311 Chp 2
________ are new technologies, products, or services that eventually surpass the existing dominant technology or product in a market.
Disruptive innovations
________ decisions are referred to as unstructured decisions because the problems are relatively complex and non-routine.
Executive-level
At the executive level, information systems are typically used to optimize processes and to better understand the underlying causes of any performance problems.
False
In contrast to global organizations where most of the resources are centralized in different countries, different resources in a transnational company need to be centralized in the company's home country.
False
Increased costs and reduced quality are implications for firms that face an increasing threat of new entrants in its markets.
False
Operational, managerial, and executive decision-making levels are all supported by a single type of information system.
False
Risk tolerance for people within the organization should be low for the deployment of innovative information systems.
False
Tactical-level decision making is more structured and routine than operational-level decision making.
False
The e-business innovation cycle puts strategy ahead of technology.
False
The inability to react to local market conditions is a major disadvantage of firms pursuing a multidomestic business strategy.
False
Unstructured decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.
False
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.
False
Which of the following statements is true about firms pursuing a multidomestic business strategy?
They are extremely flexible and responsive to the needs and demands of local markets.
Which of the following statements is true about firms pursuing a home-replication strategy?
They focus on their domestic customers' needs and wants and merely export their products to generate additional sales.
Managerial-level decision making is referred to as semistructured decision making.
True
The use of information systems has become one of the primary ways that organizations improve their value chains.
True
With respect to international business strategy, ________ is the corporate culture that has evolved in the environment of the firm's home country.
administrative heritage
With reference to assessing value for the IS infrastructure, architectural value is derived from ________.
an investment's ability to extend the infrastructure's capabilities to meet business needs today and in the future
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.
architectural
Walmart pursues a ________ strategy, by which it offers the best prices in its industry on its goods and/or services
best-cost provider
Which of the following is an implication for firms that have a threat of new entrants in their market?
decreased market share
Managers at the tactical level of an organization focus on ________.
deploying organizational resources to achieve the strategic objectives of the organization
To assist ________ decision making, information systems are used to obtain aggregate summaries of trends and projections of the future.
executive-level
Home-replication strategy is also called the ________ strategy.
export
According to the disruptive growth engine, executive leadership will allow a firm to ________.
gain credibility and to bridge sustaining and disruptive product development
Which of the following is a disadvantage of firms that pursue a global strategy?
inability to react quickly to local challenges and opportunities
Which of the following is a disadvantage for firms pursuing a multidomestic business strategy?
limited knowledge transfer between individual subsidiaries
Which of the following actions can be included as a part of operational planning?
making day-to-day decisions that are highly structured and recurring
In an e-business innovation cycle, after an organization scans the environment for new emerging and enabling technologies, the next step is to ________.
match the most promising new technologies with current economic opportunities
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.
operational
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.
operational
Information systems at the ________ level of an organization often help in automating repetitive activities.
operational
While assessing value of the IS infrastructure, if we measure the impact of not investing in a particular project, we are deriving the ________ value.
operational
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.
semistructured
Managers in the ________ level of an organization are referred to as "executives."
strategic
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.
structured
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.
tactical
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.
transnational
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.
transnational
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.
transnational
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.
transnational
With respect to the components of a business model, a ________ is the utility that the product/service has to offer to customers.
value proposition
________ decisions deal with complex problems with broad and long-term ramifications for an organization.
Executive-level
________ 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.
Managerial-level
According to ________, the number of transistors that could be squeezed onto a silicon chip would double every 18 months.
Moore's law
Which of the following statements is true about the e-business innovation cycle?
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.
A home-replication strategy can be referred to as an international strategy.
True
Choosing and implementing an emerging information system is not sufficient to gain or sustain competitive advantage.
True
Executive-level decisions are referred to as unstructured decisions.
True
For unstructured organizational decisions, few or no procedures to follow for a given situation can be specified in advance.
True
In an organization, managers use value chain analysis to identify opportunities where information systems can be used to develop a competitive advantage.
True
In an organizational setup, a functional area represents a discrete area of an organization that focuses on a specific set of activities.
True
Most organizations have three general decision-making levels: operational, managerial, and executive.
True
Organizational learning is the ability of an organization to use past behavior and information to improve its business processes.
True
Organizational strategy is a firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals.
True
________ 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.
Value chain analysis
Which of the following is an example of a best-cost provider strategy?
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.
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.
economic
At the ________ level of an organization, information systems provide KPIs that are focused on balancing performance across the organization.
executive
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.
executive
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.
executive
Managers at the ________ level include the president and chief executive officer, vice presidents, and possibly the board of directors.
executive
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.
global
Reduced prices, need for increased quality, and demand for more services from a firm would result due to ________.
high customers' bargaining power
Within the context of international business strategies, a global strategy is associated with ________.
high degree of global integration and low degree of local responsiveness
Which of the following international business strategies is the most basic form of going global?
home-replication strategy
Which of the following actions would an organization take if it decides to pursue a best-cost provider strategy?
offering products or services of reasonably good quality at competitive prices
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.
operational
At the ________ level of a firm, the routine, day-to-day business processes and interactions with customers occur.
operational
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.
operational
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.
operational
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.
process
Freeconomics is the leveraging of digital technologies to ________.
provide free goods and services to customers as a business strategy for gaining a competitive advantage
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.
regulatory and compliance
Organizations deploying innovative information systems must have the human capital necessary to deploy the new systems. These requirements can be categorized as ________ requirements.
resource
The executive level of an organization is also known as the ________ level.
strategic
Which of the following actions distinguishes firms pursuing a transnational business strategy from firms using business strategies?
striking a balance between centralization and decentralization
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.
structured
The managerial level of an organization is also known as the ________ level.
tactical