Chapter 1 The Importance of Mis: Processes, Systems, and Information, 2E (Mckinney/Kroenke)

Processes, Systems, and Information, 2e (McKinney/Kroenke)
Chapter 1 The Importance of MIS
1) As a result of Moore's Law, the ratio of price to performance of computers has increased
dramatically over the years.
Answer: FALSE
Difficulty: Easy
AACSB: Information Technology
Chapter LO: 1
Course LO: Discuss the role of information systems in supporting business processes
2) The increasing growth of social media is an example of how Moore's Law can impact the
business environment.
Answer: TRUE
Difficulty: Moderate
Chapter LO: 1
3) Because of Moore's Law, the cost of data processing, communications, and storage is
essentially zero.
Answer: TRUE
Difficulty: Easy
Chapter LO: 1
4) Future business professionals need to be able to access, evaluate, and apply emerging
information technology to business.
Answer: TRUE
Difficulty: Easy
Chapter LO: 1
5) Because of Moore's Law, any routine skill can and will be outsourced to the lowest bidder.
Answer: TRUE
Difficulty: Easy
Chapter LO: 1
6) Critical feedback undermines collaboration.

Answer: FALSE
Difficulty: Easy
Chapter LO: 1
Course LO: Explain how IS can enhance systems of collaboration and teamwork
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7) Effective collaboration is all about being cordial to one's team members.
Answer: FALSE
Difficulty: Easy
Chapter LO: 1
8) Experimentation increases the fear of failure.

Answer: FALSE
Difficulty: Easy
Chapter LO: 1
9) MIS is defined as the management and use of processes, information systems, and information
to help organizations achieve their strategies.
Answer: TRUE
Difficulty: Easy
Chapter LO: 2
10) Focusing on business processes is key to improving organizational effectiveness and

efficiency.
Answer: TRUE
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the components of an information system (IS)
11) An information system is a collection of components, including a computer, that stores and
retrieves data and produces information.
Answer: TRUE
Difficulty: Easy
Chapter LO: 2
12) A process may use multiple information systems, and an information system may touch
many different processes.
Answer: TRUE
Difficulty: Easy
Chapter LO: 2
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13) Information systems are typically acquired off-the-shelf in time of need.
Answer: FALSE
Difficulty: Easy
Chapter LO: 2
14) Like business processes, information systems need to be monitored to ensure that they
continue to meet their requirements.
Answer: TRUE
Difficulty: Easy
Chapter LO: 2
15) Processes, systems, and information need to be created by a company to avoid "falling
behind the technology curve."
Answer: FALSE
Difficulty: Easy
Chapter LO: 2
16) Business processes can influence the design of information systems.

Answer: TRUE
Difficulty: Easy
Chapter LO: 3
17) Porter's five forces determines the characteristics of the industry, how profitable it is, and
how sustainable that profitability will be.
Answer: TRUE
Difficulty: Easy
Chapter LO: 4
18) Organizational strategy begins with an assessment of the fundamental characteristics and
structure of an industry.
Answer: TRUE
Difficulty: Easy
Chapter LO: 4
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19) A substitute performs different functions as an industry's products.
Answer: FALSE
Difficulty: Easy
Chapter LO: 4
20) Low customer switching costs are a threat to new entrants in an established industry.
Answer: FALSE
Difficulty: Easy
Chapter LO: 4
21) Competition from rivals is particularly high when industry growth is slow and when exit
barriers are high.
Answer: TRUE
Difficulty: Easy
Chapter LO: 4
22) The strength of the bargaining power of suppliers and customers depends on the switching
costs and product differentiation.
Answer: TRUE
Difficulty: Easy
Chapter LO: 4
Course LO: Explain how IS can be used to gain and sustain competitive advantage
23) A company that states a strategy of low cost leadership and a differentiation on customer
service simultaneously is most likely to achieve a strong competitive advantage.
Answer: FALSE
Chapter LO: 5
24) The cost or differentiation strategy must be employed across an entire industry and cannot be
tailored to specific industry segments.
Answer: FALSE
Difficulty: Easy
Chapter LO: 5
25) It is always wrong to try to do more than one competitive strategy at a time.
Answer: TRUE
Chapter LO: 5
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26) All processes, information systems, and information must be constructed to facilitate an
organization's competitive strategy.
Answer: TRUE
Difficulty: Easy
Chapter LO: 5
27) Cost is what it takes to produce a product or service.

Answer: TRUE
Difficulty: Easy
Chapter LO: 5
28) According to Porter, only one company in an industry can actually be the cost leader.
Answer: TRUE
Difficulty: Easy
Chapter LO: 5
29) If a firm's competitive strategy is to be a cost leader, then business activities need to be
developed to provide essential functions at the lowest possible cost.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
30) Porter's five forces model is also referred to as the value chain model.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
31) A business that selects a differentiation strategy would necessarily structure itself around
least-cost activities.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
32) A business with a differentiation strategy will add cost to an activity as long as the activity
has a positive margin.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
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33) The difference between the value that an activity generates and the cost of the activity is
called value-addition.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
34) Porter defined value as the amount of money that a customer is willing to pay for a resource,
product, or service.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
35) In the value chain, the primary activity of sales and marketing is the collection, storage, and
physical distribution of products to buyers.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
36) In the value chain, the primary activity of customer service is to assist customers in their use
of the product, and thus maintain and enhance the product's value.
Answer: TRUE
Chapter LO: 6
37) Inbound logistics involves receiving, storing, and disseminating inputs to products.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
38) Each stage of the value chain accumulates costs and adds value to the product.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
39) The support activities in the generic value chain contribute directly to the production, sale,
and service of the product.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
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40) Support activities in a value chain include the processes of finding vendors, setting up
contractual arrangements, and negotiating prices.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
41) Supporting functions of the value chain add value indirectly, and hence do not incur costs.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
42) It is difficult to calculate the margin of supporting activities because the specific value added
by supporting activities is difficult to know.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
43) Manufacturing systems use linkages to reduce inventory costs.

Answer: TRUE
Difficulty: Easy
Chapter LO: 6
44) Value chains and linkages have led to the creation of integrated, cross-departmental business
systems.
Answer: TRUE
Difficulty: Easy
Chapter LO: 6
45) The central idea of a business process design is that organizations should automate or
improve existing functional systems.
Answer: FALSE
Difficulty: Easy
Chapter LO: 6
46) Business processes determine the scope and requirements of each organization's information
systems.
Answer: TRUE
Difficulty: Easy
Chapter LO: 7
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47) Which of the following statements best describes Moore's Law?
A) A computer processor becomes obsolete within 18 months.
B) The speed of a computer processor doubles every 18 months.
C) The number of transistors per square inch on an integrated chip doubles every 18 months.
D) The total number of transistors produced in the world doubles every 18 months.
Answer: C
Chapter LO: 1
48) Which of the following is a misinterpretation of Moore's Law?

A) A computer processor becomes obsolete within 18 months.
B) The total number of transistors produced in the world doubles every 18 months.
C) The number of transistors per square inch on an integrated chip doubles every 18 months.
D) The speed of a computer processor doubles every 18 months.
Answer: D
Chapter LO: 1
49) Which of the following results is attributed to Moore's Law?

A) The price of software has come down drastically.
B) The ratio of price to performance of computers has fallen drastically.
C) The risk of technology becoming obsolete has decreased.
D) Piracy of software has increased.
Answer: B
Difficulty: Easy
Chapter LO: 1
50) Because of Moore's Law, the cost of data processing, communications, and storage
________.
A) has increased exponentially
B) has remained unchanged
C) is witnessing an upward trend
D) is essentially zero
Answer: D
Difficulty: Easy
Chapter LO: 1
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51) Which of the following trends driven by the Moore's Law is changing the way businesses use
IT?
A) the rapid growth of Internet accessibility
B) the decrease in data produced each year
C) the decrease in usage of mobile devices
D) the frequent increase in communication costs
Answer: A
Difficulty: Easy
Chapter LO: 1
52) Which of the following is a nonroutine cognitive skill that would provide one with job
security?
A) abstract reasoning
B) tax accounting
C) communication skills
D) computer knowledge
Answer: A
Difficulty: Easy
Chapter LO: 1
53) ________ is the ability to make and manipulate models.

A) Abstract reasoning
B) Systems thinking
C) Collaboration
D) Experimentation
Answer: A
Difficulty: Easy
Chapter LO: 1
54) Miguel proposes a new design idea for an automobile to his boss. He illustrates the model
through a presentation, describes how the firm could profit from it, and how it meets customers'
needs. Which of Reich's four critical skills is Miguel exhibiting?
A) abstract reasoning
B) systems thinking
C) collaboration
D) process orientation
Answer: A
AACSB: Analytical Thinking
Chapter LO: 1
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55) ________ is the ability to model the components of a system and to connect the inputs and
outputs among those components into a sensible whole, one that explains the phenomenon
observed.
A) Abstract reasoning
B) Systems collaboration
C) Systems thinking
D) Experimentation
Answer: C
Difficulty: Easy
Chapter LO: 1
56) Which of the following is a necessary condition for effective collaboration?

A) the ability to be cordial at all times
B) the ability to manipulate models
C) the ability to give and receive critical feedback
D) the ability to dominate group members
Answer: C
Difficulty: Easy
Chapter LO: 1
57) Ellen is the marketing manager of Qtopia Inc. She often develops ideas and plans with the
help of her colleagues, and provides and receives critical feedback. According to Reich's four
critical skills, Ellen is displaying ________ skills.
A) collaboration
B) systems thinking
C) abstract reasoning
D) experimentation
Answer: A
Chapter LO: 1
58) ________ is defined as making a careful and reasoned analysis of an opportunity,

envisioning potential products or solutions or applications of technology, and then developing
those ideas that seem to have the most promise, consistent with the resources one has.
A) Collaboration
B) Systems thinking
C) Abstract reasoning
D) Experimentation
Answer: D
Difficulty: Easy
Chapter LO: 1
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59) As a candidate at a job interview for the position of video and graphic designer, Steve is
asked to create a design using Corel VideoStudio X3, a relatively new software that he has not
learned yet. Which of the following skills is the interviewer trying to test?
A) systems thinking
B) abstract reasoning
C) collaboration
D) ability to experiment
Answer: D
Chapter LO: 1
60) A(n) ________ involves finding potential customers, contacting them, and assigning a sales
person.
A) value chain
B) information system
C) business process
D) differentiation strategy
Answer: C
Difficulty: Easy
Chapter LO: 2
61) Which of the following statements regarding an information system is true?

A) It does not produce data, but merely retrieves it.
B) It is synonymous with business processes.
C) It stores and retrieves data.
D) It can use only a single business process.
Answer: C
Difficulty: Easy
Chapter LO: 2
62) Which of the following appropriately justifies a company's decision to develop an

information system?
A) to project a modern and progressive image
B) to achieve organizational strategy
C) for the sake of exploring technology and being innovative
D) to avoid falling behind the technology curve
Answer: B
Chapter LO: 2
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63) ________ determines the structure, features, and functions of every information system.
A) Differentiation strategy
B) Competitive strategy
C) Organizational culture
D) Organizational objective
Answer: B
Difficulty: Easy
Chapter LO: 3
64) Which of the following is the first stage in the sequence of how organizational strategy
determines MIS?
A) formulating the business process
B) formulating a competitive strategy
C) determining the industry structure
D) determining the value chain structure
Answer: C
Difficulty: Easy
Chapter LO: 4
65) The intensity of Porter's five forces model determines ________.

A) the exact number of customers a company will have
B) the exit strategy of a firm
C) how sustainable an industry's profitability will be
D) how to achieve a monopoly in the market
Answer: C
Difficulty: Easy
Chapter LO: 4
66) According to Porter's five forces model, established companies face stronger threats from
substitutes if the substitute's ________.
A) price is lower
B) benefits are different
C) switching cost is higher
D) functions are different
Answer: A
Difficulty: Easy
Chapter LO: 4
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67) Which of the following is an industry barrier for new entrants in an established market?
A) low financial investments
B) government policies
C) low customer switching costs
D) accessible distribution channels
Answer: B
Chapter LO: 4
68) Willoughby Inc., a large chain of superstores, sources its products from thousands of
suppliers who have limited product differentiation. The products stored at the superstores are
also available at smaller convenience stores with a marginal price differentiation. In this case,
which of the following competitive forces is most likely to be a threat to the company?
A) threat of substitutions
B) bargaining power of suppliers
C) threat of new entrants
D) bargaining power of customers
Answer: D
Difficulty: Hard
Chapter LO: 4
69) Which of the following is a key for companies when choosing a competitive strategy?
A) It is essential for companies to commit to more than one strategy at a time.
B) The competitive strategy of companies must be distinctive and maintainable.
C) Companies must sell products at the highest price to become a cost leader.
D) Companies should try to imitate the competitive strategies of competitors.
Answer: B
Chapter LO: 5
70) A car rental company operates in two cities and offers rental cars at low rates specifically to
college students from these areas. This is an example of a(n) ________.
A) industry-wide differentiation strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) industry-wide cost leadership strategy
Answer: C
Chapter LO: 5
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71) Staples sells office supplies and machines, furniture, and technology and business services
both in stores and online. It sells every kind of stationery that one can imagine. It has over 2,000
stores worldwide in 26 countries. This is most likely an example of a(n) ________.
A) industry-wide differentiation strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) industry-wide cost leadership strategy
Answer: A
Difficulty: Hard
Chapter LO: 5
72) Porter defined ________ as the amount of money that a customer is willing to pay for a
resource, product, or service.
A) margin
B) value
C) premium
D) cost
Answer: B
Difficulty: Easy
Chapter LO: 6
73) The difference between the value that an activity generates and the cost of the activity is
called the ________.
A) margin
B) revenue
C) break-even point
D) value-addition point
Answer: A
Difficulty: Easy
Chapter LO: 6
74) A ________ is defined as a network of value-creating activities.

A) value segment
B) value pyramid
C) value chain
D) value system
Answer: C
Difficulty: Easy
Chapter LO: 6
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75) Which activity of the value chain includes ordering and receiving raw materials for
manufacturing?
A) inbound logistics
B) operations
C) outbound logistics
D) marketing
Answer: A
Chapter LO: 6
76) Which activity of the value chain includes inducing a customer to purchase a product?
A) inbound logistics
B) operations/manufacturing
D) sales and marketing
Answer: D
Difficulty: Easy
Chapter LO: 6
77) Ben is in charge of the delivery process at a local store. After going through the week's
delivery schedule, he calls his team and assigns territories for each individual. He contacts the
supervisor to arrange the necessary transport. Which activity of the value chain is Ben executing?
A) marketing
B) inbound logistics
D) operations
Answer: C
Difficulty: Hard
Chapter LO: 6
78) The difference between the total value added and the total costs incurred is called the
________ of the value chain.
A) revenue
B) break-even point
C) total margin
D) total premium
Answer: C
Difficulty: Easy
Chapter LO: 6
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79) Which of the following is a support activity in the value chain?
A) receiving inputs for production
B) distributing products to buyers
C) helping customers use a product
D) negotiating prices with vendors
Answer: D
Chapter LO: 6
80) Which of the following is a support activity in the value chain that includes activities within
the firm for developing new techniques, methods, and procedures?
A) technology
B) human resources
C) firm infrastructure
D) procurement
Answer: A
Difficulty: Easy
Chapter LO: 6
81) According to Porter, ________ includes recruiting, compensation, evaluation, and training of
full- and part-time employees.
A) human resources
B) firm infrastructure
C) technology
D) procurement
Answer: A
Difficulty: Easy
Chapter LO: 6
82) Which of the following support activities of a generic value chain deals with legal and
government affairs?
A) technology
B) human resources
C) firm infrastructure
D) procurement
Answer: C
Difficulty: Easy
Chapter LO: 6
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83) According to Porter's model of business activities, ________ are interactions across value
activities.
A) value-additions
B) linkages
C) support activities
D) margins
Answer: B
Difficulty: Easy
Chapter LO: 6
84) Porter's model of integrating all the activities of all the departments involved in a value chain
is referred to as business ________.
A) outsourcing
B) development
C) analysis
D) process design
Answer: D
Difficulty: Easy
Chapter LO: 6
85) What changes must a company make if its value chain's margin is negative?
A) The value must be decreased.
B) The costs of the value chain need to be increased.
C) The number of stages in the generic chain must be increased.
D) The value must be increased so that it exceeds the cost.
Answer: D
Chapter LO: 7
86) State Moore's Law and describe its effects on the business environment.
Answer: Moore's Law states that the number of transistors per square inch on an integrated chip
doubles every eighteen months. Because of Moore's Law, the ratio of price to performance of
computers has fallen drastically, and the cost of data processing, communications and storage is
essentially zero. Moore's Law has led to trends of new apps, more access, more data, and greater
mobile use are rapidly changing the way businesses use IT. In addition, the opportunities they
present to connect to customers throughout the world and improve business activities within the
organization mean that IT is more important to business today than any time in history.
Difficulty: Easy
Chapter LO: 1
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87) What is abstract reasoning and systems thinking? Give an example for each.
Answer: Abstract reasoning is the ability to make and manipulate models. Constructing a model
of the five components of an information system is an example of abstract reasoning.
Systems thinking is the ability to model the components of the system and to connect the inputs
and outputs among those components into a sensible whole, one that explains the phenomenon
observed. Modeling system components and showing how components' inputs and outputs relate
to one another is an example of systems thinking.
Difficulty: Easy
Chapter LO: 1
88) Explain the meaning of collaboration and experimentation with the help of examples.
Answer: Effective collaboration isn't about being nice. In fact, surveys indicate the single most
important skill for effective collaboration is to give and receive critical feedback. For example,
providing inputs to the marketing strategies devised by a marketing manager and accepting
critical feedback for it is considered to be effective collaboration. Experimentation refers to
making a careful and reasoned analysis of an opportunity, envisioning potential products or
solutions or applications of technology, and then developing those ideas that seem to have the
most promise, consistent with the resources one has. For example, creating and testing promising
new alternatives, consistent with available resources is considered as experimentation.
Chapter LO: 1
89) Define management information systems.

Answer: Management information systems, or MIS, is the management and use of processes,
information systems, and information to help organizations achieve their strategies.
Difficulty: Easy
Chapter LO: 2
90) What are processes, information systems, and information?

Answer: A process, or as it is sometimes called, a business process, is a way of doing something.
For example, a company has a process for acquiring new customers. The process involves
finding potential customers, contacting them, assigning a sales person and so forth. Because
organizations accomplish work via processes, focusing on them is key to improving
organizational effectiveness and efficiency. An information system is a collection of components,
including a computer, that stores and retrieves data and produces information. Business
processes and information systems are not the same things. A process may use multiple
information systems, and an information system may touch many different processes.
Information is a meaningful insight that helps employees to do their jobs.
Chapter LO: 2
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91) How does MIS help organizations achieve their strategies?
Answer: MIS exists to help people who work in a business achieve the strategies of that
business. Because of the rapid pace of technology development, it can be tempting to construct
information systems just to be "modern" or for some other reason. Constructing systems for such
reasons is unwise and wasteful of both time and money. Processes, information systems, and
information need to be created for the purpose of achieving the organization's strategy. They are
not created because the IS department thinks they need to be created or because the company is
"falling behind the technology curve." As a future business professional, one needs to learn to
look at information systems and technologies only through the lens of business need.
Difficulty: Easy
Chapter LO: 2
92) How does MIS relate to organizational strategy?

Answer: MIS exists to help organizations achieve their strategy. An organization's goals and
objectives are determined by its competitive strategy. Thus, ultimately, competitive strategy
determines the structure, features, and functions of every information system. Business processes
can also influence the design of information systems.
Chapter LO: 3
93) Briefly describe Porter's five forces model.

Answer: A model used to assess an industry structure is Porter's five forces model. According to
this model, five competitive forces determine industry profitability: bargaining power of
customers, threat of substitutes, bargaining power of suppliers, threat of new entrants, and rivalry
among existing firms.
A substitute performs the same or similar function as an industry's product by another means.
The threat from new entrants is based on industry barriers to entry and the reaction new entrants
can expect from established companies in the industry.
The competition from industry rivals, also called copycats, is high when rivals compete with
each other using price discounting, new products, and service improvements.
The last two forces concern bargaining power forces from suppliers or from customers. The
strength of these forces depends on the number of available suppliers and buyers, switching
costs, the differentiation of the product, and the relative size of the firm compared to the size of
suppliers or customers.
Chapter LO: 4
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94) What are the different competitive strategies according to Porter's model?
Answer: An organization responds to the structure of its industry by choosing a competitive
strategy.
Porter followed his five forces model with the model of four competitive strategies. According to
Porter, a firm can engage in one of four fundamental competitive strategies. An organization can
be the cost leader and provide products at the lowest prices in the industry, or it can focus on
adding value to its products to differentiate them from those of the competition. Further, the
organization can employ the cost or differentiation strategy across an industry, or it can focus its
strategy on a particular industry segment. According to Porter, to be effective, the organization's
goals, objectives, culture, and activities must be consistent with the organization's strategy.
Difficulty: Easy
Chapter LO: 5
95) Define value, margin, and value chain.

Answer: Porter defined value as the amount of money that a customer is willing to pay for a
resource, product, or service. The difference between the value that an activity generates and the
cost of the activity is called the margin. A value chain is a network of value-creating activities.
According to Porter, that generic chain consists of five primary activities and four support
activities.
Difficulty: Easy
Chapter LO: 6
96) What are the primary activities in the value chain?

Answer: The primary activities in the value chain include:
1. Inbound logistics - Receiving, storing, and handling raw materials and other inputs
2. Operations/manufacturing - Transforming inputs into the final product
3. Outbound logistics - Collecting, storing, and physically distributing the product to buyers
4. Sales and marketing - Inducing buyers to purchase the product and providing a means for
them to do so
5. Customer service - Assisting customers' use of the product and thus maintaining and
enhancing the product's value
Difficulty: Easy
Chapter LO: 6
97) What are the support activities of a value chain?

Answer: The support activities in the generic value chain contribute indirectly to the production,
sale, and service of the product. They include procurement, technology, human resources, and
firm infrastructure. Supporting functions add value, albeit indirectly, and they also have costs. In
the case of supporting activities, it would be difficult to calculate the margin because the specific
value added by a support activity is difficult to know.
Difficulty: Easy
Chapter LO: 6
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98) How does Porter define procurement, technology, human resources, and firm infrastructure?
Answer: Porter defined procurement as the processes of finding vendors, setting up contractual
arrangements, and negotiating prices. He defined technology broadly to include research and
development and other activities within the firm for developing new techniques, methods, and
procedures. He defined human resources as recruiting, compensation, evaluation, and training of
full- and part-time employees. Firm infrastructure includes general management, finance,
accounting, legal, and government affairs.
Difficulty: Easy
Chapter LO: 6
99) Explain the meaning of value chain linkages with the help of an example.
Answer: Porter's model of business activities includes linkages, which are interactions across
value activities. For example, manufacturing systems use linkages to reduce inventory costs.
Such a system uses sales forecasts to plan production; it then uses the production plan to
determine raw material needs and then uses the material needs to schedule purchases. The end
result is just-in-time inventory, which reduces inventory sizes and costs.
Difficulty: Easy
Chapter LO: 6
100) Define the concept of business process design.

Answer: By describing value chains and their linkages, Porter started a movement to create
integrated, cross-departmental business systems. Over time, Porter's work led to the creation of a
new discipline called business process design. The central idea is that organizations should not
automate or improve existing functional systems. Rather, they should create new, more efficient
business processes that integrate the activities of all departments involved in a value chain.
Difficulty: Easy
Chapter LO: 6
101) How does competitive strategy determine business processes and information systems?
Answer: Organizations analyze their industry and choose a competitive strategy. Given that
strategy, they examine their value chain and design business processes that span value-generating
activities. Those processes determine the scope and requirements of each organization's
information systems.
Difficulty: Easy
Chapter LO: 7
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Processes, Systems, and Information, 2e (McKinney/Kroenke)

Chapter 1 The Importance of MIS

6) Critical feedback undermines collaboration.

8) Experimentation increases the fear of failure.

10) Focusing on business processes is key to improving organizational effectiveness and

16) Business processes can influence the design of information systems.

27) Cost is what it takes to produce a product or service.

43) Manufacturing systems use linkages to reduce inventory costs.

48) Which of the following is a misinterpretation of Moore's Law?

49) Which of the following results is attributed to Moore's Law?

53) ________ is the ability to make and manipulate models.

56) Which of the following is a necessary condition for effective collaboration?

58) ________ is defined as making a careful and reasoned analysis of an opportunity,

61) Which of the following statements regarding an information system is true?

62) Which of the following appropriately justifies a company's decision to develop an

65) The intensity of Porter's five forces model determines ________.

74) A ________ is defined as a network of value-creating activities.

89) Define management information systems.

90) What are processes, information systems, and information?

92) How does MIS relate to organizational strategy?

93) Briefly describe Porter's five forces model.

95) Define value, margin, and value chain.

96) What are the primary activities in the value chain?

97) What are the support activities of a value chain?

100) Define the concept of business process design.

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