Return to main page

Chapter 11 Exercises

Chapter 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Principles of MIS

© 2008 by Jerry Post
  1. Consider a small service firm such as a physician, dentist, accountant, or lawyer. Is it possible for such an office to use computers to gain a competitive advantage? To start, identify the customers, suppliers, and rivals. Do you think the “natural” switching costs are high or low; that is, how often do customers switch to competitors? Which of the major techniques do you think would be the most successful (barriers to entry, switching costs, quality control, lower prices, ties to customers or suppliers, etc.)?
  2. Write a business plan for a new company. Choose an existing small company if you do not have ideas for a new firm.
  3. Research the detailed steps needed to start a Chapter S corporation in your state. Obtain the necessary forms (most states have them on Web sites).
  4. Visit a small business or talk to an owner/manager (perhaps a relative). Identify the use of information technology and write a short report on how the firm could benefit from using additional technology, particularly for decision making and collaboration.
  5. If you were starting a new restaurant, would you choose a franchise or start an independent operation? Explain why.
  6. Interview a manager of a small business (< 500 employees), possibly a friend or relative. Identify the use of information technology in the three decision levels (operations, tactics, and strategies). Just ask about IT, do not expect the manager to be able to classify the technology for you. Who does the manager use for IT advice and support? How many MIS employees are there? Where does the manager believe the company lies on the levels of technology (leading edge, turn-key, bare-bones)? Where would you classify the company?
  7. How long would it take you to build a spreadsheet/Access application that could be used to forecast a daily count of customers at a small restaurant? If you could sell the application, you much do you think you could charge? Now search the Internet to see if such an application exists.

    8. Toolbox logoTechnology Toolbox

  8. Collect several commercial e-mail messages and count the number of violations of the CAN-SPAM Act provisions.
  9. What provisions could you add to the Act that might actually reduce the level of unwanted messages?
  10. If spammers violate all of the provisions of the Act, how can you track them down?
  11. Select a small business that you might want to start. Choose the type of business structure and where it will be located. Explain your choices.
  12. Choose a company that you would like to start, write the overall strategy section, and build the projected accounting statements for the first three years.
  13. Assume that you have been hired by a physician who wants to start a Web site to help dieters. Create a business plan that focuses on the competition, marketing, and Web aspects of the business.

    14. Teamwork logoTeamwork

  14. Choose a firm that the team might want to start. Create a brief business plan for the company by assigning one section to each team member.
  15. Assign each person to investigate a different accounting system, including online, that could be used for a small business. Write a report that compares the features, costs, and limitations of each package. If possible, recommend one for someone with a small business.
  16. Select an industry that has several many small businesses such as restaurants (or have one assigned by your instructor). Find at least two turn-key systems that are available for businesses in this industry. Without harassing sales representatives, compare the systems in terms of features, price, and market share. If possible, talk to a small business owner who uses the system for additional comments.
  17. Find at least two companies that process payrolls for small companies. Compare their features, and if possible, market share and prices.
  18. Construct an e-mail ad that meets the CAN-SPAM criteria. Send the ad to each other and see if it makes it through the anti-spam filters. Try using a non-university e-mail account. Report on the results.

    19. Rolling Thunder Bicycles logoRolling Thunder Database

  19. Using the existing data, write a business plan to obtain venture capital to expand the operations of Rolling Thunder—focusing on the need to develop a marketing campaign and a Web-based ordering system.
  20. Using the spreadsheet for the Rolling Thunder Bicycle start-up situation shown in the figures, choose a financing method and complete the projected accounting statements.
  21. Assuming the salaries and capital costs are fixed to start Rolling Thunder Bicycles, and assuming the average price of a bicycle is $2,250, compute the break-even number of bicycles.
  22. Describe the level of technology that would be appropriate for Rolling Thunder Bicycles as a startup. What would be an approximate budget?
  23. Can the company justify hiring a full-time MIS employee? If not, how should the MIS tasks be handled?