IIMT 2601 Final Exam Questions and Answers Already Passed
Core Businesses - AnswersProcuring input, producing output, and sales
Procure-to-Pay - AnswersThe processes associated with procuring goods from external
vendors/suppliers
Direct Goods - AnswersIntegrally involved in production process
Indirect Goods - AnswersAll goods not directly involved in production process
MRO Goods - AnswersMaintenance, Repair, and Operations goods; essential for ensuring that
operations run smoothly. Type of indirect good.
Contract Purchasing - AnswersInvolves long-term written agreements to purchase specified products
with agreed-upon terms and quality.
Spot Purchasing - AnswersInvolves purchase of goods based on immediate needs in larger marketplaces
that involve many suppliers. More flexible and urgent.
MTS/MTO - AnswersThe processes associated with producing goods
Make-to-Order (MTO) - AnswersRaw materials, subcomponents, and accessories are procured using
forecasts; but actual manufacturing does not start until sales orders are received. Processed is pulled by
Demand.
Make-to-Stock (MTS) - AnswersGoods are produced based on forecasts and are stocked in a warehouse.
Process is pushed by customer demand.
Order-to-Cash - AnswersThe processes associated with selling a product or service. From a customer
ordering an item to you collecting the payment for it.
The Business Model - Answers1. Presence of Business (where)
2. Revenue Strategy
3. Pricing Strategy
4. Value Proposition
5. Competitive Environment
6. Marketing Strategy
7. Management Team
Presence of Business - AnswersAn integral component of making a business model.
- Companies must position themselves to compete in the new E-Commerce environment
, - Brick and Mortar, Click and Mortar, Click Only
Business Model Revenue Strategies - Answers1. Transaction Fees
2. Traditional Sales
3. Web/Mobile Advertising
4. Subscription Based
5. Affiliate Marketing (Referral Gains)
Price Discrimination - AnswersSelling products to different people and groups based on their willingness
to pay.
Pricing Strategies - Answers1. Versioning, creating multiple versions for people at different market
segments and at different prices
2. Bundling, offers consumers two or more goods at a cheaper price
3. Dynamic Pricing, adjusted according to demand or supply
4. Freemium, free with premium option
5. Free Trial
Value Proposition - AnswersAnswers why someone should do businesses with you
Mainstream products - AnswersProducts that appeal more broadly to consumers and serve a majority of
the market. (ParknShop)
Niche Products - AnswersHave a very special taste, serves a minority of the market. Usually very high-
end or low-end. (CitySuper)
Long-Tail - AnswersA business strategy that allows firm to realize significant produts by selling lower
volumes of hard-to-find items, instead of large volumes of a lot of popular items.
Better now that there is the internet; nothing is hard to find.
Porter's Five Forces - Answers1. Bargaining Power of Suppliers
2. Threat of Substitutes
3. Bargaining Power of Buyers
4. Rivalry Among Existing Firms
Core Businesses - AnswersProcuring input, producing output, and sales
Procure-to-Pay - AnswersThe processes associated with procuring goods from external
vendors/suppliers
Direct Goods - AnswersIntegrally involved in production process
Indirect Goods - AnswersAll goods not directly involved in production process
MRO Goods - AnswersMaintenance, Repair, and Operations goods; essential for ensuring that
operations run smoothly. Type of indirect good.
Contract Purchasing - AnswersInvolves long-term written agreements to purchase specified products
with agreed-upon terms and quality.
Spot Purchasing - AnswersInvolves purchase of goods based on immediate needs in larger marketplaces
that involve many suppliers. More flexible and urgent.
MTS/MTO - AnswersThe processes associated with producing goods
Make-to-Order (MTO) - AnswersRaw materials, subcomponents, and accessories are procured using
forecasts; but actual manufacturing does not start until sales orders are received. Processed is pulled by
Demand.
Make-to-Stock (MTS) - AnswersGoods are produced based on forecasts and are stocked in a warehouse.
Process is pushed by customer demand.
Order-to-Cash - AnswersThe processes associated with selling a product or service. From a customer
ordering an item to you collecting the payment for it.
The Business Model - Answers1. Presence of Business (where)
2. Revenue Strategy
3. Pricing Strategy
4. Value Proposition
5. Competitive Environment
6. Marketing Strategy
7. Management Team
Presence of Business - AnswersAn integral component of making a business model.
- Companies must position themselves to compete in the new E-Commerce environment
, - Brick and Mortar, Click and Mortar, Click Only
Business Model Revenue Strategies - Answers1. Transaction Fees
2. Traditional Sales
3. Web/Mobile Advertising
4. Subscription Based
5. Affiliate Marketing (Referral Gains)
Price Discrimination - AnswersSelling products to different people and groups based on their willingness
to pay.
Pricing Strategies - Answers1. Versioning, creating multiple versions for people at different market
segments and at different prices
2. Bundling, offers consumers two or more goods at a cheaper price
3. Dynamic Pricing, adjusted according to demand or supply
4. Freemium, free with premium option
5. Free Trial
Value Proposition - AnswersAnswers why someone should do businesses with you
Mainstream products - AnswersProducts that appeal more broadly to consumers and serve a majority of
the market. (ParknShop)
Niche Products - AnswersHave a very special taste, serves a minority of the market. Usually very high-
end or low-end. (CitySuper)
Long-Tail - AnswersA business strategy that allows firm to realize significant produts by selling lower
volumes of hard-to-find items, instead of large volumes of a lot of popular items.
Better now that there is the internet; nothing is hard to find.
Porter's Five Forces - Answers1. Bargaining Power of Suppliers
2. Threat of Substitutes
3. Bargaining Power of Buyers
4. Rivalry Among Existing Firms
