CHAPTER 14—INFORMATION TECHNOLOGY AND E-COMMERCE
MULTIPLE CHOICE
1. A major consequence of information technology on the daily work of managers is that they
a.
have more services from assistants than previously.
b.
perform considerable clerical work that was done previously by assistants.
c.
have many fewer messages to deal with.
d.
spend much more time on the telephone.
2. WiFi (wireless fidelity) increases the value of laptop computers because
a.
the Internet can be accessed even when telephone line connections are not available.
b.
managers know immediately whether field workers are using their laptops.
c.
WiFi increases the memory of laptops.
d.
laptops last longer when WiFi is applied.
3. In terms of increasing productivity, information technology has made it easier for organizations to
a.
make their hierarchies steeper.
b.
add more staff.
c.
thin the number of employees.
d.
charge more for commodities (basic products where the brand is not key).
4. In the virtual office, employees
a.
work without a team leader.
b.
complete one task before moving on to another.
c.
are all part-time or temporary workers.
d.
coordinate their activities although physically separate.
5. A major purpose of a company intranet is to
a.
serve as a Web site for company use only.
b.
keep customers informed of price changes.
c.
monitor employee use of the Internet.
d.
sell products and services by E-commerce.
6. Wendy sets up a pass-protected Web page so work associates can provide input on problems facing the
company. The technical name for Wendy’s Web page is a
a.
personal digital assistant.
b.
wiki.
c.
domain name.
d.
surveillance tool.
7. Another important way in which information technology benefits managers is
a.
by allowing employees to serve themselves.
b.
by not requiring managerial or staff assistance.
c.
by requiring more staff assistance.
d.
both a & b
8. An example of e-leadership would be for the team leader to
a.
set up a chat room to deal with an important work issue.
b.
have a luncheon buffet for team members.
c.
visit workers at their home when they are ill.
d.
established a forced-ranking system within the group.
9. Microblogging refers to
a.
sending brief updates online about work activities to employees.
b.
e-leadership.
c.
wikis.
d.
setting up a chat room.
10. Information technology has improved business models in the sense that
a.
companies now have a clearer analysis of which ventures will be profitable.
b.
internal operations can be overhauled.
c.
profit margins increase because of efficiencies in shipping.
d.
the business can be conducted in new ways such as selling direct.
11. E-commerce has been a substantial asset to small enterprises because the Internet
a.
makes it easier for small businesses to compete with large firms.
b.
has strong controls against fraud.
c.
enables small firms to borrow money at very low cost.
d.
grants more Web sites to small than larger firms.
12. Information technology gives more workers access to
a.
information for decision making.
b.
strategic plans.
c.
motivational concepts.
d.
staffing concerns.
13. The point of an electronic employee self-service system is that employees
a.
carry out activities for themselves that required staff assistance in the past.
b.
conduct their own performance appraisals.
c.
prepare their own meals at lunchtime or other breaks.
d.
type their own correspondence.
14. A person labeled as a computer goof-off
a.
sabotages company files.
b.
takes naps while pretending to be working at the computer.
c.
spends too much time at the computer doing unimportant work.
d.
blames computer problems for not getting work accomplished.
15. A concern about customer service in the information technology era is that the service
a.
is so rapid it is difficult to follow.
b.
has decreased in quality because it is so complex.
c.
requires too much human interaction.
d.
is only good at high technology firms.
16. Using several electronic devices at once often interferes with a person’s ability
a.
to evaluate staff members.
b.
to concentrate carefully on the major problem at hand.
c.
to reward employees based on their performance.
d.
to set goals.
17. A major consequence of e-commerce for purchasing is that
a.
comparison shopping is much more difficult.
b.
more products are bought and sold over the Internet.
c.
many sellers impose a surcharge for online purchases.
d.
smaller companies have less opportunity to display their products.
18. The biggest beneficiaries of the Internet revolution have been
a.
companies selling online exclusively.
b.
well-established companies who integrate the Internet into their current business.
c.
companies that carry virtually no inventory.
d.
start ups with links to major Web sites.
19. One of the key reasons that the Internet enhances globalization is that
a.
computer components can be made inexpensively overseas.
b.
music can be downloaded anywhere in the world.
c.
rapid communication with business partners around the world is feasible.
d.
you can download for free language translators from the Internet.
20. “Living with increased visibility” refers to the fact that in the Internet age
a.
the government demands more information from companies.
b.
most employee recruiting is done over the Internet.
c.
newspapers are more likely to publish scandals involving Internet firms.
d.
positive and negative comments about the company can readily be posted on the Internet.
21. At Staples, customers can purchase from its catalog, retail stores, or Web
site. This illustrates that technology can
a.
integrate the traditional way of doing business with e-business.
b.
integrate the new economy with the old economy.
c.
increase the visibility of companies.
d.
all of the choices
22. A company involved in data mining probably wants to
a.
find new ways of squeezing profits out of old products.
b.
outsource its IT function.
c.
form a strategic alliance with a mining company.
d.
make additional use of information already on hand.
23. A major purpose of social networking for business is
a.
to establish a means for people to connect to the company’s brand.
b.
to make new friends.
c.
to locate old friends.
d.
to form interest groups.
24. Which one of the following is the least likely to contribute to the success of an e-business?
a.
minimize the opportunity for customers to telephone the company.
b.
reveal very little information to customers about the progress of their orders.
c.
develop a global presence.
d.
decide whether to be bricks or clicks.
25. An effective call center for an E-business
a.
allows customers to use e-mail and the telephone at the same time.
b.
limits calls to normal working hours.
c.
virtually eliminates telephone contact with customers.
d.
allows customers to follow up by telephone.
TRUE/FALSE
1. The Internet era has resulted in an increase in the staff (secretarial) support available to managers at all
levels in organizations.
2. Because such excellent software is now available, innovation is now less important to remain
competitive.
3. The trend toward globalization has been facilitated by the Internet because it is now relatively easy to
access employees all over the world at nominal cost (not including the purchase and installation of
equipment).
4. A major justification for installing information technology is its capability for improving productivity.
5. An example of how information technology has enhanced business models would be Cisco Systems
being able to sell servers directly over the Internet instead of using dealers.
6. The beauty of a company extranet is that anybody around the world with online access can acquire
important information about a company.
7. Members of a virtual office typically work in the same building or office complex.
8. A manager provides e-leadership when he or she takes the group to lunch at an Internet café.
9. An important use of company intranets is to enable workers to share information they can use to solve
company problems.
10. The main purpose of the dashboard for managers is to indicate when work processes are moving too
slowly or too rapidly.
11. A disadvantage of a wiki is that employees are blocked from providing input directly on the site, and
must send separate e-mail messages with the comments.
12. Computerized surveillance of workers has led many managers to establish new standards of work
performance.
13. A problem of considerable magnitude comes from the deterioration in customer service that sometimes
accompanies information technology.
14. Another challenge for managers in dealing with consumers in the information age is that some
electronic products are baffling to use for many people.
15. A computer goof-off is an individual who illegally breaks into the company computer system and then
destroys valuable data.
16. Among the potential advantages of voice recognition systems is that they will decrease the frequency
of repetitive motion disorders among computer workers.
17. A widespread complaint is that information technology has produced many awkward customer-service
systems.
18. E-commerce can bring about a challenge to sales volume even more quickly than with traditional
marketing.
19. Small businesses appear to make more extensive use of sites such as Facebook and Twitter to find and
interact with customers.
20. The presence of the Internet has eliminated some intermediaries, yet created some others such as eBay
stores.
21. The difference between “bricks and clicks” refers to the difference between the old economy and the
new economy.
22. The Internet facilitates globalization in part because more and more countries throughout the world
have developed their telecommunications infrastructure.
23. A notable advantage of information technology for the manager is that it has facilitated work
streamlining.
24. The major purpose of data mining is to look for ways to reduce costs, such as recycling old parts.
25. E-commerce managers no longer have to worry about Internet fraud because consumer protection
groups have successfully combated most types of such fraud.
ESSAY
1. Describe at least four positive consequences of information technology on the manager’s job.
2. Describe how information technology, including E-commerce, had negative consequences for
managers.
3. How has the Internet enhanced globalization?
4. FourSquares Labs Inc. is a company in the forefront of the mobile advertising by integrating social
media with marketing. “Foursquare” itself is a game for the mobile phone that provides players
incentives to check it at restaurants, bars, and retailers—broadcasting the location
of players to friends and potential advertisers.
1. What does this example illustrate about new technologies?
2. Why do managers need to know about new technologies?
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