BMGT 301 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
Correct 46
Incorrect 00
1 of 46
Definition
*Gap sales declined in the early part of 2000, prompting the firm to try
reviving the brand
*Chasing the youth market, Gap filled its stores with miniskirts, low-rise
purple jeans, and other offerings. The crowds of teenagers never
showed up
*Gap's same-store sales declined for twenty-nine months straight, and
profits vanished.
*The firm's debt was downgraded to junk status.
*Gap was forced to write off its inventory, taking losses.
*The marketing model used by Gap to draw customers in via big-
budget television promotion also collapsed (The move to viral
promotion).
Give this one a try later!
, What effect did FreshDirect have on traditional grocersoperating in New York City?
Why?
What is the "resource-based" view of competitive advantage? What are the
characteristics of resources that may yield sustainable competitive advantage?
What were the problems encountered by Gap in theearly part of the decade
following the 1990s? What werethe measures taken to overcome these
problems?
What is contract manufacturing? What advantages can a firm expect to gain from
contract manufacturing? What are the downsides associated with this practice?
Don't know?
2 of 46
Term
Is a firm that competes based on the features of technology engaged
in operational effectiveness or strategic positioning? Give an example
to back up your claim
Give this one a try later!
*Gap sales declined in the early part of 2000, prompting the firm to try reviving the
brand
*Chasing the youth market, Gap filled its stores with miniskirts, low-rise purple jeans,
and other offerings. The crowds of teenagers never showed up
*Gap's same-store sales declined for twenty-nine months straight, and profits
vanished.
,*The firm's debt was downgraded to junk status.
*Gap was forced to write off its inventory, taking losses.
*The marketing model used by Gap to draw customers in via big-budget television
promotion also collapsed (The move to viral promotion).
*Straddling is attempting to occupy more than one position while failing to
matchthe benefits of a more efficient, singularly focused rival
*Amazon is not straddling because it is able to offer both physical and ebookswhile
still outperforming its rivals
*Barnes & Noble is straddling to keep up with Amazon because it went fromselling
solely physical books to both physical and ebooks
-The company's profits and stock value have been steadily decreasing
*Apple offering iTunes is not straddling because the products Apple is selling
through iTunes are solely online. Apple is not using iTunes to occupy multiple
positions
*To maintain sustainable competitive advantage, a firm must control a resourcethat
is valuable, rare, imperfectly imitable, and non-substitutable
*With the rise of the internet, there was a high demand to transport emails,
videos,etc.
-This is done through telecommunications, which is transferring data through fiber
cables
*Telecom firms laid significantly more cables than in the past, and there were many
new telecom firms that began doing the same thing
*This resource was no longer rare and the price of it decreased
*Dense wave division multiplying allowed fiber to carry more transmissions than
ever before
*As a result, many telecom firms failed during the burst of the dot-com bubble
*Operational effectiveness if the same activities are being performed with this
technology
If a firm is producing the same product as others but is using different
technology to do it at a cheaper cost, this is the definition of operational
effectivenessEx: Groupon competes on the basis of its technological model
but it also has 500 competitors doing the same thing in a similar manner ( just
potentially not as well because they are not as well known)
, *However, if the services are being provided in a different manner, such as
with Fresh Direct's use of technology compared to other grocers, then this can
be considered strategic positioning
Don't know?
3 of 46
Definition
Netflix's data asset is used to make more accurate recommendations,
improve user interface design, help the firm determine the appropriate
cost for acquiring content, and can even shape creative decisions in
original program offerings. Data analysis doesn't just drive the
collaborative filtering software for user recommendations, it's also
used to tailor and improve the experience over time.The data also help
Netflix make better content investments. Data also informs the original
content investments that Netflix is making. Netflix also uses data to
create ultra-tailored audience promotions.Netflix also keeps customers
happy in brand-building ways by leveraging its massive and growing
arsenal of user data. Data is collected when customers rate movies
they've seen, and this data on customer likes and dislikes is fed into a
proprietary Netflix recommendation system called Cinematch.
Cinematch is a software technology known as collaborative filtering.
These systems monitor trends among customers and use this data to
personalize an individual. Streaming does offer the potential for mixed
revenue streams (premium priced "windows,"ad-supported offerings
with ability to gather/leverage high-value customer data),and the
ability to launch new content/services DVDs can't match (social,
interactive premium content). The future is streaming and Netflix has
ANSWERS
Correct 46
Incorrect 00
1 of 46
Definition
*Gap sales declined in the early part of 2000, prompting the firm to try
reviving the brand
*Chasing the youth market, Gap filled its stores with miniskirts, low-rise
purple jeans, and other offerings. The crowds of teenagers never
showed up
*Gap's same-store sales declined for twenty-nine months straight, and
profits vanished.
*The firm's debt was downgraded to junk status.
*Gap was forced to write off its inventory, taking losses.
*The marketing model used by Gap to draw customers in via big-
budget television promotion also collapsed (The move to viral
promotion).
Give this one a try later!
, What effect did FreshDirect have on traditional grocersoperating in New York City?
Why?
What is the "resource-based" view of competitive advantage? What are the
characteristics of resources that may yield sustainable competitive advantage?
What were the problems encountered by Gap in theearly part of the decade
following the 1990s? What werethe measures taken to overcome these
problems?
What is contract manufacturing? What advantages can a firm expect to gain from
contract manufacturing? What are the downsides associated with this practice?
Don't know?
2 of 46
Term
Is a firm that competes based on the features of technology engaged
in operational effectiveness or strategic positioning? Give an example
to back up your claim
Give this one a try later!
*Gap sales declined in the early part of 2000, prompting the firm to try reviving the
brand
*Chasing the youth market, Gap filled its stores with miniskirts, low-rise purple jeans,
and other offerings. The crowds of teenagers never showed up
*Gap's same-store sales declined for twenty-nine months straight, and profits
vanished.
,*The firm's debt was downgraded to junk status.
*Gap was forced to write off its inventory, taking losses.
*The marketing model used by Gap to draw customers in via big-budget television
promotion also collapsed (The move to viral promotion).
*Straddling is attempting to occupy more than one position while failing to
matchthe benefits of a more efficient, singularly focused rival
*Amazon is not straddling because it is able to offer both physical and ebookswhile
still outperforming its rivals
*Barnes & Noble is straddling to keep up with Amazon because it went fromselling
solely physical books to both physical and ebooks
-The company's profits and stock value have been steadily decreasing
*Apple offering iTunes is not straddling because the products Apple is selling
through iTunes are solely online. Apple is not using iTunes to occupy multiple
positions
*To maintain sustainable competitive advantage, a firm must control a resourcethat
is valuable, rare, imperfectly imitable, and non-substitutable
*With the rise of the internet, there was a high demand to transport emails,
videos,etc.
-This is done through telecommunications, which is transferring data through fiber
cables
*Telecom firms laid significantly more cables than in the past, and there were many
new telecom firms that began doing the same thing
*This resource was no longer rare and the price of it decreased
*Dense wave division multiplying allowed fiber to carry more transmissions than
ever before
*As a result, many telecom firms failed during the burst of the dot-com bubble
*Operational effectiveness if the same activities are being performed with this
technology
If a firm is producing the same product as others but is using different
technology to do it at a cheaper cost, this is the definition of operational
effectivenessEx: Groupon competes on the basis of its technological model
but it also has 500 competitors doing the same thing in a similar manner ( just
potentially not as well because they are not as well known)
, *However, if the services are being provided in a different manner, such as
with Fresh Direct's use of technology compared to other grocers, then this can
be considered strategic positioning
Don't know?
3 of 46
Definition
Netflix's data asset is used to make more accurate recommendations,
improve user interface design, help the firm determine the appropriate
cost for acquiring content, and can even shape creative decisions in
original program offerings. Data analysis doesn't just drive the
collaborative filtering software for user recommendations, it's also
used to tailor and improve the experience over time.The data also help
Netflix make better content investments. Data also informs the original
content investments that Netflix is making. Netflix also uses data to
create ultra-tailored audience promotions.Netflix also keeps customers
happy in brand-building ways by leveraging its massive and growing
arsenal of user data. Data is collected when customers rate movies
they've seen, and this data on customer likes and dislikes is fed into a
proprietary Netflix recommendation system called Cinematch.
Cinematch is a software technology known as collaborative filtering.
These systems monitor trends among customers and use this data to
personalize an individual. Streaming does offer the potential for mixed
revenue streams (premium priced "windows,"ad-supported offerings
with ability to gather/leverage high-value customer data),and the
ability to launch new content/services DVDs can't match (social,
interactive premium content). The future is streaming and Netflix has
