31) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
32) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
33) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
11
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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
35) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
36) 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
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
12
37) Unstructured decisions can be programmed directly into operational information systems so
that they can be made with little or no human intervention.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
38) At the executive level, information systems are typically used to optimize processes and to
better understand the underlying causes of any performance problems.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
39) Tactical-level decision making is more structured and routine than operational-level decision
making.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
40) Managerial-level decision making is referred to as semistructured decision making.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
41) Executive-level decisions are referred to as unstructured decisions.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
13
42) 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.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
43) For unstructured organizational decisions, few or no procedures to follow for a given
situation can be specified in advance.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
44) Most organizations have three general decision-making levels: operational, managerial, and
executive.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
45) Operational, managerial, and executive decision-making levels are all supported by a single
type of information system.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
46) In an organizational setup, a functional area represents a discrete area of an organization that
focuses on a specific set of activities.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
14
47) Organizational learning is the ability of an organization to use past behavior and information
to improve its business processes.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
48) Organizational strategy is a firm’s plan to accomplish its mission and goals as well as to gain
or sustain competitive advantage over rivals.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
49) In an organization, managers use value chain analysis to identify opportunities where
information systems can be used to develop a competitive advantage.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
50) The set of activities that add value throughout the organization is known as the value chain
within an organization.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
51) The use of information systems has become one of the primary ways that organizations
improve their value chains.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
15
52) Choosing and implementing an emerging information system is not sufficient to gain or
sustain competitive advantage.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
53) Describe the differences between operational-level decision making and tactical-level
decision making by managers in organizations.
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Synthesis
16
54) Explain the differences between tactical-level decision making and executive-level decision
making by managers in organizations.
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Synthesis
55) Explain how information systems implemented in the operational level are different from
those implemented at the strategic level.
Difficulty: Moderate
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Synthesis
17
56) List Porter’s primary competitive forces that analyze the competition within an industry.
Difficulty: Easy
Learning Obj.: 2.1: Discuss how information systems can be used for automation, organizational
learning, and strategic advantage.
Classification: Concept
57) 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
Difficulty: Easy
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
58) 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
Difficulty: Easy
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
18
59) 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
Difficulty: Easy
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
60) 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
Difficulty: Easy
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
61) 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
Difficulty: Easy
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
19
62) 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.
Difficulty: Moderate
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
63) 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
Difficulty: Easy
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
64) 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
Difficulty: Moderate
Learning Obj.: 2.2: Describe how information systems support business models used by
companies operating in the digital world.
Classification: Concept
20