Question 1

With respect to general approaches for applying freeconomics to various industries,sale price of one item being reduced in order to sell something else of value is called ________ approach.

Accepted Answer

This is an example of cross subsidies, where the revenue from one product is used to subsidize the sale of another product.

Question 2

Organizational learning is the ability of an organization to use past behavior and information to improve its business processes.

Accepted Answer

Organizational learning involves analyzing past experiences and knowledge to improve the performance of an organization.

Question 3

Executive-level decisions are referred to as unstructured decisions.

Accepted Answer

Executive-level decisions are often complex and involve a high degree of uncertainty and ambiguity, making them unstructured. They require human judgment and analysis, and cannot be easily automated or standardized.

Question 4

Musicmatch Jukebox is an all-in-one music management tool that was first marketed in 1999.Most users can use the Basic/Free version,but a $19.99 upgrade provides extra features such as supertagging and faster ripping and burning.Which of the following explains this approach to applying freeconomics?

Accepted Answer

The freemium approach is when a basic version of a product or service is made available for free, but with limited features or functionality. Users can then choose to upgrade to a paid version for additional features. This is exactly what Musicmatch Jukebox is doing by offering a Basic/Free version and a paid upgrade with extra features.

Question 5

Tele'Wire,a mobile manufacturer,offers free connections to customers who buy its mobile phones.This cost of connection is actually included in the price of the mobile phone.Tele'Wire is pursuing a(n)________ approach to applying freeconomics.

Accepted Answer

Cross subsidies approach is applied in this scenario where the cost of connection is included in the price of the mobile phone. This allows Tele'Wire to offer free connections to its customers.

Question 6

For unstructured organizational decisions,few or no procedures to follow for a given situation can be specified in advance.

Accepted Answer

Unstructured organizational decisions are those that do not have specific procedures or guidelines to follow, making them more open-ended and requiring a more creative approach to problem-solving.

Question 7

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.

Accepted Answer

Top level managers typically focus on overall organizational goals and strategy, rather than specific business functions.

Question 8

Operational,managerial,and executive decision-making levels are all supported by a single type of information system.

Accepted Answer

Operational, managerial, and executive decision-making levels are supported by different types of information systems, such as transaction processing systems, management information systems, and executive information systems, respectively.

Question 9

At the executive level,information systems are typically used to optimize processes and to better understand the underlying causes of any performance problems.

Accepted Answer

The answer of At the executive level,information systems are typically...

Question 10

Which of the following actions of a firm suggests that it is using the freemium approach to applying freeconomics?

Accepted Answer

Offering basic services for free but charging a premium for special features is the core concept of the freemium approach to freeconomics. This model involves offering a basic version of a product or service for free while charging customers for additional features or upgrades to the free version. This can be seen in software applications, online services and media platforms.

Question 11

Tactical-level decision making is more structured and routine than operational-level decision making.

Accepted Answer

Tactical-level decision making often involves responding to specific challenges and opportunities with a degree of flexibility, whereas operational-level decision making tends to be more structured and routine, focusing on the day-to-day operations of an organization.

Question 12

Wikipedia is a free,Web-based,collaborative,multilingual encyclopedia project supported by the non-profit Wikimedia Foundation.Its 17 million articles have been written collaboratively by volunteers around the world,and almost all of its articles can be edited by anyone with access to the site.This allows people to participate and create something of value for everyone.Wikipedia is pursuing a(n)________ approach to applying freeconomics.

Accepted Answer

Wikipedia operates using a gift economy approach, where individuals contribute their time and knowledge for the benefit of the community without the expectation of monetary compensation. This aligns with the principles of freeconomics, which emphasizes the importance of providing value to the community through sharing and collaboration.

Question 13

Most organizations have three general decision-making levels: operational,managerial,and executive.

Accepted Answer

This statement is true. Most organizations have multiple levels of decision-making, which can be categorized as operational, managerial, and executive.

Question 14

Managerial-level decision making is referred to as semistructured decision making.

Accepted Answer

Managerial-level decision making involves a mix of structured and unstructured decisions, making it semistructured decision making.

Question 15

Web sites like ez-tracks and beemp3 pursue a(n)________ approach to applying freeconomics when they offer free music downloads for users because reproduction and distribution of these products come at no cost.

Accepted Answer

The zero marginal cost approach is applied when there is no cost associated with reproducing or distributing the product. In this case, the free music downloads offered by these websites incur no cost for reproduction or distribution, hence making it a zero marginal cost approach.

Question 16

In an organizational setup,a functional area represents a discrete area of an organization that focuses on a specific set of activities.

Accepted Answer

A functional area is a specific area within an organization that specializes in a specific set of activities such as marketing, finance, human resources, operations, etc.

Question 17

In an organization,managers use value chain analysis to identify opportunities where information systems can be used to develop a competitive advantage.

Accepted Answer

Value chain analysis is a tool used by managers to identify opportunities for creating value in the organization. Information systems can play a crucial role in creating competitive advantages in various stages of the value chain, such as inbound logistics, operations, marketing, and after-sales service. Therefore, managers use value chain analysis to identify these opportunities and leverage information systems to achieve a competitive advantage.

Question 18

With respect to general approaches for applying freeconomics to various industries,the ________ approach means creating an environment that allows people to participate and collaborate to create something of value for everyone.

Accepted Answer

The gift economy approach is based on the idea of giving and sharing without any expectation of receiving something in return. It is about creating an environment of mutual aid where people participate and collaborate to create something of value for everyone. This approach can be applied to various industries, such as open-source software, where developers contribute their time and skills to create software that can be used by anyone for free.

Question 19

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

Accepted Answer

This statement is true. Organizational strategy refers to the overall plan and approach of a firm to achieve its objectives and create a sustainable competitive advantage in the marketplace. This involves making decisions about resource allocation, organizational structure, product and service offerings, marketing strategies, and other key components of business operations. A well-crafted organizational strategy can help a company stay ahead of its competitors and achieve long-term success.

Question 20

Unstructured decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.

Accepted Answer

Unstructured decisions involve subjective judgment and cannot be fully automated or programmed into information systems. They require human intervention and analysis.

Quiz 2: Gaining Competitive Advantage Through Information Systems