Deck 2: Organizational Strategy, Competitive Advantage, and Information Systems

Question 1

A business process can be a liability.

Answer 1

True

Question 2

Customer satisfaction is the result of optimizing and aligning business processes to fulfill customers' needs, wants, and desires.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

BPM can improve an organization's flexibility.

Question 5

The overall performance of an organization has little to do with how well it manages its business processes.

Question 6

Cross-functional processes are executed within a single functional area.

Question 7

An organization's business processes can create a competitive advantage.

Question 8

Cross-functional processes are business processes require the cooperation of multiple functional areas.

Question 9

E-Commerce is the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

Question 10

The business environment refers to the industry that a company is in.

Question 11

Globalization is the integration and interdependence of many facets of life made possible by rapid advances in information technology.

Question 12

The activities of a business process can be measured.

Question 13

A business process always includes information systems.

Question 14

Differentiation is the result of optimizing the marketing and innovation processes.

Question 15

BPM is an implementation of BPR.

Question 16

BPR is a strategy for improving the efficiency of an organization's data collection.

Question 17

A business process has inputs and outputs.

Question 18

Productivity is the result of optimizing operations and supplier processes.

Question 19

The long-term goal of business process management is to create a competitive advantage through organizational flexibility.

Question 20

The procurement process includes the sales function.

Question 21

Every competitive organization is driven by the competitive forces identified by Michael Porter.

Question 22

Customer intimacy is the process whereby a business learns as much as possible about its customers to better anticipate and address their needs.

Question 23

The digital divide is the gap between data and knowledge.

Question 24

In general, labour costs are higher in developing countries than in developed countries.

Question 25

Build-to-stock is a strategy of producing customized products and services.

Question 26

The information technology environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

Question 27

Information technology is facilitating the entry of a wide variety of employees into the workforce.

Question 28

Internet access in Canada is not particularly related to household income.

Question 29

The One Laptop per Child project aims to use technology to revolutionize how the world can educate its children.

Question 30

An information system that helps an organization gain a competitive advantage is called a competitive information system.

Question 31

The Internet decreases customers' bargaining power.

Question 32

In mass customization, companies produce items in large quantity, but they tailor the items to meet the desires and needs of individual customers.

Question 33

In mass production, a company produces a large quantity of identical items.

Question 34

Competitive advantage helps a company function effectively within a market and generate larger-than-average profits.

Question 35

Developed countries usually provide greater fringe benefits than developing countries.

Question 36

In general, government deregulation decreases competition.

Question 37

A growing IT initiative called green IT is enabling organizations to reduce their carbon footprint.

Question 38

The Internet increases traditional barriers to entry into a market.

Question 39

Michael Porter concludes that the overall impact of the Internet is to increase competition, which generally diminishes a firm's profitability.

Question 40

Ethical issues are important because, if handled poorly, they can damage an organization's image.

Question 41

What does it mean that BlackBerry has diversified its software to traverse the roadway of Internet of Things?

A)That the software can support E-commerce
B)That the software can send e-mails
C)That the software can connect to RFID readers, laptops and larger computers
D)That the software has a firewall
E)That the software is fully compatible with TCP/IP

Question 42

Which of the following is/are not a fundamental element of a business process?

A)feedback
B)input
C)output
D)resources

Question 43

The music industry is a good example of the extremely low variable costs of digital products.

Question 44

When there are many substitute products, a company can create a competitive advantage by increasing fees.

Question 45

The primary activities in the value chain create the value for which customers are willing to pay.

Question 46

The bargaining power of suppliers is low when their buyers have few choices.

Question 47

Information-based industries face the greatest threat from substitutes.

Question 48

An entry barrier is a long-term competitive advantage.

Question 49

Which of the following statements is false?

A)Competitive advantage is based on some measurement such as cost, quality, or speed.
B)Competitive advantage enables a company to function effectively within a market.
C)Competitive advantage leads to higher-than-average profits.
D)Competitive advantage requires the use of technology.
E)Competitive advantage applies to companies of all sizes.

Question 50

What major supplier can help BlackBerry to be a leader of self-driving cars?

A)Google
B)QNX
C)Microsoft
D)Macintosh
E)CISCO

Question 51

Porter's value chain model is a variation of his competitive advantage framework.

Question 52

The Internet impact on the bargaining power of suppliers always favours buyers.

Question 53

The bargaining power of suppliers is high when buyers have few choices and low when buyers have many choices.

Question 54

With a competitive strategy, companies only need to plan their own moves.

Question 55

It's a good idea for a company to select two competitive advantage strategies.

Question 56

The introduction of the ATM in the banking industry is an example of the innovation strategy.

Question 57

Which of the following statements concerning business processes is false?

A)A process has inputs.
B)A process has outputs.
C)A process has activities that can be measured.
D)A process creates value.
E)A process cannot cross functional area boundaries.

Question 58

A business process can be a competitive advantage when _____________.

A)the company becomes less responsive and efficient
B)IT enables the company innovate or to execute better than its competitors
C)inputs are translated to outputs
D)a product or service is delivered to the organization

Question 59

One of the key benefits of the App developed by NASCAR is the cumulative value of the collected data that includes information on the pre-race inspections of all vehicles is collected and stored in real time. What can NASCAR executives identify with this data?

A)Trends and patterns to help maintain a level playing field for all racers
B)Information that can lead to a better tax strategy
C)Identification of customer profiles
D)Marketing information for better pricing strategy
E)Financial information for cost analysis

Question 60

What type of application did NASCAR develop in order to incorporate all the items on the paper-based form?

A)A dashboard view that displays each vehicle along with its progress through the inspection process
B)A mobile e-commerce application that allows customers to book inspections online
C)An accounting application that handles all the payroll and tax processes of the business
D)An e-commerce website for customers to pay online and book appointments
E)None of the above

Question 61

Business process ______________ is a management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.

A)implementation
B)management
C)optimization
D)reengineering

Question 62

For many organizations, business process reengineering:

A)is easy to implement.
B)is not disruptive to implement.
C)has little impact on facilities.
D)is inexpensive.
E)has a major impact on the corporate culture.

Question 63

The initial goal of business process management is ____________________.

A)to be less radical, disruptive, and more incremental
B)to improve profitability by decreasing costs and increasing revenue
C)to create a competitive advantage through organizational flexibility
D)to organize around the business process, not the individual task

Question 64

Which of the following processes involves the warehouse, purchasing, and accounting functional areas?

A)Procurement
B)Fulfillment
C)Order entry
D)Accounts receivable
E)Payroll

Question 65

An example of a cross-functional business process is ________.

A)warehousing
B)purchasing
C)procurement
D)accounting

Question 66

Collecting sales tax is an example of a(n):

A)Accounting Business Process
B)Finance Business Process
C)Marketing Business Process
D)Production Business Process
E)Management Information Systems Business Process

Question 67

Which of the following statements is false?

A)BPM begins with process modelling.
B)Process modeling is a graphical depiction of all the steps in a process.
C)BPM uses Web-enabled technologies for user interfaces.
D)Business activity monitoring is used to measure and manage business processes.
E)Business activity monitoring is a type of scheduled reporting.

Question 68

____________ pressures are generated by the global economy, intense competition, the changing nature of the workforce, and powerful customers.

A)Economic
B)Market
C)Social
D)Technology

Question 69

Business process _______________ is a strategy for improving the efficiency and effectiveness of an organization's business processes.

A)implementation
B)management
C)optimization
D)reengineering

Question 70

Which of the following is not a role that information systems play in businesses processes?

A)Establish standards
B)Execute the process
C)Capture and store process data
D)Monitor process performance
E)Detect problems with the process

Question 71

Applying copyrights and trademarks is an example of a(n):

A)Accounting business process
B)Finance business process
C)Marketing business process
D)Production business process
E)Management information systems business process

Question 72

Managing purchasing is an example of a(n):

A)Accounting Business Process
B)Finance Business Process
C)Marketing Business Process
D)Production Business Process
E)Management Information Systems Business Process

Question 73

_____________ is the result of optimizing the marketing and innovation processes.

A)Customer satisfaction
B)Cost reduction
C)Cycle and fulfillment time
D)Differentiation

Question 74

Managing account collections is an example of a(n):

A)Accounting Business Process
B)Finance Business Process
C)Marketing Business Process
D)Production Business Process
E)Management Information Systems Business Process

Question 75

Which of the following statements is false?

A)BPM is a task-oriented approach.
B)BPM can help companies reduce costs.
C)BPM can help companies increase revenue.
D)BPM can improve customer satisfaction.
E)BPM can improve organizational flexibility.

Question 76

Managing pay and payroll is an example of a(n):

A)Accounting Business Process
B)Finance Business Process
C)Marketing Business Process
D)Human Resources Business Process
E)Management Information Systems Business Process

Question 77

Reconciling bank accounts is an example of a(n):

A)Accounting Business Process
B)Finance Business Process
C)Marketing Business Process
D)Production Business Process
E)Management Information Systems Business Process

Question 78

_____________ is the result of optimizing the manufacturing and logistics processes.

A)Customer satisfaction
B)Cost reduction
C)Cycle and fulfillment time
D)Differentiation

Question 79

Which of the following processes involves the warehouse, sales, and accounting functional areas?

A)Procurement
B)Fulfillment
C)Order entry
D)Accounts receivable
E)Payroll

Question 80

Cross-functional business processes:

A)fall within a single functional area.
B)cut across multiple functional areas.
C)require collaboration.
D)A and C
E)B and C