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Strategic Management Test

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    1) Which of the following best describes how new information systems result in legal gray areas?

    A) They work with networked, electronic data, which are more difficult to control than information stored manually.

    B) They result in new situations that are not covered by old laws.

    C) They are implemented by technicians rather than managers.

    D) They are created from sets of logical and technological rules rather than social or organizational mores.

    2) In the information age, the obligations that individuals and organizations have concerning rights to intellectual property fall within the moral dimension of A) property rights and obligations.

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

    3) In the information age, the obligations that individuals and organizations have concerning rights to intellectual property fall within the moral dimension of A) property rights and obligations.

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

    4) Which of the five moral dimensions of the information age do the central business activities of ChoicePoint raise? A) property rights and obligations
    B) system quality
    C) accountability and control
    D) information rights and obligations

    5) The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called A) due process.
    B) accountability.
    C) the courts of appeal.
    D) the judicial system.

    6) Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an ethical issue? A) Assign responsibility.
    B) Identify the stakeholders.
    C) Identify the options you can reasonably take.
    D) Identify and clearly describe the facts.

    7) A colleague of yours frequently takes for his own personal use small amounts of office supplies, noting that the loss to the company is minimal. You counter that if everyone were to take the office supplies, the loss would no longer be minimal. Your rationale expresses which historical ethical principle? A) Kant’s Categorical Imperative

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

    8) A classic ethical dilemma is the hypothetical case of a man stealing from a grocery store in order to feed his starving family. If you used the Utilitarian Principle to evaluate this situation, you might argue that stealing the food is A) acceptable, because the grocer suffers the least harm.

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

    9) FIP principles are based on the notion of the
    A) accountability of the record holder.
    B) responsibility of the record holder.
    C) mutuality of interest between the record holder and the individual. D) privacy of the individual.

    10) The Federal Trade Commission FIP principle of Notice/Awareness states that A) customers must be allowed to choose how their information will be used for secondary purposes other than the supporting transaction. B) data collectors must take responsible steps to assure that consumer information is accurate and secure from unauthorized use. C) there is a mechanism in place to enforce FIP principles.

    D) Web sites must disclose their information practices before collecting data.

    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
    A) encourages self-regulation to develop a set of privacy guidelines for its members. B) protects user privacy during interactions with Web sites. C) has established technical guidelines for ensuring privacy. D) is a government agency regulating the use of customer information.

    14) The robotics startup you work for has developed an AI-controlled robotic nurse, intended to care for end-of-life patients who are often unconscious. Which of the five moral dimensions does this raise? A) system quality

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

    15) What legal mechanism protects the owners of intellectual property from having their work copied by others? A) patent protection
    B) intellectual property law
    C) copyright law
    D) fair use doctrine

    16) Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent technology-based protections of copyrighted materials? A) Digital Millennium Copyright Act

    B) Privacy Act
    C) Freedom of Information Act
    D) Electronic Communications Privacy Act

    17) Two of the three principal sources of poor system performance are A) software bugs and errors and outdated standards.
    B) hardware or facility failures and malware.
    C) hardware or facility failures and poor input data quality. D) poor input data quality and insufficient integration with legacy systems.

    18) The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and A) improved flexibility.

    B) improved decision making.
    C) improved business practices.
    D) improved efficiency.

    19) Dell Computer’s use of information systems to improve efficiency and implement “mass customization” techniques to maintain consistent profitability and an industry lead illustrates which business objective? A) improved flexibility

    B) improved business practices
    C) competitive advantage
    D) survival

    20) Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time? A) 1 only

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

    21) Verizon’s implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of A) improved flexibility.
    B) improved decision making.
    C) improved efficiency.
    D) customer and supplier intimacy.

    22) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? A) improved efficiency
    B) customer and supplier intimacy
    C) survival
    D) competitive advantage

    23) Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as
    discussed in the chapter case? A) operational excellence

    B) new products and services
    C) competitive advantage
    D) customer support

    24) An example of raw data from a national chain of automobile stores would be A) an average of 13 Toyotas are sold daily in Kentucky.
    B) 30 percent increase in Toyota RAV 4 sales during September in Kentucky. C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky. D) all of the above.

    25) Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium? A) competitive advantage
    B) improved decision making
    C) new products and services
    D) survival

    26) Thomas Friedman’s declaration that the world was now “flat” meant that A) the Internet has reduced the economic advantages of developed countries. B) globalization is starting to offer less advantage to large corporations. C) the global economy is increasingly commanded by fewer and larger corporations. D) global capitalism is homogenizing culture and business practices throughout the world.

    27) Data management technology consists of the
    A) physical hardware and media used by an organization for storing data. B) detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C) software governing the organization of data on physical storage media. D) hardware and software used to transfer data.

    28) Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain’s efforts to use information
    technology to develop a loyal customer base, what would be the best use of information technology from the list below? A) Use IT to increase supplier loyalty.

    B) Use IT to increase operational efficiency.
    C) Use IT to create new products and business models.
    D) Use IT to help survive government reporting requirements. E) Use IT to achieve customer intimacy.

    29) Which of the following would not be 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) The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers’ skills is an example of using technology to achieve which business objective? A) customer and supplier intimacy

    B) survival
    C) competitive advantage
    D) improved decision-making

    31) A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets? A) managerial

    B) governmental
    C) social
    D) organizational

    32) Apple Computer dominates the online legal music sales industry primarily
    because of a failure of recording label companies to A) invest in technology.
    B) adopt a new business model.
    C) invest in complementary assets.
    D) modernize their information value chain.

    33) Psychologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

    34) Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) the specification of procedures for identifying packages with sender and recipient information B) monitoring service levels

    C) promoting the company strategy of low-cost, superior service D) the use of handheld computers and networks for managing package delivery

    35) A managerial element in the UPS tracking system described in the chapter is A) taking inventory.
    B) providing package status reports to customers.
    C) the decision to use automation.
    D) in-house package tracking software.

    36) As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T? A) low-cost leadership
    B) focus on market niche
    C) customer and supplier intimacy
    D) product differentiation

    37) How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B)
    It sees capital and labor as primary production factors.

    C) It sees the inputs and outputs, labor and capital, as being infinitely malleable. D) It sees the organization as a social structure similar to a machine.

    38) According to Leavitt’s model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are A) environment, organization, structure, 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 allows it to
    A) provide mass customization.
    B) provide an efficient customer response system.
    C) strengthen customer intimacy.
    D) achieve economy of scale.

    40) Hilton Hotels’ use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to A) strengthen customer intimacy.

    B) differentiate their service.
    C) focus on market niche.
    D) increase efficiency.

    41) Upon which of the following industries has the Internet as a whole been a disruptive technology? A) bill payments
    B) air travel
    C) books
    D) real estate

    42) A rival of your company, AutoTown, is going to implement analytic software that mines customer data with a goal of enabling the building of automobiles that customers actually want. This can be categorized as using information systems for which competitive strategy? A) low-cost leadership

    B) product differentiation
    C) focus on market niche
    D) customer intimacy

    43) Which of the following is one of the support activities in a firm’s value chain? A) inbound logistics
    B) operations
    C) sales and marketing
    D) technology

    44) How are information systems used at the industry level to achieve strategic advantage? A) by building industry-wide, IT-supported consortia and symposia B) by raising the bargaining power of suppliers

    C) by encouraging the entry of new competitors
    D) by enforcing standards that reduce the differences between competitors

    45) A virtual company
    A) uses the capabilities of other companies without being physically tied to those companies. B) uses Internet technology to maintain a virtual storefront. C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services, or virtual products.

    46) The emergence, for, of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage? A) E-commerce is affected by the law of diminishing returns. B) Internet technologies are universal, and therefore usable by all companies. C) Internet shopping produces cost transparency.

    D) The Internet enables the production or sales of substitute products or services.

    47) An example of a collaboration tool that supports colocated, asynchronous collaboration is A) a team room.
    B) e-mail.
    C) a MUD.
    D) a wall display.

    48) Which of the following is not one of the four main classifications for collaboration tools identified by the space/time matrix? A) synchronous/colocated
    B) same time/remote
    C) different time/remote
    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 best categorized as which type of system? A) TPS
    B) DSS
    C) CRM
    D) more than one of the above

    50) Which of the following roles falls into the duties of an information systems manager? 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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