Copyright 2024 Pearson Education, Inc.

1 Copyright © 2024 Pearson Education, Inc.Essentials of MIS, 15e (Laudon/Laudon/Traver) Chapter 1 Business Information Systems in Your Career 1) As discussed in the chapter-opening case, AWM Smart Shelf can help brands and retailers achieve which of the following?

• Increased customer intimacy
• Survival
• Improved employee morale
• Development of new products
• Increased supplier intimacy

Answer: A

Difficulty: Challenging

AACSB: Analytical Thinking

LO: 1-1: Understand why information systems are essential for running and managing a business.2) Journalist Thomas Friedman's description of the world as "flat" refers to the:

• reduction of economic and cultural advantages of developed countries.
• use of social media for instantaneous communication.
• reduction in travel times and the ubiquity of global exchange and travel.
• flattened hierarchies in digital firms.
• increased use of global currencies.

Answer: A

Difficulty: Challenging

AACSB: Application of Knowledge

LO: 1-1: Understand why information systems are essential for running and managing a business.3) All of the following are important business objectives of information system investment

except:

• competitive advantage.
• improved employee morale.
• improved decision making.
• survival.
• ESG leadership.

Answer: B

Difficulty: Easy

AACSB: Application of Knowledge; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.Essentials of MIS 15e Kenneth Laudon, Jane Laudon (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2024 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?

• Survival
• Improved decision making
• Competitive advantage
• Operational excellence
• Customer intimacy

Answer: A

Difficulty: Easy

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

5) Walmart exemplifies the power of information systems coupled with sophisticated business practices and supportive management to achieve which of the following?

• New business models
• Operational efficiency
• Customer intimacy
• Competitive advantage
• Survival

Answer: B

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

6) Coca-Cola Bottling Company Consolidated uses a digital dashboard to provide managers with

metrics that consolidate data from hundreds of disparate sources in order to:

• pursue ESG leadership.
• improve decision making.
• gain competitive advantage.
• create supplier intimacy.
• create a new business model.

Answer: B

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

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3 Copyright © 2024 Pearson Education, Inc.7) Which business objective were competitors seeking when they rushed to provide ATMs after Citibank introduced the first ATMs in New York?

• Operational excellence
• Customer intimacy
• Survival
• Competitive advantage
• Improved decision making

Answer: C

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

8) All of the following describe the effects of globalization except:

• significant decreases in operating costs.
• significant dislocations in labor markets.
• increased ability to find low-cost suppliers.
• increases in transaction costs.
• ability to reliably obtain price and quality information worldwide.

Answer: D

Difficulty: Challenging

AACSB: Analytical Thinking

LO: 1-1: Understand why information systems are essential for running and managing a business.

9) A firm that must invest in a new information system in order to comply with federal legislation is doing so to achieve which of the following business objectives?

• Customer intimacy
• Operational excellence
• New products
• Improved decision making
• Survival

Answer: E

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

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4 Copyright © 2024 Pearson Education, Inc.10) Which of the following is an example of a business using information systems to create new products and services?

• Apple's creation of iTunes
• TAL Apparel's information system that helps its clients manage their supply chains
• The Ritz-Carlton hotel chain's use of computers to keep track of guests' preferences
• Coca-Cola Bottling Company Consolidated's digital dashboard that provides managers with

metrics that consolidate data from hundreds of disparate sources

• Walmart's Retail Link system

Answer: A

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

11) An example of a business using information systems for supplier intimacy is:

• Apple's creation of iTunes.
• TAL Apparel's information system that helps its clients manage their supply chains.
• Citibank's ATM system.
• Coca-Cola Bottling Company Consolidated's digital dashboard that provides managers with

metrics that consolidate data from hundreds of disparate sources.

• The Ritz-Carlton hotel chain's use of computers to keep track of guests' preferences.

Answer: B

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

12) To make sure it stocks products that its customers will purchase, an apparel retailer implements a new application that analyzes consumer spending at its physical store locations and cross-references this data to determine inventory levels of various products for each location.Which of the following business objectives is this information intended to support?

• New products
• Survival
• Customer intimacy
• Supplier intimacy
• New services

Answer: C

Difficulty: Challenging

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Understand why information systems are essential for running and managing a business.

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