CBIT0102  BUSINESS   INFORMATION   MANAGEMENT.

UNIVERSITY EXAMINATIONS: 2018/2019
EXAMINATION FOR THE CERTIFICATE IN BUSINESS
INFORMATION TECHNOLOGY
CBIT 0102: BUSINESS INFORMATION MANAGEMENT
FULLTIME/PARTITIME
DATE: AUGUST, 2019 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE
a) Use illustration to explain the Agency theory
(6Marks)
b) Describe the role of information technology in information systems
(4Marks)
c) Discuss the two types of information system giving two examples in each
(6Marks)
d) Differentiate between transaction cost theory and the Agency theory
(2Marks)
e) Explain why manufacturing companies should build smart IT products and also provide smart
services
(6Marks)
f) Explain some of the key management challenges involved in building, operating and
maintaining information systems today? (6Marks)
QUESTION TWO
a) Discuss Michael porter’s five competitive forces that shape the fate of the firm
(10Marks)
b) Use a known case to describe how information systems provide competitive advantages
(4Marks)
c) Discuss the levels of an organization and state the type of information system used in each
level and how
(6Marks)
QUESTION THREE
a) According to Michael porter, one should use the internet to complement the business strategy,
not replace the past way of serving the customers nor disinter mediate the channels.
i) Use an example to explain this statement in relation to business IT strategy
(4Marks)
ii)Use examples to explain how each of the porters five competitive strategies have been
achieved by some organizations
(10Marks)
b) Explain how competitive strategy determines business process and structure of information
system
(6Marks)
QUESTION FOUR
a) Explain what is meant by the saying that the use of MIS flattens organization
(5Marks)

b) Describe how the World Wide Web has changed the roles played by information systems in
organizations
(5Marks)
c)State some of the key management challenges involved in building, operating and maintaining
information systems today (10Marks)

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