MIS 301 EXAM 1 QUESTIONS AND VERIFIED
ACCURATE ANSWERS
According to Porter, strategy is fundamentally about being _____.
scalable
profitable
superior
different
efficient - Answers - Different
Which of the following is not highlighted as a source of switching costs?
Information and data
Search costs
Viral marketing
Learning costs
Loyalty programs - Answers - Viral Marketing
The scale of technology investment required to run a business can act as a barrier to
entry by discouraging new, smaller competitors.
True
False - Answers - True
Benefits related to a firm's size are referred to as _____.
disintermediation
brand recall
network effects
scale advantages
vertical integration - Answers - Scale Advantages
The _____ problem exists when rivals watch a pioneer's efforts, learn from their
successes and missteps, and then enter the market quickly with a comparable or
superior product at a lower cost.
first mover
late entrant
intellectual property
early starter
fast follower - Answers - Fast Follower
The set of activities through which a product or service is created and delivered to
customers is known as a(n) _____.
value chain
strategic position
marketing plan
, inventory turnover
pure play - Answers - Value Chain
_____ are critical for capturing sales data, and are usually linked to systems which
manager a firm's inventory.
CRM systems
Legacy systems
Server farms
Data aggregators
Point-of-sale systems - Answers - Point-of-sale Systems
Maintaining large inventories is highly essential for the viability of the fashion industry.
False
True - Answers - False
Zara ensures they are selling items customers want by
All of the above are true.
completing rigorous research on items sold by their rivals.
sending surveys to their customers via email.
following trends created by influencers.
using PDAs to collect data from customers on what kind of clothes to stock in stores. -
Answers - Using PDAs to collect data from customers on what kind of clothes to stock in
stores.
ROI is a term used to represent the:
return on investment
rate of information-generated
regular order intake
return on information
relay-ordered inventory - Answers - return on investment
How does Zara differ from its competitors in converting ideas into products?
By focusing on a smaller number of products than rivals like Gap, Zara manages to limit
exposure to wrong guesses.
Zara's ideas are inspired by social media, compared to the intrinsic design processes
followed by its competitors.
Collaborations with celebrities help Zara churn out a limited, yet profitable, volume of
items every year, while rivals produce a higher volume of less fashionable items.
Zara's design and concept teams use data from customers to predict fashion trends
many months into the future and stock up inventory accordingly, as opposed to its
rivals.
ACCURATE ANSWERS
According to Porter, strategy is fundamentally about being _____.
scalable
profitable
superior
different
efficient - Answers - Different
Which of the following is not highlighted as a source of switching costs?
Information and data
Search costs
Viral marketing
Learning costs
Loyalty programs - Answers - Viral Marketing
The scale of technology investment required to run a business can act as a barrier to
entry by discouraging new, smaller competitors.
True
False - Answers - True
Benefits related to a firm's size are referred to as _____.
disintermediation
brand recall
network effects
scale advantages
vertical integration - Answers - Scale Advantages
The _____ problem exists when rivals watch a pioneer's efforts, learn from their
successes and missteps, and then enter the market quickly with a comparable or
superior product at a lower cost.
first mover
late entrant
intellectual property
early starter
fast follower - Answers - Fast Follower
The set of activities through which a product or service is created and delivered to
customers is known as a(n) _____.
value chain
strategic position
marketing plan
, inventory turnover
pure play - Answers - Value Chain
_____ are critical for capturing sales data, and are usually linked to systems which
manager a firm's inventory.
CRM systems
Legacy systems
Server farms
Data aggregators
Point-of-sale systems - Answers - Point-of-sale Systems
Maintaining large inventories is highly essential for the viability of the fashion industry.
False
True - Answers - False
Zara ensures they are selling items customers want by
All of the above are true.
completing rigorous research on items sold by their rivals.
sending surveys to their customers via email.
following trends created by influencers.
using PDAs to collect data from customers on what kind of clothes to stock in stores. -
Answers - Using PDAs to collect data from customers on what kind of clothes to stock in
stores.
ROI is a term used to represent the:
return on investment
rate of information-generated
regular order intake
return on information
relay-ordered inventory - Answers - return on investment
How does Zara differ from its competitors in converting ideas into products?
By focusing on a smaller number of products than rivals like Gap, Zara manages to limit
exposure to wrong guesses.
Zara's ideas are inspired by social media, compared to the intrinsic design processes
followed by its competitors.
Collaborations with celebrities help Zara churn out a limited, yet profitable, volume of
items every year, while rivals produce a higher volume of less fashionable items.
Zara's design and concept teams use data from customers to predict fashion trends
many months into the future and stock up inventory accordingly, as opposed to its
rivals.
