21
62) Which of the following technologies permits service calls to U.S. companies to be answered
in India just as easily and inexpensively as if the help desk were in the United States?
A) Cellular networks
B) Internet telephony
C) The World Wide Web
D) Software as a web service
E) TQM
AACSB: Information Technology
LO: 3.2: How do information systems help businesses compete globally?
63) The ________ strategy concentrates financial management and control out of a central home
base while decentralizing production, sales, and marketing operations to units in other countries.
A) domestic exporter
B) multinational
C) franchise
D) transnational
E) virtual company
AACSB: Application of Knowledge
LO: 3.2: How do information systems help businesses compete globally?
64) The ________ strategy is characterized by heavy centralization of corporate activities in the
home country of origin.
A) domestic exporter
B) multinational
C) franchise
D) transnational
E) virtual company
AACSB: Application of Knowledge
LO: 3.2: How do information systems help businesses compete globally?
65) In a ________ system configuration, separate information systems are designed and
managed by each foreign unit.
A) duplicated
B) centralized
C) decentralized
D) networked
E) virtual
AACSB: Information Technology
LO: 3.2: How do information systems help businesses compete globally?
22
66) ________ systems are those in which development occurs at the home base, but operations
are handed over to autonomous units in foreign locations.
A) Transnational
B) Decentralized
C) Duplicated
D) Networked
E) Virtual
AACSB: Information Technology
LO: 3.2: How do information systems help businesses compete globally?
67) A firm that locates all systems development and operations at its headquarters is using a
________ system configuration.
A) unilateral
B) centralized
C) decentralized
D) networked
E) virtual
AACSB: Information Technology
LO: 3.2: How do information systems help businesses compete globally?
68) ________ typically develop a single information system, usually at the home base, and then
replicate it around the world.
A) Domestic exporters
B) Multinational firms
C) Franchisers
D) Transnational firms
E) Virtual companies
AACSB: Information Technology
LO: 3.2: How do information systems help businesses compete globally?
69) Caterpillar Corporation is example of which of the following?
A) Domestic exporter
B) Multinational
C) Franchiser
D) Transnational
E) Virtual company
AACSB: Application of Knowledge
LO: 3.2: How do information systems help businesses compete globally?
23
70) Which of the following is pursuing a transnational strategy?
A) Caterpillar Corporation
B) Ford Motor Co.
C) Intel Corporation
D) Nestlé
E) Starbucks
AACSB: Application of Knowledge
LO: 3.2: How do information systems help businesses compete globally?
71) TQM derives from concepts developed by Japanese quality experts.
AACSB: Application of Knowledge
LO: 3.2: How do information systems help businesses compete globally?
72) Franchisers are firms that have their product created, designed, financed, and initially
produced in the home country but rely heavily on foreign personnel for further production,
marketing, and human resources.
AACSB: Application of Knowledge
LO: 3.2: How do information systems help businesses compete globally?
73) What are the four main ways of organizing businesses internationally, and what types of
systems configurations do each of these types typically use?
AACSB: Analytical Thinking; Written and Oral Communication
LO: 3.2: How do information systems help businesses compete globally?
24
74) Customer definitions of the quality of a product include all of the following except:
A) uniformity of the product.
B) accuracy of the advertising with respect to the product.
C) durability and safety of the product.
D) ease of use of the product.
E) customer support for the product.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
75) Seeing quality as the responsibility of all people and functions in an organization is central to
the concept of:
A) six sigma.
B) TQM.
C) quality control.
D) cycle time reduction.
E) benchmarking.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
76) The reduction of errors to 3.4 defects per million opportunities is central to the concept of:
A) six sigma.
B) TQM.
C) benchmarking.
D) cycle time reduction.
E) BPR.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
77) All of the following are ways to improve quality except:
A) improving products and services based on customer demands.
B) simplifying the production process.
C) implementing a new information system.
D) improving production precision.
E) reducing cycle time.
AACSB: Analytical Thinking
LO: 3.3: How do information systems help businesses compete using quality and design?
25
78) You are the production manager for a manufacturer of bicycle parts. Which of the following
tools or technologies would you use to improve production precision?
A) Value chain
B) CAD software
C) Benchmarking
D) Industry best practices
E) Porter’s competitive forces model
AACSB: Analytical Thinking; Information Technology
LO: 3.3: How do information systems help businesses compete using quality and design?
79) Which of the following statements about cycle time is not true?
A) Cycle time refers to the total elapsed time from the beginning of a process to its end.
B) Shorter cycle times mean that problems are caught earlier in the process.
C) Finding ways to reduce cycle time often means finding ways to simplify production steps.
D) The fewer steps in a production process, the more likely that an error will occur.
E) Information systems can help reduce cycle time.
AACSB: Analytical Thinking
LO: 3.3: How do information systems help businesses compete using quality and design?
80) All of the following are psychological aspects of quality except:
A) effective marketing.
B) the company’s knowledge of its products.
C) the product’s reputation.
D) the courtesy of salespeople.
E) the sensitivity of support staff.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
81) Which of the following statements about 3-D printing is not true?
A) 3-D printing is also known as additive manufacturing.
B) Unlike traditional techniques, 3-D printing results in some wasted material.
C) 3-D printing can create objects from plastic, metal, or composite materials.
D) CAD systems supply data for 3-D printing.
E) 3-D printing is often used to fashion items for small production runs.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
26
82) Which of the following companies used benchmarking to achieve an order-shipping accuracy
of 99.9 percent?
A) Ford Motor Co.
B) L.L. Bean
C) GE Aviation
D) Nike
E) 1-800-Flowers
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
83) The Nike Vapor Talon is an example of which of the following?
A) BPR
B) 3-D printing
C) TQM
D) BPM
E) Six sigma
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
84) Probably the best single way to reduce quality problems is to reduce cycle time.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
85) Benchmarks are specific standards for business processes set by industry leaders.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
86) Quality control is the sole goal of six sigma.
AACSB: Application of Knowledge
LO: 3.3: How do information systems help businesses compete using quality and design?
27
87) You are advising the owner of Smalltown Computer, a new, local computer repair store that
also builds custom computers to order. Define 3-D printing and explain how it might be relevant
to this business?
AACSB: Application of Knowledge; Information Technology; Written and Oral
Communication
LO: 3.3: How do information systems help businesses compete using quality and design?
88) Discuss the ways information systems can be used to improve quality.
AACSB: Analytical Thinking; Information Technology; Written and Oral Communication
LO: 3.3: How do information systems help businesses compete using quality and design?
89) How does the definition of quality differ from the customer and manufacturer perspectives?
AACSB: Application of Knowledge; Written and Oral Communication
LO: 3.3: How do information systems help businesses compete using quality and design?
28
90) Based on your reading of the chapter case, which of the following did Datacard implement to
increase revenue, customer satisfaction, operational efficiency, and employee productivity?
A) CAD
B) BPR
C) TQM
D) Benchmarking
E) Value chain analysis
AACSB: Analytical Thinking; Information Technology
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
91) Which of the following is the first step in BPM?
A) Reduce cycle time and simplify the production process.
B) Improve design quality and precision.
C) Identify processes for change.
D) Extend the value chain.
E) Identify synergies.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
92) BPM tools can do all of the following except:
A) capture and enforce business rules for performing processes.
B) integrate existing systems to support new or redesigned processes.
C) create models of improved processes.
D) document processes requiring improvement.
E) create a digital model of a part, product or structure.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
29
93) Which of the following statements about BPR is not true?
A) BPR can result in a paradigm shift.
B) BPR can lead to dramatic gains in productivity and efficiency.
C) BPR is the easiest type of BPM to implement.
D) Amazon is an example of BPR.
E) BPR typically involves radical change.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
94) A primary challenge in BPM is employee resistance.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
95) The most significant barrier to successful business process change is, ironically, management
itself.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
96) BPM ends once the new processes are both implemented and accepted.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
97) Business process reengineering involves the radical redesign of business processes.
AACSB: Application of Knowledge
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
30
98) What is BPM? What are the steps involved in practicing BPM?
AACSB: Application of Knowledge; Written and Oral Communication
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
99) Why should a company engage in business process reengineering? How would a company
know if it needed or would gain from BPR?
AACSB: Analytical Thinking; Written and Oral Communication
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?
100) Why is identifying processes for change one of the most important strategic decisions that a
firm can make?
AACSB: Application of Knowledge; Written and Oral Communication
LO: 3.4: What is the role of business process management (BPM) in enhancing
competitiveness?