Chapter 2-Information Systems, Organizations, and Strategy

What is the primary function of an information system (IS) in an organization?

• To manage the organization's financial assets

• To process resources from the environment to produce outputs

• To produce goods and services

• To oversee employee performance

According to the text, what is a formal legal entity with internal rules and procedures called?

• A social structure

• A behavioral organization

• An organization

• A legal institution

What is the main ingredient used by information systems to create useful entities?

• Resources

• Data

• People

• Technology

How do information systems affect organizations?

• They increase the number of managerial levels

• They reduce transaction and internal management costs

• They increase the number of employees

• They have no significant impact

Which of the following is a direct result of IT flattening organizations?

• Increase in middle management roles

• Reduction in decision-making time

• Centralization of decision-making

• Decrease in the span of control

What does the business value chain model highlight?

• Critical points for IT implementation in production

• Ways to reduce employee costs

• Specific activities where competitive strategies can be applied

• The hierarchy of organizational structure

Which is NOT a primary activity in the value chain model?

• Inbound logistics

• Operations

• Human resources

• Outbound logistics

Which of the following strategies is NOT mentioned as a way to deal with competitive forces?

• Low-cost leadership

• Product differentiation

• Market diversification

• Focus on market niche

How does IT encourage postindustrial organizations?

• By centralizing decision-making

• By decentralizing decision-making

• By increasing the number of middle managers

• By limiting professional autonomy

Which of the following is a support activity in the value chain model?

• Inbound logistics

• Operations

• Sales and marketing

• Technology development