Information Systems Today, 7e (Valacich)
Chapter 2 Gaining Competitive Advantage Through Information Systems
1) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
2) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
3) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
1
4) ________ 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
6) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Application
2
7) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
8) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
9) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
3
10) The executive level of an organization is also known as the ________ level.
A) managerial
B) tactical
C) operational
D) strategic
E) illusory
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
11) ________ 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
12) The managerial level of an organization is also known as the ________ level.
A) functional
B) tactical
C) executive
D) operational
E) strategic
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
4
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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
14) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Application
15) Managers in the ________ level of an organization are referred to as “executives.”
A) operational
B) tactical
C) functional
D) strategic
E) managerial
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
5
16) ________ 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
17) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
18) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
6
19) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
20) ________ 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
21) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
7
22) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
23) Information systems at the ________ level of an organization often help in automating
repetitive activities.
A) tactical
B) strategic
C) managerial
D) operational
E) executive
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
24) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
8
25) 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.
Difficulty: Difficult
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Application
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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
27) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
9
28) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
29) ________ 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
30) 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
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
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