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This addresses MultiTech & Low-Voltage Components Situations

MultiTech Interview Situation: You have an interview for an IT position with MultiTech, a large telecommunications company, and you want to learn more about the firm and its organizational structure. To prepare for the interview, you decide to review your knowledge about corporations, including the following questions:

a. What are the four organizational levels in a typical company?

b. How can you classify companies based on their mix of products and services?

c. What is empowerment?

d. What types of information systems might a large company use?

Low-Voltage Components Situation: You are the IT manager at Low-Voltage Components, a medium- sized firm that makes specialized circuit boards. Low-Voltage's largest customer, TX Industries, recently installed a computerized purchasing system. If Low-Voltage connects to the TX system, TX will be able to submit purchase orders electronically. Although Low-Voltage has a computerized accounting system, that system is not capable of handling EDI.

a. Should Low-Voltage develop a system to connect with TX Industries' purchasing system? Why, or why not?

b. What terms or concepts describe the proposed computer-to-computer relationship between Low-Voltage and TX Industries?

c. Is Low-Voltage's proposed new system a transaction processing system? Why, or why not?

d. Before Low-Voltage makes a final decision, should the company consider an ERP system? Why, or why not?

Solution Preview

Question 1.

MultiTech Interview Situation: You have an interview for an IT position with MultiTech, a large telecommunications company, and you want to learn more about the firm and its organizational structure. To prepare for the interview, you decide to review your knowledge about corporations, including the following questions:

a. What are the four organizational levels in a typical company?
In a typical company, the four organizational levels are the (1) operating personnel, (2) low and mid-level management, (3) senior managers, and (4) the company's board of directors. The operating personnel usually only have contact with the low and mid-level managers, and do not regularly interact with senior managers or the board of directors. Likewise, the low and mid-level managers typically do not interact at all, unless under special order or circumstance, with the board of directors. The levels are kept distinct, and each level has its own system of structure and control.

b. How can you classify companies based on their mix of products and services?
You can classify companies based on their mix of products and services by determining the main goods and/or services that are produced by the company. A company that sells mainly goods is a production-driven company, whereas a company that sells mainly services or offers various services to the public can be classified as a service-oriented company. Companies that sell a mix of products and services are oftentimes referred to as hybrid companies, and companies that mainly sell and deliver products on the Internet are known as dot com companies. Many dot com companies base their entire presence on the Internet and have no physical site where they sell their products and services (Amazon and Ebay are examples).

c. What is empowerment?
Empowerment ...

Solution Summary

The solution provides detailed discussion for the MultiTech Interview Situation and the Low-Voltage Components Situation. All case questions are thoroughly answered for both cases. References are also included for both cases.

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