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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Productivity is the result of optimizing operations and supplier processes.

Answer 3

False

Question 4

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

Question 5

The procurement process includes the sales function.

Question 6

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

Question 7

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

Question 8

A business process always includes information systems.

Question 9

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

Question 10

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

Question 11

A business process can be a liability.

Question 12

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

Question 13

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

Question 14

A business process has inputs and outputs.

Question 15

The activities of a business process can be measured.

Question 16

BPM is an implementation of BPR.

Question 17

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

Question 18

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

Question 19

BPM can improve an organization's flexibility.

Question 20

According to Friedman, the focus of Globalization 3.0 is on groups and individuals.

Question 21

Developed countries usually provide greater fringe benefits than developing countries.

Question 22

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

Question 23

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

Question 24

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

Question 25

In general, labor costs are higher in countries than in developed countries.

Question 26

In general, government deregulation decreases competition.

Question 27

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

Question 28

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

Question 29

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

Question 30

The digital divide is the gap between data and knowledge.

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

The Internet increases traditional barriers to entry into a market.

Question 38

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

Question 39

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

Question 40

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

Question 41

The Internet decreases customers' bargaining power.

Question 42

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 43

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

Question 44

The internet impact on bargaining power of suppliers always favors buyers.

Question 45

BP's April 2010 oil spill revealed the following about their business processes:

A)BP continually ignored the automatic warnings provided by the drilling system.
B)BP seemed to neglect the fact that the information systems that support its drilling operations are clearly just as strategic as the firm's business information systems.
C)BP was able to use IT to create millions of dollars in cost savings.
D)All of the above were revealed by the oil spill.

Question 46

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

Question 47

BP's CIO was tasked with ______________.

A)Updating their IT systems
B)Getting more IT vendors to support their systems
C)Reducing the number of IT contractors
D)Replace SAP with a better system

Question 48

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

Question 49

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

Question 50

The following company focused on providing a platform to companies to proper showcasing of their products.

A)Kijiji.com
B)CraigList.com
C)SalesForce.com
D)Shopcaster.com

Question 51

Information-based industries face the greatest threat from substitutes.

Question 52

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

Question 53

The term store power refers to:

A)The increased number of products.
B)The increased costs.
C)The increased customer traffic.
D)The increased sales force.

Question 54

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

Question 55

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

Question 56

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

Question 57

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 58

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

Question 59

An entry barrier is a long-term competitive advantage.

Question 60

The store power can be significantly increased by:

A)Proper showcasing of products online.
B)Kijiji.
C)Craig list.
D)Sales force.

Question 61

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 62

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 63

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 64

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 65

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 66

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

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

Question 67

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 68

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 69

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 70

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 71

Which of the following statements is false?

A)BPM begins with process modeling.
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 72

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 73

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 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

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 76

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

Question 77

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

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

Question 78

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 79

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 80

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

A)Warehousing
B)Purchasing
C)Procurement
D)Accounting