question

Which of the following is a disadvantage for firms pursuing a multi-domestic business strategy? [a] inability to react quickly to local challenges and opportunities [b] restriction of decision-making ability of subsidiaries [c] limited knowledge transfer between individual subsidiaries [d] lack of interest in obtaining additional knowledge about foreign operations [e] exerting unnecessary control over subsidiaries

answer

[c] limited knowledge transfer between individual subsidiaries

question

The concept of freeconmics cannot be applied to industries other than Web e-mail or online searches. [a] True [b] False

answer

[b] False

question

Which of the following actions can be included as a part of operational planning? [a] dealing with complex problems with broad and long-term ramifications for the organization [b] focusing on balancing performance across the organization [c] focusing on long-term strategic questions facing the organization [d] making day-to-day decisions that are highly structured and recurring [e] effectively utilizing and deploying organizational resources to achieve strategic objectives

answer

[d] making day-to-day decisions that are highly structured and recurring

question

In an organizational setup, a functional area represents area of an organization that focuses on a specific set of activities. [a] True [b] False

answer

[a] True

question

While assessing value of the IS infrastructure, if we measure the impact of not investing in a particular project, we are deriving the ____ value. [a] operational [b] compliance [c] economic [d] architectural [e] regulatory

answer

[a] operational

question

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] tactical [b] operational [c] regulatory and compliance [d] architectural and tactical [e] economic

answer

[c] regulatory and compliance

question

A home-replication strategy can be referred to as an international strategy. [a] True [b] False

answer

[a] True

question

Within the context of international business strategies, a global strategy is associated with _____. [a] high degree of global integration and high degree of local responsiveness [b] low degree of global integration and lack of local responsiveness [c] low degree of global integration and high degree of local responsiveness [d] low degree of global integration and low degree of local responsiveness [e] high degree of global integration and low degree of local responsiveness

answer

[e] high degree of global integration and low degree of local responsiveness

question

Which of the following statements is true about firms pursuing a multidomestic business strategy? [a] The knowledge transfer between subsidiaries is abundant. [b] There is a huge amount of data and control information flow between the home and subsidiary locations. [c] They have standard offerings across markets and give preference to international business. [d] They work in a centralized fashion and the home location exerts strong control on the subsidiaries. [e] They are extremely flexible and responsive to the needs and demands of local markets.

answer

[e] They are extremely flexible and responsive to the needs and demands of local markets.

question

Which of the following international business strategies is the most basic form of going global? [a] home-replication strategy [b] transnational strategy [c] import strategy [d] global strategy [e] multidomestic strategy

answer

[a] home-replication strategy

question

At the ____ level of a firm, the routine, day-to-day business processes and interactions with customers occur. [a] managerial [b] strategic [c] operational [d] tactical [e] executive

answer

[c] operational

question

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. [a] True [b] False

answer

[b] False

question

Managers in the ____ level of an organization are referred to as "executives." [a] functional [b] strategic [c] managerial [d] tactical [e] operational

answer

[b] strategic

question

Organizational strategy is a firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals. [a] True [b] False

answer

[a] True

question

The managerial level of an organization is also known as the ____ level. [a] executive [b] strategic [c] operational [d] tactical [e] functional

answer

[d] tactical

question

Administrative heritage

answer

The corporate culture that has evolved in the environment of a firm's home country.

question

Automating

answer

Using information systems to do an activity faster, cheaper, and perhaps with more accuracy and/or consistency.

question

Best-cost provider strategy

answer

A strategy to offer products or services of reasonably good quality at competitive prices.

question

Business/IT alignment

answer

The alignment of information systems with a business's strategy.

question

Business model

answer

The summary of a business's strategic direction, outlining how the objectives will be achieved; a business model specifies how a company will create, deliver, and capture value.

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Business process

answer

A set of related activities an organization performs in order to reach its business goals.

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Capabilities

answer

An organization's ability to leverage its resources.

question

Differentiation strategy

answer

A strategy in which an organization differentiates itself by providing better products or services than its competitors.

question

Domestic company

answer

A company operating solely in its domestic market.

question

E-buiness

answer

A term used to refer to the use of a variety of types of information technologies and systems to support every part of the business.

question

E-business innovation cycle

answer

A model suggesting that the extent to which modern organizations use information technologies and systems in timely, innovation ways is the key to success.

question

Economic opportunities

answer

Opportunities that a firm finds for making money and/or making money in new ways.

question

Enabling technology

answer

An information technology that enables a firm to accomplish a task or goal or to gain or sustain a competitive advantage in some way.

question

Executive level

answer

The top level of the organization, where executives focus on long-term strategic issues facing the organization.

question

First-mover advantages

answer

Being the first to enter a market.

question

Freeconomics

answer

The leveraging of digital technologies to provide free goods and services to customers as a business strategy for gaining a competitive advantage.

question

Functional are information system

answer

A cross-organization-level information system designed to support a specific functional area.

question

Global business strategy

answer

An international business strategy employed to achieve economies of scale by producing identical products in large quantities for a variety of different markets.

question

Home-replication strategy

answer

An international business strategy that views the international business as an extension of the home business.

question

Innovator's dilemma

answer

The notion that disruptive innovations can cause established firms or industries to lose market dominance, often leading to failure.

question

International business strategy

answer

A set of strategies employed by organizations operating in different global markets.

question

Key performance indicator (KPI)

answer

A metric deemed critical to assessing progress toward a certain organizational goal.

question

Low-cost leadership strategy

answer

A strategy to offer the best prices in the industry on goods or services.

question

Managerial level

answer

The middle level of the organization, where functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization.

question

Multidomestic business strategy

answer

A decentralized international business strategy using a federation of associated business units, employed to be flexible and responsive to the needs and demands of heterogeneous local markets.

question

Operational level

answer

The bottom level of an organization, where the routine, day-to-day business processes and interactions with customers occur.

question

Organizational learning

answer

The ability of an organization to learn from past behavior and information, improving as a result.

question

Organizational strategy

answer

A firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals.

question

Resources

answer

An organization's specific assets that are utilized to create cost or product differentiation from their competitors.

question

Revenue model

answer

Part of a business model that describes how the organization will earn revenue, generate profits, and produce a superior return on invested capital.

question

Semistructured decision

answer

A decision where problems and solutions are not clear-cut and often require judgement and expertise.

question

Strategic necessity

answer

Something an organization must do in order to survive.

question

Strategic planning

answer

The process of forming a vision of where the organization needs to head, converting that vision into measurable objectives and performance targets, and crafting a plan to achieve the desired results.

question

Structured decision

answer

A decision where the procedures to follow for a given situation can be specified in advance.

question

Transaction

answer

Anything that occurs as part of daily business of which an organization must keep a record.

question

Transnational business strategy

answer

An international business strategy that allows companies to leverage the flexibility offered by a decentralized organization (to be more responsive to local conditions) while at the same time reaping economies of scale enjoyed by centralization; characterized by a balance between centralization and decentralization and interdependent resources.

question

Unstructured decision

answer

A decision where few or no procedures to follow for a given situation can be specified in advance.

question

Value chain

answer

The set of primary and support activities in an organization where value is added to a product or service.

question

Value chain analysis

answer

The process of analyzing an organization's activities to determine where value is added to products and/or services and the costs that are incurred for doing so.

question

Value creation

answer

An organization providing products at a lower cost or with superior (differentiated) benefits to the customer.

question

Value proposition

answer

The utility that the product/service has to offer to customers.

MIS 201 – Chapter 2 MC/TF – Flashcards

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