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					                     Managing International Information Systems


True-False Questions
  1.   Dräger Safety uses a software program called PointOut to provide a desktop data interface
       with the same look and functionality at each company.

       Answer: True               Difficulty:      Hard              Reference: p. 571

  2.   The growth of international trade has radically altered domestic economies around the globe.

       Answer: True               Difficulty:      Easy              Reference: p. 572

  3.   Before you develop a corporate strategy and structure for globalization you need to choose
       the right technology.

       Answer: False              Difficulty:      Easy              Reference: p. 574

  4.   Global business drivers can be divided into two groups: general cultural factors and specific
       business factors.

       Answer: True               Difficulty:      Medium            Reference: p. 574

  5.   Information, communication, and transportation technologies had contributed to creating a
       global village.

       Answer: True               Difficulty:      Easy              Reference: p. 574

  6.   The cost of telecommunication technology has resulted in dramatically increasing the cost of
       moving goods and services to and from geographically dispersed locations.

       Answer: False              Difficulty:      Medium            Reference: p. 574

  7.   The collapse of the Eastern block has speeded the growth of a world culture.

       Answer: True               Difficulty:      Easy              Reference: p. 574

  8.   Because Latin America, China, southern Asia, and eastern Europe have weak education,
       science, and industrial skills, they are referred to as Third World countries.

       Answer: False              Difficulty:      Medium            Reference: p. 574

  9.   The growth of powerful communications technologies and the emergence of world cultures
       create the condition for global markets.

       Answer: True               Difficulty:      Easy              Reference: p. 575
10.   Micromarketing is limited to marketing to very small geographic and social units within the
      domestic market.

      Answer: False              Difficulty:      Medium             Reference: p. 575

11.   Firms operating in global markets are able to coordinate business activity according to
      comparative advantage.

      Answer: True               Difficulty:      Easy               Reference: p. 575

12.   Global markets, production, and administration create the conditions for powerful, sustained
      global economies of scale.

      Answer: True               Difficulty:      Easy               Reference: p. 575

13.   A powerful strategic advantage for a globalized firm is lowered cost factors in production.

      Answer: True               Difficulty:      Easy               Reference: p. 575

14.   Particularism is a concept based on accepting the concept of a shared global culture and the
      penetration of domestic markets by foreign goods and services.

      Answer: False              Difficulty:      Hard               Reference: p. 575

15.   At the cultural level, differences among cultures produce differences in social expectations,
      politics, and legal rules.

      Answer: True               Difficulty:      Easy               Reference: p. 575

16.   When operating in the global markets, most companies need not be concerned with the laws
      governing the movement of information.

      Answer: False              Difficulty:      Easy               Reference: p. 575

17.   Hours of business in terms of business trade are approximately the same in a global
      economy.

      Answer: False              Difficulty:      Easy               Reference: p. 576

18.   European countries have very strict laws concerning transborder data flows and privacy.

      Answer: True               Difficulty:      Easy               Reference: p. 576

19.   The European Union Data Protection Directive restricts the flow of any information to
      countries that do not meet strict European laws on personal information.

      Answer: True               Difficulty:      Medium             Reference: p. 576
20.   To avoid the cost and uncertainty of moving information across national boundaries, most
      multinational firms have developed information systems within each European country.

      Answer: True                Difficulty:       Medium             Reference: p. 576

21.   Reliable phone networks and skilled consultants are readily available to companies operating
      in global markets.

      Answer: False               Difficulty:       Easy               Reference: p. 576

22.   The accounting practices of a country are tightly intertwined with that country’s legal
      system.

      Answer: True                Difficulty:       Easy               Reference: p. 576

23.   In International companies, English has become as a kind of standard business language.

      Answer: True                Difficulty:       Easy               Reference: p. 576

24.   Most international companies have rationally developed international systems architectures.

      Answer: False               Difficulty:       Easy               Reference: p. 577

25.   In a multinational strategy, products and services on sale in different countries are adapted to
      serve local market conditions.

      Answer: True                Difficulty:       Medium             Reference: p. 578

26.   Transnational firms extend beyond national boundaries.

      Answer: True                Difficulty:       Medium             Reference: p. 578

27.   Information technology and improvements in global telecommunications are giving
      international firms less flexibility to shape their global strategies because they lose the
      advantage of being unique.

      Answer: False               Difficulty:       Medium             Reference: p. 578

28.   For increased costs and minimum impact, value-adding activities should be located where
      they can best be performed.

      Answer: False               Difficulty:       Easy               Reference: p. 579

29.   A work-flow analysis is the best way to identify core business processes.

      Answer: True                Difficulty:       Hard               Reference: p. 582

30.   Identifying critical business processes will identify opportunities for transnational systems
      Answer: True                 Difficulty:      Medium            Reference: p. 582
31.   Piecemeal approaches to a global systems strategy tend to fail because of the inability to
      focus resources.

      Answer: False               Difficulty:     Easy               Reference: p. 582

32.   All types of global systems contribute to superior management and coordination.

      Answer: True                Difficulty:     Easy               Reference: p. 582

33.   Global systems create the ability to optimize the use of corporate funds over a larger capital
      base.

      Answer: True                Difficulty:     Easy               Reference: p. 583

34.   Global systems allow fixed costs to be amortized over a much smaller customer base.

      Answer: False               Difficulty:     Medium             Reference: p. 583

35.   The major telecommunications challenge in an international setting is making data flow
      seamlessly across networks shaped by disparate national standards.

      Answer: True                Difficulty:     Easy               Reference: p. 583

36.   Integrated global telecommunications networks are extremely difficult to create.

      Answer: True                Difficulty:     Easy               Reference: p. 583

37.   Network service is much more reliable in northern Europe than in southern Europe.

      Answer: True                Difficulty:     Medium             Reference: p. 584

38.   Because of the European Union, western Europe has low transmission costs and a common
      technology.

      Answer: False               Difficulty:     Medium             Reference: p. 584

39.   Private networks may not provide the same level of quick and predictable response as VPNs.

      Answer: False               Difficulty:     Hard               Reference: p. 584

40.   As more secretaries and supervisors use international systems, English will become the
      international standard.

      Answer: False               Difficulty:     Hard               Reference: pp. 585-586
Multiple-Choice Questions
  41.   Over _____________ worth of goods, services, and financial instruments changes hands
        each day in global trade.

        a.   $5 million
        b.   $1 billion
        c.   $1 trillion
        d.   $10 trillion

        Answer:      c               Difficulty:    Easy               Reference: p. 572

  42.   A force in the environment to which businesses must respond and that influences the
        direction of the business is called a:

        a.   business driver.
        b.   business threat.
        c.   business process.
        d.   business matrix.

        Answer:      a               Difficulty:    Easy               Reference: p. 572

  43.   Which one of the following factors did not contributed to the creation of a global village?

        a.   World economic leaders sharing a global vision of peace and prosperity.
        b.   Global culture created by television and other globally shared media.
        c.   Information, communication and transportation.
        d.   Growth of global knowledge bases.

        Answer:      a               Difficulty:    Easy               Reference: p. 574

  44.   At the end of World War II, which of the following countries was considered part of the
        Third World?

        a.   Western Europe.
        b.   China.
        c.   North America.
        d.   Japan.

        Answer:      b               Difficulty:    Easy               Reference: p. 574
45.   Two powerful worldwide changes driven by advances in information technology that
      have transformed the business environment and post new challenges for management
      are:

      a. the creation of the NASA satellite system.
      b. the transformation of industrial economies to knowledge-and information-based
         economies.
      c. the emergence of the global economy and a global world order.
      d. Both b and c.

      Answer:     d                Difficulty:    Easy                 Reference: p. 574

46.   General cultural factors driving global business are:

      a. global communication and transportation technologies, a global knowledge base, and
         global social norms.
      b. the development of global markets, political stability, and a global workforce.
      c. the rise of the global workforce, political stability, and a global knowledge base.
      d. the rise of a global workforce, global economies of scale, and global production and
         operations.

      Answer:     a                Difficulty:    Medium               Reference: p. 575

47.   Global coordination of all of the major business functions permit the location of business
      activity according to:

      a.   Social norms and values.
      b.   Comparative advantage.
      c.   Competitive threat.
      d.   Knowledge base.

      Answer:     b                Difficulty:    Easy                 Reference: p. 575

48.   Marketing to very small geographic and social units is called:

      a.   targeted marketing.
      b.   macromarketing.
      c.   mom-and-pop marketing.
      d.   micromarketing.

      Answer:     d                Difficulty:    Easy                 Reference: p. 575
49.   Making judgments and taking action on the basis of narrow or personal characteristics is
      referred to as:

      a.   micromarketing.
      b.   macromarketing.
      c.   particularism.
      d.   prejudicial.

      Answer:      c                Difficulty:   Easy               Reference: p. 575

50.   The major dimensions of international systems infrastructure include each of the
      following except:

      a.   the global environment.
      b.   corporate global strategy.
      c.   organizational structure.
      d.   transborder data flows.

      Answer:      d                Difficulty:   Easy               Reference: p. 576

51.   Which of the following restricts the flow of any information to countries that do not meet
      strict European information laws on personal information?

      a.   Free Trade Agreement
      b.   European Union Data Protection Directive.
      c.   United Nations Privacy Act.
      d.   European Transborder Data Flow Act.

      Answer:      b                Difficulty:   Easy               Reference: p. 576

52.   General challenges and obstacles to global business systems are typified by:

      a. different technology standards, shortages of skilled consultants, and social
         expectations.
      b. brand-name expectations, language differences, and commercial regulations.
      c. different work hours, transborder data and privacy laws, and different technology
         standards.
      d. different communications standards, language differences, and network reliability.

      Answer:      b                Difficulty:   Hard               Reference: p. 576

53.   To avoid the cost and uncertainty of moving information across national boundaries,
      most multinational firms:

      a.   maintain a master database at their head offices.
      b.   develop a master system that meets the standards of all the countries concerned.
      c.   use microwave satellite transmission to move data.
      d.   develop separate systems within each country.

      Answer:      d                Difficulty:   Medium             Reference: p. 576
54.   German companies generally:

      a. do not recognize the profit until the project is completely finished and they have been
         paid.
      b. recognize profits according to previously established benchmarks.
      c. recognize profits when they are reasonably certain they will get the money.
      d. do not recognize the profits until they have been instructed to do so from the German
         government.

      Answer:     a                Difficulty:    Hard               Reference: p. 576

55.   Most large companies with overseas operations have inherited:

      a. recently built technology platforms for international systems.
      b. batch-oriented reporting from independent foreign divisions to corporate
         headquarters.
      c. transaction-oriented reporting based at the home office for overseas business.
      d. global marketing systems developed domestically .

      Answer:     b                Difficulty:    Hard               Reference: p. 577

56.   In terms of global business strategy and structure, a domestic exporter will use a policy
      of:

      a. some dispersed sales, with centralized production, accounting, human resources, and
         strategic management.
      b. centralized production and accounting with decentralized marketing and human
         resources,.
      c. centralized production, accounting, marketing, and human resources..
      d. dispersed production and marketing, with centralized accounting, human resources
         and strategic management.

      Answer:     a                Difficulty:    Medium             Reference: p. 578

57.   In terms of global business strategy, Caterpillar Corporation and other heavy capital
      equipment manufacturers fall into this category of firm:

      a.   domestic exporter.
      b.   multinational.
      c.   franchiser.
      d.   transnational.

      Answer:     a                Difficulty:    Medium             Reference: p. 578
58.   A company that controls finances in the home country and decentralizes production,
      sales, and marketing operations to other countries is using:

      a.   the domestic exporter strategy.
      b.   the franchising strategy.
      c.   the transnational strategy.
      d.   the multinational strategy.

      Answer:      d               Difficulty:    Easy              Reference: p. 578

59.   In terms of global business strategy and structure, a multinational company will use a
      policy of:

      a. mixed sales and marketing, with centralized production, accounting, human
         resources, and strategic management.
      b. centralized production, accounting, marketing, human resources, with strategic
         management.
      c. dispersed production, accounting, human resources, with centralized strategic
         management, and marketing.
      d. dispersed production and marketing, with centralized accounting and strategic
         management.

      Answer:      d               Difficulty:    Medium            Reference: p. 578

60.   In terms of global business strategy, General Motors, DaimlerChrysler, and Intel fall into
      this category of firm:

      a.   domestic exporter.
      b.   multinational.
      c.   franchiser.
      d.   transnational.

      Answer:      b               Difficulty:    Medium            Reference: p. 578

61.   In terms of global business strategy and structure, a franchise company will use a policy
      of:

      a. centralized production, accounting, marketing, human resources, with strategic
         management.
      b. dispersed production, accounting, human resources, with centralized strategic
         management, and marketing.
      c. dispersed production and marketing, with centralized accounting, human resources
         and strategic management.
      d. dispersed production, marketing, and human resources, with centralized strategic
         management and finance/accounting.

      Answer:      d               Difficulty:    Medium            Reference: p. 578
62.   In terms of global business strategy, KFC falls into this category of firm:

      a.   domestic exporter.
      b.   multinational.
      c.   franchiser.
      d.   transnational.

      Answer:     c                Difficulty:     Medium             Reference: p. 578

63.   In terms of global business strategy, the governance of these firms has been likened to a
      federal structure - strong central management core of decision making, but considerable
      dispersal of power and financial resources:

      a.   domestic exporter.
      b.   multinational.
      c.   franchiser.
      d.   transnational.

      Answer:     d                Difficulty:     Medium             Reference: p. 578

64.   Citicorp, Sony, and Ford are attempting to obtain this type of transition:

      a.   domestic exporter.
      b.   multinational.
      c.   transnational.
      d.   franchiser.

      Answer:     c                Difficulty:     Medium             Reference: p. 578

65.   Centralized systems are those in which:

      a. development occurs at the home base and operations are handed over to autonomous
         units in foreign locations.
      b. each foreign unit designs its own unique solutions and systems.
      c. systems development and operations occur in an integrated and coordinated fashion
         across all units.
      d. systems development and operations occur totally at the domestic home base.

      Answer:     d                Difficulty:     Easy               Reference: p. 579

66.   Duplicated systems are those in which:

      a. development occurs at the home base and operations are handed over to autonomous
         units in foreign locations.
      b. each foreign unit designs its own unique solutions and systems.
      c. systems development and operations occur in an integrated and coordinated fashion
         across all units.
      d. foreign units design the solutions and systems used at the domestic home base.

      Answer:     a                Difficulty:     Easy               Reference: p. 579
67.   Networked systems are those in which:

      a. development occurs at the home base and operations are handed over to autonomous
         units in foreign locations.
      b. each foreign unit designs its own unique solutions and systems.
      c. systems development and operations occur in an integrated and coordinated fashion
         across all units.
      d. foreign units design the solutions and systems used at the domestic home base.

      Answer:      c               Difficulty:   Easy           Reference: p. 579


68.   Domestic exporters have tended to use a ______________________ systems
      configuration, and seem now to be moving toward _______________ systems.

      a.   duplicated; decentralized
      b.   centralized; decentralized
      c.   networked; networked
      d.   decentralized; networked

      Answer:      b               Difficulty:   Medium         Reference: p. 579

69.   Multinational companies have tended to use a ______________________ systems
      configuration, and seem now to be switching to _______________ systems.

      a.   duplicated; decentralized
      b.   centralized; decentralized
      c.   networked; networked
      d.   decentralized; networked

      Answer:      d               Difficulty:   Medium         Reference: p. 579

70.   Franchise companies have tended to use a ______________________ systems
      configuration, and seem now to be moving toward _______________ systems.

      a.   duplicated; decentralized
      b.   centralized; decentralized
      c.   networked; networked
      d.   decentralized; networked

      Answer:      a               Difficulty:   Medium         Reference: p. 579
71.   Transnational companies have tended to use a ______________________ systems
      configuration, and seem now to be moving toward _______________ systems.

      a.   duplicated; decentralized
      b.   centralized; decentralized
      c.   networked; networked
      d.   decentralized; networked

      Answer:      c                 Difficulty:   Medium           Reference: p. 579

72.   The network systems structure is the most visible in ______________________ services.

      a.   production
      b.   financial services
      c.   marketing
      d.   software design

      Answer:      b                 Difficulty:   Easy             Reference: p. 579

73.   Two of the management challenges in developing global systems are listed in your text
      as:

      a. managing the privacy concerns of different countries and coordinating applications
         development.
      b. creating a financial structure that will operate internationally and managing the
         privacy concerns of different countries.
      c. agreeing on common user requirements and managing the privacy concerns of
         different countries.
      d. coordinating of software releases and introducing of changes in business processes.

      Answer:      d                 Difficulty:   Hard             Reference: p. 580

74.   The unique ways in which organizations coordinate and organize work activities,
      information, and knowledge to produce a product or service best defines:

      a.   computer-based information systems.
      b.   business processes.
      c.   standard operating procedures.
      d.   core competencies.

      Answer:      b                 Difficulty:   Easy             Reference: p. 581

75.   The way to identify core business processes is to conduct a(n):

      a.   cost-benefit analysis.
      b.   environmental analysis.
      c.   work-flow analysis.
      d.   feasibility analysis.

      Answer:      c                 Difficulty:   Medium           Reference: p. 582
76.   For most people in developing countries, Internet access is:

      a.   easier than telephone access.
      b.   inexpensive.
      c.   very expensive.
      d.   provided through value-added network services.

      Answer:      c                Difficulty:    Medium            Reference: p. 584

77.   One essential for electronic commerce is:

      a.   high network capacity.
      b.   reliable postal and package delivery services.
      c.   deregulation of telecommunications around the globe.
      d.   global intranets.

      Answer:      b                Difficulty:    Easy              Reference: p. 584

78.   Some domestic firms are outsourcing systems development work or maintenance of
      existing systems to external vendors in another country. A process known as:

      a.   sweat shop labor.
      b.   offshore software outsourcing.
      c.   foreign franchising.
      d.   global development.

      Answer:      b                Difficulty:    Easy              Reference: p. 586

79.   The potentially most expensive “hidden” cost component of offshore software
      outsourcing is:

      a.   cost of selecting a vendor.
      b.   cost of transferring work to the offshore outsourcer.
      c.   cost of laying off domestic employees.
      d.   cost of adjusting to cultural differences.

      Answer:      d                Difficulty:    Hard              Reference: p. 588

80.   The potentially least expensive “hidden” cost component of offshore software
      outsourcing is:

      a.   cost of selecting a vendor.
      b.   cost of transferring work to the offshore outsourcer.
      c.   cost of laying off domestic employees.
      d.   cost of adjusting to cultural differences

      Answer:      a                Difficulty:    Hard              Reference: p. 588
Fill in the Blanks
   81.   International information systems architecture is the basic information system required by
         organizations to coordinate worldwide trade in other activities.

         Difficulty: Easy                         Reference: p. 572

   82.   A(n) business driver is a force in the environment to which businesses must respond and that
         influences the direction of business.

         Difficulty: Easy                         Reference: p. 572

   83.   Information, communication, and transportation technologies have all greatly contributed to
         creating the concept of the global village.

         Difficulty: Easy                         Reference: p. 574

   84.   Global culture is the development of common expectations, shared artifacts, and social
         norms among different cultures and people.

         Difficulty: Easy                         Reference: p. 574

   85.   A(n) global market is formed by consumers around the world who are interested in
         consuming similar products that are culturally approved.

         Difficulty: Medium                       Reference: p. 575

   86.   Micromarketing refers to marketing to a very small geographic and social unit.

         Difficulty: Easy                         Reference: p. 575

   87.   Japanese consumers who only want to purchase products made in Japan are an example of
         particularism .

         Difficulty: Medium                       Reference: p. 575

   88.   The movement of information across international boundaries is called transborder data
         flow.

         Difficulty: Easy                         Reference: p. 576

   89.   The European Union Data Protection Directive restricts the flow of any information to
         countries that do not meet strict European information laws on personal information.

         Difficulty: Hard                         Reference: p. 576
90.   A(n) domestic exporter is a form of global business organization characterized by heavy
      centralization of corporate activities in the home country of origin.

      Difficulty: Medium                        Reference: p. 578

91.   A(n) domestic exporter is a strategy characterized by heavy centralization of corporate
      activities in the home country of origin.

      Difficulty: Easy                          Reference: p. 578

92.   A(n) multinational corporation is one concentrating financial management and control out
      of the central home base while decentralizing production, sales, and marketing operations to
      units in other countries.

      Difficulty: Easy                          Reference: p. 578

93.   A(n) franchiser is a firm where a product is created and initially produced in the home
      country, but must rely heavily on foreign personnel for further production, marketing, and
      human resources.

      Difficulty: Easy                          Reference: p. 578

94.   Governance of transnational firms is similar to a federal structure.

      Difficulty: Medium                        Reference: p. 578

95.   A(n) transnational firm is globally managed and has no national headquarters.

      Difficulty: Easy                          Reference: p. 578

96.   In a transnational strategy, nearly all the value-added activities are managed from a global
      perspective without reference to national borders.

      Difficulty: Medium                        Reference: p. 578

97.   The transnational form of business does business from a global perspective without regard
      to national borders to optimize sources of supply and demand and competitive advantages.

      Difficulty: Easy                          Reference: p. 578

98.   In a global system configuration, a centralized system is one in which systems development
      and operations occur totally at the domestic home base.

      Difficulty: Easy                          Reference: p. 579

99.   A(n) centralized global strategy and systems configuration conducts all activities for systems
      development and operation in the home country.

      Difficulty: Easy                          Reference: p. 579
100. In a global system configuration, a decentralized system is one in which each foreign unit
     designs its own unique solutions and systems.

      Difficulty: Easy                          Reference: p. 579

101. Duplicated systems are those developed at the home base but operated by independent units
     in foreign locations.

      Difficulty: Easy                          Reference: p. 579

102. In a global company and information systems support structure, host country systems units
     would serve local needs.

      Difficulty: Medium                        Reference: p. 579

103. In a global system configuration, a networked system is one in which systems development
     and operations occur in an integrated and coordinated fashion across all units.

      Difficulty: Easy                          Reference: p. 579

104. A(n) decentralized global strategy and systems configuration conducts corporate activities in
     local foreign units.

      Difficulty: Easy                          Reference: p. 579

105. When developing a global company and information systems support structure,
     transnational systems units should be responsible for international telecommunications and
     systems development.

      Difficulty: Medium                        Reference: p. 579

106. A(n) networked global strategy and systems configuration is the one most visible in financial
     services.

      Difficulty: Medium                        Reference: p. 579

107. A(n) franchiser has systems developed at the home base and then replicated around the
     world.

      Difficulty: Easy                          Reference: p. 579

108. When developing a global company and information systems support structure, regional
     systems units should handle telecommunications and systems development within major
     geographic regions.

      Difficulty: Medium                        Reference: p. 579

109. Core systems support functions that are absolutely critical to the organization.

      Difficulty: Easy                          Reference: p. 581
110. In a global systems strategy, local option systems are needed to meet local requirements.

      Difficulty: Medium                        Reference: p. 581

111. In a global systems strategy, regional coordinated systems support regional business
     processes.

      Difficulty: Medium                        Reference: p. 581

112. Truly integrated global systems must have connectivity – the ability to link together the
     systems and people of a global firm into a single integrated network.

      Difficulty: Medium                        Reference: p. 584

113. Companies are using the public Internet to create global networks using virtual private
     networks from Internet service providers, which provide many features of a private network
     using the public Internet.

      Difficulty: Hard                          Reference: p. 584

114. Developing core systems that work with old systems in local areas requires new software
     interfaces.

      Difficulty: Medium                        Reference: p. 585

115. Electronic data interchange systems are widely used by global manufacturing firms to
     connect to suppliers.

      Difficulty: Easy                          Reference: p. 586

116. Software interfaces for international systems for knowledge workers could use English as
     the language standard.

      Difficulty: Medium                        Reference: p. 586

117. Companies now outsource some of their new systems development work to external vendors
     in another country. This practice is called offshore software outsourcing.

      Difficulty: Medium                        Reference: p. 586

118. The amount of time required to transferring software work to an offshore outsourcer ranges
     from three months to an entire year.

      Difficulty: Medium                        Reference: p. 588

119. When outsourcing software development offshore, companies can expect to pay up to ten
     percent extra for managing the offshore contract.

      Difficulty: Hard                          Reference: p. 589
  120. Legitimacy is defined as the extent to which your authority is accepted on grounds of
       competence, the vision, or other qualities.

         Difficulty: Medium                        Reference: p. 592



Essay Questions
  121.   What steps do the authors recommend be taken to develop an international information
         systems architecture?

                Begin by developing an understanding of the overall market forces, or business
                 drivers, that are pushing your industry toward global competition, i.e., the global
                 environment.
                Examine the inhibitors or negative factors that could scuttle the development of a
                 global business.
                Develop a corporate strategy for competing in the global environment.
                Plan how to structure your organization so that it can pursue the strategy you have
                 developed.
                Consider the management issues in implementing your strategy and making the
                 organization design a reality. The key here will be the design of business
                 procedures.
                Consider the technology platform. You must have a corporate strategy instructor
                 before you can choose the right technology.

  122.        .
         List at least four general cultural factors and four specific business factors driving global
         business. Which two factors (one of each) do you feel are most in danger at the current
         moment? Why?

                        General Cultural Factors: global communication and transportation
                         technologies, development of the global culture, emergency global social
                         norms, political stability, and a global knowledge base.
                        Specific Business Factors: global markets, global production operations,
                         global coordination, global workforce, and global economies of scale.

         One answer might be that the two factors most in danger at the current moment are political
         stability and a global workforce.

  123.   What are the four technology challenges and obstacles to global business systems? Which
         one do you think will be easiest to solve, and why?

                        Standards: different EDI, e-mail, telecommunications standards.
                        Reliability: phone networks are not uniformly reliable.
                        Speed: different data transfer speeds; many are slower than United States
                         speeds.
                        Personnel: shortages of skilled consultants.
124.   How do cultural, legal, political, and social expectations affect global business?

       At a cultural level, particularism in all its forms rejects the very concept of a shared global
       culture and rejects the penetration of domestic markets by foreign goods and services.
       Differences among cultures produce differences in social expectations, politics, and
       ultimately in legal rules. Different cultures produce different political regimes, with different
       laws governing the movement of information, information privacy of their citizens, origins of
       software and hardware in systems, and radio and satellite telecommunications. Even the
       hours of business and terms of business trade vary greatly across political cultures.

       Cultural and political differences profoundly affect organizations’ standard operating
       procedures. Everything from the different reliability of telephone systems to the shortage of
       skilled consultants creates barriers.

       National laws and traditions have created different accounting practices in various countries,
       which impact the way profits and losses are analyzed. These accounting practices are tightly
       intertwined with each country’s legal system, business philosophy, and tax code.

       Cultural differences can also affect the way organizations use information technology.
       Japanese firms, for example, use fax technologies intensively but are not comfortable with e-
       mail.

       Language is a significant barrier. Software may have to be built with local language
       interfaces before a new information system can be successfully implemented.

       Currency fluctuations can play havoc with planning models and projections. Some of these
       problems will diminish in parts of the world when the euro becomes more widely used.

       [Though the text does not mention this, differences in religious practice (especially if the
       state promotes a specific religion) can create almost insurmountable problems.]

125.   What are the organizational principles a company should follow to develop a global
       company and its information systems support structure? Do you agree? Would you change
       these principles, or add others? Support your answer.

                      Organized value-adding activities along lines of comparative advantage.
                      Develop and operate systems units at each level of corporate activity –
                       regional, national, an international.
                      Established at world headquarters a single office responsible for
                       development of international systems, a global chief information officer
                       position.
   126.   Identify at least five problems associated with international networks.

                         Costs and tariffs.
                         Network management.
                         Installation delays.
                         Poor quality of international services.
                         Regulatory constraints.
                         Changing user requirements.
                         Disparate standards.
                         Network capacity.
                        
   127.   List at least four difficult problems for management in the development of the international
          information system. With which would you like least to deal? Why?

                         Agreeing on user requirements.
                         Introducing changes in business processes.
                         Coordinating applications development.
                         Coordinating software releases.
                         Encouraging local users to support global systems.

   128.   Why are integrated global networks so difficult to create?

          Some of the problems are: costs and tariffs, network management, installation delays, poor
          quality of international service, regulatory constraints, changing user requirements, disparate
          standards, and network capacity.

   129.   What options does a company have for providing international connectivity?

          They can build their own international private network, rely on a network service based on
          the public switched networks throughout the world, or use the Internet and intranets.

   130.   How can the Internet be helpful in developing an international telecommunications network?

          The Internet allows anyone connected to it to communicate and compute at any time, or
          anywhere. Satellite systems, digital cell phones, and personal communications services will
          make it even easier to coordinate work and information in many parts of the globe that
          cannot be reached by existing ground-based systems. Companies can use Internet
          technology to construct virtual private networks to reduce wide area networking costs and
          staffing requirements. If it wishes, the company can outsource the virtual private network to
          an Internet service provider.


++++++++++++++++++++++++++++++++++++++++++++++++++

MI375-01 Exam 1 Study Help

1) TRUE        1. Modern digital firms use the Internet and networking technology to make
               data flow seamlessly among different parts of the organization; streamline the
               flow of work; and create electronic links with customers, suppliers, and other
            organizations.

2) FALSE    2. It has been proven that information technology can give a firm a long-
            lasting competitive advantage.

3) TRUE     3. The Internet and the new markets are changing the cost and revenue
            structure of traditional firms and are hastening the demise of traditional
            business models.

4) TRUE     4. The Internet and related technologies make it possible to conduct business
            across firm boundaries almost as efficiently and effectively as it is to conduct
            business within the firm.

5) FALSE    5. The traditional business firm is a flat, decentralized, unstructured
            arrangement of generalists who typically rely on a fixed set of standard
            operating procedures to deliver a customized product.

6) TRUE     6. Globalization has transformed the conduct of business.

7) FALSE    7. A network requires at least three computers.

8) TRUE     8. Major industrial powers are being transformed to knowledge- and
            information-based service economies and leaving manufacturing to the third-
            world countries.

9) TRUE     9. Information-intense products require a great deal of knowledge and
            training to produce.

10) TRUE    10. The key elements of an organization are its people, structure, business
            processes, politics, and culture.

11) FALSE   11. The Internet is an international network of commercial networks.

12) TRUE    12. To work properly, an information system must balance technology and
            human behavior and requirements, even if less-than-optimal technology must
            be used.

13) TRUE    13. Computer science, management science, and operations research all
            contribute to the technical approach to information systems.

14) TRUE    14. The behavioral approach to information systems focuses on changes in
            attitudes, management and organizational policy, and behavior.

15) TRUE    15. Security and control will be an ongoing concern for information systems
            because these problems can never be eliminated.
16) TRUE    16. Operational management is responsible for directing the day-to-day
            operations of the business.

17) FALSE   17. Deciding whether to introduce a new product line or employ a new
            marketing campaign are the responsibility of operational managers.

18) FALSE   18. Operational-level systems often answer "what-if" questions.

19) FALSE   19. Management-level systems do not support nonroutine decision making.

20) TRUE    20. The principal concern of strategic-level systems is to match changes in the
            external environment with existing organizational capability.

21) TRUE    21. Transaction processing systems are the basic business systems that serve
            the operational level of the organization.

22) FALSE   22. A hotel reservation system is a typical example of a management
            information system.

23) TRUE    23. Managers need TPSs to monitor the status of internal operations and the
            firm's relations with the external environment.

24) TRUE    24. Management information systems primarily serve the functions of
            planning, controlling, and decision making at the management level.

25) TRUE    25. Most MIS use simple routines such as summaries and comparisons, as
            opposed to sophisticated mathematical models or statistical techniques.

26) FALSE   26. Decision support systems generally provide answers to routine questions
            that have been specified in advance and have a predefined procedure for
            answering them.

27) FALSE   27. The most advanced graphics software in any of the systems discussed is
            normally found in decision support systems.

28) FALSE   28. Product life cycle management (PLM) systems are one type of sales and
            marketing system that has become increasingly valuable in the automotive
            industry.

29) TRUE    29. Maintaining online directories of employees with special areas of expertise
            is one application of knowledge management systems.

30) TRUE    30. Supply chain management systems are more externally oriented than
            enterprise systems.
31) TRUE    31. E-mail and instant messaging have become a dominant form of business
            communication.

32) TRUE    32. It is the systems analysts job to translate business problems and
            requirements into information requirements and systems.

33) TRUE    33. By reducing overall management costs, information technology enables
            firms to increase revenues while shrinking the number of middle managers and
            clerical workers.

34) FALSE   34. In virtual organizations, work is tied to geographic location.

35) TRUE    35. Research on project implementation failures demonstrates that the most
            common reason for failure of large projects to reach their objectives is
            organizational and political resistance to change.

36) TRUE    36. According to bureaucratic models of decision making an organization's
            most important goal is the preservation of the organization.

37) TRUE    37. If an information system is not built with a clear understanding of the
            organization and a clear understanding of exactly what is expected of it, it will
            not be able to deliver genuine benefits.

38) TRUE    38. In the value chain model, primary activities are most directly related to the
            production and distribution of the firm's products and services that create value
            for the customer.

39) TRUE    39. Many of information technology-based products and services were
            developed originally by financial institutions.

40) TRUE    40. Digitally enabled networks can be used not only to purchase supplies but
            also to closely coordinate production of many independent firms.

41) TRUE    41. One way an organization can increase profitability and market penetration
            is to mine existing data.

42) FALSE   42. The just-in-time supply method allows stockless inventory.

43) FALSE   43. The competitive forces model was created for today's digital firm.

44) TRUE    44. Customers are one of the competitive forces that affect an organization's
            ability to compete.
45) FALSE   45. The competitive advantages strategic systems confer usually last long
            enough to ensure long-term profitability.

46) TRUE    46. One advantage of using Internet technology is that it provides the
            infrastructure to allow information to flow seamlessly from one part of the
            organization to another.

47) FALSE   47. The time and money spent locating a suitable product and determining the
            best price for that product defines location costs.

48) TRUE    48. Information asymmetry exists when one party in a transaction has more
            information for the transaction than the other party.

49) TRUE    49. Dynamic pricing is online bidding.

50) FALSE   50. A banner ad opens automatically and does not disappear until the user
            clicks on it.

51) TRUE    51. A syndicator is a business that aggregates content or applications from
            multiple sources, packaging them for distribution, and reselling them to third-
            party Web sites.

52) FALSE   52. It is unusual for companies to use Web pages to analyze customer
            information.

53) TRUE    53. Amazon.com uses Web personalization as a major marketing tool.

54) FALSE   54. Accumulated balance digital payment systems allow consumers to make
            instant online payments to merchants and other individuals based on
            conventional credit card payments.

55) FALSE   55. Digital checks are more expensive than credit cards but faster than paper-
            based checking.

56) TRUE    56. Intranets are useful in all the major functional areas of business.

57) TRUE    57. TransCanada Pipeline employees use the company intranet to process
            timesheets and expense reports.

58) TRUE    58. Internet technology has changed value propositions and business models.

59) TRUE    59. In order for electronic commerce to flourish there must be an atmosphere
            of trust established among buyers, sellers, and other partners involved in online
            transactions.
60) FALSE   60. The unbundling of information from traditional channels has enhanced old
            business models.

61) TRUE    61. Ethical, social, and political issues are closely linked.

62) TRUE    62. Ethics are the principles and standards that guide our behavior toward
            other people.

63) FALSE   63. Standards for ensuring the accuracy and reliability of information systems
            are universally accepted and enforced.

64) FALSE   64. The use of computers to combine data from multiple sources and create
            electronic dossiers of detailed information on individuals is called cataloging.

65) FALSE   65. The Utilitarian Principle states that if an action is not right for everyone to
            take it is not right for anyone to take.

66) TRUE    66. Professionals take on special rights and obligations because of their special
            claims to knowledge, wisdom, and respect.

67) TRUE    67. Privacy is the right to be left alone when you want to be, to have control
            over your own personal possessions, and not to be observed without your
            consent.

68) FALSE   68. Claims to privacy are irrelevant to the workplace.

69) TRUE    69. The FIP principles require Web sites to disclose their information practices
            before collecting data.

70) FALSE   70. Fair Information Practices says that you may not use copyrighted material
            in certain situations
            certain limits, for teaching purposes.

71) TRUE    71. A cookie is a small record deposited on your hard disk by a Web site
            containing information about you and your Web activities.

72) FALSE   72. Web sites using "cookies" can directly obtain the names and addresses of
            their visitors.

73) TRUE    73. Spyware is software that comes hidden in free downloadable software and
            can track your online movements.

74) TRUE    74. Most Internet businesses do very little to protect the privacy of individuals
            who use the Net.
75) TRUE   75. Accessing a computer system without authorization is a federal crime.

76) C      76.   Internet culture is:
           a.     domestic.
           b.    regional.
           c.     global.
           d.    local.

77) A      77. What term is used to refer to all of the computer-based information
           systems used by organizations and their underlying technologies?
           a. information technology
           b. network technology
           c. digital technology
           d. productivity technology

78) B      78. The ultimate end product of the new ways of conducting business
           electronically is:
           a. a more complicated tax structure.
           b. the digital firm.
           c. more government oversight.
           d. the extinction of the traditional bureaucracy.

79) A      79. The largest component of capital investment for firms in the United States
           and many industrialized societies is:
           a. information technology.
           b. machinery.
           c. buildings.
           d. inventory.

80) B      80. In 2005, U.S. firms alone will spend nearly $1.8 ________ on IT and
           telecommunications equipment and software.
           a. thousand
           b. trillion
           c. billion
           d. million

81) B      81. The use of the Internet and digital technology to execute all of the
           activities in the enterprise is referred to as:
           a. digital business.
           b. electronic business.
           c. digital processes.
           d. electronic commerce.
82) D   82. Buying and selling of goods and services electronically with computerized
        business transactions using the Internet, networks, and other digital
        technologies is called:
        a. electronic exchanges.
        b. electronic communications.
        c. electronic business.
        d. electronic commerce.

83) A   83. The application of the Internet and related technologies to digitally enable
        government and public sector agencies' relationships with citizens, businesses,
        and other arms of government is called:
        a. e-government.
        b. e-business.
        c. e-commerce.
        d. e-technology.

84) D   84.   These two companies are close to becoming fully digital firms:
        a.    GKN Aerospace North America and Flextronics.
        b.    Wal-Mart and Sears.
        c.    DaimlerChrysler and General Motors.
        d.    Cisco Systems and Dell Computers.

85) C   85.   Information is:
        a.     the best form of knowledge.
        b.    the accumulation of raw data.
        c.     data shaped into meaningful form.
        d.    the way we analyze problems.

86) C   86. Input:
        a. allows the analysis of problems faced by the organization.
        b. is data shaped into meaningful form.
        c. captures or collects raw data from within the organization or from the
        external environment.
        d. converts raw data into meaningful form.

87) D   87.   Converting raw data into a more meaningful form is called:
        a.    capturing.
        b.    feedback.
        c.    controlling.
        d.    processing.

88) C   88. Sets of operating instructions that direct and control computer processing
        are called:
        a. protocols.
        b. procedures.
        c. computer programs.
        d. policies.

89) D   89.   Creating products and services is a business function of:
        a.    human resources.
        b.    finance and accounting.
        c.    sales and marketing.
        d.    manufacturing and production.

90) D   90.   Engineers or architects who design products or services are called:
        a.    information specialists.
        b.    service workers.
        c.    data workers.
        d.    knowledge workers.

91) D   91. The principal purpose of ________ is to answer routine questions and to
        track the flow of transactions through the organization.
        a. knowledge management systems
        b. strategic-level systems
        c. management-level systems
        d. operational-level systems

92) D   92.   Management-level systems are information systems that support the:
        a.    long-range planning activities of senior management.
        b.    knowledge and data workers in an organization.
        c.    day-to-day processes of production.
        d.    decision-making and administrative activities of middle managers.

93) C   93. A relocation control system that reports on the total moving, house-
        hunting, and home financing costs for employees in all company divisions is
        an example of a(n):
        a. strategic-level system.
        b. operational-level systems.
        c. management-level system.
        d. knowledge management system.

94) A   94. ________ systems often answer "what-if" questions.
        a. Management-level
        b. Strategic-level
         c. Operational-level
         d. Knowledge management

95) B    95.   Strategic-level systems are information systems that support the:
         a.    knowledge and data workers in an organization.
         b.    long-range planning activities of senior management.
         c.    day-to-day processes of production.
         d.    decision-making and administrative activities of middle managers.

96) B    96. TPSs are the basic business systems that serve which level of the
         organization?
         a. knowledge management systems
         b. operational-level systems
         c. strategic-level systems
         d. management-level systems

97) D    97. Managers need ________ to monitor the status of internal operations and
         the firm's relations with the external environment.
         a. knowledge systems
         b. high-volume model data
         c. office systems
         d. transaction processing systems

98) B    98. These systems are especially suited to situations in which the procedure for
         arriving at a solution may not be fully predefined in advance:
         a. management information systems.
         b. decision-support systems.
         c. transaction processing systems.
         d. knowledge management systems.

99) B    99. These systems are designed to summarize and report on the company's
         basic operations:
         a. executive information systems.
         b. management information systems.
         c. transaction processing systems.
         d. decision-support systems.

100) D   100. Decision-support systems are often referred to as:
         a. business information systems.
         b. business model systems.
         c. business support systems.
         d. business intelligence systems.
101) C   101. These systems often deliver information to senior executives through a
         portal, which uses a Web interface to present integrated personalized business
         content:
         a. transaction processing systems.
         b. decision-support systems.
         c. executive support systems.
         d. management information systems.

102) B   102. Promoting the organization's products or services is a function of:
         a. manufacturing/production systems.
         b. marketing systems.
         c. human resources systems.
         d. finance/accounting systems.

103) A   103. Identifying customers for the firm's products and preparing five-year
         forecasts are examples of:
         a. sales and marketing information systems.
         b. manufacturing and production information systems.
         c. human resources information systems.
         d. enterprise application information systems.

104) A   104. Budgeting and cost accounting are functions of:
         a. finance/accounting systems.
         b. sales marketing systems.
         c. manufacturing/production systems.
         d. decision support systems.

105) A   105. ________ is the process that integrates supplier, manufacturer,
         distributor, and customer logistics processes.
         a. Supply chain management
         b. Enterprise planning
         c. Reverse logistics
         d. Collaborative distribution

106) C   106. The interaction between information technology and organizations is
         very complex and is influenced by a great many mediating factors, including
         the organization structure, business processes, politics, culture, management
         decisions and:
         a. the availability of trained employees.
         b. the cash flow within the company.
         c. the surrounding environment.
         d. the economic basis of the company.
107) B   107. Collections of routines for producing goods and services are referred
         to as:
         a. work with routine tasks.
         b. business processes.
         c. mediating factors.
         d. standard reporting procedures.

108) A   108. Fundamental assumptions about what products the organization should
         produce, how it should produce them, where, and for whom is known as:
         a. organizational culture.
         b. motivational factors.
         c. business processes.
         d. standard operating procedures.

109) D   109. According to Mintzberg, a ________ is an example of a professional
         bureaucracy structure.
         a. small start-up business
         b. midsize manufacturing firm
         c. consulting firm
         d. law firm or school system

110) D   110. These information specialists constitute the principal liaisons between
         the information systems groups and the rest of the organization:
         a. end users.
         b. programmers.
         c. Web-page developers.
         d. systems analysts.

111) A   111. The role of ________ is a senior management position that oversees
         the use of information technology in the firm.
         a. CIO
         b. CEO
         c. CFO
         d. CTO

112) B   112. Information systems managers are:
         a. in change of the information systems function in the organization.
         b. leaders of the various specialists in the information system department.
         c. highly-trained technical specialists who write computer software
         instructions.
         d. specialists who translate business problems and requirements into
         information requirements and systems.
113) C   113. ________ are representatives of departments outside of the
         information systems group for whom applications are developed.
         a. Analysts
         b. IS managers
         c. End users
         d. Programmers

114) C   114. Although ________ theories try to explain how large numbers of firms
         act in the marketplace, ___________ theories are more useful in describing the
         mechanics of actual firms.
         a. behavioral; transaction
         b. economic; agency
         c. economic; behavioral
         d. agency; behavioral

115) C   115. ________ organizations use networks to link people, assets, and ideas.
         Work is no longer tied to geographic location.
         a. Manufacturing
         b. Hierarchical
         c. Virtual
         d. Vertical

116) C   116. For the manager, no technological support systems exist for the
         managerial roles of:
         a. entrepreneur or nerve center.
         b. liaison or negotiator.
         c. figurehead or disturbance handler.
         d. spokesperson or resource allocator.

117) B   117. At the business level the most common analytical tool for identifying
         opportunities for strategic systems is:
         a. the value web.
         b. value chain analysis.
         c. ESS.
         d. DSS.

118) D   118. A ________ is a collection of independent firms that use information
         technology to coordinate their value chains to produce a product or service for
         a market collectively.
         a. portal
         b. business link
         c. primary activity
         d. value web
119) A   119. Which of the following is most likely to raise switching costs?
         a. stockless inventory method
         b. vendor-supported supply method
         c. just-in-time supply method
         d. traditional delivery method

120) A   120. This traditional model assumes a relatively static industry
         environment, relatively clear-cut industry boundaries, and a relatively stable
         set of suppliers, substitutes, and customers, with a focus on industry players in
         a market environment:
         a. Porter's competitive forces model.
         b. Porter's generic strategy model.
         c. Porter's model of diminishing returns.
         d. Porter's value chain model.

121) D   121. Internet technology is providing the infrastructure for electronic
         business because:
         a. it is less complex than traditional infrastructures.
         b. the emergence of the digital firm has created so many new markets.
         c. it is easier to understand.
         d. its technology and technology standards can be used to make information
         flow seamlessly throughout the organization.

122) B   122. The driving force behind the explosion of electronic business and the
         emergence of the digital firm is:
         a. the emergence of a worldwide global economy, which cannot be affected
         by politics.
         b. the low-cost connectivity and universal standards provided by Internet
         technology.
         c. new business models.
         d. TCP/IP.

123) B   123. An abstraction of what an enterprise is and how the enterprise delivers
         a product or service, showing how the enterprise creates wealth best describes:
         a. critical success factor.
         b. business model.
         c. strategic plan.
         d. information systems plan.

124) B   124. The time and money spent locating a suitable product and determining
         the best price for that product best describes:
         a. research and development costs.
         b. search costs.
         c. alternative costs.
         d. location costs.

125) D   125. A measurement of how many people a business can connect with and
         how many products it can offer those people best defines:
         a. micromarketing.
         b. intensity.
         c. richness.
         d. reach.

126) D   126. Online communities:
         a. allow members to post their own Web pages.
         b. provide a place where people of like interests can exchange ideas
         regardless of their location.
         c. are providing the foundations for new businesses.
         d. All of the above

127) C   127. Which of the following Internet business models does Amazon.com
         use?
         a. transaction broker
         b. information broker
         c. virtual storefront
         d. online service provider

128) A   128. Which of the following businesses utilizes the content provider
         Internet business model?
         a. CNN.com
         b. eBay.com
         c. Amazon.com
         d. Motocross.com

129) C   129. Which of the following is an ad that opens automatically and does not
         disappear until the user clicks on it?
         a. controlled display
         b. banner ad
         c. pop-up ad
         d. controlled ad

130) C   130. The online marketplace Internet business model:
         a. sells physical products directly to consumers or individual businesses.
         b. creates revenue by providing digital content over the Web.
         c. provides a digital environment where buyers and sellers can establish
         prices for products.
         d. saves users money and time by processing online sales dealings.

131) A   131. Pure-play business models are businesses that:
         a. did not have an earlier existing bricks-and-mortar business before they
         went to the Internet.
         b. are an example of business-to-business electronic commerce.
         c. are extensions of traditional bricks-and-mortar businesses.
         d. do not sell a physical product.

132) C   132. eBay is an example of:
         a. business-to-consumer electronic commerce.
         b. a click-and-mortar business.
         c. consumer-to-consumer electronic commerce.
         d. an online exchange

133) C   133. Thanks to the Web, ________ have become powerful business tools
         for testing and improving products and services.
         a. pop-up advertisements
         b. collaborative competitors
         c. customers
         d. sales personnel

134) C   134. A credit card-size plastic card that stores digital information and that
         can be used for electronic payments in place of cash best describes:
         a. digital cash.
         b. microcard.
         c. smart card.
         d. stored value payment system.

135) A   135. An example of the use of intranets in human resources is:
         a. allowing employees to manage their own health and pension benefits
         accounts.
         b. the provision of data on quality measurements, such as defects and rejects,
         as well as maintenance and training schedules.
         c. the ability to monitor un-invoiced income or outstanding debt each day.
         d. the use of intranet collaboration tools for contact management, discussion
         forums, document management, and calendars.

136) D   136. New technologies can be used to
         a. achieve social progress.
         b. commit crimes.
         c. threaten social values.
         d. all of the above.
137) A   137. Advances in data storage techniques and rapidly declining storage
         costs have:
         a. made routine violations of privacy cheap and effective.
         b. made universal access possible.
         c. doubled every 18 months.
         d. doubled humanity's knowledge.

138) C   138. Immanuel Kant's Categorical Imperative states that:
         a. one can put values in rank order and understand the consequences of
         various courses of action.
         b. if an action cannot be taken repeatedly, then it is not right to be taken at
         any time.
         c. if an action is not right for everyone to take, it is not right for anyone to
         take.
         d. one should take the action that produces the least harm or incurs the least
         cost.

139) B   139. The ethical "no free lunch" rule states that:
         a. if an action cannot be taken repeatedly, then it is not right to be taken at
         any time.
         b. everything is owned by someone else, and that the creator wants
         compensation for this work.
         c. one can put values in rank order and understand the consequences of
         various courses of action.
         d. one should take the action that produces the least harm or incurs the least
         cost.

140) D   140. Which U.S. act restricts what information the federal government can
         collect and what they can do with it?
         a. Freedom of Information Act
         b. Bork Bill
         c. Communications Assistance for Law Enforcement Act
         d. Privacy Act

141) A   141. European privacy protection is ________ than in the United States.
         a. much more stringent
         b. less liable to laws
         c. less far-reaching
         d. much less stringent

142) B   142. When a cookie is created during a Web site visit, it is stored:
         a. on the ISP's computer.
         b. on the visitor's computer.
         c. on the Web site computer.
         d. in a Web directory.

143) A   143. The Online Privacy Alliance:
         a. encourages self-regulation to develop a set of privacy guidelines for its
         members.
         b. protects user privacy during interactions with Web sites.
         c. discourages the use of online seals.
         d. lobbies for better privacy legislation for the consumer.

144) B   144. P3P stands for:
         a. Preferences for Personal Privacy
         b. Platform for Privacy Preferences.
         c. Privacy for Personal Protection.
         d. Protection of Personal Privacy.

145) C   145. Intellectual property can best be described as:
         a. software that is copied and distributed without permission.
         b. the Fair Use Doctrine that allows for the use of copyrighted materials.
         c. intangible creative work that is embodied in physical form.
         d. the legal protection afforded an expression of an idea.

146) C   146. Copyright can best be described as:
         a. the Fair Use Doctrine that allows for the use of copyrighted materials.
         b. software that is copied and distributed without permission.
         c. the legal protection afforded to intellectual property.
         d. intangible creative work that is embodied in physical form.

147) A   147. Which of the following adjusts copyright laws to the Internet age by
         making it illegal to make, distribute, or use devices that circumvent
         technology-based protections of copyrighted materials?
         a. Digital Millennium Copyright Act
         b. Electronic Communications Privacy Act
         c. Freedom of Information Act
         d. Privacy Act

148) D   148. The "do anything anywhere" computing environment can:
         a. create economies of efficiency.
         b. make work environments much more pleasant.
         c. centralize power at corporate headquarters.
         d. blur the traditional boundaries between work and family time.
149) C     149. Computer abuse is:
           a. illegal and unethical.
           b. most common in the business environment.
           c. sometimes legal but always unethical.
           d. mostly a personal problem.

150) A     150. The U.S. CAN-SPAM Act of 2003:
           a. requires spammers to identify themselves.
           b. makes spamming illegal.
           c. does not override state anti-spamming laws.
           d. has dramatically cut down spamming


++++++++++++++++++++++++++++++++++++++++++++++++++++++
MI375-01 Exam 1 Study Help

1) TRUE    1. Modern digital firms use the Internet and networking technology to make
           data flow seamlessly among different parts of the organization; streamline the
           flow of work; and create electronic links with customers, suppliers, and other
           organizations.

2) FALSE   2. It has been proven that information technology can give a firm a long-
           lasting competitive advantage.

3) TRUE    3. The Internet and the new markets are changing the cost and revenue
           structure of traditional firms and are hastening the demise of traditional
           business models.

4) TRUE    4. The Internet and related technologies make it possible to conduct business
           across firm boundaries almost as efficiently and effectively as it is to conduct
           business within the firm.

5) FALSE   5. The traditional business firm is a flat, decentralized, unstructured
           arrangement of generalists who typically rely on a fixed set of standard
           operating procedures to deliver a customized product.

6) TRUE    6. Globalization has transformed the conduct of business.

7) FALSE   7. A network requires at least three computers.

8) TRUE    8. Major industrial powers are being transformed to knowledge- and
           information-based service economies and leaving manufacturing to the third-
           world countries.
9) TRUE     9. Information-intense products require a great deal of knowledge and
            training to produce.

10) TRUE    10. The key elements of an organization are its people, structure, business
            processes, politics, and culture.

11) FALSE   11. The Internet is an international network of commercial networks.

12) TRUE    12. To work properly, an information system must balance technology and
            human behavior and requirements, even if less-than-optimal technology must
            be used.

13) TRUE    13. Computer science, management science, and operations research all
            contribute to the technical approach to information systems.

14) TRUE    14. The behavioral approach to information systems focuses on changes in
            attitudes, management and organizational policy, and behavior.

15) TRUE    15. Security and control will be an ongoing concern for information systems
            because these problems can never be eliminated.

16) TRUE    16. Operational management is responsible for directing the day-to-day
            operations of the business.

17) FALSE   17. Deciding whether to introduce a new product line or employ a new
            marketing campaign are the responsibility of operational managers.

18) FALSE   18. Operational-level systems often answer "what-if" questions.

19) FALSE   19. Management-level systems do not support nonroutine decision making.

20) TRUE    20. The principal concern of strategic-level systems is to match changes in the
            external environment with existing organizational capability.

21) TRUE    21. Transaction processing systems are the basic business systems that serve
            the operational level of the organization.

22) FALSE   22. A hotel reservation system is a typical example of a management
            information system.

23) TRUE    23. Managers need TPSs to monitor the status of internal operations and the
            firm's relations with the external environment.

24) TRUE    24. Management information systems primarily serve the functions of
            planning, controlling, and decision making at the management level.
25) TRUE    25. Most MIS use simple routines such as summaries and comparisons, as
            opposed to sophisticated mathematical models or statistical techniques.

26) FALSE   26. Decision support systems generally provide answers to routine questions
            that have been specified in advance and have a predefined procedure for
            answering them.

27) FALSE   27. The most advanced graphics software in any of the systems discussed is
            normally found in decision support systems.

28) FALSE   28. Product life cycle management (PLM) systems are one type of sales and
            marketing system that has become increasingly valuable in the automotive
            industry.

29) TRUE    29. Maintaining online directories of employees with special areas of expertise
            is one application of knowledge management systems.

30) TRUE    30. Supply chain management systems are more externally oriented than
            enterprise systems.

31) TRUE    31. E-mail and instant messaging have become a dominant form of business
            communication.

32) TRUE    32. It is the systems analysts job to translate business problems and
            requirements into information requirements and systems.

33) TRUE    33. By reducing overall management costs, information technology enables
            firms to increase revenues while shrinking the number of middle managers and
            clerical workers.

34) FALSE   34. In virtual organizations, work is tied to geographic location.

35) TRUE    35. Research on project implementation failures demonstrates that the most
            common reason for failure of large projects to reach their objectives is
            organizational and political resistance to change.

36) TRUE    36. According to bureaucratic models of decision making an organization's
            most important goal is the preservation of the organization.

37) TRUE    37. If an information system is not built with a clear understanding of the
            organization and a clear understanding of exactly what is expected of it, it will
            not be able to deliver genuine benefits.

38) TRUE    38. In the value chain model, primary activities are most directly related to the
            production and distribution of the firm's products and services that create value
            for the customer.

39) TRUE    39. Many of information technology-based products and services were
            developed originally by financial institutions.

40) TRUE    40. Digitally enabled networks can be used not only to purchase supplies but
            also to closely coordinate production of many independent firms.

41) TRUE    41. One way an organization can increase profitability and market penetration
            is to mine existing data.

42) FALSE   42. The just-in-time supply method allows stockless inventory.

43) FALSE   43. The competitive forces model was created for today's digital firm.

44) TRUE    44. Customers are one of the competitive forces that affect an organization's
            ability to compete.

45) FALSE   45. The competitive advantages strategic systems confer usually last long
            enough to ensure long-term profitability.

46) TRUE    46. One advantage of using Internet technology is that it provides the
            infrastructure to allow information to flow seamlessly from one part of the
            organization to another.

47) FALSE   47. The time and money spent locating a suitable product and determining the
            best price for that product defines location costs.

48) TRUE    48. Information asymmetry exists when one party in a transaction has more
            information for the transaction than the other party.

49) TRUE    49. Dynamic pricing is online bidding.

50) FALSE   50. A banner ad opens automatically and does not disappear until the user
            clicks on it.

51) TRUE    51. A syndicator is a business that aggregates content or applications from
            multiple sources, packaging them for distribution, and reselling them to third-
            party Web sites.

52) FALSE   52. It is unusual for companies to use Web pages to analyze customer
            information.
53) TRUE    53. Amazon.com uses Web personalization as a major marketing tool.

54) FALSE   54. Accumulated balance digital payment systems allow consumers to make
            instant online payments to merchants and other individuals based on
            conventional credit card payments.

55) FALSE   55. Digital checks are more expensive than credit cards but faster than paper-
            based checking.

56) TRUE    56. Intranets are useful in all the major functional areas of business.

57) TRUE    57. TransCanada Pipeline employees use the company intranet to process
            timesheets and expense reports.

58) TRUE    58. Internet technology has changed value propositions and business models.

59) TRUE    59. In order for electronic commerce to flourish there must be an atmosphere
            of trust established among buyers, sellers, and other partners involved in online
            transactions.

60) FALSE   60. The unbundling of information from traditional channels has enhanced old
            business models.

61) TRUE    61. Ethical, social, and political issues are closely linked.

62) TRUE    62. Ethics are the principles and standards that guide our behavior toward
            other people.

63) FALSE   63. Standards for ensuring the accuracy and reliability of information systems
            are universally accepted and enforced.

64) FALSE   64. The use of computers to combine data from multiple sources and create
            electronic dossiers of detailed information on individuals is called cataloging.

65) FALSE   65. The Utilitarian Principle states that if an action is not right for everyone to
            take it is not right for anyone to take.

66) TRUE    66. Professionals take on special rights and obligations because of their special
            claims to knowledge, wisdom, and respect.

67) TRUE    67. Privacy is the right to be left alone when you want to be, to have control
            over your own personal possessions, and not to be observed without your
            consent.
68) FALSE   68. Claims to privacy are irrelevant to the workplace.

69) TRUE    69. The FIP principles require Web sites to disclose their information practices
            before collecting data.

70) FALSE   70. Fair Information Practices says that you may not use copyrighted material
                                                              f new work or, within
            certain limits, for teaching purposes.

71) TRUE    71. A cookie is a small record deposited on your hard disk by a Web site
            containing information about you and your Web activities.

72) FALSE   72. Web sites using "cookies" can directly obtain the names and addresses of
            their visitors.

73) TRUE    73. Spyware is software that comes hidden in free downloadable software and
            can track your online movements.

74) TRUE    74. Most Internet businesses do very little to protect the privacy of individuals
            who use the Net.

75) TRUE    75. Accessing a computer system without authorization is a federal crime.

76) C       76.   Internet culture is:
            a.     domestic.
            b.    regional.
            c.     global.
            d.    local.

77) A       77. What term is used to refer to all of the computer-based information
            systems used by organizations and their underlying technologies?
            a. information technology
            b. network technology
            c. digital technology
            d. productivity technology

78) B       78. The ultimate end product of the new ways of conducting business
            electronically is:
            a. a more complicated tax structure.
            b. the digital firm.
            c. more government oversight.
            d. the extinction of the traditional bureaucracy.

79) A       79. The largest component of capital investment for firms in the United States
        and many industrialized societies is:
        a. information technology.
        b. machinery.
        c. buildings.
        d. inventory.

80) B   80. In 2005, U.S. firms alone will spend nearly $1.8 ________ on IT and
        telecommunications equipment and software.
        a. thousand
        b. trillion
        c. billion
        d. million

81) B   81. The use of the Internet and digital technology to execute all of the
        activities in the enterprise is referred to as:
        a. digital business.
        b. electronic business.
        c. digital processes.
        d. electronic commerce.

82) D   82. Buying and selling of goods and services electronically with computerized
        business transactions using the Internet, networks, and other digital
        technologies is called:
        a. electronic exchanges.
        b. electronic communications.
        c. electronic business.
        d. electronic commerce.

83) A   83. The application of the Internet and related technologies to digitally enable
        government and public sector agencies' relationships with citizens, businesses,
        and other arms of government is called:
        a. e-government.
        b. e-business.
        c. e-commerce.
        d. e-technology.

84) D   84.   These two companies are close to becoming fully digital firms:
        a.    GKN Aerospace North America and Flextronics.
        b.    Wal-Mart and Sears.
        c.    DaimlerChrysler and General Motors.
        d.    Cisco Systems and Dell Computers.

85) C   85. Information is:
        a.    the best form of knowledge.
        b.    the accumulation of raw data.
        c.    data shaped into meaningful form.
        d.    the way we analyze problems.

86) C   86. Input:
        a. allows the analysis of problems faced by the organization.
        b. is data shaped into meaningful form.
        c. captures or collects raw data from within the organization or from the
        external environment.
        d. converts raw data into meaningful form.

87) D   87.   Converting raw data into a more meaningful form is called:
        a.    capturing.
        b.    feedback.
        c.    controlling.
        d.    processing.

88) C   88. Sets of operating instructions that direct and control computer processing
        are called:
        a. protocols.
        b. procedures.
        c. computer programs.
        d. policies.

89) D   89.   Creating products and services is a business function of:
        a.    human resources.
        b.    finance and accounting.
        c.    sales and marketing.
        d.    manufacturing and production.

90) D   90.   Engineers or architects who design products or services are called:
        a.    information specialists.
        b.    service workers.
        c.    data workers.
        d.    knowledge workers.

91) D   91. The principal purpose of ________ is to answer routine questions and to
        track the flow of transactions through the organization.
        a. knowledge management systems
        b. strategic-level systems
        c. management-level systems
        d. operational-level systems
92) D   92.   Management-level systems are information systems that support the:
        a.    long-range planning activities of senior management.
        b.    knowledge and data workers in an organization.
        c.    day-to-day processes of production.
        d.    decision-making and administrative activities of middle managers.

93) C   93. A relocation control system that reports on the total moving, house-
        hunting, and home financing costs for employees in all company divisions is
        an example of a(n):
        a. strategic-level system.
        b. operational-level systems.
        c. management-level system.
        d. knowledge management system.

94) A   94.   ________ systems often answer "what-if" questions.
        a.    Management-level
        b.    Strategic-level
        c.    Operational-level
        d.    Knowledge management

95) B   95.   Strategic-level systems are information systems that support the:
        a.    knowledge and data workers in an organization.
        b.    long-range planning activities of senior management.
        c.    day-to-day processes of production.
        d.    decision-making and administrative activities of middle managers.

96) B   96. TPSs are the basic business systems that serve which level of the
        organization?
        a. knowledge management systems
        b. operational-level systems
        c. strategic-level systems
        d. management-level systems

97) D   97. Managers need ________ to monitor the status of internal operations and
        the firm's relations with the external environment.
        a. knowledge systems
        b. high-volume model data
        c. office systems
        d. transaction processing systems

98) B   98. These systems are especially suited to situations in which the procedure for
        arriving at a solution may not be fully predefined in advance:
         a.   management information systems.
         b.   decision-support systems.
         c.   transaction processing systems.
         d.   knowledge management systems.

99) B    99. These systems are designed to summarize and report on the company's
         basic operations:
         a. executive information systems.
         b. management information systems.
         c. transaction processing systems.
         d. decision-support systems.

100) D   100. Decision-support systems are often referred to as:
         a. business information systems.
         b. business model systems.
         c. business support systems.
         d. business intelligence systems.

101) C   101. These systems often deliver information to senior executives through a
         portal, which uses a Web interface to present integrated personalized business
         content:
         a. transaction processing systems.
         b. decision-support systems.
         c. executive support systems.
         d. management information systems.

102) B   102. Promoting the organization's products or services is a function of:
         a. manufacturing/production systems.
         b. marketing systems.
         c. human resources systems.
         d. finance/accounting systems.

103) A   103. Identifying customers for the firm's products and preparing five-year
         forecasts are examples of:
         a. sales and marketing information systems.
         b. manufacturing and production information systems.
         c. human resources information systems.
         d. enterprise application information systems.

104) A   104. Budgeting and cost accounting are functions of:
         a. finance/accounting systems.
         b. sales marketing systems.
         c. manufacturing/production systems.
         d. decision support systems.

105) A   105. ________ is the process that integrates supplier, manufacturer,
         distributor, and customer logistics processes.
         a. Supply chain management
         b. Enterprise planning
         c. Reverse logistics
         d. Collaborative distribution

106) C   106. The interaction between information technology and organizations is
         very complex and is influenced by a great many mediating factors, including
         the organization structure, business processes, politics, culture, management
         decisions and:
         a. the availability of trained employees.
         b. the cash flow within the company.
         c. the surrounding environment.
         d. the economic basis of the company.

107) B   107. Collections of routines for producing goods and services are referred
         to as:
         a. work with routine tasks.
         b. business processes.
         c. mediating factors.
         d. standard reporting procedures.

108) A   108. Fundamental assumptions about what products the organization should
         produce, how it should produce them, where, and for whom is known as:
         a. organizational culture.
         b. motivational factors.
         c. business processes.
         d. standard operating procedures.

109) D   109. According to Mintzberg, a ________ is an example of a professional
         bureaucracy structure.
         a. small start-up business
         b. midsize manufacturing firm
         c. consulting firm
         d. law firm or school system

110) D   110. These information specialists constitute the principal liaisons between
         the information systems groups and the rest of the organization:
         a. end users.
         b. programmers.
         c. Web-page developers.
         d. systems analysts.

111) A   111. The role of ________ is a senior management position that oversees
         the use of information technology in the firm.
         a. CIO
         b. CEO
         c. CFO
         d. CTO

112) B   112. Information systems managers are:
         a. in change of the information systems function in the organization.
         b. leaders of the various specialists in the information system department.
         c. highly-trained technical specialists who write computer software
         instructions.
         d. specialists who translate business problems and requirements into
         information requirements and systems.

113) C   113. ________ are representatives of departments outside of the
         information systems group for whom applications are developed.
         a. Analysts
         b. IS managers
         c. End users
         d. Programmers

114) C   114. Although ________ theories try to explain how large numbers of firms
         act in the marketplace, ___________ theories are more useful in describing the
         mechanics of actual firms.
         a. behavioral; transaction
         b. economic; agency
         c. economic; behavioral
         d. agency; behavioral

115) C   115. ________ organizations use networks to link people, assets, and ideas.
         Work is no longer tied to geographic location.
         a. Manufacturing
         b. Hierarchical
         c. Virtual
         d. Vertical

116) C   116. For the manager, no technological support systems exist for the
         managerial roles of:
         a. entrepreneur or nerve center.
         b. liaison or negotiator.
         c. figurehead or disturbance handler.
         d. spokesperson or resource allocator.

117) B   117. At the business level the most common analytical tool for identifying
         opportunities for strategic systems is:
         a. the value web.
         b. value chain analysis.
         c. ESS.
         d. DSS.

118) D   118. A ________ is a collection of independent firms that use information
         technology to coordinate their value chains to produce a product or service for
         a market collectively.
         a. portal
         b. business link
         c. primary activity
         d. value web

119) A   119. Which of the following is most likely to raise switching costs?
         a. stockless inventory method
         b. vendor-supported supply method
         c. just-in-time supply method
         d. traditional delivery method

120) A   120. This traditional model assumes a relatively static industry
         environment, relatively clear-cut industry boundaries, and a relatively stable
         set of suppliers, substitutes, and customers, with a focus on industry players in
         a market environment:
         a. Porter's competitive forces model.
         b. Porter's generic strategy model.
         c. Porter's model of diminishing returns.
         d. Porter's value chain model.

121) D   121. Internet technology is providing the infrastructure for electronic
         business because:
         a. it is less complex than traditional infrastructures.
         b. the emergence of the digital firm has created so many new markets.
         c. it is easier to understand.
         d. its technology and technology standards can be used to make information
         flow seamlessly throughout the organization.

122) B   122.    The driving force behind the explosion of electronic business and the
         emergence of the digital firm is:
         a. the emergence of a worldwide global economy, which cannot be affected
         by politics.
         b. the low-cost connectivity and universal standards provided by Internet
         technology.
         c. new business models.
         d. TCP/IP.

123) B   123. An abstraction of what an enterprise is and how the enterprise delivers
         a product or service, showing how the enterprise creates wealth best describes:
         a. critical success factor.
         b. business model.
         c. strategic plan.
         d. information systems plan.

124) B   124. The time and money spent locating a suitable product and determining
         the best price for that product best describes:
         a. research and development costs.
         b. search costs.
         c. alternative costs.
         d. location costs.

125) D   125. A measurement of how many people a business can connect with and
         how many products it can offer those people best defines:
         a. micromarketing.
         b. intensity.
         c. richness.
         d. reach.

126) D   126. Online communities:
         a. allow members to post their own Web pages.
         b. provide a place where people of like interests can exchange ideas
         regardless of their location.
         c. are providing the foundations for new businesses.
         d. All of the above

127) C   127. Which of the following Internet business models does Amazon.com
         use?
         a. transaction broker
         b. information broker
         c. virtual storefront
         d. online service provider
128) A   128. Which of the following businesses utilizes the content provider
         Internet business model?
         a. CNN.com
         b. eBay.com
         c. Amazon.com
         d. Motocross.com

129) C   129. Which of the following is an ad that opens automatically and does not
         disappear until the user clicks on it?
         a. controlled display
         b. banner ad
         c. pop-up ad
         d. controlled ad

130) C   130. The online marketplace Internet business model:
         a. sells physical products directly to consumers or individual businesses.
         b. creates revenue by providing digital content over the Web.
         c. provides a digital environment where buyers and sellers can establish
         prices for products.
         d. saves users money and time by processing online sales dealings.

131) A   131. Pure-play business models are businesses that:
         a. did not have an earlier existing bricks-and-mortar business before they
         went to the Internet.
         b. are an example of business-to-business electronic commerce.
         c. are extensions of traditional bricks-and-mortar businesses.
         d. do not sell a physical product.

132) C   132. eBay is an example of:
         a. business-to-consumer electronic commerce.
         b. a click-and-mortar business.
         c. consumer-to-consumer electronic commerce.
         d. an online exchange

133) C   133. Thanks to the Web, ________ have become powerful business tools
         for testing and improving products and services.
         a. pop-up advertisements
         b. collaborative competitors
         c. customers
         d. sales personnel

134) C   134. A credit card-size plastic card that stores digital information and that
         can be used for electronic payments in place of cash best describes:
         a.   digital cash.
         b.   microcard.
         c.   smart card.
         d.   stored value payment system.

135) A   135. An example of the use of intranets in human resources is:
         a. allowing employees to manage their own health and pension benefits
         accounts.
         b. the provision of data on quality measurements, such as defects and rejects,
         as well as maintenance and training schedules.
         c. the ability to monitor un-invoiced income or outstanding debt each day.
         d. the use of intranet collaboration tools for contact management, discussion
         forums, document management, and calendars.

136) D   136. New technologies can be used to
         a. achieve social progress.
         b. commit crimes.
         c. threaten social values.
         d. all of the above.

137) A   137. Advances in data storage techniques and rapidly declining storage
         costs have:
         a. made routine violations of privacy cheap and effective.
         b. made universal access possible.
         c. doubled every 18 months.
         d. doubled humanity's knowledge.

138) C   138. Immanuel Kant's Categorical Imperative states that:
         a. one can put values in rank order and understand the consequences of
         various courses of action.
         b. if an action cannot be taken repeatedly, then it is not right to be taken at
         any time.
         c. if an action is not right for everyone to take, it is not right for anyone to
         take.
         d. one should take the action that produces the least harm or incurs the least
         cost.

139) B   139. The ethical "no free lunch" rule states that:
         a. if an action cannot be taken repeatedly, then it is not right to be taken at
         any time.
         b. everything is owned by someone else, and that the creator wants
         compensation for this work.
         c. one can put values in rank order and understand the consequences of
         various courses of action.
         d. one should take the action that produces the least harm or incurs the least
         cost.

140) D   140. Which U.S. act restricts what information the federal government can
         collect and what they can do with it?
         a. Freedom of Information Act
         b. Bork Bill
         c. Communications Assistance for Law Enforcement Act
         d. Privacy Act

141) A   141. European privacy protection is ________ than in the United States.
         a. much more stringent
         b. less liable to laws
         c. less far-reaching
         d. much less stringent

142) B   142. When a cookie is created during a Web site visit, it is stored:
         a. on the ISP's computer.
         b. on the visitor's computer.
         c. on the Web site computer.
         d. in a Web directory.

143) A   143. The Online Privacy Alliance:
         a. encourages self-regulation to develop a set of privacy guidelines for its
         members.
         b. protects user privacy during interactions with Web sites.
         c. discourages the use of online seals.
         d. lobbies for better privacy legislation for the consumer.

144) B   144. P3P stands for:
         a. Preferences for Personal Privacy
         b. Platform for Privacy Preferences.
         c. Privacy for Personal Protection.
         d. Protection of Personal Privacy.

145) C   145. Intellectual property can best be described as:
         a. software that is copied and distributed without permission.
         b. the Fair Use Doctrine that allows for the use of copyrighted materials.
         c. intangible creative work that is embodied in physical form.
         d. the legal protection afforded an expression of an idea.

146) C   146. Copyright can best be described as:
         a. the Fair Use Doctrine that allows for the use of copyrighted materials.
               b. software that is copied and distributed without permission.
               c. the legal protection afforded to intellectual property.
               d. intangible creative work that is embodied in physical form.

147) A         147. Which of the following adjusts copyright laws to the Internet age by
               making it illegal to make, distribute, or use devices that circumvent
               technology-based protections of copyrighted materials?
               a. Digital Millennium Copyright Act
               b. Electronic Communications Privacy Act
               c. Freedom of Information Act
               d. Privacy Act

148) D         148. The "do anything anywhere" computing environment can:
               a. create economies of efficiency.
               b. make work environments much more pleasant.
               c. centralize power at corporate headquarters.
               d. blur the traditional boundaries between work and family time.

149) C         149. Computer abuse is:
               a. illegal and unethical.
               b. most common in the business environment.
               c. sometimes legal but always unethical.
               d. mostly a personal problem.

150) A         150. The U.S. CAN-SPAM Act of 2003:
               a. requires spammers to identify themselves.
               b. makes spamming illegal.
               c. does not override state anti-spamming laws.
               d. has dramatically cut down spamming

===================================+++++++++++++++++++++++++

1. The six important business objectives of information technology are new products, services, and business
models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and:

a.   improved flexibility.
b.   improved decision making.
c.   improved business practices.
d.   improved efficiency.

2. Verizon’s implementation of a Web-based digital dashboard to provide managers with real-time information
such as customer complaints is an example of:

a.   improved flexibility.
b. improved decision making.
c. improved efficiency.
d. customer and supplier intimacy.

3. An information system can be defined technically as a set of interrelated components that collect (or
retrieve), process, store, and distribute information to support:

a.   decision making and control in an organization.
b.   communications and data flow.
c.   managers analyzing the organization’s raw data.
d.   the creation of new products and services.

4. A managerial element in the UPS tracking system described in the chapter is
A) taking inventory.
B) providing package status reports to customers.
C) the decision to use automation.
D) in-house package tracking software.

5. Which field of study focuses on both a behavioral and technical understanding of information systems?

a.   Sociology
b.   Operations research
c.   Economics
d.   Management information systems

6. Which of the following are key corporate assets?
A) intellectual property, core competencies, and financial and human assets
B) production technologies and business processes for sales, marketing, and finance
C) knowledge and the firm's tangible assets, such as goods or services
D) time and knowledge

7. Apple Computer dominates the online legal music sales industry primarily because of a failure of recording
label companies to:

a.   invest in technology.
b.   adopt a new business model.
c.   invest in complementary assets.
d.   modernize their information value chain.

8. An example of a business using information systems to attain operational excellence is:

a.   Wal-Mart’s RetailLink system.
b.   the Mandarin Oriental hotel’s customer-preference tracking system.
c.   Verizon’s Web-based digital dashboard.
d.   Apple Inc.’s iPod.
9. Networking and telecommunications technologies, along with computer hardware, software, data
management technology, and the people required to run and manage them, constitute an organization’s:

a.   data management environment.
b.   networked environment.
c.   IT infrastructure.
d.   information system.

10. Data management technology consists of:

a.   the physical hardware and media used by an organization for storing data.
b.   the detailed, preprogrammed instructions that control and coordinate the computer hardware components
     in an information system.
c.   the software governing the organization of data on physical storage media.
d.   the hardware and software used to transfer data.



++++++++++++++++++++++++++++++=======




1.                     Which moral dimension of the information age involves cultural values and practices?

                          Your Answer: Accountability and control
                       Correct Answer: Quality of life




2.                     Using computers to combine data from multiple sources and creating electronic dossiers of
                       detailed information on individuals is called

                          Your Answer: due process.
                       Correct Answer: profiling.




3.                     Correlating relationships to find obscure hidden connections in disparate databases and other
                       sources is called

                          Your Answer: due process.
                       Correct Answer: nonobvious relationship awareness.




4.                     A basic ethical concept that means mechanisms are in place to determine who took
      responsible action or who is responsible for certain actions is

         Your Answer: liability.
      Correct Answer: accountability.




5.    Most American and European privacy law is based on a regime called

      Your Answer: fair information practices (FIP).




6.    Tiny files deposited on a computer hard drive when a user visits certain Web sites are called

         Your Answer: safe harbors.
      Correct Answer: cookies.




7.    The ________ model of informed consent permits the collection of personal information until
      the consumer specifically requests that data not be collected.

         Your Answer: safe harbor
      Correct Answer: opt-out




8.    An intellectual work product used for a business purpose is classified as a ________
      provided it is not based on information in the public domain.

         Your Answer: digital millennium copyright
      Correct Answer: trade secret




9.    Which law protects creators of intellectual property for the life of the author plus an
      additional 70 years after the author's death?

         Your Answer: Trade secret
      Correct Answer: Copyright




10.   Which law grants the owner an exclusive monopoly on the ideas behind an invention for 20
      years?

         Your Answer: Copyright
      Correct Answer: Patent
11.   The commission of acts involving a computer that may not be illegal but are considered
      unethical is known as

         Your Answer: information privacy violations.
      Correct Answer: computer abuse.




12.   Which of the following is not a principal source of poor system performance?

         Your Answer: Software bugs and errors
      Correct Answer: Government regulation




13.   Which of the following makes it illegal to circumvent technology-based protections of
      copyrighted materials?

         Your Answer: E-Government Act of 2002
      Correct Answer: World Intellectual Property Organization Treaty




14.   The single largest source of repetitive stress injuries is

      Your Answer: computer keyboards.




15.   The most common kind of computer-related repetitive stress injury is

         Your Answer: severe back pain.
      Correct Answer: carpal tunnel syndrome (CTS).




16.   In today's new legal environment, managers who violate the law and are convicted will most
      likely spend time in prison.

      Your Answer: True




17.   Information systems don't necessarily threaten existing distributions of power, money,
      rights, and obligations.

         Your Answer: True
      Correct Answer: False
18.   Political institutions do not require a demonstration of real harm before they develop new
      laws governing information systems.

         Your Answer: True
      Correct Answer: False




19.   Advances in data storage techniques and rapidly declining storage costs have been
      responsible for the multiplying databases on individuals.

      Your Answer: True




20.   Accountability means that you accept the potential costs, duties, and obligations for the
      decisions you make.

         Your Answer: True
      Correct Answer: False




21.   At present, most U.S. federal privacy laws apply only to the federal government and regulate
      very few areas of the private sector.

      Your Answer: True




22.   A safe harbor requires government regulation and enforcement.

         Your Answer: True
      Correct Answer: False




23.   Most Internet businesses do little to protect customer privacy.

      Your Answer: True




24.   Copyright law protects both the underlying ideas behind a work and the manifestation in a
      work.

         Your Answer: True
      Correct Answer: False
25.   The Internet has made it much easier to protect intellectual property.

         Your Answer: True
      Correct Answer: False




26.   Internet service providers (ISPs) are required to take down sites of copyright infringers that
      they are hosting once they are notified of the problem.

      Your Answer: True




27.   Lower-level employees may be empowered to make minor decisions, but the key policy
      decisions are still very centralized.

      Your Answer: True




28.   Simply accessing a computer system without authorization or with intent to do harm, even
      by accident, is now a federal crime.

      Your Answer: True




29.   Repetitive stress injuries due to computer use are unavoidable.

         Your Answer: True
      Correct Answer: False




30.   According to experts, humans working continuously with computers come to expect other
      humans to behave like computers.

      Your Answer: True




31.   Discuss how information systems raise new ethical questions for both individuals and
      societies.
      Your Answer:
           XXXX


      Information systems create opportunities for intense social change
      and change the existing distributions of power, money, rights, and
      obligations. Information technology can be used to achieve social
      progress, but it can also be used to commit crimes and threaten
      cherished social values. The development of information technology
      will produce benefits for many and costs for others.



32.   Define the four basic concepts of ethics in an information society.
      Your Answer:
           XXX


      Responsibility means that you accept the potential costs, duties, and
      obligations for decisions and is a key element of ethical action.
      Accountability helps determine who took responsible action. If it's
      impossible to determine accountability then systems and institutions
      are incapable of ethical analysis or ethical action. Liability permits
      individuals to recover damages done to them by others. Due process
      is a process in which laws are known and understood and there is an
      ability to appeal to higher authorities to ensure that laws are applied
      correctly.



33.   Explain the concept of privacy and what the U.S. government is doing to help protect
      individual online privacy.
       Your Answer:
           XXX


      Privacy is the claim of individuals to be left alone, free from
      surveillance or interference from other individuals or organizations.
      The claim to privacy by U.S. citizens is protected by the First and
      Fourth Amendments to the Constitution. Major federal statutes set
      forth the conditions for handling information about individuals in such
      areas as credit reporting, education, financial records, newspaper
      records, and electronic communications. The Federal Trade
      Commission restated and extended the original Fair Information
      Practices to provide guidelines for protecting online privacy.



34.   Discuss how the Internet and other information technologies challenge intellectual property
      rights.
      Your Answer:
           XXXX


      The proliferation of electronic networks, including the Internet, has
      made it even more difficult to protect intellectual property rights.
                      Technology makes it easy to copy protect works and widely distribute
                      them through networks and the Internet. Trade secrets can easily be
                      transmitted and abused through technology and networks. Patents
                      are abused because work products can be easily be reproduced and
                      distributed and technology makes it difficult to determine when
                      patents rights have been violated.



35.                   Discuss how technology impacts our quality of life and describe some of the negative social
                      consequences of systems.
                      Your Answer:
                            XXXX


                      Computers and information technologies can destroy valuable
                      elements of our culture and society even while they bring us benefits.
                      The balance of power between individuals and mammoth entities can
                      easily be tipped away from individual control. It is difficult for
                      individuals and organizations to keep up with the rapidity of change.
                      Technology makes it difficult to maintain traditional boundaries
                      between family, work, and leisure. Most organizations in the United
                      States who are dependent on information systems are highly
                      vulnerable if these systems fail. Computer crime and abuse is more
                      easily committed because of technology and it's more difficult to
                      track the responsible individuals.




+++++++++++++++++++++++++++++++++++++++++++

                                     Chapter 16
                      Managing International Information Systems


True-False Questions
  131.   Dräger Safety uses a software program called PointOut to provide a desktop data interface
         with the same look and functionality at each company.

         Answer: True               Difficulty:     Hard              Reference: p. 571
132.   The growth of international trade has radically altered domestic economies around the globe.

       Answer: True               Difficulty:      Easy              Reference: p. 572

133.   Before you develop a corporate strategy and structure for globalization you need to choose
       the right technology.

       Answer: False              Difficulty:      Easy              Reference: p. 574

134.   Global business drivers can be divided into two groups: general cultural factors and specific
       business factors.

       Answer: True               Difficulty:      Medium            Reference: p. 574

135.   Information, communication, and transportation technologies had contributed to creating a
       global village.

       Answer: True               Difficulty:      Easy              Reference: p. 574

136.   The cost of telecommunication technology has resulted in dramatically increasing the cost of
       moving goods and services to and from geographically dispersed locations.

       Answer: False              Difficulty:      Medium            Reference: p. 574

137.   The collapse of the Eastern block has speeded the growth of a world culture.

       Answer: True               Difficulty:      Easy              Reference: p. 574

138.   Because Latin America, China, southern Asia, and eastern Europe have weak education,
       science, and industrial skills, they are referred to as Third World countries.

       Answer: False              Difficulty:      Medium            Reference: p. 574

139.   The growth of powerful communications technologies and the emergence of world cultures
       create the condition for global markets.

       Answer: True               Difficulty:      Easy              Reference: p. 575

140.   Micromarketing is limited to marketing to very small geographic and social units within the
       domestic market.

       Answer: False              Difficulty:      Medium            Reference: p. 575

141.   Firms operating in global markets are able to coordinate business activity according to
       comparative advantage.

       Answer: True               Difficulty:      Easy              Reference: p. 575
142.   Global markets, production, and administration create the conditions for powerful, sustained
       global economies of scale.

       Answer: True               Difficulty:      Easy               Reference: p. 575

143.   A powerful strategic advantage for a globalized firm is lowered cost factors in production.

       Answer: True               Difficulty:      Easy               Reference: p. 575

144.   Particularism is a concept based on accepting the concept of a shared global culture and the
       penetration of domestic markets by foreign goods and services.

       Answer: False              Difficulty:      Hard               Reference: p. 575

145.   At the cultural level, differences among cultures produce differences in social expectations,
       politics, and legal rules.

       Answer: True               Difficulty:      Easy               Reference: p. 575

146.   When operating in the global markets, most companies need not be concerned with the laws
       governing the movement of information.

       Answer: False              Difficulty:      Easy               Reference: p. 575

147.   Hours of business in terms of business trade are approximately the same in a global
       economy.

       Answer: False              Difficulty:      Easy               Reference: p. 576

148.   European countries have very strict laws concerning transborder data flows and privacy.

       Answer: True               Difficulty:      Easy               Reference: p. 576

149.   The European Union Data Protection Directive restricts the flow of any information to
       countries that do not meet strict European laws on personal information.

       Answer: True               Difficulty:      Medium             Reference: p. 576

150.   To avoid the cost and uncertainty of moving information across national boundaries, most
       multinational firms have developed information systems within each European country.

       Answer: True               Difficulty:      Medium             Reference: p. 576

151.   Reliable phone networks and skilled consultants are readily available to companies operating
       in global markets.

       Answer: False              Difficulty:      Easy               Reference: p. 576
152.   The accounting practices of a country are tightly intertwined with that country’s legal
       system.

       Answer: True                Difficulty:       Easy               Reference: p. 576

153.   In International companies, English has become as a kind of standard business language.

       Answer: True                Difficulty:       Easy               Reference: p. 576

154.   Most international companies have rationally developed international systems architectures.

       Answer: False               Difficulty:       Easy               Reference: p. 577

155.   In a multinational strategy, products and services on sale in different countries are adapted to
       serve local market conditions.

       Answer: True                Difficulty:       Medium             Reference: p. 578

156.   Transnational firms extend beyond national boundaries.

       Answer: True                Difficulty:       Medium             Reference: p. 578

157.   Information technology and improvements in global telecommunications are giving
       international firms less flexibility to shape their global strategies because they lose the
       advantage of being unique.

       Answer: False               Difficulty:       Medium             Reference: p. 578

158.   For increased costs and minimum impact, value-adding activities should be located where
       they can best be performed.

       Answer: False               Difficulty:       Easy               Reference: p. 579

159.   A work-flow analysis is the best way to identify core business processes.

       Answer: True                Difficulty:       Hard               Reference: p. 582

160.   Identifying critical business processes will identify opportunities for transnational systems
       Answer: True                 Difficulty:      Medium            Reference: p. 582

161.   Piecemeal approaches to a global systems strategy tend to fail because of the inability to
       focus resources.

       Answer: False               Difficulty:       Easy               Reference: p. 582

162.   All types of global systems contribute to superior management and coordination.

       Answer: True                Difficulty:       Easy               Reference: p. 582
163.   Global systems create the ability to optimize the use of corporate funds over a larger capital
       base.

       Answer: True                Difficulty:     Easy               Reference: p. 583

164.   Global systems allow fixed costs to be amortized over a much smaller customer base.

       Answer: False               Difficulty:     Medium             Reference: p. 583

165.   The major telecommunications challenge in an international setting is making data flow
       seamlessly across networks shaped by disparate national standards.

       Answer: True                Difficulty:     Easy               Reference: p. 583

166.   Integrated global telecommunications networks are extremely difficult to create.

       Answer: True                Difficulty:     Easy               Reference: p. 583

167.   Network service is much more reliable in northern Europe than in southern Europe.

       Answer: True                Difficulty:     Medium             Reference: p. 584

168.   Because of the European Union, western Europe has low transmission costs and a common
       technology.

       Answer: False               Difficulty:     Medium             Reference: p. 584

169.   Private networks may not provide the same level of quick and predictable response as VPNs.

       Answer: False               Difficulty:     Hard               Reference: p. 584

170.   As more secretaries and supervisors use international systems, English will become the
       international standard.

       Answer: False               Difficulty:     Hard               Reference: pp. 585-586
Fill in the Blanks
   171. International information systems architecture is the basic information system required by
        organizations to coordinate worldwide trade in other activities.

         Difficulty: Easy                        Reference: p. 572

   172. A(n) business driver is a force in the environment to which businesses must respond and that
        influences the direction of business.

         Difficulty: Easy                        Reference: p. 572

   173. Information, communication, and transportation technologies have all greatly contributed to
        creating the concept of the global village.

         Difficulty: Easy                        Reference: p. 574

   174. Global culture is the development of common expectations, shared artifacts, and social
        norms among different cultures and people.

         Difficulty: Easy                        Reference: p. 574

   175. A(n) global market is formed by consumers around the world who are interested in
        consuming similar products that are culturally approved.

         Difficulty: Medium                      Reference: p. 575

   176. Micromarketing refers to marketing to a very small geographic and social unit.

         Difficulty: Easy                        Reference: p. 575

   177. Japanese consumers who only want to purchase products made in Japan are an example of
        particularism .

         Difficulty: Medium                      Reference: p. 575

   178. The movement of information across international boundaries is called transborder data
        flow.

         Difficulty: Easy                        Reference: p. 576

   179. The European Union Data Protection Directive restricts the flow of any information to
        countries that do not meet strict European information laws on personal information.

         Difficulty: Hard                        Reference: p. 576
180. A(n) domestic exporter is a form of global business organization characterized by heavy
     centralization of corporate activities in the home country of origin.

      Difficulty: Medium                        Reference: p. 578

181. A(n) domestic exporter is a strategy characterized by heavy centralization of corporate
     activities in the home country of origin.

      Difficulty: Easy                          Reference: p. 578

182. A(n) multinational corporation is one concentrating financial management and control out
     of the central home base while decentralizing production, sales, and marketing operations to
     units in other countries.

      Difficulty: Easy                          Reference: p. 578

183. A(n) franchiser is a firm where a product is created and initially produced in the home
     country, but must rely heavily on foreign personnel for further production, marketing, and
     human resources.

      Difficulty: Easy                          Reference: p. 578

184. Governance of transnational firms is similar to a federal structure.

      Difficulty: Medium                        Reference: p. 578

185. A(n) transnational firm is globally managed and has no national headquarters.

      Difficulty: Easy                          Reference: p. 578

186. In a transnational strategy, nearly all the value-added activities are managed from a global
     perspective without reference to national borders.

      Difficulty: Medium                        Reference: p. 578

187. The transnational form of business does business from a global perspective without regard
     to national borders to optimize sources of supply and demand and competitive advantages.

      Difficulty: Easy                          Reference: p. 578

188. In a global system configuration, a centralized system is one in which systems development
     and operations occur totally at the domestic home base.

      Difficulty: Easy                          Reference: p. 579

189. A(n) centralized global strategy and systems configuration conducts all activities for systems
     development and operation in the home country.

      Difficulty: Easy                          Reference: p. 579
190. In a global system configuration, a decentralized system is one in which each foreign unit
     designs its own unique solutions and systems.

      Difficulty: Easy                          Reference: p. 579

191. Duplicated systems are those developed at the home base but operated by independent units
     in foreign locations.

      Difficulty: Easy                          Reference: p. 579

192. In a global company and information systems support structure, host country systems units
     would serve local needs.

      Difficulty: Medium                        Reference: p. 579

193. In a global system configuration, a networked system is one in which systems development
     and operations occur in an integrated and coordinated fashion across all units.

      Difficulty: Easy                          Reference: p. 579

194. A(n) decentralized global strategy and systems configuration conducts corporate activities in
     local foreign units.

      Difficulty: Easy                          Reference: p. 579

195. When developing a global company and information systems support structure,
     transnational systems units should be responsible for international telecommunications and
     systems development.

      Difficulty: Medium                        Reference: p. 579

196. A(n) networked global strategy and systems configuration is the one most visible in financial
     services.

      Difficulty: Medium                        Reference: p. 579

197. A(n) franchiser has systems developed at the home base and then replicated around the
     world.

      Difficulty: Easy                          Reference: p. 579

198. When developing a global company and information systems support structure, regional
     systems units should handle telecommunications and systems development within major
     geographic regions.

      Difficulty: Medium                        Reference: p. 579

199. Core systems support functions that are absolutely critical to the organization.

      Difficulty: Easy                          Reference: p. 581
200. In a global systems strategy, local option systems are needed to meet local requirements.

      Difficulty: Medium                        Reference: p. 581

201. In a global systems strategy, regional coordinated systems support regional business
     processes.

      Difficulty: Medium                        Reference: p. 581

202. Truly integrated global systems must have connectivity – the ability to link together the
     systems and people of a global firm into a single integrated network.

      Difficulty: Medium                        Reference: p. 584

203. Companies are using the public Internet to create global networks using virtual private
     networks from Internet service providers, which provide many features of a private network
     using the public Internet.

      Difficulty: Hard                          Reference: p. 584

204. Developing core systems that work with old systems in local areas requires new software
     interfaces.

      Difficulty: Medium                        Reference: p. 585

205. Electronic data interchange systems are widely used by global manufacturing firms to
     connect to suppliers.

      Difficulty: Easy                          Reference: p. 586

206. Software interfaces for international systems for knowledge workers could use English as
     the language standard.

      Difficulty: Medium                        Reference: p. 586

207. Companies now outsource some of their new systems development work to external vendors
     in another country. This practice is called offshore software outsourcing.

      Difficulty: Medium                        Reference: p. 586

208. The amount of time required to transferring software work to an offshore outsourcer ranges
     from three months to an entire year.

      Difficulty: Medium                        Reference: p. 588

209. When outsourcing software development offshore, companies can expect to pay up to ten
     percent extra for managing the offshore contract.

      Difficulty: Hard                          Reference: p. 589
  210. Legitimacy is defined as the extent to which your authority is accepted on grounds of
       competence, the vision, or other qualities.

         Difficulty: Medium                        Reference: p. 592



Essay Questions
  211.   What steps do the authors recommend be taken to develop an international information
         systems architecture?

                Begin by developing an understanding of the overall market forces, or business
                 drivers, that are pushing your industry toward global competition, i.e., the global
                 environment.
                Examine the inhibitors or negative factors that could scuttle the development of a
                 global business.
                Develop a corporate strategy for competing in the global environment.
                Plan how to structure your organization so that it can pursue the strategy you have
                 developed.
                Consider the management issues in implementing your strategy and making the
                 organization design a reality. The key here will be the design of business
                 procedures.
                Consider the technology platform. You must have a corporate strategy instructor
                 before you can choose the right technology.

  212.        .
         List at least four general cultural factors and four specific business factors driving global
         business. Which two factors (one of each) do you feel are most in danger at the current
         moment? Why?

                        General Cultural Factors: global communication and transportation
                         technologies, development of the global culture, emergency global social
                         norms, political stability, and a global knowledge base.
                        Specific Business Factors: global markets, global production operations,
                         global coordination, global workforce, and global economies of scale.

         One answer might be that the two factors most in danger at the current moment are political
         stability and a global workforce.

  213.   What are the four technology challenges and obstacles to global business systems? Which
         one do you think will be easiest to solve, and why?

                        Standards: different EDI, e-mail, telecommunications standards.
                        Reliability: phone networks are not uniformly reliable.
                        Speed: different data transfer speeds; many are slower than United States
                         speeds.
                        Personnel: shortages of skilled consultants.
214.   How do cultural, legal, political, and social expectations affect global business?

       At a cultural level, particularism in all its forms rejects the very concept of a shared global
       culture and rejects the penetration of domestic markets by foreign goods and services.
       Differences among cultures produce differences in social expectations, politics, and
       ultimately in legal rules. Different cultures produce different political regimes, with different
       laws governing the movement of information, information privacy of their citizens, origins of
       software and hardware in systems, and radio and satellite telecommunications. Even the
       hours of business and terms of business trade vary greatly across political cultures.

       Cultural and political differences profoundly affect organizations’ standard operating
       procedures. Everything from the different reliability of telephone systems to the shortage of
       skilled consultants creates barriers.

       National laws and traditions have created different accounting practices in various countries,
       which impact the way profits and losses are analyzed. These accounting practices are tightly
       intertwined with each country’s legal system, business philosophy, and tax code.

       Cultural differences can also affect the way organizations use information technology.
       Japanese firms, for example, use fax technologies intensively but are not comfortable with e-
       mail.

       Language is a significant barrier. Software may have to be built with local language
       interfaces before a new information system can be successfully implemented.

       Currency fluctuations can play havoc with planning models and projections. Some of these
       problems will diminish in parts of the world when the euro becomes more widely used.

       [Though the text does not mention this, differences in religious practice (especially if the
       state promotes a specific religion) can create almost insurmountable problems.]

215.   What are the organizational principles a company should follow to develop a global
       company and its information systems support structure? Do you agree? Would you change
       these principles, or add others? Support your answer.

                      Organized value-adding activities along lines of comparative advantage.
                      Develop and operate systems units at each level of corporate activity –
                       regional, national, an international.
                      Established at world headquarters a single office responsible for
                       development of international systems, a global chief information officer
                       position.
  216.   Identify at least five problems associated with international networks.

                        Costs and tariffs.
                        Network management.
                        Installation delays.
                        Poor quality of international services.
                        Regulatory constraints.
                        Changing user requirements.
                        Disparate standards.
                        Network capacity.
                       
  217.   List at least four difficult problems for management in the development of the international
         information system. With which would you like least to deal? Why?

                        Agreeing on user requirements.
                        Introducing changes in business processes.
                        Coordinating applications development.
                        Coordinating software releases.
                        Encouraging local users to support global systems.

  218.   Why are integrated global networks so difficult to create?

         Some of the problems are: costs and tariffs, network management, installation delays, poor
         quality of international service, regulatory constraints, changing user requirements, disparate
         standards, and network capacity.

  219.   What options does a company have for providing international connectivity?

         They can build their own international private network, rely on a network service based on
         the public switched networks throughout the world, or use the Internet and intranets.

  220.   How can the Internet be helpful in developing an international telecommunications network?

         The Internet allows anyone connected to it to communicate and compute at any time, or
         anywhere. Satellite systems, digital cell phones, and personal communications services will
         make it even easier to coordinate work and information in many parts of the globe that
         cannot be reached by existing ground-based systems. Companies can use Internet
         technology to construct virtual private networks to reduce wide area networking costs and
         staffing requirements. If it wishes, the company can outsource the virtual private network to
         an Internet service provider.


+++++++++++++++++++++++++++++++++++++++

     EDI is the exchange between two organizations of standard transactions through a
      network.
     The type of decision that can be made by following a definite procedure is called a structured
      decision.
   The use of computers to combine data from multiple sources and create dossiers of
    information on individuals is called profiling.
   The feature of social institutions that means mechanisms are in place to determine
    responsibility for actions is called accountability.
   The ethical “no free lunch” rule states that everything is owned by someone else, and that
    the creator wants compensation for this work.
   If a man steals food from the store to feed his family, the Utilitarian Principle states that
    stealing food is acceptable, because the higher value is the survival of the family.
   Immanuel Kant’s Categorical Imperative states that if an action is not right for everyone to
    take, it is not right for anyone to take.
   The moral dimensions of the information society cut across individual, social, and political
    levels of actions.
   Improved asset utilization, increased organizational learning, and improved operations
    are intangible benefits of information systems.
   Information systems problems typically result from a combination of people, organizational,
    and technical factors.
   Systems analysis is not a part of the implementation process.
   Hardware and software that attempts to emulate the brain describes a neural network.
   Consumers selling goods and services electronically to other consumers best describe
    consumer-to-consumer electronic commerce.
   Pure-play businesses do not have any traces of a brick and mortar business before they
    went to the internet.
   Information asymmetry exists when one party in a transaction has more info that is important
    for the transaction than the other party.
   Information density is a quality of e-commerce that lowers the cost of info storage,
    processing and communication, along with improving the data quality.
   Information asymmetry is not a unique feature of e-commerce technology.
   Companies with effective supply chain management systems can expect all of the above.
   Supply Chains are a network of organizations and business processes for getting raw
    materials, transforming the materials in finished products, and distributing them to customers.
   Most antivirus software is effective against only viruses known when the software was
    written.
   High-availability computing helps firms recover quickly from a crash.
   The Sarbanes-Oxley Act imposes responsibility on companies and management to
    safeguard the accuracy of financial info.
   The HIPAA act of 1996 outlines medical security and privacy rules.
   Issue patches correct flaws in their software after it has been distributed.
   Pharming involves redirecting users to a fraudulent web site even if the user has the
    correct web address.
   Spoofing is a form of redirecting a web link to different addresses.
   Using numerous computers to inundate and overwhelm the network from many launch points
    is called a DDoS.
   An independent computer program that copies itself from one computer to another over a
    network is called a worm.
   The main security problem on the internet is hackers.
   A network that links a business with its customers, suppliers, and other business partners is
    called extranet.
   A network that spans a city and sometimes suburbs is an example of a metropolitan area
    network.
   Satellite transmissions are reliant on relay stations for terrestrial microwave transmission.
   The four layers of the TCP/IP reference model are application, transport, internet, and
    network interface layers.
   The tool that enables users to view the same data in different ways using multiple dimensions
    is OLAP.
   The data dictionary serves as an important data management tool by creating an inventory
    of data contained in the database.
   Select, project, and join are the three basic operations used to develop useful sets of data.
   The logical view presents data as they would be perceived by end users.
   A schematic of the entire database that describes the relationships in a database is called a
    entity-relationship diagram
   In a table for customers, the information about a single customer would reside in a single row.
   Scalability refers to the ability of a computer, product, or system to expand to serve a larger
    number of users without breaking down.
   Middleware is software that connects two applications, allowing them to communicate and
    exchange data.
   Graphic user interface use icons, bars, boxes and buttons to perform tasks.
   In batch processing transactions are accumulated in batches until it is time to process
    them.
   Traditional markets have higher transaction costs than digital markets.
   A marketplace extended beyond traditional boundaries and removed from a temporal and
    geographic location is a marketspace.
   The quality of ubiquity, as it relates to e-commerce, is illustrated by the availability of
    internet technology everywhere and anytime.
   Information availability and visibility is the central objective of supply chain management
    systems.
   The bullwhip effect is a distortion of info about the demand for a product as it passes from
    one area of the supply chain to another.
   Scheduling systems that minimize inventory by having items arrive exactly at the moment
    they are needed, and products shipped as soon as they are finished is just in time.
   To keep internal data secure, a company employing an extranet must be sure to put a
    firewall in place.
   TCP/IP stands for transmission control protocol/internet protocol.
   A network that covers a large geographic area is called a wide area network.
   Microwave signals follow a straight line and do not bend with the curve of the Earth.
   A twisted pair is the simplest and slowest type of telecommunications media.
   Grid computing connects remote computers in a single network, creating a “virtual
    supercomputer”
   More powerful computational abilities would be the reason why one would use a
    workstation over a personal computer.
   Application software applies specific tasks for an end user.
   System software manages the resources of the computer.
   Reducing time spent on benchmarking is not a benefit of CAD systems
   Lowering the cost of entry to global scale operations is the greatest impact the internet
    has had on globalization.
   Globalization allows businesses to sell their products on a global scale.
   The value chain model helps a firm identify points at which info technology can most
    effectively enhance its competitive position.
   A restaurant has the lowest barrier to entry.
   External environment is not one of the competitive forces.
   The U.S. acquiring distribution rights for a new beverage is a competitive advantage of
    barrier to entry that restrict supply
   The four major types of competitive advantage are demand control, economies of scale,
    barriers to entry that restrict supply, and process efficiency.
   You have been hired by Inspiration Inc, to help improve their profit margin. Inspiration Inc. is a
    business communications consultancy that services many clients in different industries
    throughout the U.S. The end products of the company are customized recommendations for
    the best use of a client's existing resources for improving internal communications, typically
    delivered via documentation in different media. The company has approximately 100
    consultants all of whom are located in their central headquarters in Chicago. What system do
    you recommend to improve the company's business processes and increase their profit
    margin? The answer is Extranet, to enable quick collaboration over the Internet,
    minimize the time spent communicating with the client, and minimize the amount of
    paperwork needed
   A CIO is a senior manage who oversees the use of IT in the firm.
   E-commerce is buying or selling goods over the internet.
   An extranet allows different firms to work collaboratively on product design, marketing, and
    production.
   Decision support systems allow users to change assumptions, ask new questions, and
    include new data.
   Senior, middle, and operational management are three principal levels of hierarchies within
    a business organization.
   Fulfilling a customer order is a cross-functional business process.
   Assume you work for a package delivery service in a major metropolitan area, and that the
    business has been losing customers for several years. You have been asked to find a solution
    to this problem, perhaps one which uses modern information technologies. What is the correct
    way to proceed: is to identify the problem, design alternative solutions, choose the best
    solution, and then implement the solution.
   Implementation is the final step in the four step model of business problem solving.
   Poor business processes and unsupportive culture are examples of an organizational
    business problem.
   Identifying the problem is the first step in the four step model of business problem solving.
   Intranet uses internet technology within the boundaries of the firm.
   Input, processing, and output are three activities in an information system that produce the
    information organizations use to control operations.
   Information technology is used to refer to all of the computer based information systems
    used by organizations and their underlying technologies.
   Improved decision making is part of the six important business objectives of information
    technology.
   New products, services and business models; charging less for superior products;
    responding to customers in real time can lead to competitive advantage.
   Executive support systems are information systems that support the long range planning
    activities of senior management.
   The competitive forces model is used to describe the interaction of external influences,
    specifically threats and opportunities that affect an organization's strategy and ability to
    compete.
   The four basic strategies a company can employ to deal with competitive forces are to
    strengthen customer and supplier intimacy, focus on market niche, product
    differentiation, and low-cost leadership.
   Substitute products or services are the competitive force that the encyclopedia industry
    succumbed to.
   A suite of integrated software modules for finance and accounting, human resources,
    manufacturing and production, and sales and marketing that allows data to be used by
    multiple functions and business processes best describes ERP systems
   Online transaction processing requires fault-tolerant computer systems.
   Input devices gather data and convert them into electronic form.
   Mashups are software applications that combine different online software apps.
   Total cost of ownership model can be used to analyze all the direct and indirect costs to
    help firms determine the actual cost of specific technology implementations.
   Data redundancy is duplicate data in multiple data files.
   The internet is based on client/server technology in which all data resides on servers.
   Setting up fake websites to ask users for information is phishing.
   ISO 17799 specifies the best practices in info systems security and control.

				
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