Homework Lance
13.1 True/False Questions
1) The global economy has intensified rivalry by increasing product and vendor choices and by accelerating the flow of information about price, product, availability, and service.
Answer: TRUE
Page Ref: 453
AACSB: Dynamics of the Global Economy
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
2) Unlike business processes, information systems procedures need not reflect local cultural values and norms.
Answer: FALSE
Page Ref: 455
AACSB: Multicultural Understanding
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
3) Distributed database processing refers to the processing of multiple databases that reside in a single location.
Answer: FALSE
Page Ref: 456
AACSB: Dynamics of the Global Economy
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
4) As long as there is an adequate data interface between two information systems that are in locations that are diverse in terms of business practices and language, they can operate independently, sharing data when necessary.
Answer: TRUE
Page Ref: 457
AACSB: Multicultural Understanding
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 3
5) A supply chain is a network of organizations and facilities that transforms raw materials into products delivered to customers.
Answer: TRUE
Page Ref: 458
AACSB: Dynamics of the Global Economy
Difficulty: Easy
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
6) The bullwhip effect is a phenomenon in which the variability in the size and timing of orders decreases at each stage up the supply chain, from customer to supplier.
Answer: FALSE
Page Ref: 460
AACSB: Dynamics of the Global Economy
Difficulty: Easy
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
7) The bullwhip effect increases the overall profitability of the supply chain.
Answer: FALSE
Page Ref: 461
AACSB: Dynamics of the Global Economy
Difficulty: Easy
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
8) International organizations have more IS and IT assets, and those assets are exposed to more risk and greater uncertainty.
Answer: TRUE
Page Ref: 462
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe different methods of managing IS security
Chapter LO: 5
9) The business processes that support the competitive strategies of the multinational companies tend to be simpler and easier to implement, as they are isolated from another.
Answer: FALSE
Page Ref: 464
AACSB: Multicultural Understanding
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 5
10) Regarding safeguards, technical and data safeguards change for international information systems.
Answer: FALSE
Page Ref: 465
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe different methods of managing IS security
Chapter LO: 5
13.2 Multiple Choice Questions
1) Which of the following statements is true of the impact of globalization on value chains and business processes?
A) Companies must develop a standardized global strategy irrespective of where they are operating from.
B) Companies prefer to perform all their processes in-house as it is more cost-effective than outsourcing.
C) Manufacturing of a final product is frequently distributed throughout the world.
D) Increased globalization calls for greater attention to promotional aspects of the marketing mix as opposed to the product.
Answer: C
Page Ref: 454
AACSB: Dynamics of the Global Economy
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
2) Which of the following components of an international IS is least affected by internationalization?
A) hardware
B) people
C) procedures
D) data
Answer: A
Page Ref: 454
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
3) The process of making a computer program work in a second language is called ________ software.
A) virtualization
B) collaborative filtering
C) localizing
D) enterprise
Answer: C
Page Ref: 455
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
4) When localizing a computer program, which of the following must a firm NOT do?
A) translate the user interface
B) avoid redesigning labels in forms and reports
C) adjust sorting order for different character sets
D) redraw and translate diagrams
Answer: B
Page Ref: 455
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
5) Distributed database processing refers to the processing of ________.
A) a single database that resides in multiple locations
B) multiple databases that reside in a single location
C) only those databases that contain copies of the same data items
D) only those databases that are divided onto nonoverlapping segments
Answer: A
Page Ref: 456
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss best practices for using and managing databases
Chapter LO: 2
6) If the distributed database divides the database into nonoverlapping segments, it is called a ________ database.
A) hierarchical
B) partitioned
C) temporal
D) relational
Answer: B
Page Ref: 456
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss best practices for using and managing databases
Chapter LO: 2
7) Because an order processing functional system located in, say, the United States is independent of the manufacturing systems located in, say, Taiwan, it implies that ________.
A) it is necessary to accommodate language, business, and cultural differences in a single system
B) products need not always be customized to suit local preferences
C) lack of integration can be extremely disadvantageous for international organizations
D) they can operate independently as long as there is an adequate data interface between the two systems
Answer: D
Page Ref: 457
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 3
8) Cross-functional, integrated systems, such as ERP, solve the problems of data isolation by integrating data into a database that provides a comprehensive and organization-wide view. However, this would require ________.
A) all processes to be located in the same geographical place
B) the company to standardize on a single language
C) backshoring processes to the home country
D) the company to customize its product offerings
Answer: B
Page Ref: 457
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 3
9) A(n) ________ is a network of organizations and facilities that transforms raw materials into products delivered to customers.
A) organizational hierarchy
B) flat organization
C) organizational architecture
D) supply chain
Answer: D
Page Ref: 458
AACSB: Dynamics of the Global Economy
Difficulty: Easy
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
10) Which of the following statements is true of the supply chain?
A) All members of the supply chain of a firm must have geographical proximity.
B) Every supply chain must include suppliers, manufacturers, distributors, retailers, and customers.
C) Each organization in the chain is connected to just one company up the chain (toward the supplier) and down the chain (toward the customer).
D) The supply chain includes transportation companies, warehouses, and inventories.
Answer: D
Page Ref: 458
AACSB: Dynamics of the Global Economy
Difficulty: Moderate
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
11) Which of the following describes the bullwhip effect?
A) The value of a telecommunications network is proportional to the square of the number of connected users of the system.
B) The performance improvement to be gained from using some faster mode of execution is limited by the fraction of the time the faster mode can be used.
C) The variability in the size and timing of orders increases at each stage up the supply chain, from customer to supplier.
D) New classes create new applications resulting in new markets and new industries.
Answer: C
Page Ref: 460
AACSB: Dynamics of the Global Economy
Difficulty: Moderate
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
12) The bullwhip effect ________.
A) is not related to erratic consumer demand
B) forces distributors, manufacturers, and suppliers to carry smaller inventories than necessary
C) increases the overall profitability of the supply chain
D) can be eliminated by restricting access to consumer-demand information from the retailer to only a few participants in the supply chain
Answer: A
Page Ref: 461
AACSB: Dynamics of the Global Economy
Difficulty: Moderate
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
13) To overcome challenges in international information systems, some organizations develop alternative versions of the system that support different processes in different countries. This results in ________.
A) a long-term profit preceded by short-term losses
B) standardized development rates across countries
C) high maintenance costs
D) a set standard for business processes that meets all requirements
Answer: C
Page Ref: 462
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe different methods of managing IS security
Chapter LO: 5
14) One of the challenges for international IS project management is that the development rates vary among cultures and countries, because ________.
A) some cultures have a 35-hour workweek, and some have a 60-hour workweek
B) worker expectations vary among cultures and nations
C) many developed countries have been less willing to invest in quality
D) effective communication is more expensive today
Answer: A
Page Ref: 463
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe different methods of managing IS security
Chapter LO: 5
15) The principal planning task for the IT department in an organization is to ________.
A) focus on quantity more than quality
B) align IT and IS resources with the customer requirements
C) integrate the organization’s information systems with the outsourced vendors’ information systems
D) align IT and IS resources with the organization’s competitive strategy
Answer: D
Page Ref: 464
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the key issues involved in managing the components of IT infrastructure
Chapter LO: 5
16) International outsourcing is most advantageous ________.
A) when control on all aspects of its operations is essential for a firm
B) for those firms that have a strong presence in the domestic market
C) when domestic production costs are low
D) for functions that need to be operational 24×7
Answer: D
Page Ref: 464
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 5
13.3 Essay Questions
1) Briefly explain the two major ways in which thinking about competitive strategies has changed in today’s global economy.
Answer: The decision involving a global competitive strategy requires the consideration of the following two changing factors.
First, the sheer size and complexity of the global economy means that any organization that chooses a strategy allowing it to compete industry-wide is taking a very big bite! Competing in many different countries, with products localized to the language and culture of those countries, is an enormous and expensive task.
Second, the size of the world economy, combined with the Internet, enables unprecedented product differentiation. If you choose to produce the world’s highest quality and most exotic oatmeal—and if your production costs require you to sell that oatmeal for $350 a pound—your target market might contain only 200 people worldwide. The Internet allows you to find them—and them to find you.
Page Ref: 453-454
AACSB: Dynamics of the Global Economy
Difficulty: Hard
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
2) List the issues that need to be addressed when localizing a computer program.
Answer: The factors to address when localizing software are:
• Translate the user interface, including menu bars and commands.
• Translate, and possibly redesign, labels in forms, reports, and query prompts.
• Translate all documentation and help text.
• Redraw and translate diagrams and examples in help text.
• Translate all error messages.
• Translate text in all message boxes.
• Adjust sorting order for different character set.
• Fix special problems in Asian character sets and in languages that read and write from right to left.
Page Ref: 455
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the key issues involved in managing the components of IT infrastructure
Chapter LO: 2
3) How are international business processes likely to be developed to overcome the present challenges of international cross-functional applications?
Answer: In the future, it is likely that international business processes will be developed more like interorganizational business processes to overcome the present challenges. A high-level process will be defined to document the service responsibilities of each international unit. Then SOA standards will be used to connect those services into an integrated, cross-functional, international system. Because of encapsulation, the only obligation of an international unit will be to deliver its defined service. One service can be delivered using procedures based on autocratic management policies, and another can be delivered using procedures based on collaborative management policies. The differences will not matter to a SOA-based crossfunctional system.
Page Ref: 457
AACSB: Use of Information Technology
Difficulty: Hard
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 3
4) How can information reduce or eliminate the bullwhip effect?
Answer: To eliminate the bullwhip effect, all participants in the supply chain must be given access to consumer-demand information from the retailer. Each organization can thus plan its inventory or manufacturing based on the true demand (the demand from the only party that introduces money into the system) and not on the observed demand from the next organization up the supply chain. Of course, an interorganizational information system is necessary to share such data.
Without knowledge of the true demand, the supply chain is vulnerable to bullwhip effects. However, if each entity can, via an information system, obtain data about the true demand—that is, the demand from the retail customers who are the source of funds for this chain—then each can anticipate orders. The data about true demand will enable each entity to meet order requirements, while maintaining a smaller inventory.
Page Ref: 461
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supply chain management and performance
Chapter LO: 4
5) Explain how managing a global IS development project will involve challenges in the areas of time, quality, and costs.
Answer: The challenges posed while managing a global IS development project are time management, quality, and costs.
Time management is more difficult because teams in different cultures and countries work at different rates. Some cultures have a 35-hour workweek, and some have a 60-hour workweek. Some cultures expect 6-week vacations, and some expect 2 weeks. Some cultures thrive on efficiency of labor, and others thrive on considerate working relationships. There is no standard rate of development for an international project.
Quality standards vary among countries. The IT industry in some nations, like India, has invested heavily in development techniques that increase program quality. Other countries, like the United States, have been less willing to invest in quality. In any case, the integration of programs of varying quality results in an inconsistent system.
In terms of cost, different countries and cultures pay vastly different labor rates. Using critical path analysis, managers may choose to move a task from one team to another. Doing so, however, may substantially increase costs. Thus, management may choose to accept a delay rather than move work to an available (but more expensive) team. The complex trade-offs that exist between time and cost become even more complex for international projects.
Page Ref: 463
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the key issues involved in managing the components of IT infrastructure
Chapter LO: 5
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