Management Information System (MIS) Practice Exam

Organizations primarily use extranets to:

1. Conduct market research

2. Manage their supply chains

3. Control brand dilution

4. Identify their target market

The correct answer is: Manage their supply chains

Organizations primarily use extranets to manage their supply chains as they provide a secure online communication channel that connects internal systems with external partners, such as suppliers and distributors. This facilitates real-time data sharing, coordination of logistics, and inventory management, allowing organizations to streamline operations and improve efficiency across their supply chain. By utilizing an extranet, businesses can gain visibility into the activities and inventory levels of their partners, which aids in planning and forecasting demand. This collaborative framework is essential for managing logistics more effectively, reducing lead times, and enhancing overall responsiveness to market demands. In contrast, conducting market research is typically handled through other means, such as surveys and analytics tools focused on consumer behavior. Similarly, controlling brand dilution involves strategies related to marketing and brand management, rather than direct supply chain interactions. Identifying target markets often relies on market analysis and demographic studies that do not necessitate the specific collaborative platform that an extranet provides. Thus, the primary function of an extranet aligns closely with supply chain management.