MBA 5670 Management of Information Technologies
Reading Questions
Chapter 10: SCM
1) What does the average company spend on production needs?
A. Almost 10 percent of every dollar that it earns
B. Almost 20 percent of every dollar that it earns
C. Almost 40 percent of every dollar that it earns
D. Almost 50 percent of every dollar that it earns
2) When was SCM developed?
A. 1950s
B. 1970s
C. 1990s
D. 2004
3) Today, SCM systems focus on extending beyond an organization's four walls to influence:
A. Suppliers
B. Suppliers' supplier
C. Customers' customer
D. All of the above
4) Which of the following is not one of the three main links in the supply chain?
A. Materials flow from suppliers and their "downstream" suppliers at all levels
B. Transformation of materials into semifinished and finished products - the organization's own
production processes
C. Distribution of products to customers and their "downstream" customers at all levels
D. None of the above
5) Which of the following is not one of the five basic components of supply chain management?
A. Plan
B. Source
C. Cost
D. Deliver
6) Which of the following is not one of the main links in the supply chain?
A. Materials flow from suppliers and their upstream suppliers at all levels.
B. Transformation of materials into semi-finished and finished products, or the organization's own
production processes.
C. Distribution of products to customers and their downstream customers at all levels.
D. Materials flow from customers and their downstream customers at all levels.
7) Which of the following is not one of the four changes resulting from advances in technology that are
driving supply chains?
A. Information technology
B. Consumer behavior
C. Visibility
D. Scalability
8) What is it called when distorted product demand information passes from one entity to the next
throughout the supply chain?
A. Bullwhip effect
B. Demand planning software
C. Supply chain planning software
D. Supply chain execution software
9) Which of the following automates the different steps and stages of the supply chain?
A. Bullwhip effect
B. Demand planning software
C. Supply chain planning software
D. Supply chain execution software
10) What is the ability to view all areas up and down the supply chain?
A. Bullwhip effect
B. Demand planning software
C. Supply chain visibility
D. Supply chain execution software
11) Which of the following generates demand forecasts using statistical tools and forecasting
techniques?
A. Bullwhip effect
B. Demand planning software
C. Supply chain visibility
D. Supply chain execution software
12) Which of the following is not aprinciple of supply chain management?
A. Customize the logistics network and focus intensively on the service requirements
B. Listen to signals of market demand and plan accordingly
C. Segment customers by service needs and then tailor services to those particular segments
D. Listen to signals from telecommunications equipment and plan accordingly
13) What is the set of processes that plans for and controls the efficient and effective transportation
and storage of suppliers from suppliers to customers?
A. Supply chain execution
B. Logistics
C. Demand planning
D. Supply chain planning
14) Which of the following is a key to SCM success?
A. Be future oriented
B. Listen to signals from telecommunications equipment and plan accordingly
C. Wean suppliers off traditional business practices
D. Make the sale to the manufacturers
15) Which of the following is a top reason why executives use SCM to manage extended enterprises?
A. Increase costs
B. Cost control
C. Productivity reduction
D. Process cycle time increments
16) The customers' customer is upstream in the supply chain.
a) True
b) False
17) Plan, source, make, deliver, and return are the five basic supply chain management components.
a) True
b) False
18) Information technology, consumer behavior, visibility, and speed are the four changes resulting
from advances in technology that are driving supply chains.
a) True
b) False
19) Information technology's primary role in supply chain management is creating the integrations or
tight process and information linkages between functions within a firm - such as marketing, sales,
finance, manufacturing, and distribution - and between firms.
a) True
b) False
20) Deploy in incremental phases and measure and communicate success is one of the keys to success
for SCM.
a) True
b) False
Chapter 11: CRM
1) CRM allows an organization to accomplish all of the following, except:
A. Provide better customer service
B. Make call centers more efficient
C. Complicate marketing and sales processes
D. Help sales staff close deals faster
2) What is the top CRM business driver?
A. Inventory control
B. Increase revenues
C. Competitive advantage
D. Automation/productivity/efficiency
3) Which of the following is not one of the CRM business drivers?
A. Inventory control
B. Increase revenues
C. Accountability
D. Automation/productivity/efficiency
4) Which of the following represents operational CRM?
A. Supports traditional transactional processing
B. Supports day-to-day front-office operations
C. Supports operations that deal directly with the customers
D. All of the above
5) What supports back-office operations and strategic analysis and includes all systems that do not
deal directly with the customers?
A. Analytical CRM
B. Operational CRM
C. Personalization
D. All of the above
6) What made-to-order views can analytical CRM tools slice-and-dice customer information into?
A. Customer value
B. Customer spending
C. Customer segmentation
D. All of the above
7) What can analytical CRM modeling tools discover?
A. Identify opportunities for expanding customer relationships
B. Identify opportunities for cross-selling
C. Identify opportunities for up-selling
D. All of the above
8) What occurs when a website can know enough about a person's likes and dislikes that it can fashion
offers that are more likely to appeal to that person?
A. Operational CRM
B. Analytical CRM
C. Personalization
D. All of the above
9) Which of the following is the first CRM implementation strategy?
A. Define information needs and flows
B. Build an integrated view of the customer
C. Clearly communicate the CRM strategy
D. Implement in iterations
10) What is the formula that an organization can use to find its most valuable customers?
A. RFM - reporting, features, monetary value
B. RFM - reporting, frequency, market share
C. RFM - recency, frequency, monetary value
D. RFM - recency, features, market share
11) What is the term that identifies how frequently a customer purchases items?
A. Recency
B. Frequency
C. Monetary value
D. Reporting
12) What is the term that defines how recently a customer purchased items?
A. Recency
B. Frequency
C. Monetary value
D. Reporting
13) What is the term that defines how much a customer spends on each purchase?
A. Recency
B. Frequency
C. Monetary value
D. Reporting
14) What are the three phases in the evolution of CRM?
A. Recency, analyzing, predicting
B. Reporting, analyzing, predicting
C. Recency, analytical, processes
D. Reporting, analytical, predicting
15) Which of the following statements is incorrect?
A. CRM reporting technologies help organizations identify their customers across other applications.
B. CRM analysis technologies help organizations segment their customers into categories such as
best and worst customers.
C. CRM predicting technologies help organizations make predictions regarding customer behavior
such as which customers are at risk of leaving.
D. CRM predicting technologies help organizations identify their customers across other
applications.
16) What is another term that represents CRM reporting technologies that help organizations identify
their customers across other applications?
A. Customer identification
B. Customer segmentation
C. Customer predicting
D. All of the above
17) What is another term that represents CRM analysis technologies that help organizations segment
their customers into categories such as best and worst customers?
A. Customer identification
B. Customer segmentation
C. Customer predicting
D. All of the above
18) Who did Business 2.0 rank as number one in the top 50 people who matter most in business?
A. Bill Gates
B. You - the business analyst
C. Michael Dell
D. You—the customer
19) Which of the following is not one of the questions asked during the reporting phase?
A. What is the total revenue by customer?
B. How many units did we manufacture?
C. Where did we sell the most products?
D. Who are our customers?
20) Which of the following is not one of the questions asked during the analyzing phase?
A. What customers are at risk of leaving?
B. Why was customer revenue so high?
C. Why did sales not meet forecasts?
D. Who are our customers?
21) Which of the following is not one of the questions asked during the predicting phase?
A. What is the total revenue by customer?
B. What products will the customer buy?
C. Who are the best candidates for a mailing?
D. What is the lifetime profitability of a customer?
22) Which of the following is not a CRM industry best practice?
A. Define information needs and flows
B. Build an integrated view of the customer
C. Scalability for organizational growth
D. Implement in the big bang approach
23) Which company experienced difficulty with answering their call center phone?
A. The New York Times
B. The New York Knicks
C. Brother International Corporation
D. 1-800-Flowers.com
24) Which company turned brand loyalty into brand relationships by using the vast amounts of
information it collected to better understand customers' needs and expectations?
A. The New York Times
B. The New York Knicks
C. Brother International Corporation
D. 1-800-Flowers.com
25) Which company has spent the last decade researching core customers to find similarities among
groups of readers?
A. The New York Times
B. The New York Knicks
C. Brother International Corporation
D. 1-800-Flowers.com
26) CRM is a technology based on the premise that those organizations that understand the needs of
individual customers are best positioned to achieve sustainable competitive advantage in the
future.
a) True
b) False
27) The business world is shifting from customer focus to product focus.
a) True
b) False
28) The Internet can completely replace the phone and face-to-face communications with customers.
a) True
b) False
29) The primary difference between operational CRM and analytical CRM is the direct interaction
between the organization and its suppliers.
a) True
b) False
30) Back-office operations deal directly with the customer.
a) True
b) False