Decision Making
Section 1.2 Review Questions
1. List the components of and explain the Business Pressures–Responses–Support model.
The components of the pressure-response-support model are business pressures, companies’ responses to these pressures, and computerized support. The model suggests that responses are made to counter the pressures or to take advantage of opportunities, support facilitates monitoring the environment (e.g., for opportunities) and enhances the quality of the responses.
2. What are the major factors in today’s business environment?
The major factors in today’s business environment are:
(Market-related) strong competition, expansion of global markets, electronic markets blooming on the Internet, innovative marketing methods, opportunities for outsourcing with IT support, and need for real time on-demand transactions
(Consumer demand-related) wanting customization, wanting quality, diversity of products, and speed of delivery, and customers becoming powerful and less loyal
(Technology-related) more innovations, new products and services, obsolescence rate is increasing, information overload is increasing
(Societal) growth of government regulations and deregulation are growing, work force becoming more diversified, older, and composed of more women; homeland security and terrorist attacks are prime concerns; compliance with the Sarbanes-Oxley Act and other reporting-related legislation is a must; social responsibility of companies is increasing.
3. What are some of the major response activities organizations take?
Responses taken by organizations include, but are not limited to:
Employ strategic planning
Use of new and innovative business models
Restructure business processes
Participate in business alliances
Improve corporate information systems
Improve partnership relationships
Encourage innovation and creativity
Improve customer service and relationships
Move to electronic commerce (e-commerce)
Move to make-to-order production
1. List the components of and explain the Business Pressures–Responses–Support model.
The components of the pressure-response-support model are business pressures, companies’ responses to these pressures, and computerized support. The model suggests that responses are made to counter the pressures or to take advantage of opportunities, support facilitates monitoring the environment (e.g., for opportunities) and enhances the quality of the responses.
2. What are the major factors in today’s business environment?
The major factors in today’s business environment are:
(Market-related) strong competition, expansion of global markets, electronic markets blooming on the Internet, innovative marketing methods, opportunities for outsourcing with IT support, and need for real time on-demand transactions
(Consumer demand-related) wanting customization, wanting quality, diversity of products, and speed of delivery, and customers becoming powerful and less loyal
(Technology-related) more innovations, new products and services, obsolescence rate is increasing, information overload is increasing
(Societal) growth of government regulations and deregulation are growing, work force becoming more diversified, older, and composed of more women; homeland security and terrorist attacks are prime concerns; compliance with the Sarbanes-Oxley Act and other reporting-related legislation is a must; social responsibility of companies is increasing.
3. What are some of the major response activities organizations take?
Responses taken by organizations include, but are not limited to:
Employ strategic planning
Use of new and innovative business models
Restructure business processes
Participate in business alliances
Improve corporate information systems
Improve partnership relationships
Encourage innovation and creativity
Improve customer service and relationships
Move to electronic commerce (e-commerce)
Move to make-to-order production