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Multiple choice questions 13

Try the multiple choice questions below to test your knowledge of this chapter. Once you
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This activity contains 10 questions.

Business strategy formulation includes which of the following elements?


Resource allocation to define the organisation's relationship with its environment.
Guidelines and procedures to be used in carrying out a strategy.
A mission statement which encapsulates the philosophy and objectives of the
organisation.
The creation of a business vision.
All of the above.

Which of the following is a possible competitive response to an organisation's external


position?
To aim for overall cost leadership within the industry.
To eliminate the closest competitors.
To raise prices to secure funds for new IS/IT investment.
To diversify into a completely different industry.
None of the above.

In Value Chain Analysis, which of the following is not classed as a primary activity?
Sales and marketing.
Outbound logistics.
Inbound logistics.
Service.
Human resource management.
In McFarlan's strategic grid model, which of the following statements describes the
Factory segment?
The business has a low dependence on both current and future IS/IT to sustain its
business strategy.
The business depends both on its current and future investments in IS/IT.
The business does not rely on its current IS/IT for implementing its strategy, but could
derive strategic advantages from new IS/IT investment.
None of the above.

Which of the following segments appears in Ward and Griffiths' modified strategic grid
model?
Strategic.
High potential.
Key operational.
Support.
All of the above.

The term Facilities Management is usually taken to include:


help desk support.
applications software development only.
total outsourcing of an organisations hardware and applications software development.
a company's network infrastructure including hardware and software.
the formulation of an organisation's IS/IT strategy.
Which of the following are usually cited as reasons for companies to outsource some or
all of their IS/IT?
It enables them to dispense with the need for any IS/IT staff.
Difficult to manage internal service level agreements can be eliminated.
The risks associated with IS/IT investment can be completely eliminated.
Companies are enabled to focus on their core business activities.
All of the above.

The benefits that are often associated with the centralisation of the IS/IT function within
an organisation include:
the reduced risk of missing or ignoring important matters.
a higher degree of responsiveness to user requests.
reduced overheads when compared decentralised control.
the ability of end-users to undertake their own development projects.
none of the above.

In the business impacting IS Strategy approach:


IS strategy is independent of business strategy.
IS strategy formulated according to business objectives.
business strategy is independent of IS strategy.
IS strategy strongly influences business strategy.
none of the above.

The IS strategy tool that reviews the current and future importance of IS is:
Five forces analysis.
McFarlan's strategic grid.
Value chain analysis.
Porter's competitive strategies.
None of the above.