Question 1

What type of competitive advantage strategy, which focuses on becoming more efficient and reducing costs, has Walmart and other retailers followed for years?
A)differentiation strategy
B)creating new products and services strategy
C)niche strategy
D)cost leadership strategy

Accepted Answer

Walmart and other retailers have focused on implementing cost leadership strategy, which emphasizes achieving higher efficiency and lower costs to offer products at lower prices than competitors.

Question 2

What measure is used by a company to assess the yield of its profits and benefits based on past performance?
A)net present value
B)return on investment
C)earnings growth
D)market share

Accepted Answer

Return on investment (ROI) is a measure used to assess the efficiency and profitability of an investment, which is calculated by dividing the gain from the investment by its cost. It is commonly used by companies to evaluate the performance of their past investments and determine where to allocate resources in the future. Net present value, earnings growth, and market share are also important metrics for evaluating company performance, but they do not directly measure the yield of profits and benefits based on past performance.

Question 3

What did organizations focus on when they first began using information systems?
A)reducing costs and improving productivity
B)gaining competitive advantage and using the most current technology
C)reducing costs and gaining competitive advantage
D)using the most current technology and improving productivity

Accepted Answer

Organizations initially focused on reducing costs and improving productivity when they first began using information systems.

Question 4

Which of the following characteristics can be attributed to highly competitive industries?
A)They have low fixed costs for entering or leaving the industry.
B)There are high degrees of product differentiation.
C)They have high turnover rates.
D)They exist in greater number and they seek the same objectives.

Accepted Answer

The answer of Which of the following characteristics can be...

Question 5

Which of the following is one of five forces identified in Michael Porter's competitive forces model?
A)the threat of merging of competitors
B)the threat of globalization
C)the threat of substitute products and services
D)the threat of new information systems

Accepted Answer

The threat of substitute products and services is one of the five forces identified in Michael Porter's competitive forces model. The other four forces include the bargaining power of suppliers, bargaining power of customers, threat of new entrants, and competitive rivalry within the industry. None of the other options listed are one of the five forces in this model.

Question 6

Why is competition so fierce in the restaurant industry?
A)entry costs are low
B)buyers have much bargaining power
C)suppliers have much bargaining power
D)there is less regulation

Accepted Answer

The low entry costs in the restaurant industry make it easier for new businesses to enter the market, resulting in increased competition. Lower entry costs mean that there are more players in the market, which makes it difficult for established businesses to maintain their market share. This leads to fierce competition within the industry.  The other options, such as buyer bargaining power, supplier bargaining power, and less regulation, have less impact on the competitiveness of the restaurant industry compared to low entry costs.

Question 7

Which of the following costs are included in the total cost of ownership?
A)hiring costs
B)technical support costs
C)maintenance costs
D)hardware and software costs

Accepted Answer

The answer of Which of the following costs are included...

Question 8

Which of the following is a measure of how widely technology is spread throughout an organization?
A)technology development
B)technology acceptance
C)technology diffusion
D)technology adoption

Accepted Answer

Technology diffusion is the measure of how widely technology is spread throughout an organization or a society. It refers to the rate at which technology is adopted and spreads from a few early adopters to the larger population of users. Technology development refers to the process of creating new technologies, while technology acceptance and adoption refer to the individual decision-making processes of users to use or not use a technology.

Question 9

Porsche, which produces only high-performance sports cars and SUVs, uses what type of strategy to gain competitive advantage?
A)differentiation strategy
B)niche strategy
C)cost leadership strategy
D)altering the industry structure strategy

Accepted Answer

Porsche uses a niche strategy, focusing on a specific market segment of high-performance sports cars and SUVs. This allows them to differentiate themselves from competitors and create a loyal customer base.

Question 10

User training is a key to getting the most from any information system.What department ensures that appropriate training is available?
A)Web administration
B)support
C)database administration
D)systems development

Accepted Answer

The support department is responsible for ensuring that appropriate training is available to users. They are the ones who interact directly with users and can identify their training needs, as well as provide the necessary resources and support for training. The other departments listed may have roles related to the information system, but they are not primarily responsible for user training.

Question 11

Gillian has been asked to plan and control all of the activities involved in ensuring that the organization can determine the demands of the clients.Which one of the following terms refers to this activity?
A)customer relationship management
B)inventory management
C)demand planning
D)supply chain management

Accepted Answer

The answer of Gillian has been asked to plan and...

Question 12

Which of the following activities is part of the value chain of an organization?
A)human resources
B)information technology
C)marketing and sales
D)infrastructure service

Accepted Answer

Marketing and sales activities are a part of the value chain as they involve generating awareness about the organization's products/services, creating a demand for them, and ensuring their delivery to customers. Human resources, information technology, and infrastructure service activities support the value chain but are not directly part of it.

Question 13

Which of the following is a measure of performance used to evaluate the contribution of information systems to a business?
A)return on investment
B)balance sheet
C)income statement
D)earnings per share

Accepted Answer

Return on investment (ROI) is a measure of performance used to evaluate the financial benefits of an investment, including investments in information systems. ROI compares the amount of return on an investment to the cost of the investment, providing an indicator of how well the investment is performing. The other choices (balance sheet, income statement, and earnings per share) are financial statements used to report the financial position and results of operations of a business, but they do not specifically measure the contribution of information systems.

Question 14

Loretta made a proposal to the CEO about the need to change some of the ways procurement is handled in the organization.She is recommending new rules of procurement as well as enhancing some of the existing processes to align them to best practices in the industry.What is the term used to refer to what Loretta is doing?
A)cultural change
B)cultural shift
C)organizational learning
D)organizational change

Accepted Answer

The answer of Loretta made a proposal to the CEO...

Question 15

What type of competitive advantage strategy involves frequent innovation?
A)differentiation strategy
B)creating new products and services strategy
C)niche strategy
D)cost leadership strategy

Accepted Answer

Creating new products and services strategy involves frequent innovation and development of new offerings to stay ahead of the competition. It focuses on offering unique and innovative products and services that are not currently available in the market. This strategy helps to differentiate a company from its competitors and attracts new customers while retaining existing ones.

Question 16

What does user satisfaction with a computer system and the information the system generates often depend on?
A)cost of the system
B)quality of the system
C)whether it was outsourced or not
D)the hardware that comes with it

Accepted Answer

While factors such as cost and hardware can certainly impact user satisfaction to some extent, the quality of the system is likely to be the biggest determinant of satisfaction. If the system is reliable, accurate, and efficient, users are likely to be satisfied with the information it generates, regardless of other factors.

Question 17

Company XA is looking at adding more services to its portfolio and is considering renting the necessary infrastructure needs from external agents.What term refers to this concept?
A)outsourcing
B)contracting
C)on-demand computing
D)customized technology

Accepted Answer

The answer of Company XA is looking at adding more...

Question 18

What activity involves reducing the number of employees to cut costs?
A)outsourcing
B)off shoring
C)on-demand computing
D)downsizing

Accepted Answer

Downsizing is the act of reducing the number of employees to cut costs. This is typically done when a company is facing financial difficulties or if they are looking to streamline their operations. Outsourcing and offshoring are strategies that involve hiring employees from other countries or companies to complete tasks may also be used to cut costs, but not necessarily to reduce the number of employees. On-demand computing refers to a model of computing where computing resources are delivered on an as-needed basis and is not related to reducing the number of employees.

Question 19

What is best described as the extent to which technology permeates an area or department?
A)technology deployment
B)technology development
C)technology adoption
D)technology infusion

Accepted Answer

Technology infusion refers to the level of integration of technology into a specific area or department of an organization, which goes beyond just deployment or adoption.

Question 20

What do customer relationship management programs help companies manage?
A)loyalty programs
B)finished product inventory
C)product design
D)service life cycle

Accepted Answer

Customer relationship management programs help companies manage their loyalty programs by tracking customer purchases and activities, identifying opportunities for reward and redemption, and analyzing customer behavior to improve retention efforts.

Option B is incorrect because CRM programs typically focus on customer data and relationships, not inventory management. Option C is incorrect because product design is typically managed by a separate team or department within a company. Option D is partially correct, as some CRM programs can help companies manage the service lifecycle by tracking customer interactions and feedback, but it is not the primary focus of these programs.

Quiz 1: Introduction to Information Systems

What type of competitive advantage strategy, which focuses on becoming more efficient and reducing costs, has Walmart and other retailers followed for years?

What measure is used by a company to assess the yield of its profits and benefits based on past performance?

What did organizations focus on when they first began using information systems?

Which of the following characteristics can be attributed to highly competitive industries?

Which of the following is one of five forces identified in Michael Porter's competitive forces model?

Why is competition so fierce in the restaurant industry?

Which of the following costs are included in the total cost of ownership?

Which of the following is a measure of how widely technology is spread throughout an organization?

Porsche, which produces only high-performance sports cars and SUVs, uses what type of strategy to gain competitive advantage?

User training is a key to getting the most from any information system.What department ensures that appropriate training is available?

Gillian has been asked to plan and control all of the activities involved in ensuring that the organization can determine the demands of the clients.Which one of the following terms refers to this activity?

Which of the following activities is part of the value chain of an organization?

Which of the following is a measure of performance used to evaluate the contribution of information systems to a business?

What type of competitive advantage strategy involves frequent innovation?

What does user satisfaction with a computer system and the information the system generates often depend on?

Company XA is looking at adding more services to its portfolio and is considering renting the necessary infrastructure needs from external agents.What term refers to this concept?

What activity involves reducing the number of employees to cut costs?

What is best described as the extent to which technology permeates an area or department?

What do customer relationship management programs help companies manage?