Deck 2: Gaining Competitive Advantage Through Information Systems

Question 1

With respect to organizational decision-making levels,________ decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.

A) asymmetrical
B) semistructured
C) unstructured
D) comparative
E) structured

Answer 1

E

Question 2

________ decision making in an organization is referred to as semistructured decision making because solutions and problems are not clear-cut and often require judgment and expertise.

A) Illusive-level
B) Operational-level
C) Managerial-level
D) Executive-level
E) Strategic-level

Answer 2

C

Question 3

Managers in the ________ level of an organization are referred to as "executives."

A) operational
B) tactical
C) functional
D) strategic
E) managerial

Answer 3

D

Question 4

At the ________ level of an organization,functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization.

A) managerial
B) executive
C) strategic
D) superficial
E) illusive

Question 5

With respect to decision making in organizations,________ decisions are those in which the procedures to follow for a given situation can be specified in advance.

A) comparative
B) structured
C) unscrupulous
D) asymmetrical
E) disfigured

Question 6

________ decisions deal with complex problems with broad and long-term ramifications for an organization.

A) Executive-level
B) Functional-level
C) Tactical-level
D) Operational-level
E) Managerial-level

Question 7

With respect to organizational decision-making levels,for ________ decisions,some procedures to follow for a given situation can be specified in advance,but not to the extent where a specific recommendation can be made.

A) unstructured
B) planned
C) semistructured
D) asymmetrical
E) structured

Question 8

Managers at the ________ level include the president and chief executive officer,vice presidents,and possibly the board of directors.

A) functional
B) executive
C) tactical
D) operational
E) illusive

Question 9

The executive level of an organization is also known as the ________ level.

A) managerial
B) tactical
C) operational
D) strategic
E) illusory

Question 10

At the ________ level of a firm,the routine,day-to-day business processes and interactions with customers occur.

A) strategic
B) tactical
C) operational
D) managerial
E) executive

Question 11

________ decisions are referred to as unstructured decisions because the problems are relatively complex and non-routine.

A) Managerial-level
B) Tactical-level
C) Executive-level
D) Operational-level
E) Illusive-level

Question 12

Jane Estroisch works as a manager in a multidomestic firm.She focuses on the long-term questions facing the organization such as which countries to compete in and what organizational policies to follow.Jane is in the ________ level of the organization.

A) operational
B) tactical
C) executive
D) functional
E) managerial

Question 13

Information systems at the ________ level are designed to automate repetitive activities,such as sales transaction processing,and to improve the efficiency of business processes and the customer interface.

A) tactical
B) executive
C) strategic
D) managerial
E) operational

Question 14

Using information systems to optimize processes at the ________ level of an organization can offer quick returns on the IS investment,as activities at this level are clearly delineated and well focused.

A) executive
B) strategic
C) managerial
D) operational
E) tactical

Question 15

At the ________ level of an organization,managers focus on long-term strategic questions facing the organization,such as which products to produce,which countries to compete in,and what organizational strategy to follow.

A) managerial
B) tactical
C) operational
D) executive
E) illusory

Question 16

Ben White is the manager of a retail store.His work typically includes the routine,day-to-day interactions with customers and,once in a while,solving a customer's problem or dealing with a dissatisfied customer.Additionally,he has to keep track of inventory and issue an order for additional inventory with levels below a specified level.Ben is a(n)________ level manager.

A) operational
B) tactical
C) strategic
D) managerial
E) executive

Question 17

At the ________ level of a firm,information systems are typically used to optimize processes and to better understand the underlying causes of any performance problems.

A) tactical
B) executive
C) managerial
D) operational
E) strategic

Question 18

Which of the following actions can be included as a part of operational planning?

A) making day-to-day decisions that are highly structured and recurring
B) effectively utilizing and deploying organizational resources to achieve strategic objectives
C) focusing on long-term strategic questions facing the organization
D) dealing with complex problems with broad and long-term ramifications for the organization
E) focusing on balancing performance across the organization

Question 19

The managerial level of an organization is also known as the ________ level.

A) functional
B) tactical
C) executive
D) operational
E) strategic

Question 20

Managers at the tactical level of an organization focus on ________.

A) deploying organizational resources to achieve the strategic objectives of the organization
B) routine,day-to-day business processes,and interactions with customers
C) long-term strategic questions facing the organization
D) complex problems with broad and long-term ramifications for the organization
E) the efficiency of business processes and the customer interface

Question 21

With respect to the components of a business model,a ________ is the utility that the product/service has to offer to customers.

A) cost structure
B) value grid
C) value migration
D) value proposition
E) revenue stream

Question 22

Home-replication strategy is also called the ________ strategy.

A) global
B) export
C) multidomestic
D) transnational
E) national

Question 23

Within the context of international business strategies,a firm that enjoys a high degree of global integration and local responsiveness is pursuing a(n)________ strategy.

A) transnational
B) global
C) international
D) multidomestic
E) home-replication

Question 24

Which of the following is an implication for firms that have a threat of new entrants in their market?

A) increased cost
B) reduced quality
C) increased demand for services
D) increased price
E) decreased market share

Question 25

At the ________ level of an organization,information systems provide KPIs that are focused on balancing performance across the organization.

A) illusive
B) operational
C) tactical
D) managerial
E) executive

Question 26

Walmart pursues a ________ strategy,by which it offers the best prices in its industry on its goods and/or services.

A) best-cost provider
B) decreased market share
C) low-cost leadership
D) broad differentiation
E) focused differentiation

Question 27

Information systems at the ________ level of an organization often help in automating repetitive activities.

A) tactical
B) strategic
C) managerial
D) operational
E) executive

Question 28

Within the context of international business strategies,a global strategy is associated with ________.

A) low degree of global integration and high degree of local responsiveness
B) low degree of global integration and lack of local responsiveness
C) high degree of global integration and high degree of local responsiveness
D) low degree of global integration and low degree of local responsiveness
E) high degree of global integration and low degree of local responsiveness

Question 29

To assist ________ decision making,information systems are used to obtain aggregate summaries of trends and projections of the future.

A) managerial-level
B) functional-level
C) tactical-level
D) operational-level
E) executive-level

Question 30

With respect to international business strategy,________ is the corporate culture that has evolved in the environment of the firm's home country.

A) value grid
B) transaction exposure
C) value proposition
D) free trade
E) administrative heritage

Question 31

While assessing value of the IS infrastructure,________ value is derived from assessing an investment's impact on enabling the infrastructure to better meet business processing requirements.

A) architectural
B) regulatory
C) operational
D) economic
E) compliance

Question 32

Which of the following is an example of a best-cost provider strategy?

A) Manufacturers like Ferrari,Aston Martin,and Lamborghini compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000.
B) Toyota's Lexus brand is considered a luxury car.Some of Lexus' models like the ES model,however,are in the midrange of prices for cars.
C) Global furniture retailer Ikea provides customers with "affordable solutions for better living" by offering home furnishings that combine good design,function,and quality with low prices.
D) Big Dog builds motorcycles that target only the very high end of the heavyweight market-the high-end premium cruiser market-with names such as Pitbull,Wolf,Mastiff,and Bulldog.
E) Walmart's every day low prices (EDLP) strategy hinges upon Walmart's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.

Question 33

With reference to assessing value for the IS infrastructure,________ value is the contribution an investment makes toward improving the infrastructure's ability to enhance the profitability of the business.

A) architectural
B) operational
C) regulatory
D) compliance
E) economic

Question 34

Which of the following actions would an organization take if it decides to pursue a best-cost provider strategy?

A) offering the best prices in its industry on its goods and/or services
B) attempting to gain monopoly in the market by means of an unhealthy competition
C) offering products or services of reasonably good quality at competitive prices
D) providing high quality products at low prices in specific markets
E) offering low quality products at low prices with high quality after-sales services

Question 35

________ is the process of analyzing an organization's activities to determine where value is added to products and/or services and what costs are incurred for doing so.

A) Value networking
B) Value chain analysis
C) Value migration
D) Value shop
E) Value grid trial

Question 36

While assessing value of the IS infrastructure,if we measure the impact of not investing in a particular project,we are deriving the ________ value.

A) operational
B) economic
C) compliance
D) regulatory
E) architectural

Question 37

While assessing value of the IS infrastructure,________ value is derived from assessing the extent to which an investment helps to meet requirements for control,security,and integrity as required by a governing body or a key customer.

A) architectural and tactical
B) tactical
C) operational
D) regulatory and compliance
E) economic

Question 38

With reference to assessing value for the IS infrastructure,architectural value is derived from ________.

A) the infrastructure's ability to enhance the profitability of the business
B) an investment's ability to extend the infrastructure's capabilities to meet business needs today and in the future
C) an investment's impact on enabling the infrastructure to better meet business processing requirements
D) assessing the extent to which an investment helps to meet requirements for control,security,and integrity as required by a governing body or a key customer
E) the infrastructure's ability to improve product quality and customer satisfaction

Question 39

Reduced prices,need for increased quality,and demand for more services from a firm would result due to ________.

A) high threat of substitute products from other industries
B) high customers' bargaining power
C) high threat of new entrants into the market
D) traditional rivals within the industry
E) increased suppliers' bargaining power

Question 40

While assessing value of the IS infrastructure,"before-and-after" assessments of infrastructure characteristics such as interoperability,portability,scalability,recoverability,and compatibility can be taken to measure ________ value.

A) economic
B) operational
C) regulatory
D) architectural
E) compliance

Question 41

Which of the following statements is true about the e-business innovation cycle?

A) The vertical dimension of the cycle shows the life expectancy of a particular information technology,and the horizontal dimension shows time.
B) The vertical dimension of the cycle shows the extent to which an organization derives value from a particular information technology,and the horizontal dimension shows time.
C) The vertical dimension of the cycle shows the expected investments required for a particular information technology,and the horizontal dimension shows time.
D) The vertical dimension of the cycle shows the efficiency of a particular information technology,and the horizontal dimension shows life expectancy of that information technology.
E) The vertical dimension of the cycle shows the user-friendliness of a particular technology,and the horizontal dimension shows the amount of investment in that technology.

Question 42

Which of the following is a disadvantage for firms pursuing a multidomestic business strategy?

A) limited knowledge transfer between individual subsidiaries
B) exerting unnecessary control over subsidiaries
C) lack of interest in obtaining additional knowledge about foreign operations
D) inability to react quickly to local challenges and opportunities
E) restriction of decision-making ability of subsidiaries

Question 43

Which of the following defines marginal cost?

A) It is the cost of an alternative that must be forgone in order to pursue a certain action.
B) It is the cost of producing an additional unit of output.
C) It is the cost that is independent on the level of goods or services produced by the business.
D) It is the cost that has already been incurred and cannot be recovered.
E) It is the cost incurred in making an economic exchange.

Question 44

Within the context of organizational requirements for innovation,to deploy innovative information systems well,people in the organization must be willing to do whatever they can to bypass and eliminate internal bureaucracy,set aside political squabbles,and pull together for the common good.These requirements can be categorized as ________ requirements.

A) process
B) customer
C) resource
D) quality
E) risk tolerance

Question 45

Which of the following actions distinguishes firms pursuing a transnational business strategy from firms using other business strategies?

A) responding to local challenges and opportunities quickly
B) exerting strong control over its subsidiaries
C) striking a balance between centralization and decentralization
D) responding to global challenges and opportunities quickly
E) standardizing product offerings to achieve economies of scale

Question 46

According to ________,the number of transistors that could be squeezed onto a silicon chip would double every 18 months.

A) Metcalfe's law
B) Megan's law
C) Murphy's law
D) Moore's law
E) Ashby's law

Question 47

In an e-business innovation cycle,after an organization scans the environment for new emerging and enabling technologies,the next step is to ________.

A) create jobs,groups,and processes that are all devoted to scanning the environment
B) select the database and data storage advances
C) address the current opportunity to grab customers and market share
D) match the most promising new technologies with current economic opportunities
E) assess the value of the use of technology for customers and internal clients

Question 48

Which of the following is a disadvantage of firms that pursue a global strategy?

A) lack of control over subsidiaries
B) limited knowledge transfer between individual subsidiaries
C) lack of interest in obtaining additional knowledge about foreign operations
D) inability to control decentralization
E) inability to react quickly to local challenges and opportunities

Question 49

According to the disruptive growth engine,executive leadership will allow a firm to ________.

A) effectively identify and evaluate potential disruptive innovations
B) gain credibility and to bridge sustaining and disruptive product development
C) gain the greatest disruptive opportunities
D) build a disruptive team of expert innovators
E) educate those closest to customers and competitors in order to identify opportunities

Question 50

Which of the following statements is true about firms pursuing a home-replication strategy?

A) They attempt to achieve economies of scale by producing identical products in large quantities for a variety of different markets.
B) They view their home operations as secondary to international operations thus providing a minor role to information systems in facilitating this strategy.
C) They focus on their domestic customers' needs and wants and merely export their products to generate additional sales.
D) They have a need to create integrated networks between the home office and the multiple local subsidiaries.
E) They leverage the flexibility offered by a decentralized organization while at the same time reaping economies of scale enjoyed by centralization.

Question 51

Mystic,a Texas-based fashion apparel company with subsidiaries in more than 25 countries across the world,is one of the most recognized brands in the global and domestic markets.In a recent interview with The New York Times,the CEO and the spearhead of Mystic Co.Burt Swager said,"The secret of the company's success is its ability to strike the right balance between centralization and decentralization." Mystic Co.is a firm that successfully pursues a(n)________ business strategy.

A) global
B) transnational
C) home-replication
D) multidomestic
E) international

Question 52

Organizations deploying innovative information systems must have the human capital necessary to deploy the new systems.These requirements can be categorized as ________ requirements.

A) resource
B) process
C) risk tolerance
D) customer
E) quality

Question 53

Which of the following international business strategies is the most basic form of going global?

A) import strategy
B) global strategy
C) multidomestic strategy
D) home-replication strategy
E) transnational strategy

Question 54

Unilever,which decides when to centralize and when to decentralize depending on the products and the local markets,is an example of a(n)________ company.

A) transnational
B) home-replication
C) multidomestic
D) national
E) import

Question 55

The ________ business strategy allows companies to leverage the flexibility offered by a decentralized organization while at the same time reaping economies of scale enjoyed by centralization.

A) international
B) global
C) multidomestic
D) transnational
E) home-replication

Question 56

According to basic economics within a competitive marketplace,the price of a product is set by its ________.

A) opportunity cost
B) sunk cost
C) marginal cost
D) transaction cost
E) fixed cost

Question 57

Within the context of international business strategies,companies pursuing a(n)________ strategy attempt to achieve economies of scale by producing identical products in large quantities for a variety of different markets.

A) global
B) international
C) export
D) multidomestic
E) home-replication

Question 58

________ are new technologies,products,or services that eventually surpass the existing dominant technology or product in a market.

A) Constructive innovations
B) Adaptive innovations
C) Disruptive innovations
D) Facultative innovations
E) Extensive innovations

Question 59

Which of the following statements is true about firms pursuing a multidomestic business strategy?

A) There is a huge amount of data and control information flow between the home and subsidiary locations.
B) The knowledge transfer between subsidiaries is abundant.
C) They have standard offerings across markets and give preference to international business.
D) They are extremely flexible and responsive to the needs and demands of local markets.
E) They work in a centralized fashion and the home location exerts strong control on the subsidiaries.

Question 60

Freeconomics is the leveraging of digital technologies to ________.

A) provide high quality products and services at low prices as a business strategy for gaining a competitive advantage
B) allow free product information to customers as a business strategy for gaining a competitive advantage
C) allow dissatisfied customers easy access to business premises and top management of the firm
D) match customer preferences with product features and increase the customer base
E) provide free goods and services to customers as a business strategy for gaining a competitive advantage

Question 61

With respect to general approaches for applying freeconomics to various industries,sale price of one item being reduced in order to sell something else of value is called ________ approach.

A) labor exchange
B) gift economy
C) freemium
D) zero marginal cost
E) cross subsidies

Question 62

Organizational learning is the ability of an organization to use past behavior and information to improve its business processes.

Question 63

Executive-level decisions are referred to as unstructured decisions.

Question 64

Musicmatch Jukebox is an all-in-one music management tool that was first marketed in 1999.Most users can use the Basic/Free version,but a $19.99 upgrade provides extra features such as supertagging and faster ripping and burning.Which of the following explains this approach to applying freeconomics?

A) labor exchange approach
B) freemium approach
C) zero marginal cost approach
D) cross subsidies approach
E) gift economy approach

Question 65

Tele'Wire,a mobile manufacturer,offers free connections to customers who buy its mobile phones.This cost of connection is actually included in the price of the mobile phone.Tele'Wire is pursuing a(n)________ approach to applying freeconomics.

A) cross subsidies
B) gift economy
C) zero marginal cost
D) advertising
E) freemium

Question 66

For unstructured organizational decisions,few or no procedures to follow for a given situation can be specified in advance.

Question 67

With respect to the organizational decision making levels,top level managers typically focus on problems
within a specific business function,such as marketing or finance.

Question 68

Operational,managerial,and executive decision-making levels are all supported by a single type of information system.

Question 69

At the executive level,information systems are typically used to optimize processes and to better understand the underlying causes of any performance problems.

Question 70

Which of the following actions of a firm suggests that it is using the freemium approach to applying freeconomics?

A) providing free services to customers and getting paid for it by third parties
B) reducing the sale price of one item in order to sell something else of value
C) distributing products to customers without an appreciable cost to anyone
D) offering basic services for free,but charging a premium for special features
E) allowing people to participate and collaborate to create something of value

Question 71

Tactical-level decision making is more structured and routine than operational-level decision making.

Question 72

Wikipedia is a free,Web-based,collaborative,multilingual encyclopedia project supported by the non-profit Wikimedia Foundation.Its 17 million articles have been written collaboratively by volunteers around the world,and almost all of its articles can be edited by anyone with access to the site.This allows people to participate and create something of value for everyone.Wikipedia is pursuing a(n)________ approach to applying freeconomics.

A) gift economy
B) zero marginal cost
C) labor exchange
D) cross subsidies
E) freemium

Question 73

Most organizations have three general decision-making levels: operational,managerial,and executive.

Question 74

Managerial-level decision making is referred to as semistructured decision making.

Question 75

Web sites like ez-tracks and beemp3 pursue a(n)________ approach to applying freeconomics when they offer free music downloads for users because reproduction and distribution of these products come at no cost.

A) gift economy
B) zero marginal cost
C) advertising
D) cross subsidies
E) freemium

Question 76

In an organizational setup,a functional area represents a discrete area of an organization that focuses on a specific set of activities.

Question 77

In an organization,managers use value chain analysis to identify opportunities where information systems can be used to develop a competitive advantage.

Question 78

With respect to general approaches for applying freeconomics to various industries,the ________ approach means creating an environment that allows people to participate and collaborate to create something of value for everyone.

A) gift economy
B) freemium
C) cross subsidies
D) zero marginal cost
E) labor exchange

Question 79

Organizational strategy is a firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals.

Question 80

Unstructured decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.