Deck 2: Gaining Competitive Advantage Through Information Systems

Question 1

A(n)________ refers to anything that occurs as part of a daily business of which a record must be kept.

A) transaction
B) investment
C) capital asset
D) value chain analysis
E) use case

Answer 1

A

Question 2

________ are a set of activities an organization performs in order to reach their business goals.

A) Business processes
B) Business standards
C) Business technocracies
D) Business data flow models
E) Business cases

Answer 2

A

Question 3

________ 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

Answer 3

A

Question 4

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

Question 5

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

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

Question 6

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 7

Ben White is the manager of a retail store.His work typically includes the routine,day-to-day interactions with customers.Once in a while,he also solves customers' problems and deals with dissatisfied customers.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 8

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 9

Which of the following actions is 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 10

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

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

Question 11

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 12

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

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

Question 13

Identify the focus of managers at the tactical level of an organization.

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

Question 14

________ 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 15

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 16

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 17

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 18

Why are information systems typically used at the operational level?

A) to create a risk information sheet
B) to define all project tasks
C) to identify all business activities
D) to create use cases
E) to increase efficiency

Question 19

________ 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

Question 20

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 21

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

Question 22

________ 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 23

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 24

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

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

Question 25

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 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

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

Question 28

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

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

Question 29

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

Question 30

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 31

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

Question 32

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 33

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 34

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 35

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

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

Question 36

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 37

While assessing value of the IS infrastructure,the ________ value can be derived by measuring the impact of not investing in a particular project.

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

Question 38

With respect to the components of a business model,________ 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 39

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 40

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

A) Different car manufacturers compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000.
B) Aerodoungle's Eridla brand is considered a luxury car. Some of Eridla's models like the ES model, however, are in the midrange of prices for cars.
C) Global furniture retailer Rusicwood provides customers with affordable solutions for better living by offering home furnishings that combine good design, function, and quality with low prices.
D) Wild Hog builds motorcycles that target only the high end of the heavyweight market-the high-end premium cruiser market-with names such as Wolf, Mastiff, and Bulldog.
E) Streetsuit's everyday low prices (EDLP) strategy hinges upon its ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.

Question 41

Explain the differences between tactical-level decision making and executive-level decision making by managers in organizations.

Question 42

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

Question 43

Choosing and implementing an emerging information system is not sufficient to gain or sustain competitive advantage.

Question 44

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

Question 45

Executive-level decisions are referred to as unstructured decisions.

Question 46

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 47

Explain how information systems implemented in the operational level are different from those implemented at the strategic level.

Question 48

The use of information systems has become one of the primary ways that organizations improve their value chains.

Question 49

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

Question 50

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

Question 51

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 52

List Porter's primary competitive forces that analyze the competition within an industry.

Question 53

Companies pursuing a ________ strategy attempt to achieve economies of scale by developing products for the worldwide market,which can be sold in large quantities.

A) home-replication
B) multidomestic business
C) transnational business
D) production orientation
E) global business

Question 54

Organizations pursuing a ________ strategy view international operations as secondary to their home operations.

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

Question 55

A ________ strategy is attempted by companies that are extremely flexible and responsive to the needs and demands of local markets.

A) home-replication
B) transaction exposure
C) transnational business
D) free trade
E) multidomestic business

Question 56

Describe the differences between operational-level decision making and tactical-level decision making by managers in organizations.

Question 57

In the context of international business strategies,the strategy that decides which aspects of the organization should be under central control and which should be decentralized is known as ________ strategy.

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

Question 58

The set of activities that add value throughout the organization is known as the value chain within an organization.

Question 59

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

Question 60

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

Question 61

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 use a loose federation of associated business units.
E) They work in a centralized fashion and the home location exerts strong control on the subsidiaries.

Question 62

In the context of international business strategies,focusing on core competencies in a domestic market is an advantage of a(n)________ strategy.

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

Question 63

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 64

Identify an advantage of a transnational business strategy.

A) can achieve benefits of multidomestic and global strategies
B) has the ability to control localization
C) has the ability to refine a task into a number of subtasks
D) can apply predicate logics and set theories
E) can determine the organizational dynamics within a company

Question 65

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 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 66

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 67

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 68

Which of the following is a disadvantage for 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 to local market conditions

Question 69

Web sites like Ultramuzzic.com and Sonetz.com pursue a(n)________ approach for 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 70

Infostruct 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 ________ approach for applying freeconomics.

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

Question 71

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

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

Question 72

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 of 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 73

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

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

Question 74

Mystic Co.,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 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 75

A(n)________ 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 76

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

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

Question 77

Which of the following actions of a firm suggests that it uses the freemium approach for applying freeconomics?

A) It provides free services to customers and gets paid for it by third parties.
B) It reduces the sale price of one item in order to sell something else of value.
C) It distributes products to customers without an appreciable cost to anyone.
D) It offers basic services for free but charges a premium for special features.
E) It allows people to participate and collaborate to create something of value.

Question 78

Madfly Communication,a mobile manufacturer,offers free mobile connections to people who buy its mobile phones.The cost of the mobile connection is actually included in the price of the mobile phone.Madfly Communication is pursuing a(n)________ approach for applying freeconomics.

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

Question 79

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 80

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