Time: 2 hours Section A

Use scannable Forms for the MCQs and answer all questions For questions 1 to 6 select either true by shading (a) or false by shading (b)
1. A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer:

True

2. Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the hardware and software needed. Answer:

False

3.Computers are only part of an information system

Answer :true
4. The dimensions of information systems are people, organizations, and information technology.

Answer:

True

5. Developing a new product, fulfilling an order, or hiring a new employee are examples of business processes. Answer:

True

6. An IT infrastructure provides the platform on which the firm can build its information systems. Answer: True Select the correct alternative for questions 7 to 24 7. The use of information systems because of necessity describes the business objective of: a. survival. b. improved business practices. c. competitive advantage.
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d. improved flexibility.

8. Which of the following choices may lead to competitive advantage (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real-time? a. 1 only b. 1 and 2 c. 2 and 3 d. 1, 2, and 3 9. The average number of tickets sold daily online is an example of: a. input. b. raw data. c. meaningful information. d. output. 10. Converting raw data into a more meaningful form is called: a. capturing. b. processing. c. organizing. d. feedback. 11. Electronic computers and related software programs are the technical foundation, the tools and materials, of: a. b. c. d. all business procedures. information accumulation. modern information systems. all industrialized countries. 12.The field that deals with behavioural issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called: a. information systems literacy. b. information systems architecture. c. management information systems. d.:information technology infrastructure.

13. Converting raw data into a more meaningful form is called: a. capturing. b. processing. c. organizing. d. feedback. 14. Electronic computers and related software programs are the technical foundation, the tools and materials, of: a. b. c. d. all business procedures. information accumulation. modern information systems. all industrialized countries. 15.The field that deals with behavioural issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called: a. information systems literacy. b. information systems architecture. c. management information systems. d.:information technology infrastructure.

16.In a hierarchical organization, the upper levels consist of:

a. managerial and professional workers. b. managerial, professional, and technical workers. c. professional and operational workers. d. managerial, professional, and operational workers.

17. A hierarchy: a. results in a clear-cut division of labour. b. is composed primarily of experts trained for different functions. c. is a pyramid structure of rising authority and responsibility. d. is used primarily in large organizations to define job roles.

18. The fundamental set of assumptions, values, and ways of doing things, that has been accepted by most of a company's members is called its: a. culture. b. environment. c. atmosphere. d. values. 19. An intranet uses: a. mainframe technology. b. infrared telecommunications systems. c. the telecommunications capacities of fiber optic networks. d. Internet technology within the boundaries of the firm. 20. The first step in the four-step model of business problem solving is: a. agreeing that a problem exists. b. identifying the problem. c. outlining the problem's causes. d. assigning the problem to a problem solver.

21. Inadequate database capacity is an example of the _______dimension of business problems. a. technology b. organizational c. people d. management

22. Poor business processes and unsupportive culture are examples of the _______ dimension of business problems. a. management b. organizational c. people d. infrastructure

23. . The final step in the four-step model of business problem solving is: a. outcome. b. implementation. c. change management. d. feedback.

24. One of the most frequent errors in problem solving is: a. rushing to judgment. b. not being aware of personal limitations. c. being too doubtful. d. following a rote pattern of decision making. 25. Branding products is a business function of: a. manufacturing and production. b. finance and accounting. c. human resources. d. sales and marketing.

26. Operations management as a discipline is directly relevant to three occupational categories: a. industrial production managers, operations analysts, and administrative service managers. b. project managers, production managers, and administrative service managers. c. project managers, production managers, and industrial production managers. d. finance, accounting, and management.

27. Assume you work for a package delivery service in a major metropolitan area, and that the business has been losing customers for several years. You have been asked to find a solution to this problem, perhaps one which uses modern information technologies. What is the correct way to proceed? a. Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution. b. Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution. c. Identify the problem, design alternative solutions, choose the best solution, and then implement the solution. d. Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution. Insert the appropriate word or phrase from the following in the space provided :

Feedback; the Internet; Computer software/software; Quality management; Extranets ; people; World Wide Web/Web/WWW; change management; Information. ; critical thinking. Organizational
28. 29 30. 31. Information is data that has been shaped into a form that is meaningful to human beings

Feedback is output returned to appropriate members of the organization to help them

evaluate or correct the input stage The world's largest and most widely used network is the Internet.
Computer software/software consists of the detailed, pre-programmed instructions that control and coordinate the computer hardware components in an information system. The World Wide Web/Web/WWW is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format Extranets are private corporate networks extended to authorized users outside the organization In business problem solving, the three major categories of factors are organization, technology, and people.

32.

33.

34.

Indicate whether questions 37 to 49 are true (by shading A) or false (by shading B)

35. Customers are one of the competitive forces that affect an organization's ability to compete. Answer: TRUE

38. Studies show that about half of a business firm's profits can be explained by alignment of IT with business. Answer: TRUE 39. In the strategy of product differentiation, information systems are used to enable new products and services. Answer: TRUE 40. Mass customization requires different production resources from mass production. Answer: FALSE 41. Strong linkages to customers and suppliers increase switching costs. Answer: TRUE 42. The effect of the Internet has been to raise bargaining power over suppliers. Answer: TRUE 43. In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense. Answer: TRUE 44. In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer. Answer: TRUE 45. The value chain model classifies all company activities as either primary or support. Answer: TRUE 46. The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits. Answer: TRUE 47. The more people that use Microsoft Office software and related products, the greater its value. Answer: TRUE
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48. Probably the best single way to reduce quality problems is to reduce cycle time. Answer: TRUE

49. Business process reengineering is the radical redesign of business processes. Answer: TRUE For questions 50 to select the appropriate alternatives from a to d

50. Which of the following is not one of the competitive forces of Porter's model? A) Suppliers B) Other competitors C) External environment D) Customers. 51. A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces? A) Product differentiation B) Traditional competitors C) Low number of suppliers D) New market entrants 52. Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer-chip C) Restaurant D) Airline 53. A substitute product of most concern for a cable TV distributor is: A) satellite TV. B) broadcast TV. C) satellite radio. D) the Internet. 54. Which of the following can force a business and its competitors to compete on price alone? A) High product differentiation B) Poor process efficiency C) Demand control D) Transparent marketplace Answer: D 51. A firm can exercise greater control over its suppliers by having: A) more suppliers. B) fewer suppliers.
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C) global suppliers. D) local suppliers.

52. The four basic strategies a company can employ to deal with competitive forces are: A) (1) increase process efficiency, (2) implement demand control, (3) focus on market niche, and (4) low-cost leadership. B) (1) strengthen customer and supplier intimacy, (2) focus on market niche, (3) product differentiation, and (4) implement demand control. C) (1) focus on market niche, (2) product differentiation, (3) mass customization, and (4) implement demand control. D) (1) strengthen customer and supplier intimacy, (2) focus on market niche, (3) product differentiation, and (4) low-cost leadership. 53. Wal-Mart's continuous replenishment system allows it to: A) provide mass customization. B) provide an efficient customer response system. C) strengthen customer intimacy. D) achieve economy of scale. 54. Which of the following illustrates the use of information systems to achieve product differentiation? A) A PC manufacturer's use of information systems in selling build-to-order PCs directly to customers. B) A retailer's use of information systems to produce products and services at a lower price than competitors. C) An automobile manufacturer's use of information systems to facilitate direct access from suppliers to production schedules. D) A car dealer's use of information systems to determine which models and options its customers are most likely to buy. 55. Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy? A) Dell's use of information systems in selling made-to-order PCs directly to customers. B) Wal-Mart's use of information systems to produce products and services at a lower price than competitors. C) Chrysler Corporation's use of information systems to facilitate direct access from suppliers to production schedules. D) AutoNation's use of information systems to determine which models and options they are most likely to buy. 56. When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a: A) product differentiation strategy. B) market niche strategy.
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C) mass customization strategy. D) process efficiency strategy.

57. ________ is the ability to offer individually tailored products or services using the same production resources as bulk production. A) Mass customization B) Size customization C) Personalization D) Demand customization 58. An information system can enable a company to focus on a market niche through: A) complex trend forecasting. B) tailoring products to the client. C) intensive product trend analysis. D) intensive customer data analysis. 59. ) Which industries did the first wave of e-commerce transform? A) Air travel, books, bill payments B) Air travel, books, music C) Real estate, air travel, books D) Real estate, books, bill payments 60. To what competitive force did the printed encyclopedia industry succumb? A) Positioning and rivalry among competitors B) Low cost of entry C) Substitute products or services D) Customer's bargaining power (60 marks)

Section B Use answer booklets for Section B

This section is based on the attached Case Study of Fed Ex. (Attempt all)

I.

Shipping is an area of extreme competition. Using Porters strategic Model or framework explain how FedEx can use IS/IT as a strategic tool to survive in the shipping business. (20 marks)

II.

Using the Porters strategic model evaluate a Ghanaian company you are familiar with
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- (20 marks)

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