raw facts that describe the characteristics of an event or object
data converted into a meaningful and useful context
information collected from multiple sources such as suppliers customers competitors partners and industries that analyzes patterns trends and relationships for decision making
the skills experience and expertise coupled with information and intelligence that creates a person's intellectual resources
Individuals valued for their ability to interpret and analyze information
Management Information Systems
a business function like accounting and HR which moves info about people products and processes across the company to facilitate decision making and problem solving
Chief Info Officer (CIO)
responsible for overseeing all uses of MIS and ensuring that MIS strategically aligns with business goals and objectives
Chief Knowledge Officer (CKO)
responsible for collecting maintaining and distributing company knowledge
Chief Privacy Officer (CPO)
responsible for ensuring the ethical and legal use of information within a company
Chief Security Officer (CSO)
responsible for ensuring the security of business systems and developing strategies and safeguards against attacks by hackers ad viruses
Chief Technology Officer (CTO)
responsible for ensuring the speed accuracy availability and reliability of the MIS
Five Forces Model
A method of evaluating the external environment in which a company operates. Involves assessing five forces that drive competition: threat of new entrants, threat of substitute products or services, buyer power, supplier powers, and rivalry among existing firms
a company develops unique differences in its products or services with the intent to influence demand
Three Generic Strategies
Broad Cost Leadership
Broad Cost Leadership
low cost that appeals to a large audience
difference in a product that appeals to a large audience
Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment.
a standardized set of activities that accomplish a specific task
Value Chain Analysis
views a firm as a series of business processes that each add value to the product or service. Useful for determining how to create the greatest possible value for customers.
Primary Value Activites
acquire raw materials manufacture deliver market sell and provide after sales services
Support Value Activities
along the top of the value chain including firm infrastructure human resource mgmt technology development and procurement... support the primary value activities
acquires raw materials and resources and distributes to manufacturing as required
Transforms raw materials or inputs into goods and services
distributes goods and services to customers
marketing and sales
promotes prices and sells products to customers
provides customer support after the sale of goods and services
includes the company format or departmental structures environment an systems
Human Resources Management
provides employee training, hiring and compensation
applies MIS to processes to add value
Purchases inputs such as raw materials resources equipment and supplies
What are the 4 elements included in systems thinking
Input, process, output, feedback
Most companies are typically organized by departments or functional areas. Which of the following is not a common department found in a company?
The department within a company that records, measures, and reports monetary transactions is called
Paula Logston is the owner and operator of a high-end online custom clothing company. Paula has never heard of Porter's Five Forces model and she wants to understand why she would perform an analysis using it. If you were tasked with explaining Porter's Five Forces model to Paula what would be the primary reason she would want to use this type of analysis?
To help Paula evaluate the attractiveness of the clothing industry.
T/F: Companies update business strategies continuously as internal and external environments change.
When a company is the first to market with a competitive advantage, this is called a first-mover advantage. All of the following companies were first-movers except
Microsoft-Bing Search Engine
John Cleaver is the CEO of Tech World, which is a retail store that sells computers, monitors, cameras, televisions and many other electronic products. John and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis John determines that all of the forces are high in this new industry. What should John do?
Not introduce the product because all five forces are strong and this would be a highly risky business strategy
Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies. Which of the following companies are using a focused strategy?
Sky Taxi-a rent by the hour personal plane service
Which of the following is not considered a category within the primary value activities in a value chain analysis?
If a supplier has high power what can it do to influence its industry
Charge higher prices.
Shift costs to industry participants.
Limit quality or services
Kevin Campbell is an incoming freshman at your college. Kevin is frustrated by the cost of books, tuition, and expenses and he also needs to purchase a rather expensive laptop. In an effort to save money, Kevin beings a Facebook group finding other college students who need to purchase laptops. Soon, Kevin's Facebook group has close to 100,000 students. Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount. What business strategy is Kevin using to purchase laptops?
Increasing Buyer Power
Business intelligence is information collected from multiple sources. Which of the following provides an example of a source that would be included in business intelligence?
Suppliers, Customers AND Competitors
Cheryl Steffan is the operations manager for Nature's Bread Company, which specializes in providing natural products for health conscious individuals. Cheryl is responsible for compiling, analyzing, and evaluating daily sales numbers to determine the company's profitability and forecast production for the next day. Which of the following is an example of knowledge that Cheryl would be using to successfully perform her job?
Best-selling product changes when Tony the best baker is working.
Which of the following is considered data?
Best Selling Item by Month
Which of the following represents the core drives of the information age
Data, Information, Business Intelligence, Knowledge