Notesale: Turn your study into money

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Chapter 2: Business processes
Multiple-choice questions
1
...

(ii) The external level
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(iv) The inter-organisation level
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(vi) The competitive level
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b
...

d
...
1 – identify and interpret the components of organisational strategy and
mission
...


An example of a strategic level decision would be:
a
...

c
...


determining the quantity of raw materials to purchase
...

reconfiguring the production line design to eliminate wasted time due to
bottlenecks
...


Correct answer: d
Learning objective 2
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Chapter 2: Business processes

3
...

These two options are:
a
...

c
...


economies of scale and entry barrier
...

price competition and product abundance
...


Correct answer: d
Learning objective 2
...

4
...
Which of the following is NOT one of the steps?
a
...

c
...


Fit
...

Operational efficiency
...


Correct answer: c
Learning objective 2
...

5
...
Which of the following is NOT one of the forces?
a
...

c
...


Threat of new entrants
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Rivalry among existing competitors
...


Correct answer: b
Learning objective 2
...

6
...

b
...

d
...

internal and external
...

scientific and practical
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2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
3 – identify and describe a business process
...
1

7
...

b
...

d
...

developed highly interactive and flexible structures that could easily adapt to
changing environments
...

streamlined the information flows across the organisation
...
2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
3 – identify and describe a business process
...


Scientific management is concerned with:
a
...

c
...


streamlined work flows across the organisation
...

clearly defining individual employee’s responsibilities and tasks
...


Correct answer: c
Learning objective 2
...

Learning objective 2
...

9
...

b
...

d
...

Stability
...

Task specificity
...
2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
3 – identify and describe a business process
...
2

Chapter 2: Business processes

10
...

b
...

d
...

Lack of administrative power
...

Focuses on the wrong things
...
2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
3 – identify and describe a business process
...


An emphasis on business processes is different to a functional perspective of the
organisation because a business process emphasis:
a
...

c
...


offers highly defined tasks and responsibilities
...

acknowledges cross-functional communication and action is essential to the
customer’s needs
...


Correct answer: c
Learning objective 2
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12
...

b
...

d
...

Any activity performed by a business
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Any activity performed by a manufacturing company providing that it
produces a profit
...
2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
3 – identify and describe a business process
...
3

13
...

b
...

d
...

business process personnel are highly skilled specialists, business function
personnel are generalists operating across numerous areas
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business processes are customer driven, business functions are task driven
...
2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
3 – identify and describe a business process
...


A sales person is processing a credit sale
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This scenario is more likely to happen in:
a
...

c
...


functionally based organisation
...

both functionally based organisation and business process based organisation
...


Correct answer: a
Learning objective 2
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15
...

b
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d
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Greater efficiency and effectiveness in using resources
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Less non-value-adding activities
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4 – appraise the benefits of organisations adopting a business process
perspective
...
4

Chapter 2: Business processes

16
...

b
...

d
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reduce bureaucracy
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identify tasks and functions that do not add value
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4 – appraise the benefits of organisations adopting a business process
perspective
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Business processes can provide an organisation with a competitive advantage
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b
...

d
...

the design of business processes that are unique or offer something different
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the design of business processes that have lower costs of execution
...
4 – appraise the benefits of organisations adopting a business process
perspective
...


The business process can yield benefits for an organisation through:
a
...

c
...


ignoring customer service and focussing on superior product design
...

outsourcing all customer service activities
...


Correct answer: d
Learning objective 2
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2
...


Although ERP systems are built around the idea of best practice, some organisations
will choose not to adopt the ERP best practice, seeking instead to modify the design
of the system
...

b
...

d
...

the ‘fit’ between the system and the business processes needs to exist
...

the ERP system is unable to drive some of the organisation’s unique business
processes that provide distinct competitive advantage to the organisation
...


Correct answer: c
Learning objective 2
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20
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b
...

d
...

developed around an information silo principle
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suitable for both large and small organisations
...
5 – critically evaluate the role enterprise resource planning (ERP)
systems play in business process design
...


Because of ERP’s best practice approach, if all organisations adopt the ERP system
and have the same underlying processes, they are less likely to distinguish themselves
and gain a competitive advantage
...

b
...

d
...

adopting ERP before competitors do
...

not configuring a business process around an ERP system
...
5 – critically evaluate the role enterprise resource planning (ERP)
systems play in business process design
...
6

Chapter 2: Business processes

22
...

b
...

d
...

Functional barriers are broken down
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Employee resistance
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6 – interpret and communicate issues for organisations changing to a
process-based focus
...


The first stage in adopting a business process perspective is that:
a
...

c
...


it should focus on removing middle management
...

it should emphasise the flattening of the organisational structure
...


Correct answer: b
Learning objective 2
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24
...
This is a likely description of:
a
...

c
...


employee empowerment
...

a business process oriented environment
multi-tasking
...
6 – interpret and communicate issues for organisations changing to a
process-based focus
...


The first stage in adopting a business process perspective is:
a
...

c
...


securing customer approval
...

ensuring that the company is currently using updated technology
...


Correct answer: d
Learning objective 2
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2
...


An organisation is undergoing a major change to the way it does business, redesigning
business processes and the use of IT within the processes
...
In this case:
a
...

c
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TQM would be ideal because it allows for all employees to offer suggestions
and be involved in the changing of the organisation
...

TQM would not be ideal because its incremental approach would mean that
change would take a large amount of time
...


Correct answer: d
Learning objective 2
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27
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b
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d
...

decisions that require specialists are removed from a process
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jobs are combined and key workers are given decision making responsibility
...
7 – summarise and evaluate approaches to changing business
processes, in particular business process re-engineering (BPR)
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Which of the following statements is NOT true about a reengineered process?
a
...

c
...


Jobs change and people are empowered
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Controls are increased to ensure smooth functioning
...


Correct answer: c
Learning objective 2
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2
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Benefits of a reengineered process from a customer’s perspective do not include:
a
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c
...


better information availability
...

a specific reference point
...


Correct answer: d
Learning objective 2
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30
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b
...

d
...

all business processes are computerised
...

the use of IT is driven by business needs and opportunities
...
7 – summarise and evaluate approaches to changing business
processes, in particular business process re-engineering (BPR)
...


Evaluated receipts settlement involves:
a
...

c
...


the purchaser paying for goods without receiving an invoice
...

speeding up the accounts receivable process for a vendor
...


Correct answer: a
Learning objective 2
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Correct answer: b
Learning objective 2
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2
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Michael Porter sees a business as having two options when deciding on a strategy:
(1) cost leadership, or
(2) differentiation
...

Answer:
A cost leadership strategy sees organisations able to carry out their activities cheaper than
their competitors, through economies of scale, technology, low overhead costs or efficient
links with suppliers
...
This higher degree of customer attention and personalisation to meet
customer demands allows the organisation to charge a higher price
...
These two options are
not mutually exclusive; when they are realised successfully, the focal organisation can reap a
profit that is higher than the average
...
1 – identify and interpret the components of organisational strategy and
mission
...
What are the benefits and problems of the functional perspective of the organisation?
Answer:
One strong benefit of the functional perspective is that it provides a great deal of
organisational control
...
This can lead to bureaucracy (a disadvantage)
...
Tasks within the functionally based organisation will be highly defined and
specified
...
The functional structure provides a delineation of tasks across different
departments of the organisation, as well as within departments
...

However, while the functional perspective of the organisation does not reflective of the
reality of today, it creates an overly hierarchical and bureaucratic organisation
...
The hierarchical and bureaucratic nature of the functional organisation
means it can be slow to react to changes in both the internal organisational environment and
the external operating environment
...
Finally, hierarchical and bureaucratic nature of the functional organisation can
lead to an ignorance of customer requirements, so the organisation is focusing on the wrong
things
...
2 – critique alternative organisational structures, reflecting on their
strengths and weaknesses and the implications for organisational operations
...
15

3
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Answer:
A business process was defined as a series of interlocking activities that work together across
the organisation to achieve some predetermined organisational goal that is typically defined
around satisfying customer needs
...
Notice the differences in these definitions
...
Moving from business
function to business process shifts the frame of reference from looking at specific individual
functions to how these functions interact with one another to deliver a good or service to the
customer
...
Re-engineering is not only about changing a
process within an organisation; it can also be about changing the culture and attitude that
pervade that process
...

Institutionalise the new approaches
...
This has a lot to do with the culture of the organisation
...
21

Learning objective 2
...

10
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Answer:
BPR is not without its critics, who often claim it ignores that organisations primarily consist
of people, who are not something that can be re-engineered, as a machine can
...
The risks involved in the clean slate approach are obviously
great because with the organisation essentially starting from scratch, if the newly designed
and re-engineered process fails, then there may be nothing left to fall back on
...

Learning objective 2
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2

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