BUS 365 Week 10 Quiz – Strayer



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Quiz 9 Chapter 12

IT Strategic Planning



Multiple Choice



1. Making IT investments on the basis of an immediate need or threat are sometimes necessary. What can managers expect from making investments in this way?
a) These are proactive approaches that will maximize ROI.
b) These just-in-time approaches to investments minimize long-term costs.
c) These are reactive approaches that can result in incompatible, redundant, or failed systems. 
d) These quick responses provide the best defenses.








2. The alignment of IT with the business strategy is dynamic and a(n) __________.
a) ongoing process
b) annual event
c) challenge for operations managers
d) decreasing in importance








3. Cloud computing and software-as-a-service (SaaS) are forms of __________.
a) in-house development
b) offshoring
c) outsourcing
d) sourcing








4. Why did British-Swedish company AstraZeneca undergo a major restructure from a traditional model to a loosely-coupled business model?
a) Management forecasted a significant loss in its sales revenues.
b) Management wanted to implement the latest IT and social networks.
c) Competition in the pharmaceutical industry was decreasing.
d) All of the above







5. Optimally, the __________ guides investment decisions and decisions on how ISs will be developed, acquired, and/or implemented.
a) network infrastructure
b) SWOT
c) level of IT expertise
d) IT strategy








6. Typically, ITs that provide competitive advantages, or that contain proprietary or confidential data are developed and maintained by __________.
a) consulting companies
b) the in-house IT function
c) a single vendor
d) multiple vendors








7. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies' strategic success. In addition, the survey reported that __________.
a) most business leaders work with IT to achieve success
b) most IT staff are very involved in the process of developing business strategy
c) only about one-third of business executives responsible for strategy work closely with the IT department
d) IT projects are rarely abandoned








8. Which is not one of the reasons why an IT project is discontinued or abandoned?
a) The project was under-budget
b) The business strategy changed
c) Technology changed
d) The project sponsors did not work well together








9. An organization’s __________ define(s) why it exists.
a) strategy
b) objectives
c) targets
d) mission statement








10. __________ are the desired levels of performance.
a) Strategy
b) Objectives
c) Targets
d) Visions








11. An organization’s __________ are action-oriented statements (e.g., achieve a ROI of at least 10 percent in 2014) that define the continuous improvement activities that must be done to be successful.
a) strategies
b) objectives
c) targets
d) mission statements








12. IT governance is concerned with insuring that organizational investments in IT __________.
a) support operations
b) provide sustainable competitive advantage
c) deliver full value
d) are audited quarterly








13. It is the duty of the __________ to insure that information systems, technology, and other critical activities are effectively governed.
a) IT function
b) Board of Directors (BOD)
c) end users
d) HR function








14. IT governance covers each of the following areas except:
a) inventory management
b) resource management
c) risk management
d) strategy support








15. Characteristics of resources that can help firms create a competitive advantage are all of the following except:
a) appropriability
b) governance
c) rarity
d) value








16. Why is it insufficient to develop a long-term IT strategy and not reexamine the strategy on a regular basis?
a) Systems need to be maintained
b) To keep the CIO part of the executive team
c) Organizational goals change over time
d) To automate business processes








17. The __________ is a group of managers and staff representing various organizational units that is set up to establish IT priorities and to ensure that the IS department is meeting the needs of the enterprise.
a) corporate steering committee
b) board of directors
c) executive suite
d) audit team








18. Based on case studies, the types of work that are not readily offshored include the following:
a) Work that has been routinized
b) Business activities that rely on an common combination of specific application-domain knowledge
c) Situations that would expose the client company to too much data security or privacy risks
d) All of the above






19. For best results, an organization’s strategic IT plan is based on __________.
a) IT governance
b) cloud computing
c) the latest mobile technologies
d) the strategic business plan








20. All of the following are tools or methodologies that managers use for IT strategic planning except: 
a) business service management
b) business systems planning model
c) balanced scorecard
d) dashboards








21. Business service management is an approach for linking __________ or metrics of IT to business goals to determine the impact on the business.
a) key performance indicators (KPIs)
b) critical success factors (CSFs)
c) scorecards
d) financials








22. What do managers use KPIs for?
a) To measure real-time performance
b) To predict future results
c) To measure results of past activity
d) All of the above








23. __________  are the most essential things that must go right, or be closely tracked, to ensure the organization's survival and success.
a) Key performance indicators (KPIs)
b) Critical success factors (CSFs)
c) Scorecards
d) Financials








24. Which is not one of the characteristics of critical success factors (CSFs)?
a) Organizations in the same industry have the same CSFs.
b) The CSF approach was developed to help identify the information needs of managers.
c) The fundamental assumption is that in every organization there are three to six key factors that, if done well, will result in the organization's success.
d) The failure of these factors will result in some degree of failure at the organization.








25. __________ is used in planning situations that involve much uncertainty, like that of IT in general and e-commerce in particular.
a) Key performance indicators (KPIs)
b) Scenario planning
c) Critical success factors (CSFs)
d) Balanced scorecard



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