Many Firms Have Developed and Deployed Innovative Information Systems, Only

question 4

Multiple Choice

Many firms have developed and deployed innovative information systems, only to see these systems go unused by key staff members. How has Zara helped ensure its systems will be used by staff?

• A) employees are monitored by in-store cameras
• B) employee time on information systems is recorded each time the system is engaged
• C) system use drives store success and as much as 70 percent of salaries are tied to sales performance
• D) all employees must have a Fair Factories Clearinghouse account, which is used to log and report employee activity
• E) systems were designed by employees, who feel a sense of ownership in the technology deployed

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Definitions:

Net Capital Expenditures

The amount spent on acquiring or upgrading physical assets, less any sales of fixed assets, during a given period.

Free Cash Flow

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets, available for paying dividends or debt.

Solvency

The ability of a company to meet its long-term financial commitments and continue operations in the long-term, often assessed through ratios comparing assets to liabilities.

Profitability

measures how much profit or financial gain is generated as a percentage of the revenue of a company or business segment.