31. Which scenario demonstrates a situation for which an executive support system (ESS) should be used?
Answer: C
A CEO is responsible for determining which product(s) should be discontinued to maximize long-term success.
An executive support system (ESS) is designed to assist senior management in making strategic decisions. In this scenario, the CEO utilizes the ESS to analyze complex data regarding product performance and market trends to determine which products could be discontinued for the company's long-term benefit.
A) A supervisor is responsible for creating a report showing categorized expenses and how they compare to previous time periods.
This scenario is more suited for a management information system (MIS) rather than an ESS. While it involves data analysis, it is focused on routine reporting and operational decisions rather than the strategic level of decision-making that an ESS supports.
B) A business manager is responsible for determining which price should be charged to maximize profit.
This scenario involves tactical pricing decisions and operational analysis, which typically fall under the domain of decision support systems (DSS) or MIS. It does not require the high-level strategic insight that an ESS is designed to provide.
C) A CEO is responsible for determining which product(s) should be discontinued to maximize long-term success.
This scenario exemplifies the use of an ESS as it involves strategic decision-making at the executive level. The CEO needs to evaluate various factors, such as market trends and overall business objectives, to make informed decisions about product lines, which is a primary function of an ESS.
D) A grocery store cashier is responsible for making sales and taking payments from customers throughout the day.
This scenario pertains to day-to-day operational tasks and is not a situation that requires an ESS. The responsibilities of a cashier are focused on transaction processing rather than strategic decision-making, which is the primary function of an executive support system.
Conclusion
The correct answer, C, highlights the strategic role of an ESS in supporting executive-level decision-making, particularly in evaluating product performance and long-term business strategies. Other options focus on operational or tactical decisions, which do not align with the purpose of an ESS, reinforcing why they are incorrect in this context.