Business Driven Technology Paige Baltzan 8th Edition – Test Bank

 

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Sample Test

Business Driven Technology, 8e (Baltzan)

Chapter 3  Strategic Initiatives for Implementing Competitive Advantages

 

1) Business-facing processes or back-office processes are invisible to the external customer but essential to the effective management and operation of the business.

 

Answer:  TRUE

Explanation:  Business-facing processes or back-office processes are invisible to the external customer but essential to the effective management of the business.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

2) Strategic planning is a customer-facing business process.

 

Answer:  FALSE

Explanation:  Strategic planning is a business-facing process and is invisible to the customer.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

3) Order shipping is a customer-facing business process.

 

Answer:  TRUE

Explanation:  Order shipping is a customer-facing business process.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

4) Business process reengineering is the analysis and redesign of workflow within and between enterprises.

 

Answer:  TRUE

Explanation:  Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

5) Plan, source, make, deliver, and return are the five basic supply chain management components.

 

Answer:  TRUE

Explanation:  Plan, source, make, deliver, and return are the five basic supply chain management components.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

6) In the basic supply chain, source refers to building relationships with suppliers to procure raw materials.

 

Answer:  TRUE

Explanation:  In the basic supply chain, source refers to building relationships with suppliers to procure raw materials.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

7) In the basic supply chain, source refers to planning for transportation of goods to customers.

 

Answer:  FALSE

Explanation:  In the basic supply chain, deliver refers to planning for transportation of goods to customers.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

8) In the basic supply chain, return refers to supporting customers and product returns.

 

Answer:  TRUE

Explanation:  In the basic supply chain, return refers to supporting customers and product returns.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

9) In the basic supply chain, make refers to manufacturing products and creating production schedules.

 

Answer:  TRUE

Explanation:  In the basic supply chain, make refers to manufacturing products and creating production schedules.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

10) In the basic supply chain, return refers to preparing to manage all resources required to meet demands.

 

Answer:  FALSE

Explanation:  In the basic supply chain, plan refers to preparing to manage all resources required to meet demands.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

11) SCM systems create the integrations or tight process and information linkages between all participants in the supply chain.

 

Answer:  TRUE

Explanation:  Information technology’s primary role in supply chain management is creating the integrations or tight process and information linkages between functions within a firm—such as marketing, sales, finance, manufacturing, and distribution—and between firms.

Difficulty: 2 Medium

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

12) Effective and efficient supply chain management systems can enable an organization to decrease the power of its buyers.

 

Answer:  TRUE

Explanation:  An organization can decrease the power of its buyers through efficient and effective SCM.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

13) The Internet can completely replace the phone and face-to-face communications with customers.

 

Answer:  FALSE

Explanation:  The Internet cannot completely replace the phone and face-to-face communications with customers.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

14) Back-office operations deal directly with the customer.

 

Answer:  FALSE

Explanation:  Front-office operations deal directly with the customer.

Difficulty: 2 Medium

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

15) RFM stands for Regency, Frequency, and Monetary.

 

Answer:  FALSE

Explanation:  RFM stands for recency (not regency), frequency, and monetary.

Difficulty: 2 Medium

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

16) The evolution of CRM is reporting, analyzing, and predicting.

 

Answer:  TRUE

Explanation:  The evolution of CRM is reporting, analyzing, and predicting.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

17) CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.

 

Answer:  TRUE

Explanation:  CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

18) CRM predicting technologies help organizations predict customer behavior, such as which customers are at risk of leaving.

 

Answer:  TRUE

Explanation:  CRM predicting technologies help organizations predict customer behavior, such as which customers are at risk of leaving.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

19) In the past, departments made decisions independent of each other.

 

Answer:  TRUE

Explanation:  In the past, departments made decisions independent of each other.

Difficulty: 1 Easy

Topic:  Enterprise Resource Planning

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  automatic

 

20) Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise-wide information about all business operations.

 

Answer:  TRUE

Explanation:  When a user enters or updates information in one ERP module, it is immediately and automatically updated throughout the entire system.

Difficulty: 1 Easy

Topic:  Enterprise Resource Planning

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  automatic

 

21) What is supply chain management (SCM)?

1.   A) The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

2.   B) Takes information entered into a given system and sends it automatically to all downstream systems and processes

3.   C) A means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Connects the plans, methods, and tools aimed at integrating separate enterprise system

 

Answer:  A

Explanation:  Supply chain management (SCM) is the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

22) What is enterprise resource planning (ERP)?

1.   A) The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

2.   B) Integration of all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise-wide information about all business operations

3.   C) A means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Connection of the plans, methods, and tools aimed at integrating separate enterprise system

 

Answer:  B

Explanation:  Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise-wide information about all business operations.

Difficulty: 1 Easy

Topic:  Enterprise Resource Planning

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  automatic

 

23) What is customer relationship management (CRM)?

1.   A) The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

2.   B) Integration of all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise-wide information about all business operations

3.   C) A means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Connection of the plans, methods, and tools aimed at integrating separate enterprise system

 

Answer:  C

Explanation:  Customer relationship management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

24) Which of the following explains why a company would implement a BPR strategy?

1.   A) To encourage competition

2.   B) To decrease customers

3.   C) To deliver added value for the customer

4.   D) To create data

 

Answer:  C

Explanation:  To create value for the customer is the leading reason a company would implement a BPR strategy, and MIS often plays an important enabling role.

Difficulty: 3 Hard

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

25) What is the analysis and redesign of workflow within and between enterprises?

1.   A) Supply chain management

2.   B) Customer relationship management

3.   C) Business process reengineering

4.   D) Enterprise resource planning

 

Answer:  C

Explanation:  Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

26) Which of the below business processes would you find in the marketing and sales division?

1.   A) Ordering inventory

2.   B) Enrolling employees in health care benefits

3.   C) Promoting of discounts

4.   D) Creating financial statements

 

Answer:  C

Explanation:  Samples of business processes for the marketing and sales division of a company include (1) promoting of discounts, (2) communicating marketing campaigns, (3) attracting customers, and (4) processing sales.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

27) Which of the following departments is primarily responsible for promoting discounts, attracting customers, processing sales, and communicating marketing campaigns?

1.   A) Accounting and Finance

2.   B) Marketing and Sales

3.   C) Operations Management

4.   D) Human Resources

 

Answer:  B

Explanation:  The marketing and sales division is responsible for the business processes of promoting of discounts, communicating marketing campaigns, attracting customers, and processing sales.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

28) Which of the following represents a business process you would find in the operations management department?

1.   A) Ordering inventory

2.   B) Processing sales

3.   C) Promoting discounts

4.   D) Paying of accounts payable

 

Answer:  A

Explanation:  Samples of business processes for the operations management division of a company include (1) ordering inventory, (2) creating production schedules, and (3) manufacturing goods.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

29) Most business processes are cross-functional or cross-departmental processes that span the entire organization. Which of the below does not represent a cross-functional business process?

1.   A) Acquiring customers

2.   B) Loan processing

3.   C) Taking a product from concept to market

4.   D) Processing payroll

 

Answer:  D

Explanation:  Most business processes are cross-functional or cross-department processes that span the entire organization. The process of “order to delivery” focuses on the entire customer order process across functional departments.

Difficulty: 3 Hard

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

30) The accounting and finance department performs processes such as creating financial statements, paying accounts payables, and collecting accounts receivables. What form of processes do these represent?

1.   A) Customer-facing processes

2.   B) Business-facing processes

3.   C) Industry-specific customer-facing processes

4.   D) All of the choices are correct

 

Answer:  B

Explanation:  The accounting and finance division in a company creates financial statements, pays the accounts payables, and collects accounts receivables. All of these processes are business-facing processes.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

31) What form of processes include loan processing for a bank, claims processing for an insurance company, reservation processing for a hotel, and baggage handling for an airline?

1.   A) Customer-facing processes

2.   B) Business-facing processes

3.   C) Industry-specific customer-facing processes

4.   D) All of the choices are correct

 

Answer:  C

Explanation:  Loan processing for a bank, claims processing for an insurance company, reservation processing for a hotel, and baggage handling for an airline are all examples of industry-specific customer-facing processes.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

32) What type of process includes order processing, customer service, sales processing, customer billing, and order shipping?

1.   A) Customer-facing process

2.   B) Business-facing process

3.   C) Industry-specific customer-facing process

4.   D) All of the choices are correct

 

Answer:  A

Explanation:  Order processing, customer service, sales processing, customer billing, and order shipping are all customer-facing processes.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

33) Which of the below represents business processes you would find in the human resources department?

1.   A) Hiring employees

2.   B) Enrolling employees in health care

3.   C) Tracking vacation and sick time

4.   D) All of the choices are correct

 

Answer:  D

Explanation:  Some sample business processes included within the human resources division of a company include (1) hiring employees, (2) enrolling employees in health care, and (3) tracking vacation and sick time.

Difficulty: 2 Medium

Topic:  Evaluating Business Processes

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

34) What is the difference between customer-facing processes and business-facing processes?

1.   A) Business-facing processes are front-office processes; customer-facing processes are back-office processes.

2.   B) Customer-facing processes are front-office processes; business-facing processes are back-office processes.

3.   C) Customer-facing processes are back-office processes; industry-specific customer-facing processes are back-office processes.

4.   D) Customer-facing processes are back-office processes; industry-specific customer-facing processes are front-office processes.

 

Answer:  B

Explanation:  Customer-facing processes, also called front-office processes, result in product service received by an organization’s external customer. Business-facing processes, also called back-office processes, are invisible to the external customer but essential to the effective management of the business.

Difficulty: 2 Medium

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

35) Which of the following is a customer-facing process?

1.   A) Communicating with customers

2.   B) Strategic goal setting

3.   C) Providing performance feedback and rewards

4.   D) Purchasing raw materials

 

Answer:  A

Explanation:  Customer-facing processes result in a product or service received by an organization’s external customers and includes fulfilling orders, communicating with customers, sending out bills, and marketing information.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

36) Which of the following represents a business-facing process?

1.   A) Loan processing

2.   B) Order processing

3.   C) Strategic planning

4.   D) Customer billing

 

Answer:  C

Explanation:  Business-facing processes, also called back-office processes, are invisible to the external customer but essential to the effective management of the business; they include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

37) Which of the following processes focuses on the entire customer order process and operates across functional departments?

1.   A) Order to delivery process

2.   B) Customer billing process

3.   C) Customer loan process

4.   D) All of the choices are correct

 

Answer:  A

Explanation:  Most business processes are cross-functional or cross-departmental processes and span the entire organization. The process of “order to delivery” focuses on the entire customer order process across functional departments.

Difficulty: 3 Hard

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

 

 

38) Which of the following processes would be found in the operations management department?

1.   A) Creating production schedules

2.   B) Communicating marketing campaigns

3.   C) Hiring employees

4.   D) Processing sales

 

Answer:  A

Explanation:  Sample business processes within the operational management division of a company include (1) ordering inventory, (2) creating production schedules, and (3) manufacturing goods.

Difficulty: 2 Medium

Topic:  Evaluating Business Processes

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

39) In which of the five basic supply chain activities do you prepare to manage all resources required to meet demand?

1.   A) Plan

2.   B) Source

3.   C) Deliver

4.   D) Return

 

Answer:  A

Explanation:  In the plan activity you prepare to manage all resources required to meet demand.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

40) In which of the five basic supply chain activities do you build relationships with suppliers to procure raw materials?

1.   A) Plan

2.   B) Source

3.   C) Deliver

4.   D) Return

 

Answer:  B

Explanation:  In the source activity you build relationships with suppliers to procure raw materials.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

41) In which of the five basic supply chain activities do you manufacture products and create production schedules?

1.   A) Plan

2.   B) Source

3.   C) Deliver

4.   D) Make

 

Answer:  D

Explanation:  In the make activity, you manufacture products and create production schedules.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

42) In which of the five basic supply chain activities do you plan for the transportation of goods to customers?

1.   A) Plan

2.   B) Source

3.   C) Deliver

4.   D) Return

 

Answer:  C

Explanation:  During the deliver activity, you plan for the transportation of goods to customers.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

43) What does supply chain management involve?

1.   A) The management of production material flows between and among stages in a supply chain to maximize total supply chain efficiency

2.   B) The management of information flows between and among stages in a supply chain to maximize total supply chain costs

3.   C) The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

4.   D) None of these

 

Answer:  C

Explanation:  This is the definition of SCM.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

44) Walmart and Procter & Gamble (P&G) implemented a tremendously successful SCM system. The system linked Walmart’s ________ centers directly to P&G’s ________ centers.

1.   A) Manufacturing, distribution

2.   B) Distribution, manufacturing

3.   C) Stores, distribution

4.   D) Distribution, stores

 

Answer:  B

Explanation:  Walmart’s distribution centers are linked directly to P&G’s manufacturing centers.

Difficulty: 2 Medium

Topic:  Supply Chain Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

45) What can effective and efficient supply chain management systems enable an organization to accomplish?

1.   A) Increase the power of its buyers

2.   B) Increase its supplier power

3.   C) Increase switching costs to increase the threat of substitute products or services

4.   D) All of these

 

Answer:  B

Explanation:  Answer A should state “decrease” the power of its buyers, and Answer C should state “reduce” the threat of substitute products or services.

Difficulty: 3 Hard

Topic:  Supply Chain Management

Bloom’s:  Analyze

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

46) Which of the following is an organizational result from an effective and efficient supply chain management system?

1.   A) Decrease the power of its buyers

2.   B) Create entry barriers thereby reducing the threat of new entrants

3.   C) Increase efficiencies while seeking a competitive advantage through cost leadership

4.   D) All of these

 

Answer:  D

Explanation:  All of these are results from an effective and efficient SCM system.

Difficulty: 3 Hard

Topic:  Supply Chain Management

Bloom’s:  Analyze

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

47) Which of the following is not one of the five basic components of supply chain management?

1.   A) Plan

2.   B) Source

3.   C) Cost

4.   D) Deliver

 

Answer:  C

Explanation:  Plan, source, make, deliver, and return are the five components of SCM.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

48) Why is CRM one of the most valuable assets a company can acquire?

1.   A) Since organizations have not been successful in implementing SCM systems, they have turned their resources towards CRM.

2.   B) CRM has proven to increase customer loyalty and retention and an organization’s profitability.

3.   C) It is easy for a company to steal their competitors’ loyal and devoted customers, therefore companies need a viable process for targeting competitor’s customers.

4.   D) Without CRM it is impossible to effectively manage or cross-sell products to customers.

 

Answer:  B

Explanation:  CRM has proven to increase customer loyalty and retention and an organization’s profitability is the most valuable asset a company can acquire.

Difficulty: 3 Hard

Topic:  Customer Relationship Management

Bloom’s:  Analyze

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

49) Which of the following can a customer use to contact an organization?

1.   A) Telephone

2.   B) Email

3.   C) Web access

4.   D) All of these

 

Answer:  D

Explanation:  A customer can contact an organization through any of these methods.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

50) As the business world increasingly shifts from product focus to customer focus, why are most organizations treating existing customers better than in the past?

1.   A) Existing customers are the best source of profitable and sustainable revenue growth.

2.   B) In the age of ebusiness, an organization is guaranteed a favorable customer base and satisfying them is easier than ever.

3.   C) Organizations cannot depend on using statistical analysis or value formulas such as recency, frequency, and monetary to gain insight into customer behavior or buying patterns.

4.   D) Placing customers at the forefront of all thinking and decision making requires very little operational and technology changes.

 

Answer:  A

Explanation:  Existing customers are the best source of profitable and sustainable revenue growth.

Difficulty: 3 Hard

Topic:  Customer Relationship Management

Bloom’s:  Analyze

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

51) There are three phases in the evolution of CRM: (1) reporting, (2) analyzing, and (3) predicting. What do CRM predicting technologies help organizations accomplish?

1.   A) Make predictions regarding customer behavior such as which customers are at risk of leaving

2.   B) Segment their customers into categories such as best and worst customers

3.   C) Identify their customers across other applications

4.   D) All of these

 

Answer:  A

Explanation:  Make predictions regarding customer behavior such as which customers are at risk of leaving is predicting technologies.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

52) Which of the following is not one of the three phases in the evolution of CRM?

1.   A) Reporting

2.   B) Analyzing

3.   C) Processing

4.   D) Predicting

 

Answer:  C

Explanation:  Processing is not one of the three phases in the evolution of CRM.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

53) What helps an organization identify its customers across applications?

1.   A) CRM reporting technologies

2.   B) CRM analyzing technologies

3.   C) CRM processing technologies

4.   D) CRM predicting technologies

 

Answer:  A

Explanation:  Reporting helps an organization identify its customers across applications.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

54) What is an organization performing when it asks questions such as “why was revenue so high”?

1.   A) CRM reporting technologies

2.   B) CRM analyzing technologies

3.   C) CRM processing technologies

4.   D) CRM predicting technologies

 

Answer:  B

Explanation:  Why was revenue so high is analyzing.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

55) What is an organization performing when it asks questions such as “which customers are at risk of leaving”?

1.   A) CRM reporting technologies

2.   B) CRM analyzing technologies

3.   C) CRM processing technologies

4.   D) CRM predicting technologies

 

Answer:  D

Explanation:  Which customers are at risk of leaving is predicting.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

56) Which question below represents a CRM reporting technology example?

1.   A) Why did sales not meet forecasts?

2.   B) What customers are at risk of leaving?

3.   C) What is the total revenue by customer?

4.   D) All of these

 

Answer:  C

Explanation:  Total revenue by customer is a report.

Difficulty: 2 Medium

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

57) Which question below represents a CRM analyzing technology question?

1.   A) Why did sales not meet forecasts?

2.   B) What customers are at risk of leaving?

3.   C) What is the total revenue by customer?

4.   D) All of these

 

Answer:  A

Explanation:  Why did sales not meet forecasts is analyzing.

Difficulty: 2 Medium

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

 

 

58) Which question below represents a CRM predicting technology question?

1.   A) Why did sales not meet forecasts?

2.   B) What customers are at risk of leaving?

3.   C) What is the total revenue by customer?

4.   D) All of these.

 

Answer:  B

Explanation:  What customers are at risk of leaving is predicting.

Difficulty: 2 Medium

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

59) What is enterprise resource planning?

1.   A) The analysis and redesign of workflow within and between enterprises

2.   B) A standardized set of activities that accomplish as specific task, such as processing a customer’s order

3.   C) Integration of all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations

4.   D) The increase of customer loyalty and retention and an organization’s profitability by managing all aspects of a customer’s relationship with an organization

 

Answer:  C

Explanation:  This is the definition of ERP.

Difficulty: 1 Easy

Topic:  Enterprise Resource Planning

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  automatic

 

 

 

60) What is the analysis and redesign of workflow within and between enterprises?

1.   A) Business process reengineering

2.   B) Supply chain management

3.   C) Customer relationship management

4.   D) Enterprise resource planning

 

Answer:  A

Explanation:  Business process reengineering is the analysis and redesign of workflow within and between enterprises.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

61) What is the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability?

1.   A) Business process reengineering

2.   B) Supply chain management

3.   C) Customer relationship management

4.   D) Enterprise resource planning

 

Answer:  B

Explanation:  Supply chain management is the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

62) What involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability?

1.   A) Business process reengineering

2.   B) Supply chain management

3.   C) Customer relationship management

4.   D) Enterprise resource planning

 

Answer:  C

Explanation:  Customer relationship management involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

63) What integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations?

1.   A) Business process reengineering

2.   B) Supply chain management

3.   C) Customer relationship management

4.   D) Enterprise resource planning

 

Answer:  D

Explanation:  Enterprise resource planning integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations.

Difficulty: 1 Easy

Topic:  Enterprise Resource Planning

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  automatic

 

 

 

64) What does business process reengineering involve?

1.   A) Analyzing and redesigning workflow within and between enterprises

2.   B) Managing information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

3.   C) Managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Integrating all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations

 

Answer:  A

Explanation:  Business process reengineering is the analysis and redesign of workflow within and between enterprises.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  automatic

 

65) What does supply chain management involve?

1.   A) Analyzing and redesigning workflow within and between enterprises

2.   B) Managing information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

3.   C) Managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Integrating all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations

 

Answer:  B

Explanation:  Supply chain management is the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability.

Difficulty: 1 Easy

Topic:  Supply Chain Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  automatic

 

 

 

66) What does customer relationship management involve?

1.   A) Analyzing and redesigning workflow within and between enterprises

2.   B) Managing information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

3.   C) Managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Integrating all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations

 

Answer:  C

Explanation:  Customer relationship management involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  automatic

 

67) What does enterprise resource planning involve?

1.   A) Analyzing and redesigning of workflow within and between enterprises

2.   B) Managing information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

3.   C) Managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

4.   D) Integrating all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations

 

Answer:  D

Explanation:  Enterprise resource planning integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations.

Difficulty: 1 Easy

Topic:  Enterprise Resource Planning

Bloom’s:  Understand

Accessibility:  Keyboard Navigation

Learning Outcome:  03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  automatic

 

 

 

68) Identify how an organization can use business process reengineering to improve its business.

 

Answer:  Companies frequently strive to improve their business processes by performing tasks faster, cheaper, and better. Companies often follow the same indirect path for doing business, not realizing there might be a different, faster, and more direct way of doing business. BPR provides companies with a way to find the different, more direct way of doing business. Progressive Insurance is an example of a company that effectively used BPR.

Difficulty: 1 Easy

Topic:  Business Process Reengineering

Bloom’s:  Analyze; Apply

Accessibility:  Keyboard Navigation

Learning Outcome:  03-01 Identify how an organization can use business process reengineering to improve its business.

Gradable:  manual

 

69) In terms of Porter’s Five Forces Model, explain the benefits an organization can receive from implementing an efficient and effective SCM system.

 

Answer:  Decrease the power of its buyers, increase its own supplier power, increase switching costs to reduce the threat of substitute products or services, create entry barriers thereby reducing the threat of new entrants, and increase efficiencies while seeking a competitive advantage through cost leadership.

Difficulty: 2 Medium

Topic:  Supply Chain Management

Bloom’s:  Analyze; Apply

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.

Gradable:  manual

 

70) Summarize why CRM must be embraced on an enterprise-wide level, along with the types of things an organization can determine when using a CRM system.

 

Answer:  If an organization does not embrace CRM on an enterprise-wide level, they will have a difficult time gaining a complete view of their customers. CRM can enable an organization to identify the types of customers, design specific marketing campaigns tailored to each individual customer, and understand customer buying behaviors.

Difficulty: 1 Easy

Topic:  Customer Relationship Management

Bloom’s:  Analyze; Apply

Accessibility:  Keyboard Navigation

Learning Outcome:  03-03 Explain customer relationship management systems and how they can help organizations understand their customers.

Gradable:  manual

 

 

 

71) Describe SCM, CRM, and ERP and the differences among them.

 

Answer:  Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. Customer relationship management (CRM) involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprise-wide decisions by viewing enterprise-wide information on all business operations. SCM systems focus specifically on suppliers. CRM systems focus specifically on customers. ERP systems focus on everything, all processes, departments, and operations for an enterprise.

Difficulty: 2 Medium

Topic:  Enterprise Resource Planning

Bloom’s:  Analyze; Apply

Accessibility:  Keyboard Navigation

Learning Outcome:  03-02 Explain supply chain management and its role in business.; 03-03 Explain customer relationship management systems and how they can help organizations understand their customers.; 03-04 Summarize the importance of enterprise resource planning systems.

Gradable:  manual

 

Business Driven Technology, 8e (Baltzan)

Chapter 5  Organizational Structures That Support Strategic Initiatives

 

1) Ethics and security are two fundamental building blocks for all organizations.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Information Ethics

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  05-01 Explain information ethics and its associated issues.

Gradable:  automatic

 

2) Privacy is the legal protection afforded an expression of an idea, such as a song, book, or video game.

 

Answer:  FALSE

Explanation:  Copyright is the legal protection afforded an expression of an idea, such as a song, book, or video game.

Difficulty: 1 Easy

Topic:  Information Ethics

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  05-01 Explain information ethics and its associated issues.

Gradable:  automatic

 

3) Information governance is a method or system of government for information management or control.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Information Ethics

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  05-01 Explain information ethics and its associated issues.

Gradable:  automatic

 

 

 

4) Confidentiality is the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent.

 

Answer:  FALSE

Explanation:  Privacy is the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent.

Difficulty: 1 Easy

Topic:  Information Ethics

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  05-01 Explain information ethics and its associated issues.

Gradable:  automatic

 

5) Digital rights management is a technological solution that allows publishers to control their digital media to discourage, limit, or prevent illegal copying and distribution.

 

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Information Ethics

Bloom’s:  Remember

Accessibility:  Keyboard Navigation

Learning Outcome:  05-01 Explain information ethics and its associated issues.

Gradable:  automatic