ITEC Exam 1 Study Questions &
Answers
People, Processes and Systems - ANSWERSPeople on their own have to do work. Process helps
people do better work. Technology helps people do faster, more innovative work.
Data vs Information - ANSWERSData are raw, unprocessed facts. Information is processed and
organized data that is made useful.
Porter's 5 Force Model - ANSWERSExplains industry competitive analysis: how competitive you
are within the industry, how competitive that industry is. The forces are:
- Potential New Entrants
- Power of Buyers
- Power of Supplies
- Threat of Substitutes
- Competition
Fast Follower Problem - ANSWERSWhen a new product comes into the market, others can
quickly come out with new and improved versions of it.
Zara - ANSWERSHas a competitive advantage because of its centralized supply chain. All
manufacturing is done in Spain, and they do not advertise, which cuts costs by a lot. Also uses
Personal Digital Assistant and POS System which keeps track of customer data.
Vertically Integrated - ANSWERSWhen a single firm owns several layers in its value chain.
Answers
People, Processes and Systems - ANSWERSPeople on their own have to do work. Process helps
people do better work. Technology helps people do faster, more innovative work.
Data vs Information - ANSWERSData are raw, unprocessed facts. Information is processed and
organized data that is made useful.
Porter's 5 Force Model - ANSWERSExplains industry competitive analysis: how competitive you
are within the industry, how competitive that industry is. The forces are:
- Potential New Entrants
- Power of Buyers
- Power of Supplies
- Threat of Substitutes
- Competition
Fast Follower Problem - ANSWERSWhen a new product comes into the market, others can
quickly come out with new and improved versions of it.
Zara - ANSWERSHas a competitive advantage because of its centralized supply chain. All
manufacturing is done in Spain, and they do not advertise, which cuts costs by a lot. Also uses
Personal Digital Assistant and POS System which keeps track of customer data.
Vertically Integrated - ANSWERSWhen a single firm owns several layers in its value chain.
