MBA 6020 Exam 1 Questions With
Accurate Answers
Initial Public Offering (IPO) - ANSWER The first time a firm makes shares
available via a public stock exchange, also known as "going public".
Internet of Things (IOT) - ANSWER A vision where low-cost sensors, processors,
and communication are embedded into a wide array of products and our
environment, allowing a vast network to collect data, analyze input, and
automatically coordinate collective action.
Sarbanes-Oxley Act (SOX) - ANSWER U.S. legislation enacted in the wake of the
accounting scandals of the early 2000s. The act raises executive and board
responsibility and ties criminal penalties to certain accounting and financial
violations. Although often criticized, SOX is also seen as raising stakes for
mismanagement and misdeeds related to a firm's accounting practices.
Sustainable Competitive Advantage - ANSWER Financial performance that
consistently outperforms industry averages
Operational Effectiveness - ANSWER Performing the same tasks better than
rivals perform them
Commodity - ANSWER A basic good that can be interchanged with nearly
identical offerings by others—think milk, coal, orange juice, or to a lesser extent,
Windows PCs and Android phones. The more commoditized an offering, the
greater the likelihood that competition will be based on price.
Fast Follower Problem - ANSWER Exists when savvy rivals watch a pioneer's
efforts, learn from their successes and missteps, then enter the market quickly
with a comparable or superior product at a lower cost before the first mover can
dominate.
Augmented Reality - ANSWER A technology that superimposes content, such as
images and animation, on top of real-world images.
Strategic Positioning - ANSWER Performing different tasks than rivals, or the
same tasks in a different way.
Inventory Turns - ANSWER Sometimes referred to as inventory turnover, stock
turns, or stock turnover. It is the number of times inventory is sold or used
, during a given period. A higher figure means that a firm is selling products
quickly.
Straddling - ANSWER Attempts to occupy more than one position, while failing to
match the benefits of a more efficient, singularly focused rival.
Resource-Based View of Competitive Advantage - ANSWER The strategic
thinking approach suggesting that if a firm is to maintain sustainable competitive
advantage, it must control an exploitable resource, or set of resources, that
have four critical characteristics. These resources must be (1) valuable, (2)
rare, (3) imperfectly imitable, and (4) nonsubstitutable.
Dense Wave Division Multiplexing (DWDM) - ANSWER A technology that
increases the transmission capacity (and hence speed) of fiber-optic cable.
Transmissions using fiber are accomplished by transmitting light inside "glass"
cables. In DWDM, the light inside fiber is split into different wavelengths in a way
similar to how a prism splits light into different colors.
Imitation-Resistant Value Chain - ANSWER A way of doing business that
competitors struggle to replicate and that frequently involves technology in a
key enabling role.
Value Chain - ANSWER The set of activities through which a product or service
is created and delivered to customers.
Virtual Marketing - ANSWER Leveraging consumers to promote a product or
service.
Scale Advantages - ANSWER Advantages related to size.
Economies of Scale - ANSWER When costs can be spread across increasing
units of production or in serving multiple customers. Businesses that have
favorable economies of scale (like many Internet firms) are sometimes referred
to as being highly scalable.
Switching Costs - ANSWER The cost a consumer incurs when moving from one
product to another. It can involve actual money spent (e.g., buying a new
product) as well as investments in time, any data loss, and so forth.
Network Effects - ANSWER Also known as Metcalfe's Law, or network
externalities. When the value of a product or service increases as its number of
users expands.
Distribution Channels - ANSWER The path through which products or services
get to customers.
Accurate Answers
Initial Public Offering (IPO) - ANSWER The first time a firm makes shares
available via a public stock exchange, also known as "going public".
Internet of Things (IOT) - ANSWER A vision where low-cost sensors, processors,
and communication are embedded into a wide array of products and our
environment, allowing a vast network to collect data, analyze input, and
automatically coordinate collective action.
Sarbanes-Oxley Act (SOX) - ANSWER U.S. legislation enacted in the wake of the
accounting scandals of the early 2000s. The act raises executive and board
responsibility and ties criminal penalties to certain accounting and financial
violations. Although often criticized, SOX is also seen as raising stakes for
mismanagement and misdeeds related to a firm's accounting practices.
Sustainable Competitive Advantage - ANSWER Financial performance that
consistently outperforms industry averages
Operational Effectiveness - ANSWER Performing the same tasks better than
rivals perform them
Commodity - ANSWER A basic good that can be interchanged with nearly
identical offerings by others—think milk, coal, orange juice, or to a lesser extent,
Windows PCs and Android phones. The more commoditized an offering, the
greater the likelihood that competition will be based on price.
Fast Follower Problem - ANSWER Exists when savvy rivals watch a pioneer's
efforts, learn from their successes and missteps, then enter the market quickly
with a comparable or superior product at a lower cost before the first mover can
dominate.
Augmented Reality - ANSWER A technology that superimposes content, such as
images and animation, on top of real-world images.
Strategic Positioning - ANSWER Performing different tasks than rivals, or the
same tasks in a different way.
Inventory Turns - ANSWER Sometimes referred to as inventory turnover, stock
turns, or stock turnover. It is the number of times inventory is sold or used
, during a given period. A higher figure means that a firm is selling products
quickly.
Straddling - ANSWER Attempts to occupy more than one position, while failing to
match the benefits of a more efficient, singularly focused rival.
Resource-Based View of Competitive Advantage - ANSWER The strategic
thinking approach suggesting that if a firm is to maintain sustainable competitive
advantage, it must control an exploitable resource, or set of resources, that
have four critical characteristics. These resources must be (1) valuable, (2)
rare, (3) imperfectly imitable, and (4) nonsubstitutable.
Dense Wave Division Multiplexing (DWDM) - ANSWER A technology that
increases the transmission capacity (and hence speed) of fiber-optic cable.
Transmissions using fiber are accomplished by transmitting light inside "glass"
cables. In DWDM, the light inside fiber is split into different wavelengths in a way
similar to how a prism splits light into different colors.
Imitation-Resistant Value Chain - ANSWER A way of doing business that
competitors struggle to replicate and that frequently involves technology in a
key enabling role.
Value Chain - ANSWER The set of activities through which a product or service
is created and delivered to customers.
Virtual Marketing - ANSWER Leveraging consumers to promote a product or
service.
Scale Advantages - ANSWER Advantages related to size.
Economies of Scale - ANSWER When costs can be spread across increasing
units of production or in serving multiple customers. Businesses that have
favorable economies of scale (like many Internet firms) are sometimes referred
to as being highly scalable.
Switching Costs - ANSWER The cost a consumer incurs when moving from one
product to another. It can involve actual money spent (e.g., buying a new
product) as well as investments in time, any data loss, and so forth.
Network Effects - ANSWER Also known as Metcalfe's Law, or network
externalities. When the value of a product or service increases as its number of
users expands.
Distribution Channels - ANSWER The path through which products or services
get to customers.
