CS 305 Midterm ACTUAL Questions and
CORRECT Answers
Moore's Law - CORRECT ANSWER- ✔✔The number of transistors per square inch on an
integrated chip doubles every 18 months
Abstract Reasoning - CORRECT ANSWER- ✔✔The ability to make and manipulate models
Systems Thinking - CORRECT ANSWER- ✔✔The ability to model the components of the
system and to connect the inputs and outputs among those components into a sensible whole;
The ability to see the whole
Experimentation - CORRECT ANSWER- ✔✔Making a careful and reasoned analysis of an
opportunity, envisioning potential products/solutions/technology applications, and then
develop those ideas that seem to have the most promise
Business Process - CORRECT ANSWER- ✔✔A sequence of activities that take inputs and
create outputs for accomplishing a function
Information System - CORRECT ANSWER- ✔✔A collection of components that stores and
retrieves data and produces information
Porter's Five Forces - CORRECT ANSWER- ✔✔Threat of Substitutes, Threat of New
Entrants, Existing Rivals, Bargaining Power of Suppliers, and Bargaining Power of
Customers
Threat of Substitutes - CORRECT ANSWER- ✔✔The idea that products or services
available from outside the given industry will come close to meeting the needs of current
customers
Threat of New Entrants - CORRECT ANSWER- ✔✔Based on industry barriers to entry and
the reaction new entrants can expect from established companies in the industry
, Existing Rivals - CORRECT ANSWER- ✔✔How many companies are doing what you are
doing
Bargaining Power of Suppliers/Customers - CORRECT ANSWER- ✔✔Depends on the
number of available suppliers/buyers, switching costs, the differentiation of the product, and
the relative size of the firm compared to the size of suppliers/customers
Porter's Four Competitive Strategies - CORRECT ANSWER- ✔✔Cost Leadership,
Differentiation, Cost-Focus, and Focused-Differentiation. The first two strategies focus on
wide markets, and the last two on narrow markets. Companies should commit to one of the
four competitive strategies at a time.
Value - CORRECT ANSWER- ✔✔The amount of money a customer is willing to pay for a
resource
Margin - CORRECT ANSWER- ✔✔The difference between the value that an activity
generates and the cost of the activity
Value Chain - CORRECT ANSWER- ✔✔A network of value-creating activities
Porter's Five Primary Activities - CORRECT ANSWER- ✔✔Inbound Logistics, Operations,
Outbound Logistics, Sales & Marketing, and Customer Service
Inbound Logistics - CORRECT ANSWER- ✔✔Receiving, storing, and disseminating inputs
to products
Operations - CORRECT ANSWER- ✔✔Transforming inputs into final products
Outbound Logistics - CORRECT ANSWER- ✔✔Collecting, storing, and physically
distributing products to buyers
Porter's Four Support Activities - CORRECT ANSWER- ✔✔Procurement, Technology,
Human Resources, Firm Infrastructure
CORRECT Answers
Moore's Law - CORRECT ANSWER- ✔✔The number of transistors per square inch on an
integrated chip doubles every 18 months
Abstract Reasoning - CORRECT ANSWER- ✔✔The ability to make and manipulate models
Systems Thinking - CORRECT ANSWER- ✔✔The ability to model the components of the
system and to connect the inputs and outputs among those components into a sensible whole;
The ability to see the whole
Experimentation - CORRECT ANSWER- ✔✔Making a careful and reasoned analysis of an
opportunity, envisioning potential products/solutions/technology applications, and then
develop those ideas that seem to have the most promise
Business Process - CORRECT ANSWER- ✔✔A sequence of activities that take inputs and
create outputs for accomplishing a function
Information System - CORRECT ANSWER- ✔✔A collection of components that stores and
retrieves data and produces information
Porter's Five Forces - CORRECT ANSWER- ✔✔Threat of Substitutes, Threat of New
Entrants, Existing Rivals, Bargaining Power of Suppliers, and Bargaining Power of
Customers
Threat of Substitutes - CORRECT ANSWER- ✔✔The idea that products or services
available from outside the given industry will come close to meeting the needs of current
customers
Threat of New Entrants - CORRECT ANSWER- ✔✔Based on industry barriers to entry and
the reaction new entrants can expect from established companies in the industry
, Existing Rivals - CORRECT ANSWER- ✔✔How many companies are doing what you are
doing
Bargaining Power of Suppliers/Customers - CORRECT ANSWER- ✔✔Depends on the
number of available suppliers/buyers, switching costs, the differentiation of the product, and
the relative size of the firm compared to the size of suppliers/customers
Porter's Four Competitive Strategies - CORRECT ANSWER- ✔✔Cost Leadership,
Differentiation, Cost-Focus, and Focused-Differentiation. The first two strategies focus on
wide markets, and the last two on narrow markets. Companies should commit to one of the
four competitive strategies at a time.
Value - CORRECT ANSWER- ✔✔The amount of money a customer is willing to pay for a
resource
Margin - CORRECT ANSWER- ✔✔The difference between the value that an activity
generates and the cost of the activity
Value Chain - CORRECT ANSWER- ✔✔A network of value-creating activities
Porter's Five Primary Activities - CORRECT ANSWER- ✔✔Inbound Logistics, Operations,
Outbound Logistics, Sales & Marketing, and Customer Service
Inbound Logistics - CORRECT ANSWER- ✔✔Receiving, storing, and disseminating inputs
to products
Operations - CORRECT ANSWER- ✔✔Transforming inputs into final products
Outbound Logistics - CORRECT ANSWER- ✔✔Collecting, storing, and physically
distributing products to buyers
Porter's Four Support Activities - CORRECT ANSWER- ✔✔Procurement, Technology,
Human Resources, Firm Infrastructure
