MIS 375 - EXAM 1 QUESTIONS & ANSWERS
1. What are the main forms of Artificial Intelligence and the technologies behind
them?- Answer - Machine Learning (ML)- Answer - Finds patterns using algorithms for prediction.
NLP- Answer - Understands and generates
language using LLMs. Computer Vision- Answer -
Recognizes images and objects with CNNs.
Speech/Audio AI- Answer - Converts speech to text
and vice versa.
Generative AI- Answer - Creates text, images, or video using transformers or dittusion models.
2. What are the three types of data used in neural and vector databases? How
has training evolved?- Answer - AI models use text, audio, and image data. Training evolved from supervised
(labeled) to self-supervised and reinforcement learning.
3. Why are private data sources important for AI models and organizations?-
Answer - Pri- vate data improves accuracy, protects IP, ensures compliance, and grounds models in real, verified
company information instead of public data.
4. Explain Prompting and Retrieval-Augmented Generation (RAG).- Answer -
Prompting gives
the model context, structure, and intent. RAG adds document retrieval to ground responses with real, factual information before
generating answers.
5. Why are Vision Statements important, who cares about them, and what
should they communicate?- Answer - They define purpose and long-term goals, inspire employees, and
attract investors. Vision statements explain why the company exists and what it aims to achieve.
6. Does implementing a selection of the twelve values matter to a company?-
Answer - Yes. Financial, human, and environmental values guide decisions.
7. What are the internal and external environment considerations in strategy?-
,Answer - - Internal- Answer - company resources, processes, and IT systems. External- Answer - political,
technological, economic, and social forces. Both shape strategic choices.
8. What are the main types of strategies used to describe and detail business
direction?- Answer - Corporate- Answer - overall mission. Business- Answer - how to compete. Functional- Answer
- departmental plans. Operational- Answer - daily execution to achieve goals.
9. What are Porter's Four Generic Strategies, and what factors are used to
classify them?- Answer - Cost Leadership, Ditterentiation, Cost Focus, and Ditterentiation Focus. They depend on
market scope (broad vs narrow) and advantage (cost vs uniqueness).
10. Is identifying a competitive strategy important for an organization?- Answer -
Yes. It defines how the company wins, aligns investments, and prevents being 'stuck in the middle' with no clear
direction.
, 11. What are the key components of market positioning for this class?- Answer -
Products (goods), Services (otterings), and Geography (where they're sold). These define how and where a company
competes.
12. What is adjacency?- Answer - Expanding into related products, services, or markets that leverage existing
capabil- ities, like Amazon using logistics expertise to build AWS.
13. What is competitive benchmarking?- Answer - Comparing performance, pricing, or operations
with com- petitors to find areas for improvement or ditterentiation.
14. Define market trade-offs.- Answer - Choosing what not to do—deciding which customers and
channels to serve. Focus creates stronger positioning and eflciency.
15. Why is identifying market segments important?- Answer - Segments group customers
by behavior or demographics, letting firms target products and pricing eflciently and improve satisfaction.
16. What is a channel, and how are channels supported?- Answer - A channel is the route for
delivering value (store, e-commerce, partner, app).
Channels deliver products and value (e.g., stores, apps).
They're supported by IT systems like CRM, ERP, and supply chain tools.
17. Why surface potential competitive activities?- Answer - To reveal unique, reinforcing actions
that give a lasting edge—when activities fit together, they're harder to copy (Porter's Activity Map).
18. List and define Porter's Five Forces. Why are they important?- Answer - Rivalry, New
Entrants, Substitutes, Buyer Power, and Supplier Power. These forces define industry profitability and competitive
pressure.
19. Why break down buyer and supplier power by segments?- Answer - Ditterent
segments have ditterent leverage. Large buyers have more negotiation power; smaller ones are more price
sensitive.
20. What is the difference between innovation and disruptive innovation?- Answer
- Innova- tion improves current otterings. Disruptive innovation creates cheaper, simpler products that redefine
markets.
21. What should be monitored to identify disruptive innovation?- Answer - Track
1. What are the main forms of Artificial Intelligence and the technologies behind
them?- Answer - Machine Learning (ML)- Answer - Finds patterns using algorithms for prediction.
NLP- Answer - Understands and generates
language using LLMs. Computer Vision- Answer -
Recognizes images and objects with CNNs.
Speech/Audio AI- Answer - Converts speech to text
and vice versa.
Generative AI- Answer - Creates text, images, or video using transformers or dittusion models.
2. What are the three types of data used in neural and vector databases? How
has training evolved?- Answer - AI models use text, audio, and image data. Training evolved from supervised
(labeled) to self-supervised and reinforcement learning.
3. Why are private data sources important for AI models and organizations?-
Answer - Pri- vate data improves accuracy, protects IP, ensures compliance, and grounds models in real, verified
company information instead of public data.
4. Explain Prompting and Retrieval-Augmented Generation (RAG).- Answer -
Prompting gives
the model context, structure, and intent. RAG adds document retrieval to ground responses with real, factual information before
generating answers.
5. Why are Vision Statements important, who cares about them, and what
should they communicate?- Answer - They define purpose and long-term goals, inspire employees, and
attract investors. Vision statements explain why the company exists and what it aims to achieve.
6. Does implementing a selection of the twelve values matter to a company?-
Answer - Yes. Financial, human, and environmental values guide decisions.
7. What are the internal and external environment considerations in strategy?-
,Answer - - Internal- Answer - company resources, processes, and IT systems. External- Answer - political,
technological, economic, and social forces. Both shape strategic choices.
8. What are the main types of strategies used to describe and detail business
direction?- Answer - Corporate- Answer - overall mission. Business- Answer - how to compete. Functional- Answer
- departmental plans. Operational- Answer - daily execution to achieve goals.
9. What are Porter's Four Generic Strategies, and what factors are used to
classify them?- Answer - Cost Leadership, Ditterentiation, Cost Focus, and Ditterentiation Focus. They depend on
market scope (broad vs narrow) and advantage (cost vs uniqueness).
10. Is identifying a competitive strategy important for an organization?- Answer -
Yes. It defines how the company wins, aligns investments, and prevents being 'stuck in the middle' with no clear
direction.
, 11. What are the key components of market positioning for this class?- Answer -
Products (goods), Services (otterings), and Geography (where they're sold). These define how and where a company
competes.
12. What is adjacency?- Answer - Expanding into related products, services, or markets that leverage existing
capabil- ities, like Amazon using logistics expertise to build AWS.
13. What is competitive benchmarking?- Answer - Comparing performance, pricing, or operations
with com- petitors to find areas for improvement or ditterentiation.
14. Define market trade-offs.- Answer - Choosing what not to do—deciding which customers and
channels to serve. Focus creates stronger positioning and eflciency.
15. Why is identifying market segments important?- Answer - Segments group customers
by behavior or demographics, letting firms target products and pricing eflciently and improve satisfaction.
16. What is a channel, and how are channels supported?- Answer - A channel is the route for
delivering value (store, e-commerce, partner, app).
Channels deliver products and value (e.g., stores, apps).
They're supported by IT systems like CRM, ERP, and supply chain tools.
17. Why surface potential competitive activities?- Answer - To reveal unique, reinforcing actions
that give a lasting edge—when activities fit together, they're harder to copy (Porter's Activity Map).
18. List and define Porter's Five Forces. Why are they important?- Answer - Rivalry, New
Entrants, Substitutes, Buyer Power, and Supplier Power. These forces define industry profitability and competitive
pressure.
19. Why break down buyer and supplier power by segments?- Answer - Ditterent
segments have ditterent leverage. Large buyers have more negotiation power; smaller ones are more price
sensitive.
20. What is the difference between innovation and disruptive innovation?- Answer
- Innova- tion improves current otterings. Disruptive innovation creates cheaper, simpler products that redefine
markets.
21. What should be monitored to identify disruptive innovation?- Answer - Track
