Question 1
Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets, or approximately 25% of its locations. Sabella needs to reduce the costs of operating the firm's information systems. To accomplish this, Sabella might decide to
◦ replace the existing system with one of a smaller scale.
◦ customize the existing system.
◦ outsource system operations.
◦ purchase a canned software system.
Question 2
In which of the following cases is outsourcing likely to be the best solution to the firm's data processing needs?
◦ Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.
◦ Battlegoat Investment Strategies manages investors' portfolios and provides services to wealthy customers. The firm needs a system that will pull together selected investment data from a variety of sources and that allows account managers to prepare customized reports.
◦ Yachtman Limited is in the business of buying businesses, managing them for a few years, then selling them for a profit. The firm requires a flexible system that will allow it to manage the types of businesses it controls.
◦ Desalinas LLC, manages the construction of desalinization plants. It needs a system that will allow it to manage the construction process from bid to billing.
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