Strategic Management Test

Table of Content

New information systems create legal areas without clear boundaries in what ways?

They deal with networked, electronic data, which is harder to manage compared to manually stored information.

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B) New situations arise that are not addressed by existing laws.

C) Technicians, rather than managers, implement them.

They are generated from collections of logical and technological principles instead of social or organizational customs.

2) The moral dimension of property rights and obligations encompasses the obligations that individuals and organizations have regarding intellectual property rights in the information age.

B) system quality.
C) accountability and control.
D) information rights and obligations.

3) The moral dimension of property rights and obligations encompasses the responsibilities of individuals and organizations regarding intellectual property in the information age.

B) system quality.

C) accountability and control.

D) information rights and obligations.

4) The central business activities of ChoicePoint raise questions about which of the five moral dimensions of the information age: A) property rights and obligations, B) system quality, C) accountability and control, or D) information rights and obligations?

5) The attribute of social institutions for determining responsibility for an action is known as A) due process, B) accountability, C) the courts of appeal, or D) the judicial system.

6) Which of the following is not included in the five-step process for analyzing an ethical issue discussed in the chapter?

A) Assigning responsibility.

B) Identifying the stakeholders.

C) Identifying the feasible options.

D) Identifying and clearly describing the facts.

7) Your colleague often appropriates small amounts of office supplies for personal use, justifying it by claiming that the company’s loss is insignificant. You argue that if everyone were to do the same, the loss would no longer be insignificant. This reasoning aligns with which ethical principle from history? A) Kant’s Categorical Imperative

B) The Golden Rule
C) The Risk Aversion Principle
D) The “No free lunch” rule

8) According to the Utilitarian Principle, the classic ethical dilemma involves a man who steals from a grocery store to provide food for his starving family. In this scenario, it can be argued that stealing the food is acceptable as it inflicts minimal harm on the grocer.

B) It is acceptable because the highest value is the survival of the family. C) It is wrong because the man would not want the grocery to steal from him. D) It is wrong because if everyone were to do this, the concept of personal property is defeated.

9) The principles of FIP are rooted in the idea that the record holder should be accountable, responsible, and have a mutual interest with the individual, while also respecting the individual’s privacy.

The FIP principle of Notice/Awareness, established by the Federal Trade Commission, encompasses various requirements. Initially, customers must have the chance to decide how their information will be utilized beyond the initial transaction. Additionally, those collecting data must take suitable steps to guarantee accuracy and security of consumer information, safeguarding it against unauthorized use. Lastly, an enforcement mechanism for the FIP principles must exist.

D) Before collecting data, web sites are required to disclose their information practices.

11) European privacy protection is ________ than in the United States. A) less far-reaching

B) less liable to laws

C) much less stringent

D) much more stringent

12) When a cookie is created during a Web site visit, it is stored A) on the Web site computer.

B) on the visitor’s computer.

C) on the ISP’s computer.

D) in a Web directory.

13) The Online Privacy Alliance is an organization that promotes self-regulation to create a set of privacy guidelines for its members. It also safeguards user privacy when engaging with websites and has implemented technical guidelines to ensure privacy. However, it should be noted that the Online Privacy Alliance is not a government agency responsible for regulating customer information.

14) The robotics startup you are employed at has created an AI-controlled robotic nurse designed to provide care for unconscious end-of-life patients. This development raises concerns regarding system quality, one of the five moral dimensions.

B) quality of life, C) accountability and control, D) property rights and obligations

15) Various legal measures exist to protect intellectual property owners against unauthorized copying of their work. These measures include patent protection, intellectual property law, copyright law, and the fair use doctrine.

The circumvention of technology-based copyright protections for online materials is prohibited by the Digital Millennium Copyright Act.

The following acts are related to privacy and information accessibility:

B) Privacy Act

C) Freedom of Information Act

D) Electronic Communications Privacy Act

17) The three principal sources of poor system performance are A) software bugs and errors coupled with outdated standards,

B) hardware or facility failures along with malware, and

C) hardware or facility failures accompanied by poor input data quality, as well as D) poor input data quality due to insufficient integration with legacy systems.

18) Information technology encompasses six crucial business objectives: creating new products, services, and business models; fostering customer and supplier intimacy; ensuring survival; gaining a competitive advantage; achieving operational excellence; and improving flexibility.

B) enhanced decision making.

C) enhanced business practices.

D) enhanced efficiency.

Dell Computer showcases its commitment to which business objective by leveraging information systems to boost efficiency and implement “mass customization” techniques for sustained profitability and industry leadership?

B) enhanced business operations
C) gaining a competitive edge
D) maintaining viability

20) A competitive advantage can be achieved through various means, including: (1) the introduction of new products, services, and business models; (2) providing superior products at a lower price; (3) promptly addressing customer needs. The answer to which option could result in a competitive advantage is A), option 1 only.

B) 1 and 2
C) 2 and 3
D) 1, 2, and 3

21) Verizon demonstrates enhanced flexibility, decision-making, efficiency, and improved customer and supplier relationships through their use of a Web-based digital dashboard. This dashboard allows managers to instantly access real-time data, including customer complaints.

A) Verizon’s Web-based digital dashboard exemplifies enhanced flexibility.

B) The Web-based digital dashboard enhances decision-making for Verizon managers.

C) Efficiency is enhanced by using Verizon’s Web-based digital dashboard.

D) Verizon’s use of the Web-based digital dashboard results in improved customer and supplier relationships.

22) The introduction of ATMs in retail banking, following the unveiling of Citibank’s first ATMs, showcases the utilization of information systems to attain which business goal? A) enhanced effectiveness

B) fostering closer relationships with customers and suppliers

C) ensuring survival

D) gaining a competitive edge

23) The development of smart grid initiatives by power companies, as discussed in the chapter case, is driven by the objective of achieving operational excellence.

B) new products and services

C) competitive advantage

D) customer support

24) The raw data collected from a national chain of automobile stores includes the following information in Kentucky:

A) On average, 13 Toyotas are sold daily.

B) Toyota RAV 4 sales had a 30 percent increase in September.

C) A single Toyota RAV4 was sold on March 3, 2008, in Louisville.

D) All of the above statements are included in the raw data.

25) The strategy behind the use of technology in the new Yankee Stadium can best be described by which of the following business objectives?

A) Competitive advantage

B) Improved decision making

C) New products and services

D) Survival

26) In Thomas Friedman’s view, the world being “flat” implies that the Internet has diminished the economic advantages of developed countries, globalization is becoming less beneficial for large corporations, the global economy is increasingly controlled by fewer and larger corporations, and global capitalism is unifying culture and business practices worldwide.

27) Data management technology includes the following:

A) The physical hardware and media utilized by an organization to store data.

B) Precise, preprogrammed instructions that govern and synchronize the computer hardware components within an information system.

C) Software that regulates the arrangement of data on physical storage media.

D) The combination of hardware and software employed in data transfer.

Based on the examples provided in the chapter, if you were tasked with creating a strategy for a regional drive-in restaurant chain to cultivate a loyal customer base using information technology, which option from the list below would be the most effective use of IT?

A) Utilize IT to enhance supplier loyalty.

B) Increase operational efficiency using IT.

C) Create new products and business models using IT.

D) Survive government reporting requirements with the help of IT.

E) Achieve customer intimacy with the use of IT.

29) Which of the following options would NOT serve as a complementary asset for a solar panel manufacturer?

A) International solar equipment certification standards

B) Government funding for green technology

C) Centralized hierarchical decision-making

D) Innovation-driven management team

30) If your temp agency is struggling to place temps due to their lack of familiarity with Internet research, one way to address this problem is by investing in training software. By doing so, you are utilizing technology to achieve the business objective of customer and supplier intimacy.

B) the act or state of staying alive

C) having an edge over others

D) making better choices

31) Investing in a political candidate who aligns with their corporate values, a corporation that funds a political action committee could be considered as investing in the main category of complementary assets A) managerial.

B) governmental
C) social
D) organizational

32) The reason why Apple Computer has monopolized the online legal music sales industry is mainly due to the recording label companies’ failure to invest in technology, adopt a new business model, invest in complementary assets, or modernize their information value chain.

Psychologists examine information systems to comprehend how they impact individuals, groups, and organizations, how human decision makers perceive and utilize formal information, how new information systems alter control and cost structures within a firm, and the production of digital goods.

34) An organizational element in the UPS tracking system described in the chapter includes:

  • A) The specification of procedures for identifying packages with sender and recipient information
  • B) Monitoring service levels

C) Promoting the company’s strategy of providing low-cost, yet superior service, along with D) utilizing handheld computers and networks for effectively managing package delivery.

The chapter describes a managerial element in the UPS tracking system. This element involves A) taking inventory, B) providing package status reports to customers, C) the decision to use automation, and D) in-house package tracking software.

36) In the chapter opening case, Verizon used which of the four generic strategies to compete against AT&T? A) low-cost leadership

B) focus on market niche

C) customer and supplier intimacy

D) product differentiation

37) The technical view of organizations lacks a comprehensive understanding of the complete effects of information systems in a firm. A) It perceives information systems as a means to reorganize the organization’s inputs and outputs. B)

It considers capital and labor as the primary factors of production.

C) The theory views inputs and outputs, labor and capital, as infinitely adaptable. D) It perceives the organization as a machine-like social structure.

According to Leavitt’s model of organizational resistance, the successful implementation of a new information system in an organization requires changes in four components: environment, organization, structure, and tasks.

B) technology, people, culture, and structure.

C) organization, culture, management, and environment

D) tasks, technology, people, and structure.

39) Wal-Mart’s continuous replenishment system enables the company to provide mass customization, an efficient customer response system, strengthen customer intimacy, and achieve economy of scale.

40) Hilton Hotels utilizes customer information software to identify the most profitable customers and direct services to them, demonstrating the use of information systems to strengthen customer intimacy.

B) Distinguishing their service, C) Concentrating on a market niche, and D) Enhancing efficiency.

41) The Internet has been a disruptive technology in the following industries:

A) bill payments

B) air travel

C) books

D) real estate

AutoTown, a rival company, aims to implement analytic software in order to mine customer data and build automobiles that customers truly desire. This strategic approach falls under the category of using information systems for low-cost leadership.

B) Differentiate your product from competitors.

C) Focus on a specific market niche.

D) Build strong relationships with customers and provide personalized experiences.

43) One of the support activities in a firm’s value chain is:


A) inbound logistics

B) operations

C) sales and marketing


D) technology

44) How can information systems be utilized at the industry level to gain a strategic advantage? This can be achieved through A) creating industry-wide consortia and symposia supported by IT, and B) increasing the negotiating power of suppliers.

C) One way to foster competition is by encouraging the entry of new competitors.

D) Another way is by enforcing standards that reduce the differences between competitors.

A virtual company is an organization that utilizes the capabilities of other companies without being physically tied to them. It also uses Internet technology to maintain a virtual storefront and a networked community of users. Additionally, it provides entirely Internet-driven services or virtual products.

46) The appearance of new competitors in the online shopping market for Amazon.com demonstrates which disadvantage of using information systems to gain a competitive edge? A) The law of diminishing returns affects e-commerce. B) All companies can utilize internet technologies because they are universal. C) Internet shopping creates cost transparency.

D) The Internet allows for the creation or trade of alternative products or services.

47) A team room, e-mail, a MUD, or a wall display are all examples of collaboration tools that support colocated, asynchronous collaboration.

48) The four main classifications for collaboration tools identified by the space/time matrix are: A) synchronous/colocated, B) same time/remote, C) different time/remote, and D) remote/colocated.

49) The point-of-sale Pulse system used by Domino’s to maintain consistent and efficient management functions in its restaurants is categorized as which type of system? A) TPS
B) DSS
C) CRM
D) more than one of the above

50) The duties of an information systems manager include:

A) writing software instructions for computers

B) acting as liaison between the information systems group and the rest of the organization

C) translating business problems into information requirements

D) managing data entry staff

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