1 / 4

1

Copyright © 2018 Pearson Education, Inc.

Management Information Systems: Managing the Digital Firm, 15e (Laudon)

Chapter 1 Information Systems in Global Business Today

1) Which of the following is not one of the six strategic business objectives of information

systems?

A) New products and services

B) Improved decision making

C) Competitive advantage

D) Improved employee morale

E) Survival

Answer: D

Difficulty: Challenging

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time

information enabled it to improve which of the following?

A) Compliance with regulations

B) Managerial decision making

C) Efficiency in creation of new products

D) Employee morale

E) Intimacy with its suppliers

Answer: B

Difficulty: Challenging

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

3) Which of the following may lead to competitive advantage?

1. New products, services, and business models;

2. Charging less for superior products;

3. Responding to customers in real time

A) 1 only

B) 1 and 2

C) 2 and 3

D) 1 and 3

E) 1, 2, and 3

Answer: E

Difficulty: Challenging

AACSB: Analytical thinking

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

 2 / 4

2

Copyright © 2018 Pearson Education, Inc.

4) A firm that invests in an information system because it is a necessity of doing business does

so because it is seeking to achieve which of the following business objectives?

A) Operational excellence

B) Improved decision making

C) Competitive advantage

D) Customer intimacy

E) Survival

Answer: E

Difficulty: Moderate

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an

example of which of the following?

A) Improved flexibility

B) Improved decision making

C) Improved efficiency

D) Customer intimacy

E) Operational excellence

Answer: D

Difficulty: Moderate

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

6) Competitors were seeking which of the following business objectives when they rushed to

provide ATMs after Citibank introduced the first ATMs in New York?

A) Improved efficiency

B) Customer and supplier intimacy

C) Survival

D) Competitive advantage

E) Improved decision making

Answer: C

Difficulty: Moderate

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

 3 / 4

3

Copyright © 2018 Pearson Education, Inc.

7) Which of the following is the key business metric behind the technologies implemented by

Kroger, as discussed in the chapter-opening case?

A) Higher customer satisfaction levels

B) Survival

C) Improved employee morale

D) Improved decision making

E) Reduced cost of supplies

Answer: A

Difficulty: Moderate

AACSB: Analytical thinking

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

8) Which of the following is an example of a business using information systems to create a

new product?

A) Walmart's RetailLink system

B) The Mandarin Oriental's use of computers to keep track of guest preferences

C) Verizon's use of a web-based digital dashboard to provide real-time company information

for managers

D) Apple's creation of the iPod

E) Kroger's use of sensors to monitor cold food storage temperatures

Answer: D

Difficulty: Challenging

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

9) Walmart exemplifies the power of information systems coupled with state-of-the-art

business practices and supportive management to achieve which of the following?

A) New products and services

B) Operational efficiency

C) Survival

D) Customer intimacy

E) Competitive advantage

Answer: B

Difficulty: Challenging

AACSB: Information technology

LO: 1-1: How are information systems transforming business, and why are they so essential for

running and managing a business today?

Powered by qwivy(www.qwivy.org)

 4 / 4