MIS 375 Exam 1 UPDATED ACTUAL Questions And Correct Answers
Terms in this set (98)
Main Forms of AI Generative AI and Predictive/Analytical AI.
Financial forecasting & budgeting is NOT strategy
Porter's 5 forces takeaways What causes PROFITABILITY?
What're the TRENDS?
What're your CONSTRAINTS?
Generative AI Uses Frontier Models (Large Language Models). Purpose: create new content and
serve as a reasoning engine for complex tasks.
Predictive/Analytical AI Uses Machine Learning and Neural Networks to identify patterns, classify data,
and provide forecasts.
Key Purpose of AI Automate repetitive tasks and enhance human productivity; eventually those
using AI outperform those who do not.
Three Types of Data in Neural/Vector Databases Text, Audio, Images (represented numerically as embeddings).
How AI Models Are Trained By adjusting parameters and attention weights to recognize mathematical
similarities across large datasets.
Relational Database vs Vector Database Relational databases store structured data in database, tables, rows, columns
(SQL). Vector databases store embeddings in collections, vector spaces, vectors,
and dimensions
Why Private Data Is Important for LLMs as opposed to Provides proprietary context and internal "truth". Using techniques like RAG
public data sources ensures relevant outputs, protects IP, and reduces hallucinations.
Prompting The process of giving an AI specific instructions, personas, and context to shape
its response.
RAG (Retrieval-Augmented Generation) Method where AI retrieves specific documents before generating an answer to
ground outputs in factual data.
Why Vision Statements Are Important They bridge the gap between ideas and successful outcomes by defining the
future state the organization aims to achieve.
Who Cares About Vision Statements Leadership, employees, and stakeholders.
What Vision Statements Influence Strategic actions and cascading departmental goals aligned with the high-level
vision.
What Vision Statements Should Communicate The future state the organization aspires to achieve.
, Importance of Business Values Values provide the ethical and cultural foundation guiding how an org pursues
strategy, organized and consistenly. (Financial, Human, Environmental)
Financial Values (money motives) Stability
Profitability
Investment
Community
Human Values (human sensitivity) Development
Enablement
Equity
Transparency
Environmental Values (planet sustainability) Safe
Sustainable
Efficient
Proactive
Internal Strategy Considerations Analyze resources, capabilities, and whether the vision is viable within the
organization.
External Strategy Considerations Analyze industry landscape, competitor moves, and profitability drivers using
frameworks like Five Forces.
Three Co-Dependent Strategy Decisions when Market Positioning (where to compete), Market Trade-offs (who not to serve),
identifying details Strategic Activity Mapping (how to be different).
Porter's Four Generic Strategies Cost Leadership (broad), Differentiation (broad), Cost Focus (narrow),
Differentiation Focus (narrow).
Factors When Classifying Strategies Market advantage (low cost vs $ unique features) and market focus (broad vs
narrow).
Importance of Competitive Strategy It establishes a unique and valuable position and prevents being "stuck in the
middle."
3 Components to articulate Positioning (3 values of Products, Services, Geographies/Locations.
positioning)
Adjacency Strategic move into related products, services, or markets using existing
capabilities and customers.
Competitive Benchmarking Comparing internal processes and performance against industry
leaders/competitors to identify gaps.
Market Trade-Offs meaning Deliberately choosing to not do things like which customers/activities NOT to
pursue to maintain a clear strategic position or which customers won't be
grouped in segments.
Terms in this set (98)
Main Forms of AI Generative AI and Predictive/Analytical AI.
Financial forecasting & budgeting is NOT strategy
Porter's 5 forces takeaways What causes PROFITABILITY?
What're the TRENDS?
What're your CONSTRAINTS?
Generative AI Uses Frontier Models (Large Language Models). Purpose: create new content and
serve as a reasoning engine for complex tasks.
Predictive/Analytical AI Uses Machine Learning and Neural Networks to identify patterns, classify data,
and provide forecasts.
Key Purpose of AI Automate repetitive tasks and enhance human productivity; eventually those
using AI outperform those who do not.
Three Types of Data in Neural/Vector Databases Text, Audio, Images (represented numerically as embeddings).
How AI Models Are Trained By adjusting parameters and attention weights to recognize mathematical
similarities across large datasets.
Relational Database vs Vector Database Relational databases store structured data in database, tables, rows, columns
(SQL). Vector databases store embeddings in collections, vector spaces, vectors,
and dimensions
Why Private Data Is Important for LLMs as opposed to Provides proprietary context and internal "truth". Using techniques like RAG
public data sources ensures relevant outputs, protects IP, and reduces hallucinations.
Prompting The process of giving an AI specific instructions, personas, and context to shape
its response.
RAG (Retrieval-Augmented Generation) Method where AI retrieves specific documents before generating an answer to
ground outputs in factual data.
Why Vision Statements Are Important They bridge the gap between ideas and successful outcomes by defining the
future state the organization aims to achieve.
Who Cares About Vision Statements Leadership, employees, and stakeholders.
What Vision Statements Influence Strategic actions and cascading departmental goals aligned with the high-level
vision.
What Vision Statements Should Communicate The future state the organization aspires to achieve.
, Importance of Business Values Values provide the ethical and cultural foundation guiding how an org pursues
strategy, organized and consistenly. (Financial, Human, Environmental)
Financial Values (money motives) Stability
Profitability
Investment
Community
Human Values (human sensitivity) Development
Enablement
Equity
Transparency
Environmental Values (planet sustainability) Safe
Sustainable
Efficient
Proactive
Internal Strategy Considerations Analyze resources, capabilities, and whether the vision is viable within the
organization.
External Strategy Considerations Analyze industry landscape, competitor moves, and profitability drivers using
frameworks like Five Forces.
Three Co-Dependent Strategy Decisions when Market Positioning (where to compete), Market Trade-offs (who not to serve),
identifying details Strategic Activity Mapping (how to be different).
Porter's Four Generic Strategies Cost Leadership (broad), Differentiation (broad), Cost Focus (narrow),
Differentiation Focus (narrow).
Factors When Classifying Strategies Market advantage (low cost vs $ unique features) and market focus (broad vs
narrow).
Importance of Competitive Strategy It establishes a unique and valuable position and prevents being "stuck in the
middle."
3 Components to articulate Positioning (3 values of Products, Services, Geographies/Locations.
positioning)
Adjacency Strategic move into related products, services, or markets using existing
capabilities and customers.
Competitive Benchmarking Comparing internal processes and performance against industry
leaders/competitors to identify gaps.
Market Trade-Offs meaning Deliberately choosing to not do things like which customers/activities NOT to
pursue to maintain a clear strategic position or which customers won't be
grouped in segments.
