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Test Bank for Introduction to Information Systems 16th Edition by Marakas(SUMMARY)

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Test Bank for Introduction to Information Systems 16th Edition by Marakas

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TEST BANK FOR INTRODUCTION TO INFORMATION SYSTEMS 16TH
Test Bank for Introduction to Information Systems 16th Edition by Marakas
Full Download: http://downloadlink.org/product/test-bank-for-introduction-to-information-systems-16th-edition-by-marakas/
EDITION BY MARAKAS
02
Student: ___________________________________________________________________________

1. When an organization uses information technology to develop products, services and capabilities in order
to gain a strategic advantage over competitive forces in the global marketplace, it is using information
systems in a strategic role.
True False
2. Competition is a negative characteristic in business that can require significant resources to
overcome.
True False
3. Most products and services have some sort of substitute available to the consumer.
True False
4. In the Internet world, a firm's biggest competitor may be one that is not yet in the marketplace but could
emerge almost overnight.
True False
5. The threat of new entrants is often at its strongest during periods of rising costs or inflation.
True False
6. If a key supplier's bargaining power gets too strong, it can force the price of goods and services to
unmanageably high levels.
True False
7. An innovation strategy may allow a firm to focus its products or services and gain an advantage in a
particular segment or niche of a market.
True False
8. When a firm develops ways to differentiate its products from a competitor's, it is pursuing a cost
leadership strategy.
True False
9. When a firm uses IT to create virtual organizations of business partners, it is pursuing a growth
strategy.
True False
10. A given activity can fall into one or more of the categories of competitive strategy.
True False
11. If an organization offers its online package tracking system in a manner that allows its customers to
access shipment information not only via a computer, but via a mobile phone as well, then such an action
could fall into both the differentiation and innovation strategy categories.
True False
12. When a firm makes such radical changes to its business processes for producing products and services
that it alters the fundamental structure of an industry, it is pursuing an innovation strategy.
True False
13. Not everything innovative will serve to differentiate one organization from another.
True False
14. Investments in information technology can allow a business to lock in customers and suppliers, and lock
out competitors, by building valuable new relationships with them.
True False



Full all chapters instant download please go to Solutions Manual, Test Bank site: downloadlink.org

,15. Companies like Wal-Mart use information technology to implement competitive strategies for strategic
advantage.
True False
16. When a business effectively builds in switching costs, its customers and/or suppliers become reluctant to
switch to another competitor.
True False
17. A strategic use of information technology would be to leverage investment in information system
specialists, hardware, software, databases, and networks from operational uses into strategic
applications.
True False
18. A company that places a strategic focus on customer value recognizes that quality, rather than price, has
become a primary determinant in a customer's perception of value.
True False
19. Companies that consistently offer the best value from the customer's perspective must provide two key
services: keeping track of their individual customers' preferences and selling products or services at
lowest price.
True False
20. Internet technologies can make customers the focal point of customer relationship management (CRM)
and other e-business applications.
True False
21. The value chain framework can be used to view a firm as a series, a chain, or a network of basic activities
that add value to its products and services, and thus add a margin of value to the firm.
True False
22. According to the value chain concept, primary processes include such things as the procurement of
resources and human resource management that are directly related to the manufacturing of products or
delivery of services to the customer.
True False
23. When using the value chain concept, managers should seek to develop strategic information systems for
those activities that they view as the "weakest link" in the value chain.
True False
24. The value chain concept can help managers decide where and how to apply the strategic capabilities of
information technology.
True False
25. Business process reengineering (BPR) is most often called streamlining.
True False
26. Although the potential payback of reengineering is high, so is the risk of failure and level of disruption to
the organizational environment of the firm.
True False
27. Business process reengineering (BPR) combines a strategy of promoting business innovation with a
strategy of making major improvements to business operations so that a company can become a much
stronger and more successful competitor in the marketplace.
True False
28. Many companies have found that organizational redesign approaches are an important enabler of business
process reengineering.
True False

,29. All the employees within a marketing department, from clerical staff to top managers, form a cross-
functional team.
True False
30. Information technology plays a major role in the business process reengineering of most business
processes.
True False
31. Becoming an agile company depends on customer perceptions of products and services, as much as any
other strategy.
True False
32. An agile company cooperates with its suppliers and competitors.
True False
33. By nurturing an entrepreneurial spirit, an agile company provides powerful incentives for employee
responsibility, adaptability, and innovation.
True False
34. Information technology can enable a company to develop relationships with its customers in virtual
communities.
True False
35. Yahoo! transformed its service from a search engine into a portal by dedicating one branch of its business
to providing content and other media-related services.
True False
36. One of the reasons people form virtual companies is to keep new entrants out of a market.
True False
37. Knowledge-creating companies constantly create new business knowledge and then disseminate it
throughout the company in order to quickly build the new knowledge into their products and services.
True False
38. Explicit knowledge involves the "how-to" knowledge that resides in workers.
True False
39. Successful knowledge management creates techniques, technologies, and rewards for getting employees
to share what they know and to make better use of accumulated workplace knowledge.
True False
40. As an organization's learning process continues and its knowledge base expands, the knowledge creating
company works to integrate its knowledge into its business processes, products, and services.
True False
41. A strategic information system can be any kind of information system that uses information technology to
help an organization _______________.
A. gain a competitive advantage
B. reduce a competitive disadvantage
C. meet strategic enterprise objectives
D. all of the choices are correct.
42. A firm can survive and succeed in the long run if it successfully develops strategies to confront the
_______________ that shape the structure of competition in its industry.
A. technological innovations
B. competitive business processes
C. competitive forces
D. competitive strategies

, 43. A(n) _______________ strategy is a competitive strategy by which a firm seeks to become a low-cost
producer of products and services in the industry.
A. cost leadership
B. differentiation
C. innovation
D. alliance
44. A(n) _______________ strategy is a competitive strategy by which a firm develops ways to differentiate
its products and services from those of its competitors.
A. low cost leadership
B. innovation
C. differentiation
D. growth
45. A(n) _______________ strategy is a competitive strategy by which a firm develops unique products or
services from those of its competitors, or makes radical business changes that may alter the fundamental
nature of the industry.
A. alliance
B. growth
C. differentiation
D. innovation
46. A(n) _______________ strategy is a competitive strategy by which a firm significantly expands its
capacity to produce goods and services, expanding and diversifying in the market.
A. alliance
B. growth
C. differentiation
D. innovation
47. A(n) _______________ strategy is a competitive strategy by which a firm establishes new business
linkages with customers, suppliers, competitors, and other companies.
A. growth
B. low cost leadership
C. differentiation
D. alliance
48. According to the text, competition is a _______________ characteristic in business that
_______________.
A. positive, is natural and healthy
B. negative, can consume significant resources
C. neutral, can help a firm meet strategic enterprise objectives
D. none of the choices are correct.
49. According to the text, in the world of the Internet, a firm's biggest competitor:
A. Usually exists and is close in the physical world
B. Usually does not exist but will emerge close in the physical world
C. May not yet exist but could emerge almost overnight
D. Probably exists in an overseas location
50. According to the text, the Internet:
A. Has limited competition world-wide
B. Has created many ways to enter the market quickly, with relatively low cost
C. Has created new entry barriers to competition
D. Has decreased prices world-wide

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