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Management Information Systems, Cdn. 6e (Laudon et al.) Chapter 9 Enterprise Applications to Manage Supply Chains and Respond to Customers 1) Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise. Answer: TRUE Diff: 2 Type: TF Page Ref: 285 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 2) Enterprise software is built around thousands of predefined business processes that reflect best practices. Answer: TRUE Diff: 2 Type: TF Page Ref: 285 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 3) If the enterprise software does not the way the organization does business, companies can rewrite some of the software to the way their business processes work. Answer: TRUE Diff: 2 Type: TF Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 4) There are versions of enterprise software packages designed for small businesses. Answer: TRUE Diff: 2 Type: TF Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 5) There are versions of enterprise software that can be obtained through software service providers over the Web. Answer: TRUE Diff: 2 Type: TF Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 6) Enterprise systems provide value both by decreasing operational efficiency and by providing firmwide information to help managers make better decisions. Answer: FALSE Diff: 2 Type: TF Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 1 © 2013 Pearson Canada Inc.
7) Enterprise systems help customers respond rapidly to a firm's requests for information or products. Answer: FALSE Diff: 2 Type: TF Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 8) Enterprise software does not include analytical tools for using data captured by the system to evaluate overall organizational performance. Answer: FALSE Diff: 2 Type: TF Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 9) A firm's CRM is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers. Answer: FALSE Diff: 2 Type: TF Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 10) The downstream portion of the supply chain includes the company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them. Answer: FALSE Diff: 2 Type: TF Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 11) Inefficiencies in the supply chain, such as parts shortages, underutilized plant capacity, excessive finished goods inventory, or high transportation costs, are caused by inaccurate or untimely information. Answer: TRUE Diff: 2 Type: TF Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 12) If a manufacturer had perfect information about exactly how many units of product customers wanted, when they wanted them, and when they could be produced, it would be possible to implement a highly efficient just-in-time strategy. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 2 © 2013 Pearson Canada Inc.
13) One recurring problem in supply chain management is the bullwhip effect. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 14) Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 15) One of the most important–and complex–supply chain planning functions is demand planning, which determines how much product a business needs to make to satisfy all of its customers' demands. Answer: TRUE Diff: 2 Type: TF Page Ref: 290 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 16) Supply chain execution systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most inefficient manner. Answer: FALSE Diff: 2 Type: TF Page Ref: 291 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 17) Enterprise systems supply some integration of internal supply chain processes but they are not designed to deal with internal supply chain processes. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 18) Firms use intranets to improve coordination among their external supply chain processes. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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19) Firms use extranets to improve coordination among their internal supply chain processes. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 20) Global supply chains typically span smaller geographic distances and time differences than domestic supply chains. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 21) Supply chain management may need to reflect foreign government regulations and cultural differences. Answer: TRUE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 22) Many, especially smaller companies, still share product information over the phone, via e-mail, or through faxes. Answer: TRUE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 23) In addition to reducing costs, supply chain management systems help increase sales. Answer: TRUE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 24) A touch point (also known as a point) is a method of interaction with the customer, such as telephone, e-mail, customer service desk, conventional mail, Web site, wireless device, or retail store. Answer: TRUE Diff: 2 Type: TF Page Ref: 295 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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25) Partner relationship management (PRM) uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. Answer: TRUE Diff: 2 Type: TF Page Ref: 296 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 26) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business Answer: TRUE Diff: 2 Type: TF Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 27) Enterprise systems use a client/server architecture and have not yet been redesigned to take advantage of the Web. Answer: FALSE Diff: 2 Type: TF Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 13.4 Application Development For The Digital Firm 28) Enterprise systems can improve management reporting and decision making. Answer: TRUE Diff: 1 Type: TF Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 29) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: FALSE Diff: 2 Type: TF Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 30) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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31) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain. Answer: FALSE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 32) The bullwhip effect is the distortion of information about the demand for a product as it es from one entity to the next across the supply chain. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 33) Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. Answer: FALSE Diff: 2 Type: TF Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 34) In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes. Answer: TRUE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 35) In a push-based model, actual customer orders or purchases trigger events in the supply chain. Answer: FALSE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 36) In a pull-based model, production master schedules are based on forecasts of demand for products. Answer: FALSE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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37) Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget. Answer: TRUE Diff: 2 Type: TF Page Ref: 294 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 38) All CRM packages contain modules for PRM and ERM. Answer: FALSE Diff: 1 Type: TF Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 39) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and Salesforce.com. Answer: TRUE Diff: 3 Type: TF Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 40) Cross-selling markets complementary products to customers. Answer: TRUE Diff: 2 Type: TF Page Ref: 297 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 41) CRM software can help organizations identify high-value customers for preferential treatments. Answer: TRUE Diff: 2 Type: TF Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 42) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. Answer: TRUE Diff: 2 Type: TF Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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43) Enterprise systems require fundamental changes in the way the business operates. Answer: FALSE Diff: 2 Type: TF Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 44) Around the globe, companies are increasingly becoming more connected, both internally and with other companies. Answer: TRUE Diff: 2 Type: TF Page Ref: 284 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 45) After implementing enterprise software from Oracle, Alcoa eliminated many redundant processes and systems. Answer: TRUE Diff: 2 Type: TF Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 46) Canada Post delivers more than one piece of mail per person in Canada five days a week. Answer: TRUE Diff: 2 Type: TF Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 47) The difference between push- and pull-based models is summarized by the slogan "Make what we sell, not sell what we make." Answer: TRUE Diff: 2 Type: TF Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 48) Companies are realizing that their only enduring competitive strength may be their relationships with customers. Answer: TRUE Diff: 2 Type: TF Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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49) It can cost six times more to sell to a new customer than to an existing customer. Answer: TRUE Diff: 2 Type: TF Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 50) Employee relationship management software provides a single point for s to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages. Answer: FALSE Diff: 2 Type: TF Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 51) Operational CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. Answer: FALSE Diff: 2 Type: TF Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 52) It might take a large Fortune 500 company several weeks to complete a large-scale implementation of an enterprise system or a system for SCM or CRM. Answer: FALSE Diff: 2 Type: TF Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 53) The total cost for an average large system implementation based on SAP or Oracle software, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, runs over $12 000. Answer: FALSE Diff: 2 Type: TF Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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54) John is looking at the business processes that are critical in his firm. The processes include general ledger, s payable, s receivable, fixed assets, cash management and forecasting, productcost ing, cost-centre ing, asset ing, tax ing, credit management, and financial reporting. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: A Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 55) Wayne is looking at the business processes that are critical in his firm. The processes include procurement, inventory management, purchasing, shipping, production planning, production scheduling, material requirements planning, quality control, distribution, transportation execution, and plant and equipment maintenance. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: C Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 56) Bobby is looking at the business processes that are critical in his firm. The processes include personnel istration, time ing, payroll, personnel planning and development, benefits ing, applicant tracking, time management, compensation, workforce planning, performance management, and travel expense reporting. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: B Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems
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57) Donald is looking at the business processes that are critical in his firm. The processes include order processing, quotations, contracts, product configuration, pricing, billing, credit checking, incentive and commission management, and sales planning. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: B Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 58) Enterprise systems provide value both by increasing ________ efficiency and by providing firmwide information to help managers make better decisions. A) technical B) operational C) ing D) financial Answer: B Diff: 2 Type: MC Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 59) Helen's job is to deal with the company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them. She is a purchaser for a department store chain. Which portion of the supply chain does she deal with? A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: A Diff: 2 Type: MC Page Ref: 288 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems
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60) Mary's job consists of the organizations and processes for distributing and delivering products to the final customers. She works for a manufacturing plant. Which portion of the supply chain does she deal with? A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: B Diff: 2 Type: MC Page Ref: 288 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 61) Linda's job consists of processes for transforming materials, components, and services furnished by their suppliers into finished products or intermediate products (components or parts) for their customers and for managing materials and inventory. She works for a manufacturing plant. Which portion of the supply chain does she deal with? A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: C Diff: 2 Type: MC Page Ref: 288 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 62) The ________ is tamed by reducing uncertainties about demand and supply when all of the supply chain have accurate and up-to-date information. A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: D Diff: 2 Type: MC Page Ref: 289 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 63) Minor fluctuations in retail sales for a product can create ________ inventory for distributors, manufacturers, and suppliers. A) finished goods B) raw material C) less D) excess Answer: D Diff: 2 Type: MC Page Ref: 289 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 12 © 2013 Pearson Canada Inc.
64) In addition to reducing costs, supply chain management systems help increase ________. A) expenses B) sales C) inventory D) taxes Answer: B Diff: 2 Type: MC Page Ref: 293 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 65) Betty is using a new system at work. She finds that it really has improved her effectiveness in using data, tools, and systems to enhance collaboration between a company and its selling partners. Betty is using what type of module? A) PRM B) ERM C) CRM D) SCM Answer: A Diff: 2 Type: MC Page Ref: 296 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 66) Susan is using a new system at work. She finds that it really has improved her effectiveness in dealing with employee issues such as setting objectives, employee performance management, performance-based compensation, and employee training. Susan is using what type of module? A) PRM B) ERM C) CRM D) SCM Answer: B Diff: 2 Type: MC Page Ref: 296 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 67) Supply chain management systems require ________ organizations to share information and business processes. A) zero B) multiple C) manufacturing D) retail Answer: B Diff: 2 Type: MC Page Ref: 300 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 13 © 2013 Pearson Canada Inc.
68) From your reading of the Allen Candy Company case study, the firm implemented new information systems in order to achieve which of the main six business objectives? A) customer and supplier intimacy B) new products, services, and business models C) improved decision making D) growth Answer: D Diff: 3 Type: MC Page Ref: 282 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 69) From your reading of the Allen Company case study, what enabled the firm to take maximum advantage of the new enterprise software's capabilities? A) willingness to normalize data B) custom reporting and workflow features C) limiting changes to the software D) enforcing strict project management standards Answer: B Diff: 3 Type: MC Page Ref: 282 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 70) A suite of integrated software modules for finance and ing, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes A) process management software. B) ERP systems. C) groupware. D) application software. Answer: B Diff: 2 Type: MC Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 71) ________ software is built around thousands of predefined business processes from all functional areas. A) Process management B) PRM C) Enterprise D) CRM Answer: C Diff: 1 Type: MC Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems
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72) Which of the following is NOT true about enterprise systems? A) Enterprise systems help firms respond rapidly to customer requests for information or products. B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. C) Enterprise software is expressly built to allow companies to mimic their unique business practices. D) Enterprise software includes analytical tools to evaluate overall organizational performance. Answer: C Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Synthesis A-level Heading: 9.1 Enterprise Systems 73) You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? A) Select the functions of the system you wish to use. B) Select the business processes you wish to automate. C) Map the company's business processes to the software's business processes. D) Map the software's business processes to the company's business processes. Answer: A Diff: 2 Type: MC Page Ref: 285 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.1 Enterprise Systems 74) When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with A) configuration tables. B) project workbooks. C) data dictionaries. D) middleware. Answer: A Diff: 2 Type: MC Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 75) In order to achieve maximum benefit from an enterprise software package, a business A) customizes the software to match all of its business processes. B) uses only the processes in the software that match its own processes. C) changes the way it works to match the software's business processes. D) selects only the software that best matches its existing business processes. Answer: C Diff: 2 Type: MC Page Ref: 286 AACSB: Use of information technology CASE: Evaluation A-level Heading: 9.1 Enterprise Systems
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76) Supply chain complexity and scale A) affect both very small companies and large, global corporations. B) were difficult to address before the Internet. C) result when firms produce complex products and services. D) result when firms implement full-scale supply-chain management systems. Answer: C Diff: 3 Type: MC Page Ref: 287 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 77) A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a A) distribution channel. B) supply chain. C) value chain. D) marketing channel. Answer: B Diff: 2 Type: MC Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 78) Components or parts of finished products are referred to as A) upstream materials. B) raw materials. C) secondary products. D) intermediate products. Answer: D Diff: 2 Type: MC Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 79) A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain. Answer: C Diff: 2 Type: MC Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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80) A company's organizations and processes for distributing and delivering products to the final customers is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain. Answer: D Diff: 2 Type: MC Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 81) Uncertainties arise in any supply chain because of A) inaccurate or untimely information. B) poor integration between systems of suppliers, manufacturers, and distributors. C) inefficient or inaccurate MIS. D) unforeseeable events. Answer: D Diff: 2 Type: MC Page Ref: 289 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 82) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? A) safety stock B) continuous replenishment C) just-in-time strategies D) demand planning Answer: A Diff: 2 Type: MC Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 83) A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy. A) just-in-time B) stockless C) bullwhip D) safety stock Answer: A Diff: 2 Type: MC Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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84) A distortion of information about the demand for a product as it es from one entity to the next across the supply chain is called the ________ effect. A) replenishment B) bullwhip C) ripple D) exponential Answer: B Diff: 1 Type: MC Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 85) Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) push; pull B) demand; continual C) upstream; downstream D) planning; execution Answer: D Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 86) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems. A) demand B) delivery C) planning D) execution Answer: C Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 87) Supply chain planning systems A) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders. Answer: B Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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88) Which supply chain planning function determines how much product is needed to satisfy all customer demands? A) distribution management B) replenishment planning C) demand planning D) order planning Answer: C Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 89) Supply chain ________ systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most efficient manner. A) demand B) delivery C) planning D) execution Answer: D Diff: 2 Type: MC Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 90) Capabilities of supply chain planning systems would NOT include A) transport operations. B) advanced scheduling and manufacturing planning. C) demand planning. D) order planning. Answer: A Diff: 2 Type: MC Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 91) A supply chain driven by actual customer orders or purchases follows a ________ model. A) pull-based model B) build-to-stock C) push-based D) replenishment-driven Answer: A Diff: 2 Type: MC Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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92) A build-to-order supply-chain model is also called a ________ model. A) supply-driven B) demand-driven C) replenishment-driven D) push-based Answer: B Diff: 2 Type: MC Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 93) Concurrent supply chains are made possible by which technology? A) pull-based technology B) Internet technology C) supply chain management systems D) just-in-time supply-chain technologies Answer: B Diff: 1 Type: MC Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 94) Companies with effective supply chain management systems can expect A) improved customer service and responsiveness. B) cost reduction. C) reduced inventory levels. D) all of the above. Answer: D Diff: 1 Type: MC Page Ref: 294 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.2 Supply Chain Management Systems 95) A ________ is a method of interaction with a customer, such as telephone or customer service desk. A) point of presence B) touch point C) sales point D) client channel Answer: B Diff: 2 Type: MC Page Ref: 294 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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96) Which of the following would NOT be considered a point? A) e-mail B) Web site C) intranet D) retail store Answer: C Diff: 2 Type: MC Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 97) ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners. A) SCM B) SFA C) ERM D) PRM Answer: D Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 98) ________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation. A) SCM B) SFA C) ERM D) PRM Answer: C Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 99) Customer relationship management systems typically provide software and online tools for sales, customer service, and A) marketing. B) management. C) advertising. D) public relations. Answer: A Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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100) SFA modules in CRM systems would provide tools for A) asg and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and information. Answer: D Diff: 1 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 101) Customer service modules in CRM systems provide tools for A) asg and managing customer service requests. B) sales quote generation. C) identifying profitable and unprofitable customers. D) managing sales prospect and information. Answer: A Diff: 1 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 102) Marketing modules in CRM systems would provide tools for A) managing an advice telephone line. B) sales quote generation. C) identifying profitable and unprofitable customers. D) managing sales prospect and information. Answer: C Diff: 1 Type: MC Page Ref: 297 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 103) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training? A) Enterprise B) ERM C) PRM D) ERP Answer: B Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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104) Selling a customer with a checking a home improvement loan is an example of A) operational CRM. B) direct marketing. C) cross-selling. D) cross-channel promotions. Answer: C Diff: 2 Type: MC Page Ref: 297 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 105) Which of the following is an important capability for service processes that is found in most major CRM software products? A) returns management B) lead management C) management D) events management Answer: A Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 106) Which of the following is an important capability for sales processes that is found in most major CRM software products? A) returns management B) lead management C) channel promotions management D) events management Answer: B Diff: 3 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 107) Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications. A) operational CRM B) analytical CRM C) SCM D) SFA Answer: B Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Synthesis A-level Heading: 9.3 Customer Relationship Management Systems
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108) Analytical CRM applications A) include tools for marketing automation. B) provide consolidated data for operational CRM applications. C) are based on data warehouses consolidated from operational CRM applications. D) provide customer-facing applications. Answer: C Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 109) Operational CRM applications include tools for A) identifying buying patterns. B) calculating CLTV. C) sales force automation. D) pinpointing unprofitable customers. Answer: C Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 110) Analyzing sales representative and customer service representative productivity is an example of A) CLTV. B) analytical CRM. C) operational CRM. D) demand planning. Answer: B Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 111) Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company? A) churn rate B) CLTV C) cost per lead D) cost per sale Answer: B Diff: 2 Type: MC Page Ref: 299 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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112) The measurement of the number of customers who stop using or purchasing products or services from a company is called A) switching costs. B) churn rate. C) CLTV. D) switch rate. Answer: B Diff: 2 Type: MC Page Ref: 300 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 113) Which of the following statements about enterprise applications is NOT true? A) The total implementation cost of a large system might amount to four to five times the initial purchase price for the software. B) Enterprise applications introduce "switching costs." C) Enterprise applications are based on organization-wide definitions of data. D) Enterprise applications are best implemented when few changes in business processes are required. Answer: D Diff: 2 Type: MC Page Ref: 300 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 114) ________ integrate(s) multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner and provide a greater degree of cross-functional integration than the traditional enterprise applications. A) PRM software B) SFA software C) ERP suites D) Service platforms Answer: D Diff: 2 Type: MC Page Ref: 304 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 115) Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other. A) e-business suites B) ERP systems C) middleware D) legacy systems Answer: A Diff: 1 Type: MC Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 25 © 2013 Pearson Canada Inc.
116) ________ software provides a single point for s to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages. A) Customer relationship management B) Employee relationship management C) Government relationship management D) Peer relationship management Answer: A Diff: 1 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 117) ________ CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. A) Analytical B) Operational C) Relational D) Spatial Answer: A Diff: 1 Type: MC Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 118) It might take a large Fortune 500 company ________ to complete a large-scale implementation of an enterprise system or a system for SCM or CRM. A) several days B) several weeks C) several months D) several years Answer: D Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 119) The total cost for an average large system implementation based on SAP or Oracle software, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, runs over ________. A) $1200 B) $12 000 C) $12 billion D) $12 million Answer: D Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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120) Once you adopt an enterprise application from a single vendor, such as SAP, Oracle, or others, it is very costly to________, and your firm becomes dependent on the vendor to upgrade its product and maintain your installation. A) switch customers B) switch locations C) switch shareholders D) switch vendors Answer: D Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 121) Enterprise applications also introduce "________." A) vendor costs B) customer costs C) switching costs D) substitute costs Answer: C Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 122) ________ applications are based on organization-wide definitions of data. A) Digital B) Management C) Enterprise D) Marketing Answer: C Diff: 1 Type: MC Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 123) The most explosive growth in software as a service (SaaS) offerings has been for ________ management. A) employee relationship B) vendor relationship C) customer relationship D) supply relationship Answer: C Diff: 1 Type: MC Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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124) After implementing enterprise software from Oracle, Alcoa eliminated many ________ processes and systems. A) unique B) one-of-a kind C) redundant D) business Answer: C Diff: 1 Type: MC Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 125) Canada Post delivers more than ________ piece(s) of mail per person in Canada five days a week. A) three B) four C) one D) two Answer: C Diff: 1 Type: MC Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 126) The difference between push- and pull-based models is summarized by the slogan "Make what we sell, not sell what we ________." A) vend B) retail C) make D) trade Answer: C Diff: 1 Type: MC Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 127) Companies are realizing that their only enduring competitive strength may be their ________ with customers. A) knowledge B) expertise C) relationships D) trade Answer: C Diff: 1 Type: MC Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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128) It can cost ________ times more to sell to a new customer than to an existing customer. A) seven B) eight C) six D) ten Answer: C Diff: 1 Type: MC Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 129) ________ is built around thousands of predefined business processes that reflect best practices. Answer: Enterprise software Diff: 2 Type: SA Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 130) A firm would use ________ tables provided by the software to tailor a particular aspect of the system to the way it does business. Answer: configuration Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 131) Enterprise software is unusually complex, and extensive ________ may degrade system performance, compromising the information and process integration that are the main benefits of the system. Answer: customization Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 132) There are versions of enterprise software packages ________ for small businesses. Answer: designed Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 133) There are versions of enterprise software packages that can be obtained through ________ providers over the Web. Answer: software service Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 29 © 2013 Pearson Canada Inc.
134) Enterprise systems provide value both by increasing ________ efficiency and by providing firmwide information to help managers make better decisions. Answer: operational Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 135) Large companies with many operating units in ________ locations have used enterprise systems to enforce standard practices and data so that everyone does business the same way worldwide. Answer: different Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 136) Coca Cola, for instance, implemented a SAP enterprise system to ________ and coordinate important business processes in 200 countries. Answer: standardize Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 137) Enterprise systems help firms respond ________ to customer requests for information or products. Answer: rapidly Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 138) Enterprise software includes ________ tools for using data captured by the system to evaluate overall organizational performance. Answer: analytical Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 139) Goods start out as ________ and, as they move through the supply chain, are transformed into intermediate products, and finally, into finished products. Answer: raw materials Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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140) Nike's contract suppliers do not ________ runners from scratch. Answer: manufacture Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 141) The ________ portion of the supply chain includes the company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them. Answer: upstream Diff: 2 Type: SA Page Ref: 288 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 142) The ________ portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: downstream Diff: 2 Type: SA Page Ref: 288 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 143) ________ in the supply chain, such as parts shortages, underutilized plant capacity, excessive finished goods inventory, or high transportation costs, are caused by inaccurate or untimely information. Answer: Inefficiencies Diff: 2 Type: SA Page Ref: 288 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 144) One recurring problem in supply chain management is the ________, in which information about the demand for a product gets distorted as it es from one entity to the next across the supply chain. Answer: bullwhip effect Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 145) The bullwhip is tamed by reducing uncertainties about demand and supply when all of the supply chain have accurate and ________ information. Answer: up-to-date Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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146) Supply chain management systems provide the kind of information that helps of the supply chain make better ________ and scheduling decisions. Answer: purchasing Diff: 2 Type: SA Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 147) Inaccurate information can cause minor fluctuations in demand for a product to be ________ as one moves further back in the supply chain. Answer: amplified Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 148) Minor fluctuations in retail sales for a product can create ________ inventory for distributors, manufacturers, and suppliers. Answer: excess Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 149) ________ systems enable the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans. Answer: Supply chain planning Diff: 2 Type: SA Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 150) ________ systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most efficient manner. Answer: Supply chain execution Diff: 2 Type: SA Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 151) Before the ________, supply chain coordination was hampered by the difficulties of making information flow smoothly among disparate internal supply chain systems for purchasing, materials management, manufacturing, and distribution. Answer: Internet Diff: 2 Type: SA Page Ref: 292 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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152) Enterprise systems supply some integration of internal supply chain processes but they are not designed to deal with ________ supply chain processes. Answer: external Diff: 2 Type: SA Page Ref: 292 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 153) ________ typically span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. Answer: Global supply chains Diff: 2 Type: SA Page Ref: 292 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 154) Supply chain management may need to reflect foreign government regulations and ________ differences. Answer: cultural Diff: 2 Type: SA Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 155) Many, especially ________ companies, still share product information over the phone, via e-mail, or through faxes. Answer: smaller Diff: 2 Type: SA Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 156) With a Web-based ________ application, all supply chain communicate through a Webbased system. Answer: SCM Diff: 2 Type: SA Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 157) In addition to reducing costs, supply chain management systems help increase ________. Answer: sales Diff: 2 Type: SA Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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158) A ________ (also known as a point) is a method of interaction with the customer, such as telephone, e-mail, customer service desk, conventional mail, Web site, wireless device, or retail store. Answer: touch point Diff: 2 Type: SA Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 159) ________ uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. Answer: Partner relationship management (PRM) Diff: 2 Type: SA Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 160) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training. Answer: Employee relationship management (ERM) Diff: 2 Type: SA Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 161) The ________ measures the number of customers who stop using or purchasing products or services from a company. Answer: churn rate Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 162) Supply chain management systems require multiple organizations to ________ information and business processes. Answer: share Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 163) Some firms experienced enormous operating problems and losses when they first implemented enterprise applications because they did not understand how much organizational ________ was required. Answer: change Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 34 © 2013 Pearson Canada Inc.
164) ________ consists of a set of interdependent software modules that basic internal business processes for finance and ing, human resources, manufacturing and production, and sales and marketing. Answer: Enterprise software Diff: 2 Type: SA Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 165) The ________ is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers. Answer: supply chain Diff: 1 Type: SA Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 166) In a(n) ________ strategy, components arrive exactly at the moment they are needed, and finished goods are shipped as they leave the assembly line. Answer: just-in-time Diff: 2 Type: SA Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 167) ________ is used to determine how much product a business needs to make to satisfy all of its customers' demands. Answer: Demand planning Diff: 2 Type: SA Page Ref: 290 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 168) With new flows of information made possible by Web-based tools, supply chain management can more easily follow a(n) ________ model. Answer: pull-based Diff: 2 Type: SA Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 169) ________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services. Answer: Sales force automation, SFA Diff: 2 Type: SA Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 35 © 2013 Pearson Canada Inc.
170) ________ CRM includes customer-facing applications such as tools for sales force automation, call centre and customer service , and marketing automation. Answer: Operational Diff: 2 Type: SA Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 171) ________ is the marketing of complementary products to customers. Answer: Cross-selling Diff: 2 Type: SA Page Ref: 297 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 172) Enterprise-wide ________ provide a greater degree of cross-functional integration than the traditional enterprise applications. Answer: service platforms Diff: 2 Type: SA Page Ref: 304 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 173) ________ can integrate information from enterprise applications and disparate in-house legacy systems, presenting it to s through a Web interface so that the information appears to be coming from a single source. Answer: Portal software Diff: 2 Type: SA Page Ref: 304 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 174) Around the globe, companies are increasingly becoming more ________, both internally and with other companies. Answer: connected Diff: 2 Type: SA Page Ref: 284 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 175) After implementing enterprise software from Oracle, Alcoa eliminated many ________ processes and systems. Answer: Redundant Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems
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176) Canada Post delivers more than ________ piece of mail per person in Canada five days a week. Answer: one Diff: 2 Type: SA Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 177) The ________ between push- and pull-based models is summarized by the slogan "Make what we sell, not sell what we make." Answer: difference Diff: 2 Type: SA Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 178) Companies are realizing that their only enduring competitive strength may be their ________ with customers. Answer: Relationships Diff: 2 Type: SA Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 179) It can cost ________ more to sell to a new customer than to an existing customer. Answer: six times Diff: 2 Type: SA Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 180) ________ software provides a single point for s to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages. Answer: Customer relationship management Diff: 2 Type: SA Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 181) ________ CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. Answer: Analytical Diff: 2 Type: SA Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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182) It might take a large Fortune 500 company ________ to complete a large-scale implementation of an enterprise system or a system for SCM or CRM. Answer: several years Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 183) The total cost for an average large system implementation based on SAP or Oracle software, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, runs over $12 ________. Answer: million Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 184) Identify and describe three major enterprise applications. Answer: Enterprise systems, customer relationship management, and supply chain management are three enterprise applications. Enterprise systems are based on a suite of integrated software modules and a common central database. Enterprise systems utilize enterprise software to financial and ing, human resources, manufacturing and production, and sales and marketing processes. Enterprise systems provide many benefits including an enterprise-enabled organization, improved management reporting and decision making, a unified information systems technology platform, and more efficient operations and customer-driven business processes. Supply chain management systems help an organization better manage its supply chain, including planning, sourcing, making, delivering, and returning items. Supply chain management software can be categorized as a supply chain planning system or as a supply chain execution system. A supply chain planning system enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. A supply chain execution system manages the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most efficient manner. Supply chain management benefits include improved customer service and responsiveness, cost reduction, and cash utilization. Customer relationship management systems help firms maximize the benefits of their customer assets. These systems capture and consolidate data from all over the organization and then distribute the results to various systems and customer touch points across the enterprise. Customer relationship management systems can be classified as operational or as analytical. Operational CRM refers to customer-facing applications, such as sales force automation, call centre and customer service , and marketing automation. Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance. Benefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for customer acquisition and retention. Diff: 2 Type: ES Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems
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185) What are the benefits of enterprise systems? What are the challenges of enterprise systems? Answer: Benefits include creating an enterprise-enabled organization, providing firmwide knowledgebased management processes, providing a unified information system technology platform and environment, and enabling more efficient operations and customer-driven business processes. Challenges include a daunting implementation process, surviving a cost-benefit analysis, inflexibility, and realizing strategic value. Diff: 2 Type: ES Page Ref: 285 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.1 Enterprise Systems 186) Identify two classifications for supply chain software. For each classification, identify five capabilities. Answer: Supply chain planning systems and supply chain execution systems are two classifications for supply chain software. Supply chain planning systems enable a firm to generate demand forecasts for a product and develop sourcing and manufacturing plans for that product. Capabilities include order planning, advanced scheduling and manufacturing planning, demand planning, distribution planning, and transportation planning. Supply chain execution systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations. Capabilities include order commitments, final production, replenishment, distribution management, and reverse distribution. Diff: 2 Type: ES Page Ref: 290 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 187) What additional complexities are faced in global supply chains? How does the Internet help in managing global supply chains? Answer: Global supply chains typically span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. Although the purchase price of many goods might be lower abroad, there are often additional costs for transportation, inventory, and local taxes or fees. Performance standards may vary from region to region or from nation to nation. Supply chain management may need to reflect foreign government regulations and cultural differences. All of these factors impact how a company takes orders, plans distribution, organizes warehousing, and manages inbound and outbound logistics throughout the global markets it services. The Internet helps companies manage many aspects of their global supply chains, including sourcing, transportation, communications, and international finance. As goods are being sourced, produced, and shipped, communication is required among retailers, manufacturers, contractors, agents, and logistics providers. Many, especially smaller companies, still share product information over the phone, via email, or through faxes. These methods slow down the supply chain and also increase errors and uncertainty. With Internet technology, supply chain communicate through a Web-based system. Firms use intranets to improve coordination among their internal supply chain processes, and they use extranets to coordinate supply chain processes shared with their business partners. Using intranets and extranets, all of the supply chain are instantly able to communicate with each other, uto-date information to adjust purchasing, logistics, manufacturing, packaging, and schedules. Diff: 2 Type: ES Page Ref: 292-293 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 39 © 2013 Pearson Canada Inc.
188) Identify two supply chain models. Which is better? Answer: Push-based and pull-based models were discussed in the textbook. Push-based refers to a supply chain driven by production master schedules based on forecasts or best guesses of demand for products. Pull-based refers to a supply chain driven by actual customer orders or purchases so that of the supply chain produce and deliver only what customers have ordered. Pull-based models are better. Diff: 1 Type: ES Page Ref: 293 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 189) Identify two types of customer relationships management applications. Answer: Operational CRM and analytical CRM are two aspects. Operational CRM refers to customerfacing applications, such as sales force automation, call centre and customer service , and marketing automation. Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance. Diff: 1 Type: ES Page Ref: 298 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 190) Identify five benefits of customer relationship management systems. Answer: Benefits include: better customer service, make call centres more efficient, cross-sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, acquire new profitable customers, sell additional products and services, provide customer information for developing new products, increase product utilization, reduce sales and marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high-lifetime value customers, improve customer loyalty, improve response rates to direct mail, increase product profitability, respond quickly to market opportunities. Diff: 2 Type: ES Page Ref: 296-297 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 191) You have been hired by Santori, Inc., a small company that imports and distributes an Italian sparkling water. The company is interested in what benefits an enterprise system would bring. Would an enterprise system be appropriate for this company? What steps would you take in determining this? Answer: An enterprise system may be too expensive, although there are enterprise software packages that are available to smaller companies. A hosted enterprise application might be the most economical way to implement an enterprise system. To determine whether this would be beneficial to Santori, I would first look at their existing business processes. It would be ideal to determine if their efficiency meets benchmarks in their industry and allows them to be competitive with other businesses in their niche. Then I would review existing hosted applications to see how the applications business processes matched up with Santori's. It would be important to compare the costs of instituting new business processes with the benefits and cost-savings. Diff: 3 Type: ES Page Ref: 296 AACSB: Analytic skills CASE: Synthesis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 40 © 2013 Pearson Canada Inc.
192) Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have hundreds of smaller nurseries based around the country that grow the plant stock. The majority of their business is conducted online: Consumers purchase typically small quantities of products online and Plant Away coordinates the shipping from the most appropriate nursery. What unique problems might you anticipate they have in their supply chain? What might remedy these problems? Answer: Typical problems in supply chains arise from unforeseeable events. In a plant nursery, variations in the weather, growing season, plant diseases, crop output would be uncertainties. Other problems might be interstate regulations governing plants allowed in different states, and making sure plants survive and are healthy during transportation. It would be very important to have up-to-date forecasting of the weather or growing seasons that could anticipate possible problems, and analyze and determine the best transportation routes. Diff: 3 Type: ES Page Ref: 289 AACSB: Analytic skills CASE: Synthesis A-level Heading: 9.2 Supply Chain Management Systems 193) John is going to a conference to get training in the area of enterprise systems. Upon his return he needs to be able to instruct upper management at his firm on "How do enterprise systems help businesses achieve operational excellence?" Describe how he should answer that question. Answer: Enterprise software is based on a suite of integrated software modules and a common central database. The database collects data from and feeds the data into numerous applications that can nearly all of an organization's internal business activities. When new information is entered by one process, the information is made available immediately to other business processes. Enterprise systems organizational centralization by enforcing uniform data standards and business processes throughout the company and a single unified technology platform. The firmwide data generated by enterprise systems helps managers evaluate organizational performance. Diff: 2 Type: ES Page Ref: 285 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.1 Enterprise Systems 194) Robert is going to a conference to get training in the area of SCM. Upon his return he needs to be able to instruct upper management at his firm on "How do supply chain management systems coordinate planning, production, and logistics with suppliers?" Describe how he should answer that question. Answer: Supply chain management systems automate the flow of information among of the supply chain so they can use it to make better decisions about when and how much to purchase, produce, or ship. More accurate information from supply chain management systems reduces uncertainty and the impact of the bullwhip effect. Supply chain management software includes software for supply chain planning and for supply chain execution. Internet technology facilitates the management of global supply chains by providing the connectivity for organizations in different countries to share supply chain information. Improved communication among supply chain also facilitates efficient customer response and movement toward a demand-driven model. Diff: 2 Type: ES Page Ref: 288-289 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.2 Supply Chain Management Systems
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195) Eddy is going to a conference to get training in the area of CRM. Upon his return he needs to be able to instruct upper management at his firm on "How do customer relationship management systems help firms achieve customer intimacy?" Describe how he should answer that question. Answer: Customer relationship management (CRM) systems integrate and automate customer-facing processes in sales, marketing, and customer service, providing an enterprise-wide view of customers. Companies can use this customer knowledge when they interact with customers to provide them with better service or to sell new products and services. These systems also identify profitable or nonprofitable customers or opportunities to reduce the churn rate. The major customer relationship management software packages provide capabilities for both operational CRM and analytical CRM. They often include modules for managing relationships with selling partners (partner relationship management) and for employee relationship management. Diff: 2 Type: ES Page Ref: 270 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.3 Customer Relationship Management Systems 196) What are the advantages and disadvantages of using cloud-based enterprise applications? Answer: Most companies interested in cloud computing are small to midsize and lack the knowhow or financial resources to successfully build and maintain ERP and CRM applications in-house. Others are simply looking to cut costs by moving their applications to the cloud. Not all companies experience gains of that magnitude, and cloud computing does have drawbacks. Many companies are concerned about maintaining control of their data and security. Although cloud computing companies are prepared to handle these issues, availability assurances and service-level agreements are uncommon. Companies that manage their CRM apps with a cloud infrastructure have no guarantees that their data will be available at all times, or even that the provider will still exist in the future. Diff: 2 Type: ES Page Ref: 302 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 197) Why would a firm adopt a service platform strategy? Answer: Another way of extending enterprise applications is to use them to create service platforms for new or improved business processes that integrate information from multiple functional areas. These enterprise-wide service platforms provide a greater degree of cross-functional integration than the traditional enterprise applications. A service platform integrates multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner. Diff: 2 Type: ES Page Ref: 304 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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7) Enterprise systems help customers respond rapidly to a firm's requests for information or products. Answer: FALSE Diff: 2 Type: TF Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 8) Enterprise software does not include analytical tools for using data captured by the system to evaluate overall organizational performance. Answer: FALSE Diff: 2 Type: TF Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 9) A firm's CRM is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers. Answer: FALSE Diff: 2 Type: TF Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 10) The downstream portion of the supply chain includes the company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them. Answer: FALSE Diff: 2 Type: TF Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 11) Inefficiencies in the supply chain, such as parts shortages, underutilized plant capacity, excessive finished goods inventory, or high transportation costs, are caused by inaccurate or untimely information. Answer: TRUE Diff: 2 Type: TF Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 12) If a manufacturer had perfect information about exactly how many units of product customers wanted, when they wanted them, and when they could be produced, it would be possible to implement a highly efficient just-in-time strategy. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 2 © 2013 Pearson Canada Inc.
13) One recurring problem in supply chain management is the bullwhip effect. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 14) Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 15) One of the most important–and complex–supply chain planning functions is demand planning, which determines how much product a business needs to make to satisfy all of its customers' demands. Answer: TRUE Diff: 2 Type: TF Page Ref: 290 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 16) Supply chain execution systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most inefficient manner. Answer: FALSE Diff: 2 Type: TF Page Ref: 291 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 17) Enterprise systems supply some integration of internal supply chain processes but they are not designed to deal with internal supply chain processes. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 18) Firms use intranets to improve coordination among their external supply chain processes. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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19) Firms use extranets to improve coordination among their internal supply chain processes. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 20) Global supply chains typically span smaller geographic distances and time differences than domestic supply chains. Answer: FALSE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 21) Supply chain management may need to reflect foreign government regulations and cultural differences. Answer: TRUE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 22) Many, especially smaller companies, still share product information over the phone, via e-mail, or through faxes. Answer: TRUE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 23) In addition to reducing costs, supply chain management systems help increase sales. Answer: TRUE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 24) A touch point (also known as a point) is a method of interaction with the customer, such as telephone, e-mail, customer service desk, conventional mail, Web site, wireless device, or retail store. Answer: TRUE Diff: 2 Type: TF Page Ref: 295 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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25) Partner relationship management (PRM) uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. Answer: TRUE Diff: 2 Type: TF Page Ref: 296 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 26) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business Answer: TRUE Diff: 2 Type: TF Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 27) Enterprise systems use a client/server architecture and have not yet been redesigned to take advantage of the Web. Answer: FALSE Diff: 2 Type: TF Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 13.4 Application Development For The Digital Firm 28) Enterprise systems can improve management reporting and decision making. Answer: TRUE Diff: 1 Type: TF Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 29) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: FALSE Diff: 2 Type: TF Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 30) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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31) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain. Answer: FALSE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 32) The bullwhip effect is the distortion of information about the demand for a product as it es from one entity to the next across the supply chain. Answer: TRUE Diff: 2 Type: TF Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 33) Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. Answer: FALSE Diff: 2 Type: TF Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 34) In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes. Answer: TRUE Diff: 2 Type: TF Page Ref: 292 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 35) In a push-based model, actual customer orders or purchases trigger events in the supply chain. Answer: FALSE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 36) In a pull-based model, production master schedules are based on forecasts of demand for products. Answer: FALSE Diff: 2 Type: TF Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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37) Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget. Answer: TRUE Diff: 2 Type: TF Page Ref: 294 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 38) All CRM packages contain modules for PRM and ERM. Answer: FALSE Diff: 1 Type: TF Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 39) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and Salesforce.com. Answer: TRUE Diff: 3 Type: TF Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 40) Cross-selling markets complementary products to customers. Answer: TRUE Diff: 2 Type: TF Page Ref: 297 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 41) CRM software can help organizations identify high-value customers for preferential treatments. Answer: TRUE Diff: 2 Type: TF Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 42) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. Answer: TRUE Diff: 2 Type: TF Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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43) Enterprise systems require fundamental changes in the way the business operates. Answer: FALSE Diff: 2 Type: TF Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 44) Around the globe, companies are increasingly becoming more connected, both internally and with other companies. Answer: TRUE Diff: 2 Type: TF Page Ref: 284 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 45) After implementing enterprise software from Oracle, Alcoa eliminated many redundant processes and systems. Answer: TRUE Diff: 2 Type: TF Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 46) Canada Post delivers more than one piece of mail per person in Canada five days a week. Answer: TRUE Diff: 2 Type: TF Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 47) The difference between push- and pull-based models is summarized by the slogan "Make what we sell, not sell what we make." Answer: TRUE Diff: 2 Type: TF Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 48) Companies are realizing that their only enduring competitive strength may be their relationships with customers. Answer: TRUE Diff: 2 Type: TF Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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49) It can cost six times more to sell to a new customer than to an existing customer. Answer: TRUE Diff: 2 Type: TF Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 50) Employee relationship management software provides a single point for s to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages. Answer: FALSE Diff: 2 Type: TF Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 51) Operational CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. Answer: FALSE Diff: 2 Type: TF Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 52) It might take a large Fortune 500 company several weeks to complete a large-scale implementation of an enterprise system or a system for SCM or CRM. Answer: FALSE Diff: 2 Type: TF Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 53) The total cost for an average large system implementation based on SAP or Oracle software, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, runs over $12 000. Answer: FALSE Diff: 2 Type: TF Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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54) John is looking at the business processes that are critical in his firm. The processes include general ledger, s payable, s receivable, fixed assets, cash management and forecasting, productcost ing, cost-centre ing, asset ing, tax ing, credit management, and financial reporting. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: A Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 55) Wayne is looking at the business processes that are critical in his firm. The processes include procurement, inventory management, purchasing, shipping, production planning, production scheduling, material requirements planning, quality control, distribution, transportation execution, and plant and equipment maintenance. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: C Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 56) Bobby is looking at the business processes that are critical in his firm. The processes include personnel istration, time ing, payroll, personnel planning and development, benefits ing, applicant tracking, time management, compensation, workforce planning, performance management, and travel expense reporting. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: B Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems
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57) Donald is looking at the business processes that are critical in his firm. The processes include order processing, quotations, contracts, product configuration, pricing, billing, credit checking, incentive and commission management, and sales planning. Which of the business processes ed by enterprise software is most critical for this firm? A) financial and ing processes B) human resources processes C) manufacturing and production processes D) sales and marketing processes processes Answer: B Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 58) Enterprise systems provide value both by increasing ________ efficiency and by providing firmwide information to help managers make better decisions. A) technical B) operational C) ing D) financial Answer: B Diff: 2 Type: MC Page Ref: 286 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.1 Enterprise Systems 59) Helen's job is to deal with the company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them. She is a purchaser for a department store chain. Which portion of the supply chain does she deal with? A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: A Diff: 2 Type: MC Page Ref: 288 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems
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60) Mary's job consists of the organizations and processes for distributing and delivering products to the final customers. She works for a manufacturing plant. Which portion of the supply chain does she deal with? A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: B Diff: 2 Type: MC Page Ref: 288 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 61) Linda's job consists of processes for transforming materials, components, and services furnished by their suppliers into finished products or intermediate products (components or parts) for their customers and for managing materials and inventory. She works for a manufacturing plant. Which portion of the supply chain does she deal with? A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: C Diff: 2 Type: MC Page Ref: 288 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 62) The ________ is tamed by reducing uncertainties about demand and supply when all of the supply chain have accurate and up-to-date information. A) upstream portion B) downstream portion C) internal supply chain D) bullwhip effect Answer: D Diff: 2 Type: MC Page Ref: 289 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 63) Minor fluctuations in retail sales for a product can create ________ inventory for distributors, manufacturers, and suppliers. A) finished goods B) raw material C) less D) excess Answer: D Diff: 2 Type: MC Page Ref: 289 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 12 © 2013 Pearson Canada Inc.
64) In addition to reducing costs, supply chain management systems help increase ________. A) expenses B) sales C) inventory D) taxes Answer: B Diff: 2 Type: MC Page Ref: 293 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 65) Betty is using a new system at work. She finds that it really has improved her effectiveness in using data, tools, and systems to enhance collaboration between a company and its selling partners. Betty is using what type of module? A) PRM B) ERM C) CRM D) SCM Answer: A Diff: 2 Type: MC Page Ref: 296 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 66) Susan is using a new system at work. She finds that it really has improved her effectiveness in dealing with employee issues such as setting objectives, employee performance management, performance-based compensation, and employee training. Susan is using what type of module? A) PRM B) ERM C) CRM D) SCM Answer: B Diff: 2 Type: MC Page Ref: 296 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 67) Supply chain management systems require ________ organizations to share information and business processes. A) zero B) multiple C) manufacturing D) retail Answer: B Diff: 2 Type: MC Page Ref: 300 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 13 © 2013 Pearson Canada Inc.
68) From your reading of the Allen Candy Company case study, the firm implemented new information systems in order to achieve which of the main six business objectives? A) customer and supplier intimacy B) new products, services, and business models C) improved decision making D) growth Answer: D Diff: 3 Type: MC Page Ref: 282 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems 69) From your reading of the Allen Company case study, what enabled the firm to take maximum advantage of the new enterprise software's capabilities? A) willingness to normalize data B) custom reporting and workflow features C) limiting changes to the software D) enforcing strict project management standards Answer: B Diff: 3 Type: MC Page Ref: 282 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 70) A suite of integrated software modules for finance and ing, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes A) process management software. B) ERP systems. C) groupware. D) application software. Answer: B Diff: 2 Type: MC Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 71) ________ software is built around thousands of predefined business processes from all functional areas. A) Process management B) PRM C) Enterprise D) CRM Answer: C Diff: 1 Type: MC Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems
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72) Which of the following is NOT true about enterprise systems? A) Enterprise systems help firms respond rapidly to customer requests for information or products. B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. C) Enterprise software is expressly built to allow companies to mimic their unique business practices. D) Enterprise software includes analytical tools to evaluate overall organizational performance. Answer: C Diff: 2 Type: MC Page Ref: 286 AACSB: Analytic skills CASE: Synthesis A-level Heading: 9.1 Enterprise Systems 73) You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? A) Select the functions of the system you wish to use. B) Select the business processes you wish to automate. C) Map the company's business processes to the software's business processes. D) Map the software's business processes to the company's business processes. Answer: A Diff: 2 Type: MC Page Ref: 285 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.1 Enterprise Systems 74) When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with A) configuration tables. B) project workbooks. C) data dictionaries. D) middleware. Answer: A Diff: 2 Type: MC Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 75) In order to achieve maximum benefit from an enterprise software package, a business A) customizes the software to match all of its business processes. B) uses only the processes in the software that match its own processes. C) changes the way it works to match the software's business processes. D) selects only the software that best matches its existing business processes. Answer: C Diff: 2 Type: MC Page Ref: 286 AACSB: Use of information technology CASE: Evaluation A-level Heading: 9.1 Enterprise Systems
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76) Supply chain complexity and scale A) affect both very small companies and large, global corporations. B) were difficult to address before the Internet. C) result when firms produce complex products and services. D) result when firms implement full-scale supply-chain management systems. Answer: C Diff: 3 Type: MC Page Ref: 287 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 77) A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a A) distribution channel. B) supply chain. C) value chain. D) marketing channel. Answer: B Diff: 2 Type: MC Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 78) Components or parts of finished products are referred to as A) upstream materials. B) raw materials. C) secondary products. D) intermediate products. Answer: D Diff: 2 Type: MC Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 79) A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain. Answer: C Diff: 2 Type: MC Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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80) A company's organizations and processes for distributing and delivering products to the final customers is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain. Answer: D Diff: 2 Type: MC Page Ref: 288 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 81) Uncertainties arise in any supply chain because of A) inaccurate or untimely information. B) poor integration between systems of suppliers, manufacturers, and distributors. C) inefficient or inaccurate MIS. D) unforeseeable events. Answer: D Diff: 2 Type: MC Page Ref: 289 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 82) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? A) safety stock B) continuous replenishment C) just-in-time strategies D) demand planning Answer: A Diff: 2 Type: MC Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 83) A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy. A) just-in-time B) stockless C) bullwhip D) safety stock Answer: A Diff: 2 Type: MC Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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84) A distortion of information about the demand for a product as it es from one entity to the next across the supply chain is called the ________ effect. A) replenishment B) bullwhip C) ripple D) exponential Answer: B Diff: 1 Type: MC Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 85) Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) push; pull B) demand; continual C) upstream; downstream D) planning; execution Answer: D Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 86) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems. A) demand B) delivery C) planning D) execution Answer: C Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 87) Supply chain planning systems A) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders. Answer: B Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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88) Which supply chain planning function determines how much product is needed to satisfy all customer demands? A) distribution management B) replenishment planning C) demand planning D) order planning Answer: C Diff: 2 Type: MC Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 89) Supply chain ________ systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most efficient manner. A) demand B) delivery C) planning D) execution Answer: D Diff: 2 Type: MC Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 90) Capabilities of supply chain planning systems would NOT include A) transport operations. B) advanced scheduling and manufacturing planning. C) demand planning. D) order planning. Answer: A Diff: 2 Type: MC Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 91) A supply chain driven by actual customer orders or purchases follows a ________ model. A) pull-based model B) build-to-stock C) push-based D) replenishment-driven Answer: A Diff: 2 Type: MC Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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92) A build-to-order supply-chain model is also called a ________ model. A) supply-driven B) demand-driven C) replenishment-driven D) push-based Answer: B Diff: 2 Type: MC Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 93) Concurrent supply chains are made possible by which technology? A) pull-based technology B) Internet technology C) supply chain management systems D) just-in-time supply-chain technologies Answer: B Diff: 1 Type: MC Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 94) Companies with effective supply chain management systems can expect A) improved customer service and responsiveness. B) cost reduction. C) reduced inventory levels. D) all of the above. Answer: D Diff: 1 Type: MC Page Ref: 294 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.2 Supply Chain Management Systems 95) A ________ is a method of interaction with a customer, such as telephone or customer service desk. A) point of presence B) touch point C) sales point D) client channel Answer: B Diff: 2 Type: MC Page Ref: 294 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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96) Which of the following would NOT be considered a point? A) e-mail B) Web site C) intranet D) retail store Answer: C Diff: 2 Type: MC Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 97) ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners. A) SCM B) SFA C) ERM D) PRM Answer: D Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 98) ________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation. A) SCM B) SFA C) ERM D) PRM Answer: C Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 99) Customer relationship management systems typically provide software and online tools for sales, customer service, and A) marketing. B) management. C) advertising. D) public relations. Answer: A Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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100) SFA modules in CRM systems would provide tools for A) asg and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and information. Answer: D Diff: 1 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 101) Customer service modules in CRM systems provide tools for A) asg and managing customer service requests. B) sales quote generation. C) identifying profitable and unprofitable customers. D) managing sales prospect and information. Answer: A Diff: 1 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 102) Marketing modules in CRM systems would provide tools for A) managing an advice telephone line. B) sales quote generation. C) identifying profitable and unprofitable customers. D) managing sales prospect and information. Answer: C Diff: 1 Type: MC Page Ref: 297 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 103) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training? A) Enterprise B) ERM C) PRM D) ERP Answer: B Diff: 2 Type: MC Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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104) Selling a customer with a checking a home improvement loan is an example of A) operational CRM. B) direct marketing. C) cross-selling. D) cross-channel promotions. Answer: C Diff: 2 Type: MC Page Ref: 297 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 105) Which of the following is an important capability for service processes that is found in most major CRM software products? A) returns management B) lead management C) management D) events management Answer: A Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 106) Which of the following is an important capability for sales processes that is found in most major CRM software products? A) returns management B) lead management C) channel promotions management D) events management Answer: B Diff: 3 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 107) Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications. A) operational CRM B) analytical CRM C) SCM D) SFA Answer: B Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Synthesis A-level Heading: 9.3 Customer Relationship Management Systems
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108) Analytical CRM applications A) include tools for marketing automation. B) provide consolidated data for operational CRM applications. C) are based on data warehouses consolidated from operational CRM applications. D) provide customer-facing applications. Answer: C Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 109) Operational CRM applications include tools for A) identifying buying patterns. B) calculating CLTV. C) sales force automation. D) pinpointing unprofitable customers. Answer: C Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 110) Analyzing sales representative and customer service representative productivity is an example of A) CLTV. B) analytical CRM. C) operational CRM. D) demand planning. Answer: B Diff: 2 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 111) Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company? A) churn rate B) CLTV C) cost per lead D) cost per sale Answer: B Diff: 2 Type: MC Page Ref: 299 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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112) The measurement of the number of customers who stop using or purchasing products or services from a company is called A) switching costs. B) churn rate. C) CLTV. D) switch rate. Answer: B Diff: 2 Type: MC Page Ref: 300 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 113) Which of the following statements about enterprise applications is NOT true? A) The total implementation cost of a large system might amount to four to five times the initial purchase price for the software. B) Enterprise applications introduce "switching costs." C) Enterprise applications are based on organization-wide definitions of data. D) Enterprise applications are best implemented when few changes in business processes are required. Answer: D Diff: 2 Type: MC Page Ref: 300 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 114) ________ integrate(s) multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner and provide a greater degree of cross-functional integration than the traditional enterprise applications. A) PRM software B) SFA software C) ERP suites D) Service platforms Answer: D Diff: 2 Type: MC Page Ref: 304 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 115) Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other. A) e-business suites B) ERP systems C) middleware D) legacy systems Answer: A Diff: 1 Type: MC Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 25 © 2013 Pearson Canada Inc.
116) ________ software provides a single point for s to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages. A) Customer relationship management B) Employee relationship management C) Government relationship management D) Peer relationship management Answer: A Diff: 1 Type: MC Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 117) ________ CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. A) Analytical B) Operational C) Relational D) Spatial Answer: A Diff: 1 Type: MC Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 118) It might take a large Fortune 500 company ________ to complete a large-scale implementation of an enterprise system or a system for SCM or CRM. A) several days B) several weeks C) several months D) several years Answer: D Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 119) The total cost for an average large system implementation based on SAP or Oracle software, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, runs over ________. A) $1200 B) $12 000 C) $12 billion D) $12 million Answer: D Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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120) Once you adopt an enterprise application from a single vendor, such as SAP, Oracle, or others, it is very costly to________, and your firm becomes dependent on the vendor to upgrade its product and maintain your installation. A) switch customers B) switch locations C) switch shareholders D) switch vendors Answer: D Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 121) Enterprise applications also introduce "________." A) vendor costs B) customer costs C) switching costs D) substitute costs Answer: C Diff: 1 Type: MC Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 122) ________ applications are based on organization-wide definitions of data. A) Digital B) Management C) Enterprise D) Marketing Answer: C Diff: 1 Type: MC Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 123) The most explosive growth in software as a service (SaaS) offerings has been for ________ management. A) employee relationship B) vendor relationship C) customer relationship D) supply relationship Answer: C Diff: 1 Type: MC Page Ref: 301 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
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124) After implementing enterprise software from Oracle, Alcoa eliminated many ________ processes and systems. A) unique B) one-of-a kind C) redundant D) business Answer: C Diff: 1 Type: MC Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 125) Canada Post delivers more than ________ piece(s) of mail per person in Canada five days a week. A) three B) four C) one D) two Answer: C Diff: 1 Type: MC Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 126) The difference between push- and pull-based models is summarized by the slogan "Make what we sell, not sell what we ________." A) vend B) retail C) make D) trade Answer: C Diff: 1 Type: MC Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 127) Companies are realizing that their only enduring competitive strength may be their ________ with customers. A) knowledge B) expertise C) relationships D) trade Answer: C Diff: 1 Type: MC Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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128) It can cost ________ times more to sell to a new customer than to an existing customer. A) seven B) eight C) six D) ten Answer: C Diff: 1 Type: MC Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 129) ________ is built around thousands of predefined business processes that reflect best practices. Answer: Enterprise software Diff: 2 Type: SA Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 130) A firm would use ________ tables provided by the software to tailor a particular aspect of the system to the way it does business. Answer: configuration Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 131) Enterprise software is unusually complex, and extensive ________ may degrade system performance, compromising the information and process integration that are the main benefits of the system. Answer: customization Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 132) There are versions of enterprise software packages ________ for small businesses. Answer: designed Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 133) There are versions of enterprise software packages that can be obtained through ________ providers over the Web. Answer: software service Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 29 © 2013 Pearson Canada Inc.
134) Enterprise systems provide value both by increasing ________ efficiency and by providing firmwide information to help managers make better decisions. Answer: operational Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 135) Large companies with many operating units in ________ locations have used enterprise systems to enforce standard practices and data so that everyone does business the same way worldwide. Answer: different Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 136) Coca Cola, for instance, implemented a SAP enterprise system to ________ and coordinate important business processes in 200 countries. Answer: standardize Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 137) Enterprise systems help firms respond ________ to customer requests for information or products. Answer: rapidly Diff: 2 Type: SA Page Ref: 286 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 138) Enterprise software includes ________ tools for using data captured by the system to evaluate overall organizational performance. Answer: analytical Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 139) Goods start out as ________ and, as they move through the supply chain, are transformed into intermediate products, and finally, into finished products. Answer: raw materials Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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140) Nike's contract suppliers do not ________ runners from scratch. Answer: manufacture Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 141) The ________ portion of the supply chain includes the company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them. Answer: upstream Diff: 2 Type: SA Page Ref: 288 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 142) The ________ portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: downstream Diff: 2 Type: SA Page Ref: 288 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 143) ________ in the supply chain, such as parts shortages, underutilized plant capacity, excessive finished goods inventory, or high transportation costs, are caused by inaccurate or untimely information. Answer: Inefficiencies Diff: 2 Type: SA Page Ref: 288 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 144) One recurring problem in supply chain management is the ________, in which information about the demand for a product gets distorted as it es from one entity to the next across the supply chain. Answer: bullwhip effect Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 145) The bullwhip is tamed by reducing uncertainties about demand and supply when all of the supply chain have accurate and ________ information. Answer: up-to-date Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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146) Supply chain management systems provide the kind of information that helps of the supply chain make better ________ and scheduling decisions. Answer: purchasing Diff: 2 Type: SA Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 147) Inaccurate information can cause minor fluctuations in demand for a product to be ________ as one moves further back in the supply chain. Answer: amplified Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 148) Minor fluctuations in retail sales for a product can create ________ inventory for distributors, manufacturers, and suppliers. Answer: excess Diff: 2 Type: SA Page Ref: 289 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 149) ________ systems enable the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans. Answer: Supply chain planning Diff: 2 Type: SA Page Ref: 290 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 150) ________ systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most efficient manner. Answer: Supply chain execution Diff: 2 Type: SA Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 151) Before the ________, supply chain coordination was hampered by the difficulties of making information flow smoothly among disparate internal supply chain systems for purchasing, materials management, manufacturing, and distribution. Answer: Internet Diff: 2 Type: SA Page Ref: 292 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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152) Enterprise systems supply some integration of internal supply chain processes but they are not designed to deal with ________ supply chain processes. Answer: external Diff: 2 Type: SA Page Ref: 292 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 153) ________ typically span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. Answer: Global supply chains Diff: 2 Type: SA Page Ref: 292 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 154) Supply chain management may need to reflect foreign government regulations and ________ differences. Answer: cultural Diff: 2 Type: SA Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 155) Many, especially ________ companies, still share product information over the phone, via e-mail, or through faxes. Answer: smaller Diff: 2 Type: SA Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 156) With a Web-based ________ application, all supply chain communicate through a Webbased system. Answer: SCM Diff: 2 Type: SA Page Ref: 293 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 157) In addition to reducing costs, supply chain management systems help increase ________. Answer: sales Diff: 2 Type: SA Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems
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158) A ________ (also known as a point) is a method of interaction with the customer, such as telephone, e-mail, customer service desk, conventional mail, Web site, wireless device, or retail store. Answer: touch point Diff: 2 Type: SA Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 159) ________ uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. Answer: Partner relationship management (PRM) Diff: 2 Type: SA Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 160) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training. Answer: Employee relationship management (ERM) Diff: 2 Type: SA Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 161) The ________ measures the number of customers who stop using or purchasing products or services from a company. Answer: churn rate Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 162) Supply chain management systems require multiple organizations to ________ information and business processes. Answer: share Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 163) Some firms experienced enormous operating problems and losses when they first implemented enterprise applications because they did not understand how much organizational ________ was required. Answer: change Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 34 © 2013 Pearson Canada Inc.
164) ________ consists of a set of interdependent software modules that basic internal business processes for finance and ing, human resources, manufacturing and production, and sales and marketing. Answer: Enterprise software Diff: 2 Type: SA Page Ref: 285 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 165) The ________ is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers. Answer: supply chain Diff: 1 Type: SA Page Ref: 287 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 166) In a(n) ________ strategy, components arrive exactly at the moment they are needed, and finished goods are shipped as they leave the assembly line. Answer: just-in-time Diff: 2 Type: SA Page Ref: 289 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 167) ________ is used to determine how much product a business needs to make to satisfy all of its customers' demands. Answer: Demand planning Diff: 2 Type: SA Page Ref: 290 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 168) With new flows of information made possible by Web-based tools, supply chain management can more easily follow a(n) ________ model. Answer: pull-based Diff: 2 Type: SA Page Ref: 293 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 169) ________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services. Answer: Sales force automation, SFA Diff: 2 Type: SA Page Ref: 296 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 35 © 2013 Pearson Canada Inc.
170) ________ CRM includes customer-facing applications such as tools for sales force automation, call centre and customer service , and marketing automation. Answer: Operational Diff: 2 Type: SA Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 171) ________ is the marketing of complementary products to customers. Answer: Cross-selling Diff: 2 Type: SA Page Ref: 297 AACSB: Reflective thinking skills CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 172) Enterprise-wide ________ provide a greater degree of cross-functional integration than the traditional enterprise applications. Answer: service platforms Diff: 2 Type: SA Page Ref: 304 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 173) ________ can integrate information from enterprise applications and disparate in-house legacy systems, presenting it to s through a Web interface so that the information appears to be coming from a single source. Answer: Portal software Diff: 2 Type: SA Page Ref: 304 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 174) Around the globe, companies are increasingly becoming more ________, both internally and with other companies. Answer: connected Diff: 2 Type: SA Page Ref: 284 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems 175) After implementing enterprise software from Oracle, Alcoa eliminated many ________ processes and systems. Answer: Redundant Diff: 2 Type: SA Page Ref: 287 AACSB: Use of information technology CASE: Content A-level Heading: 9.1 Enterprise Systems
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176) Canada Post delivers more than ________ piece of mail per person in Canada five days a week. Answer: one Diff: 2 Type: SA Page Ref: 291 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 177) The ________ between push- and pull-based models is summarized by the slogan "Make what we sell, not sell what we make." Answer: difference Diff: 2 Type: SA Page Ref: 294 AACSB: Use of information technology CASE: Content A-level Heading: 9.2 Supply Chain Management Systems 178) Companies are realizing that their only enduring competitive strength may be their ________ with customers. Answer: Relationships Diff: 2 Type: SA Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 179) It can cost ________ more to sell to a new customer than to an existing customer. Answer: six times Diff: 2 Type: SA Page Ref: 295 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 180) ________ software provides a single point for s to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages. Answer: Customer relationship management Diff: 2 Type: SA Page Ref: 298 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems 181) ________ CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. Answer: Analytical Diff: 2 Type: SA Page Ref: 299 AACSB: Use of information technology CASE: Content A-level Heading: 9.3 Customer Relationship Management Systems
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182) It might take a large Fortune 500 company ________ to complete a large-scale implementation of an enterprise system or a system for SCM or CRM. Answer: several years Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 183) The total cost for an average large system implementation based on SAP or Oracle software, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, runs over $12 ________. Answer: million Diff: 2 Type: SA Page Ref: 300 AACSB: Use of information technology CASE: Content A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 184) Identify and describe three major enterprise applications. Answer: Enterprise systems, customer relationship management, and supply chain management are three enterprise applications. Enterprise systems are based on a suite of integrated software modules and a common central database. Enterprise systems utilize enterprise software to financial and ing, human resources, manufacturing and production, and sales and marketing processes. Enterprise systems provide many benefits including an enterprise-enabled organization, improved management reporting and decision making, a unified information systems technology platform, and more efficient operations and customer-driven business processes. Supply chain management systems help an organization better manage its supply chain, including planning, sourcing, making, delivering, and returning items. Supply chain management software can be categorized as a supply chain planning system or as a supply chain execution system. A supply chain planning system enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. A supply chain execution system manages the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations in the most efficient manner. Supply chain management benefits include improved customer service and responsiveness, cost reduction, and cash utilization. Customer relationship management systems help firms maximize the benefits of their customer assets. These systems capture and consolidate data from all over the organization and then distribute the results to various systems and customer touch points across the enterprise. Customer relationship management systems can be classified as operational or as analytical. Operational CRM refers to customer-facing applications, such as sales force automation, call centre and customer service , and marketing automation. Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance. Benefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for customer acquisition and retention. Diff: 2 Type: ES Page Ref: 286 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.1 Enterprise Systems
38 © 2013 Pearson Canada Inc.
185) What are the benefits of enterprise systems? What are the challenges of enterprise systems? Answer: Benefits include creating an enterprise-enabled organization, providing firmwide knowledgebased management processes, providing a unified information system technology platform and environment, and enabling more efficient operations and customer-driven business processes. Challenges include a daunting implementation process, surviving a cost-benefit analysis, inflexibility, and realizing strategic value. Diff: 2 Type: ES Page Ref: 285 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.1 Enterprise Systems 186) Identify two classifications for supply chain software. For each classification, identify five capabilities. Answer: Supply chain planning systems and supply chain execution systems are two classifications for supply chain software. Supply chain planning systems enable a firm to generate demand forecasts for a product and develop sourcing and manufacturing plans for that product. Capabilities include order planning, advanced scheduling and manufacturing planning, demand planning, distribution planning, and transportation planning. Supply chain execution systems manage the flow of products through distribution centres and warehouses to ensure that products are delivered to the right locations. Capabilities include order commitments, final production, replenishment, distribution management, and reverse distribution. Diff: 2 Type: ES Page Ref: 290 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 187) What additional complexities are faced in global supply chains? How does the Internet help in managing global supply chains? Answer: Global supply chains typically span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. Although the purchase price of many goods might be lower abroad, there are often additional costs for transportation, inventory, and local taxes or fees. Performance standards may vary from region to region or from nation to nation. Supply chain management may need to reflect foreign government regulations and cultural differences. All of these factors impact how a company takes orders, plans distribution, organizes warehousing, and manages inbound and outbound logistics throughout the global markets it services. The Internet helps companies manage many aspects of their global supply chains, including sourcing, transportation, communications, and international finance. As goods are being sourced, produced, and shipped, communication is required among retailers, manufacturers, contractors, agents, and logistics providers. Many, especially smaller companies, still share product information over the phone, via email, or through faxes. These methods slow down the supply chain and also increase errors and uncertainty. With Internet technology, supply chain communicate through a Web-based system. Firms use intranets to improve coordination among their internal supply chain processes, and they use extranets to coordinate supply chain processes shared with their business partners. Using intranets and extranets, all of the supply chain are instantly able to communicate with each other, uto-date information to adjust purchasing, logistics, manufacturing, packaging, and schedules. Diff: 2 Type: ES Page Ref: 292-293 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 39 © 2013 Pearson Canada Inc.
188) Identify two supply chain models. Which is better? Answer: Push-based and pull-based models were discussed in the textbook. Push-based refers to a supply chain driven by production master schedules based on forecasts or best guesses of demand for products. Pull-based refers to a supply chain driven by actual customer orders or purchases so that of the supply chain produce and deliver only what customers have ordered. Pull-based models are better. Diff: 1 Type: ES Page Ref: 293 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.2 Supply Chain Management Systems 189) Identify two types of customer relationships management applications. Answer: Operational CRM and analytical CRM are two aspects. Operational CRM refers to customerfacing applications, such as sales force automation, call centre and customer service , and marketing automation. Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance. Diff: 1 Type: ES Page Ref: 298 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 190) Identify five benefits of customer relationship management systems. Answer: Benefits include: better customer service, make call centres more efficient, cross-sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, acquire new profitable customers, sell additional products and services, provide customer information for developing new products, increase product utilization, reduce sales and marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high-lifetime value customers, improve customer loyalty, improve response rates to direct mail, increase product profitability, respond quickly to market opportunities. Diff: 2 Type: ES Page Ref: 296-297 AACSB: Analytic skills CASE: Analysis A-level Heading: 9.3 Customer Relationship Management Systems 191) You have been hired by Santori, Inc., a small company that imports and distributes an Italian sparkling water. The company is interested in what benefits an enterprise system would bring. Would an enterprise system be appropriate for this company? What steps would you take in determining this? Answer: An enterprise system may be too expensive, although there are enterprise software packages that are available to smaller companies. A hosted enterprise application might be the most economical way to implement an enterprise system. To determine whether this would be beneficial to Santori, I would first look at their existing business processes. It would be ideal to determine if their efficiency meets benchmarks in their industry and allows them to be competitive with other businesses in their niche. Then I would review existing hosted applications to see how the applications business processes matched up with Santori's. It would be important to compare the costs of instituting new business processes with the benefits and cost-savings. Diff: 3 Type: ES Page Ref: 296 AACSB: Analytic skills CASE: Synthesis A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 40 © 2013 Pearson Canada Inc.
192) Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have hundreds of smaller nurseries based around the country that grow the plant stock. The majority of their business is conducted online: Consumers purchase typically small quantities of products online and Plant Away coordinates the shipping from the most appropriate nursery. What unique problems might you anticipate they have in their supply chain? What might remedy these problems? Answer: Typical problems in supply chains arise from unforeseeable events. In a plant nursery, variations in the weather, growing season, plant diseases, crop output would be uncertainties. Other problems might be interstate regulations governing plants allowed in different states, and making sure plants survive and are healthy during transportation. It would be very important to have up-to-date forecasting of the weather or growing seasons that could anticipate possible problems, and analyze and determine the best transportation routes. Diff: 3 Type: ES Page Ref: 289 AACSB: Analytic skills CASE: Synthesis A-level Heading: 9.2 Supply Chain Management Systems 193) John is going to a conference to get training in the area of enterprise systems. Upon his return he needs to be able to instruct upper management at his firm on "How do enterprise systems help businesses achieve operational excellence?" Describe how he should answer that question. Answer: Enterprise software is based on a suite of integrated software modules and a common central database. The database collects data from and feeds the data into numerous applications that can nearly all of an organization's internal business activities. When new information is entered by one process, the information is made available immediately to other business processes. Enterprise systems organizational centralization by enforcing uniform data standards and business processes throughout the company and a single unified technology platform. The firmwide data generated by enterprise systems helps managers evaluate organizational performance. Diff: 2 Type: ES Page Ref: 285 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.1 Enterprise Systems 194) Robert is going to a conference to get training in the area of SCM. Upon his return he needs to be able to instruct upper management at his firm on "How do supply chain management systems coordinate planning, production, and logistics with suppliers?" Describe how he should answer that question. Answer: Supply chain management systems automate the flow of information among of the supply chain so they can use it to make better decisions about when and how much to purchase, produce, or ship. More accurate information from supply chain management systems reduces uncertainty and the impact of the bullwhip effect. Supply chain management software includes software for supply chain planning and for supply chain execution. Internet technology facilitates the management of global supply chains by providing the connectivity for organizations in different countries to share supply chain information. Improved communication among supply chain also facilitates efficient customer response and movement toward a demand-driven model. Diff: 2 Type: ES Page Ref: 288-289 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.2 Supply Chain Management Systems
41 © 2013 Pearson Canada Inc.
195) Eddy is going to a conference to get training in the area of CRM. Upon his return he needs to be able to instruct upper management at his firm on "How do customer relationship management systems help firms achieve customer intimacy?" Describe how he should answer that question. Answer: Customer relationship management (CRM) systems integrate and automate customer-facing processes in sales, marketing, and customer service, providing an enterprise-wide view of customers. Companies can use this customer knowledge when they interact with customers to provide them with better service or to sell new products and services. These systems also identify profitable or nonprofitable customers or opportunities to reduce the churn rate. The major customer relationship management software packages provide capabilities for both operational CRM and analytical CRM. They often include modules for managing relationships with selling partners (partner relationship management) and for employee relationship management. Diff: 2 Type: ES Page Ref: 270 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.3 Customer Relationship Management Systems 196) What are the advantages and disadvantages of using cloud-based enterprise applications? Answer: Most companies interested in cloud computing are small to midsize and lack the knowhow or financial resources to successfully build and maintain ERP and CRM applications in-house. Others are simply looking to cut costs by moving their applications to the cloud. Not all companies experience gains of that magnitude, and cloud computing does have drawbacks. Many companies are concerned about maintaining control of their data and security. Although cloud computing companies are prepared to handle these issues, availability assurances and service-level agreements are uncommon. Companies that manage their CRM apps with a cloud infrastructure have no guarantees that their data will be available at all times, or even that the provider will still exist in the future. Diff: 2 Type: ES Page Ref: 302 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges 197) Why would a firm adopt a service platform strategy? Answer: Another way of extending enterprise applications is to use them to create service platforms for new or improved business processes that integrate information from multiple functional areas. These enterprise-wide service platforms provide a greater degree of cross-functional integration than the traditional enterprise applications. A service platform integrates multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner. Diff: 2 Type: ES Page Ref: 304 AACSB: Analytic skills CASE: Evaluation A-level Heading: 9.4 Enterprise Applications: New Opportunities and Challenges
42 © 2013 Pearson Canada Inc.
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