Management Information Systems (DP IB Business Management: HL): Exam Questions

1 hour17 questions
12 marks

Case Study

Delta Research Ltd recently implemented a new system for processing their business clients' sales data. The CEO explains that their software can handle 'big data' that usually overwhelms traditional data processing applications.

Define the term 'big data'.

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22 marks

Case Study

Nectar360 manages customer loyalty programs for UK retail chains, including Sainsburys. Their systems collect various types of customer data to help retailers understand shopping patterns.

State two types of data collected through customer loyalty programmes.

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32 marks

Case Study

DataFlex International specialises in data management systems. The company's latest project involves helping businesses use accumulated customer information effectively through data mining.

Define the term 'data mining'.

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42 marks

Case Study

Cloud Secure Ltd provides data storage solutions for multinational corporations. They emphasise the importance of protecting sensitive business data.

State two ways to protect sensitive business data.

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52 marks

Case Study

Digital Defense Ltd specialises in protecting businesses from online threats and cybercrime. Their recent report highlights various methods criminals use to target organisations.

State two forms of cybercrime.

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62 marks

Case Study

VirtuTech Solutions develops virtual reality applications for businesses. Their products are used across different sectors for various purposes.

State two business uses of virtual reality.

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72 marks

Case Study

WorkMetrics International Ltd provides software that tracks employee productivity in call centres. It has received criticism from trade unions for promoting 'Digital Taylorism'.

Define the term 'Digital Taylorism'.

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82 marks

Case Study

Focusing on growing concerns about ethical concerns related to business use of technology, Humanitech advises firms on responsible implementation of IT equipment and processes.

State two ethical concerns related to business use of technology.

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92 marks

Case Study

EcoGro, a farming cooperative, implemented a database system to track crop yields, manage inventory, and monitor sales. It aims to improve decision-making and efficiency.

Explain one benefit for EcoGro of using a database system to support its decision-making.

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14 marks

Case Study

SafeScan Security Services provides high-tech security systems to corporate clients, including surveillance cameras and biometric access controls. To improve efficiency, the company has implemented a centralised management information system (MIS) that tracks equipment status, maintenance schedules, and customer support queries in real time.

While the MIS has streamlined operations and reduced response times, it has raised concerns about data security and the cost of maintaining the system. SafeScan is now evaluating how to optimise its MIS while ensuring robust cybersecurity measures are in place.

Explain one advantage and one disadvantage of SafeScan using a centralised management information system (MIS).

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24 marks

Case Study

SafeScan Security Services provides high-tech security systems to corporate clients, including surveillance cameras and biometric access controls. To improve efficiency, the company has implemented a centralised management information system (MIS) that tracks equipment status, maintenance schedules, and customer support queries in real time.

While the MIS has streamlined operations and reduced response times, it has raised concerns about data security and the cost of maintaining the system. SafeScan is now evaluating how to optimise its MIS while ensuring robust cybersecurity measures are in place.

Describe two factors SafeScan should consider when maintaining its MIS.

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36 marks

Case Study

VitaFit operates a chain of wellness centres offering fitness classes, therapy sessions, and personalised nutrition plans. The company recently implemented a customer relationship management (CRM) system to track booking patterns, feedback, and preferences, enabling better personalisation of its services.

The CRM system has increased customer satisfaction and loyalty but has also raised concerns about data privacy regulations, particularly regarding sensitive customer information. VitaFit must balance the benefits of data-driven insights with the need for compliance and customer trust.

Analyse two benefits and one drawback of VitaFit ensuring compliance with data regulations.

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44 marks

Case Study

VitaFit operates a chain of wellness centres offering fitness classes, therapy sessions, and personalised nutrition plans. The company recently implemented a customer relationship management (CRM) system to track booking patterns, feedback, and preferences, enabling better personalisation of its services.

The CRM system has increased customer satisfaction and loyalty but has also raised concerns about data privacy regulations, particularly regarding sensitive customer information. VitaFit must balance the benefits of data-driven insights with the need for compliance and customer trust.

Explain one advantage and one disadvantage of VitaFit using a CRM system to track customer preferences.

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56 marks

Case Study

AquaBlue operates a chain of luxury hotels offering tailored guest experiences. To enhance its services, AquaBlue introduced a property management system (PMS) that tracks room availability, guest preferences, and service requests in real time.

The PMS has improved operational efficiency, but AquaBlue faces challenges in maintaining system reliability during peak seasons and ensuring data security across multiple locations. Management is exploring whether to upgrade the PMS to a cloud-based solution for better scalability.

Analyse two advantages and one drawback of AquaBlue using a real-time property management system (PMS).

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64 marks

Case Study

AquaBlue operates a chain of luxury hotels offering tailored guest experiences. To enhance its services, AquaBlue introduced a property management system (PMS) that tracks room availability, guest preferences, and service requests in real time.

The PMS has improved operational efficiency, but AquaBlue faces challenges in maintaining system reliability during peak seasons and ensuring data security across multiple locations. Management is exploring whether to upgrade the PMS to a cloud-based solution for better scalability.

Describe two factors AquaBlue should consider when ensuring the reliability of its property management system (PMS).

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110 marks

Case Study

Precision Law is a partnership that provides legal services to small and medium-sized enterprises (SMEs). The firm was founded ten years ago by four partners who each invested the same amount of money and share decision-making equally. They specialise in areas such as contract law, employment law and mergers and acquisitions. The firm has built a strong reputation for providing personalised advice and practical solutions, which has helped it attract a loyal client base

The business has grown steadily, and its client list now includes over 200 SMEs from industries such as retail, technology and construction. This growth has created challenges. The partners and staff are struggling to manage the increased workload, with many handling multiple cases at the same time. A recent staff survey revealed that fewer than half of the employees feel their workload is manageable, and this has caused tensions between staff and partners. Some staff feel that expectations are too high, while the partners argue that managing workloads is essential for maintaining profitability

One partner has proposed converting Precision Law from a partnership into a private limited company (Ltd). This would allow the firm to sell shares and raise funds to hire more staff and invest in advanced management information systems (MISs). These systems could help automate tasks such as scheduling and document management, which would reduce workloads and improve efficiency. Additionally, becoming a Ltd would limit the personal liability of the partners, protecting their personal assets. However, other partners worry about losing control of decision-making if external shareholders become involved. They are also concerned about the added legal and administrative requirements of operating as a Ltd

Precision Law has recently taken steps to improve its reputation by introducing corporate social responsibility (CSR) initiatives. It now provides free legal advice to underserved communities through a local charity. This has been praised by clients and has boosted the firm’s profile. However, some employees feel that the additional work created by these activities adds to their stress

The partners must decide how to handle these challenges. Should they focus on raising funds to expand, invest in MIS technology or work on improving relationships between staff and management to address workload concerns?

Table 1: Financial information (2023)

Metric

Value ($)

Annual revenue

1.8m

Net profit

450,000

Operational costs

1.35m

Estimated cost of expansion (first year)

250,000

Table 2: Employee feedback survey (2023)

Feedback area

Positive responses (%)

Staff comments

Workload management

45

“The work is too much for the number of staff.”

Job satisfaction

70

“I enjoy the team culture but feel overworked.”

Support for CSR activities

60

“Helping others is great, but it adds to my workload.”

Examine how Precision Law could use advanced MISs to address its operational challenges.

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210 marks

Case Study

SafeScan Security Services provides high-tech security systems to corporate clients, including surveillance cameras and biometric access controls. Its primary target market includes large office complexes, technology firms and financial institutions, all of which require advanced security measures to protect sensitive data and assets. These clients expect rapid response times, seamless system functionality and the highest standards of confidentiality

To improve efficiency and streamline operations, SafeScan implemented a centralised management information system (MIS). This system tracks equipment status, maintenance schedules and customer support queries in real time. As a result, response times have improved and operational tasks have become more efficient. Average response times have decreased from three hours in 2023 to two hours in 2024, which has contributed to a rise in customer satisfaction scores

Despite these benefits, employees have raised concerns about how the MIS impacts their work experience. While it provides faster access to information, some employees feel that the reliance on the system has reduced opportunities for face-to-face communication and informal collaboration. A technician commented, “We used to brainstorm solutions as a team, but now everyone just relies on the system for answers.” Managers worry that these changes may reduce team cohesion and problem-solving creativity

Employee motivation has also been affected. While many appreciate the efficiency of the MIS, others feel overwhelmed by the constant updates and training required to keep up with the system. Regular employee surveys reveal that 70% of workers feel the system has improved efficiency, but only 55% believe it has made their jobs more enjoyable. SafeScan’s HR department is exploring strategies to boost motivation, including enhanced training programmes and recognition for employees who excel at using the system effectively

Data security remains another key challenge. The system holds sensitive client information, and there have been several attempted breaches, though none were successful. To address these risks, SafeScan has increased its cybersecurity budget, which now accounts for 20% of the annual maintenance costs. However, these costs have sparked debates within senior management about the long-term sustainability of the system

Table 1: Operational metrics (2023 vs 2024)

Metric

2023

2024

Average response time (hours)

3

2

Maintenance budget ($ million)

1.2

1.44

Customer satisfaction score

82/100

85/100

Cybersecurity incidents

5 attempted breaches

3 attempted breaches

Table 2: Employee feedback on the MIS

Feedback area

Employee comments

Efficiency

“The system saves us time by organising tasks and providing instant access to customer data.”

Data security

“It’s concerning that a single breach could expose so much sensitive information.”

Communication

“We rely on the system so much that team discussions have become less frequent.”

Training and support

“Training helped us use the MIS better, but regular updates mean we need ongoing support.”

Cost concerns

“The system is useful, but the rising costs are starting to impact other areas of the budget.”

Motivation

“While the system helps with efficiency, it doesn’t always make the job more engaging.”

Examine the impacts of providing regular MIS training for employees at SafeScan Security Services.

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