduces world timber prices ... measurements so customers can have made-to-measure...

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