UHD - EIS 3302 - Chapter 2

At the tactical level of the​ organization, managers focus on using organizational resources to increase​ ________. A. effectiveness B. efficiency C. accuracy D. speed E. utilization

A. effectiveness

Companies pursuing a __________ business strategy attempt to achieve economies of scale by developing products for the global market, which can be sold in large quantities. A. global B. home replication C. multidomestic D. transnational

A. global

Sources of competitive advantage include all of the following​ except: A. increasing the time to market B. being the first to enter a market C. reducing costs compared to rivals D. delivering superior customer service E. attaining superior product quality

A. increasing the time to market

Porsche, Nordstrom, and IBM are examples of companies that pursue which type of strategy? A. A differentiation strategy B. A low-cost leadership strategy C. A best-cost provider strategy D. An organizational strategy

A. A differentiation strategy

Which type of strategy would a company pursue if it wanted to try to provide better products or services than its competitors? A. A differentiation strategy B. A low-cost leadership strategy C. A best-cost provider strategy D. An organizational strategy

A. A differentiation strategy

Which of the following best describes architectural value? A. An investment's ability to extend the IS infrastructure's capabilities to meet business needs today and in the future B. The contribution an investment makes toward improving the IS infrastructure's ability to enhance the profitability of the business C. An investment's impact on enabling the IS infrastructure to better meet business processing requirements D. The extent to which an investment in IS infrastructure helps to meet requirements for control, security, and integrity as required by a governing body or a key customer

A. An investment's ability to extend the IS infrastructure's capabilities to meet business needs today and in the future

At which level of decision making do information systems help to improve a firm's effectiveness by automating monitoring and controlling activities? A. At the managerial level B. At the executive level C. At the operational level D. At the strategic level

A. At the managerial level

How do key performance indicators help functional managers to enhance business processes? A. By assessing the organization's progress toward a certain goal B. By automating repetitive day-to-day activities C. By making specific recommendations for making decisions D. By providing structured decisions

A. By assessing the organization's progress toward a certain goal

How does freeconomics work? A. Companies provide free goods and services to customers to gain a competitive advantage. B. Companies provide discounts on goods and services in an attempt to get repeat customers. C. Companies allow users to pay to upgrade to receive better goods or services. D. Companies provide free goods and services as a tax write-off.

A. Companies provide free goods and services to customers to gain a competitive advantage.

The home-replication business strategy involves which of the following? A. Focusing on domestic customers' needs and wants and exporting products to generate additional sales B. Attempting to achieve economies of scale by producing identical products in large quantities for a variety of different markets C. Using a loose federation of associated business units, each of which is rather independent in its strategic decisions D. Deciding which aspects of an organization should be under central control and which should be decentralized

A. Focusing on domestic customers' needs and wants and exporting products to generate additional sales

Porsche designs very high-performance cars geared toward driving on the Autobahn, even though few countries besides Germany have no speed limit on their highways. What is this type of international business strategy called? A. Home replication B. Global C. Multidomestic D. Transnational

A. Home replication

Which of the following best describes a value proposition? A. It is what a business provides to a customer and what the customer is willing to pay for that product or service. B. It is anything that occurs as a part of daily business of which a record must be kept. C. It allows users to pay to upgrade from a free service to receive better goods or services. D. It occurs when an organization can provide products at a lower cost or with superior benefits to the customer.

A. It is what a business provides to a customer and what the customer is willing to pay for that product or service.

Which of the following is a challenge for organizations when it comes to sustaining a competitive advantage? A. Markets, customer expectations, and technology change. B. A firm can't copy its competitors' strategic systems to remain competitive. C. The Internet has given large companies an advantage, making it hard to compete against them. D. The pace of technological change has slowed along with the economy.

A. Markets, customer expectations, and technology change.

__________ refers to the extent to which an Is infrastructure investment helps to meet requirements for control, security, and integrity as required by a governing body or a key customer. A. Regulatory and compliance value B. Economic value C. Architectural value D. Operational value

A. Regulatory and compliance value

Which of the following statements is true of operational-level decisions? A. They are highly structured and recurring. B. They focus on specific business functions. C. They predict future transactions. D. They guide long-term strategies.

A. They are highly structured and recurring.

Which of the following statements about using information systems as a strategic innovation is​ true? A. Using information systems to gain competitive advantage in operating efficiencies will be readily imitated by rivals and is not easily sustained. B. Using information systems as a strategic innovation is impossible. C. Information systems cannot be used to make a product or service unique. D. Using information systems to lower operating costs will produce​ lasting, sustainable competitive advantages. E. None of the statements are true.

A. Using information systems to gain competitive advantage in operating efficiencies will be readily imitated by rivals and is not easily sustained.

The __________ business strategy uses a loose federation of associated business units, each of which is rather independent about its strategic decisions. A. multidomestic B. home replication C. global D. transnational

A. multidomestic

With the __________ business strategy, the degree of integration is low, and the individual subunits can respond quickly to their respective market demands. A. multidomestic B. home replication C. global D. transnational

A. multidomestic

At the executive level of decision making, information systems are used to __________. A. obtain aggregate summaries of trends and projections of the future B. improve a firm's effectiveness by automating the monitoring and controlling activities C. automate repetitive activities D. help with routine, day-to-day business processes and interactions

A. obtain aggregate summaries of trends and projections of the future

As a senior manager in an automobile manufacturing unit, Kendra is assessing the value of a new automation system. Kendra assesses its value by analyzing staff production as a manual process without the new system. This approach to assessing the IS infrastructure can create __________. A. operational value B. economic value C. architectural value D. regulatory and compliance value

A. operational value

Having the human capital needed to deploy innovative information systems is associated with​ ________ requirements. A. resource B. risk tolerance C. process D. strategic E. operational

A. resource

Economic value refers to __________. A. the contribution an investment makes toward improving the IS infrastructure's ability to enhance the profitability of the business B. an investment's ability to extend the IS infrastructure's capabilities to meet business needs today and in the future C. an investment's impact on enabling the IS infrastructure to better meet business processing requirements D. 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. the contribution an investment makes toward improving the IS infrastructure's ability to enhance the profitability of the business

A __________ is what a business provides to a customer and what the customer is willing to pay for that product or service. A. value proposition B. transaction C. freemium D. value creation

A. value proposition

Which of the following is NOT one of the general types of organizational​ strategy? A. Broad differentiation B. Cost maximization C. Focused differentiation D. Overall​ low-cost leadership E. Best-cost provider

B. Cost maximization

​________ can be used to identify opportunities to apply information systems to support activities performed throughout the business and thereby gain a competitive advantage. A. Competitive studies B. Value chain analysis C. Focus groups D. Market research E. Financial forecasts

B. Value chain analysis

A new​ technology, product, or service that eventually surpasses the existing dominant​ technology, product, or service in the market is termed a​ ________. A. ​resource-intensive innovation B. disruptive innovation C. stationary innovation D. transitory innovation E. distinctive innovation

B. disruptive innovation

Organizations offering a free basic subscription that can be upgraded to a​ fee-based, premium subscription offering more features is applying the​ ________ subscription business model. A. licensing B. freemium C. traditional sales D. affiliate marketing E. brokerage

B. freemium

An​ e-business revenue model that involves users paying a fee for using protected intellectual property is called​ ________. A. affiliate marketing B. licensing C. subscription D. traditional sales E. brokerage

B. licensing

Establishing electronic connections with suppliers and customers is one way organizations enhance their​ _______ with information systems. A. market research B. value chains C. focus groups D. financial forecasts E. competitive studies

B. value chains

Which of the following is NOT one of​ Porter's five primary competitive​ forces? A. Substitute goods B. Industry rivalry C. Information D. Threat of new entrants E. Customer bargaining power

C. Information

An​ e-business revenue model that involves paying businesses that bring or refer customers to another business is called​ ________. A. traditional sales B. brokerage C. affiliate marketing D. subscription E. licensing

C. affiliate marketing

Organizations can more effectively respond to disruptive innovations in their industry by following the​ ________ process. A. risk avoidance B. ​innovator's dilemma C. disruptive growth engine D. integrity E. participation

C. disruptive growth engine

Companies that pursue​ a(n) _______ international business strategy attempt to achieve economies of scale by developing products for the global market that can be sold in large quantities. A. ​home-replication B. ​multi-tiered C. global D. multidomestic E. transnational

C. global

Using information systems to develop extensive knowledge of your​ customers, thereby providing​ high-quality customer​ service, ________. A. decreases customer switching costs B. makes your products a commodity. C. increases customer switching costs D. adds uniqueness to your products. E. none of the statements are correct.

C. increases customer switching costs

A surprising recommendation from the disruptive innovation cycle​ is: A. put marketing ahead of strategy. B. always put strategy first. C. put technology ahead of strategy. D. innovate once and forget it. E. put marketing ahead of technology.

C. put technology ahead of strategy.

Which of the following challenges of innovative information systems is illustrated by the​ "format wars" of​ Blu-ray versus​ HD-DVD? A. Innovation is often fleeting. B. Innovation is not worthwhile. C. Innovation is often easy. D. Innovation is often risky. E. None of the statements are correct.

D. Innovation is often risky.

Which of the following perspectives focuses on using information systems to improve business processes based on the analysis of past​ behavior? A. Strategic redesign B. Strategic planning C. Automation D. Organizational learning E. Organizational redesign

D. Organizational learning

Which of the following is NOT a valid approach to use in assessing the value of an​ organization's IS infrastructure. A. Operational value B. Architectural value C. Economic value D. Predictive value E. Regulatory and compliance value

D. Predictive value

​A(n) _______ refers to anything that occurs as a part of an​ organization's daily business for which a record must be kept. A. activity B. event C. information system D. transaction E. business process

D. transaction

The​ _______ international business strategy has a weakness of being very complex and difficult to manage. A. global B. multidomestic C. ​multi-tiered D. transnational E. ​home-replication

D. transnational

​______ is(are) the​ activity(ies) organizations perform in order to reach their business goals. A. Playing games B. Estimation C. Automating work D. Making decisions E. Business processes

E. Business processes

The purpose of a business model is​ to: A. define what a company does. B. identify the costs involved. C. identify the key resources and activities that are needed. D. specify how a company generates revenue. E. all of the statements are correct.

E. all of the statements are correct.

The​ ________ component of a business model outlines the utility that the product or service has to offer the customer. A. channels B. revenue streams C. key resources D. customer relationships E. value proposition

E. value proposition

​________ decisions are relatively straightforward and usually can be programmed directly into​ _______ information systems. A. ​Unstructured; managerial B. ​Strategic; operational C. ​Executive; strategic D. ​Semi-structured; executive E. ​Structured; operational

E. ​Structured; operational