WAL-MART EFFECT TEST 100%
COMPLETELY SOLVED.
Economies of scale - ANSWERBenefitting from volume
Ex: Wal-Mart benefits from economies of scale because of its thin profit margin
Raw material - ANSWERBasic material used to make something
Ex: wood
Predatory pricing - ANSWERPricing something lower than usual, temporarily, to drive
out other competition (Wal-Mart's intention isn't really to drive other business out of
competition)
Outsourcing - ANSWERSending work to be done outside of the company (doesn't have
to be international)
Ex: salmon, sprinkler company
Social contract - ANSWERUnspoken set of rules that society agrees on to be not
acceptable (how we're going to interact with each other)
Ex: child labor, food safety expectations
Sustainability - ANSWERLong term, doing business that won't exhaust
Monopsony - ANSWEROne extremely influential player that has the same effects as a
monopoly
What is the founding, single focus of Wal-mart - ANSWERTo have low prices for
everyday items, and to be convenient for everyday people
Innovations in retail by Wal-Mart & why they are so innovative - ANSWERSelf-service,
better packaging ideas for shelves, does their own distribution for efficiency
Aquaculture - ANSWERthe rearing of aquatic animals or the cultivation of aquatic plants
for food (salmon)
Reverse auction - ANSWERThe roles of the buyer & seller are reversed; the sellers
compete to obtain business from the buyer & the prices will typically decrease
Correlation - ANSWERindicates a relationship between 2 variables
Causation - ANSWERConnection between 2 events or states such that one produces or
brings about the other
COMPLETELY SOLVED.
Economies of scale - ANSWERBenefitting from volume
Ex: Wal-Mart benefits from economies of scale because of its thin profit margin
Raw material - ANSWERBasic material used to make something
Ex: wood
Predatory pricing - ANSWERPricing something lower than usual, temporarily, to drive
out other competition (Wal-Mart's intention isn't really to drive other business out of
competition)
Outsourcing - ANSWERSending work to be done outside of the company (doesn't have
to be international)
Ex: salmon, sprinkler company
Social contract - ANSWERUnspoken set of rules that society agrees on to be not
acceptable (how we're going to interact with each other)
Ex: child labor, food safety expectations
Sustainability - ANSWERLong term, doing business that won't exhaust
Monopsony - ANSWEROne extremely influential player that has the same effects as a
monopoly
What is the founding, single focus of Wal-mart - ANSWERTo have low prices for
everyday items, and to be convenient for everyday people
Innovations in retail by Wal-Mart & why they are so innovative - ANSWERSelf-service,
better packaging ideas for shelves, does their own distribution for efficiency
Aquaculture - ANSWERthe rearing of aquatic animals or the cultivation of aquatic plants
for food (salmon)
Reverse auction - ANSWERThe roles of the buyer & seller are reversed; the sellers
compete to obtain business from the buyer & the prices will typically decrease
Correlation - ANSWERindicates a relationship between 2 variables
Causation - ANSWERConnection between 2 events or states such that one produces or
brings about the other
