MIS 301 Exam 1 Book Questions
Which strategy was followed by Amazon's founder?
He postponed profit harvesting.
In two decades, _____'s tech sector has grown from almost nothing to a $120 billion industry.
India
In two decades, _____'s tech sector has grown from almost nothing to a $200 billion industry.
India
Kevin Systrom was twenty-six when he founded the service
Which statement is true of Netflix?
It has had to craft different kinds of competitive advantages to maintain its spot as the world's largest streaming service.
Tech impact is reaching even beyond the confines of Earth itself. According to an example in your chapter, how was a tool on the International Space Station recently acquired?
It was printed on-demand using 3D printing technology.
Which statement is true of Amazon?
Its cloud computing business is one of the largest players in that category.
According to the chapter, which statements apply to Palmer Luckey's founding of Oculus?
-The firm was acquired by Facebook. -He raised money to build his product using a Kickstarter campaign.
For traditional retailers selling physical goods, _____ is the biggest constraint limiting a firm's ability to offer customers what they want and when they want it.
shelf space
The ____wave of computing that we are in now is considered the era of pervasive computing.
sixth
Which sets of interrelated forces threatens to slow down the progression of Moore's Law?
size, heat, and power
Grid computing is a type of computing in which:
special software is installed on several computers enabling them to work together on a common problem.
How is scale important to Netflix's streaming business?
A larger firm with more customers can spend more on content licenses.
Which statement(s) regarding Linux creator Linus Torvalds and his firm are true?
All are correct
Which external factor might affect the success of an online grocery store?
All of the above
Which statement is true of the Kindle?
Amazon priced early Kindle products so low that the firm did not intend to make money off hardware sales.
Tech firms are among the best performing firms in the world. According to the chapter, which firm was recognized as being both the most valuable firm in the US as well as the most profitable?
Apple
How did Apple overcome Google as the dominant mapping platform on iOS?
Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement.
By going public, Netflix encountered competition from the large, established firms Walmart and Blockbuster. What aspect of Netflix going public lured these firms into the market?
By going public, Netflix was required to disclose its financial position.
Netflix conducted a coding contest to improve _____, their collaborative filtering engine.
Cinematch
TCO
Direct costs such as purchase price, plus indirect costs such as training, support, and maintenance.
MyMagic+ is a large-scale system developed for
Disney
Zara's model has evolved to support this type of commerce, adding 52 special stockrooms globally.
E-commerce
Zara's production costs could fluctuate at higher rates than its competitors because many of the firm's costs are tied to the _____.
Euro
A new rival in the online grocery business might face barriers competing with FreshDirect because
FreshDirect's data, collected from individual customers over time, creates a strong competitive advantage.
Which of the following is the dominant e-mail provider today?
Gmail
_____'s ability to succeed after being late to the search and mobile party is a story about the failure of incumbents to monitor their competitive landscape, recognize new rivals, and react to challenging offerings.
has risen to become the most profitable media company on the planet.
Select the accurate statement(s).
Google earns more advertising revenue than any other media company
Which of the following can increase the bargaining power of buyers?
Greater options of products
Which of the following is considered one of the three 'pillars' critical to Amazon's business success?
Large selection
The equivalent of a corporate directory can be pulled up via ____, a service complete with discrete messaging capabilities that can allow competitors to rifle-scope target your firm's best and brightest.
Which term is used as an alternative to switching costs?
Lock-in
___is a technique in which computers are designed with many microprocessors that work together, simultaneously, to solve problems.
Massively parallel processing
Which statement best describes the relationship between network effects and innovation?
Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.
A company uses radio frequency identification (RFID) tags to keep track of its inventory. This is an example of the impact of technology in the area of _____.
Operations
Which of the following is one of the primary parts of the value chain?
Outbound logistics
What about Web 2.0 is true?
Peer production is leverage to create much of the open source software that supports many of the Web 2.0 efforts
complementary benefit
Products or services that add additional value to the primary product or service that makes up a network.
Crowdsourcing tools and question-and-answer sites, such as _____, allow firms to reach out for expertise beyond their organizations.
Quora
Which statement concerning pricing is true?
Rivals colluding to set prices is illegal.
Social media apps are taking the workplace by storm and creating billion dollar firms. Which of the following tools has grown and is primarily known as a leading workplace productivity tool?
Slack
Which product or service is not subject to network effects?
Snack chip manufacturing
Which factor represents one of the sources of value derived from network effects?
Staying power
Which statement about technology is true?
Technological advancements can usually be copied by rivals, leading to a profit-eroding arms race.
Which factor is responsible for enabling the advance of Moore's Law?
The distance between pathways inside silicon chips gets smaller with each successive generation.
Staying power refers to the:
The long-term viability of a product or service.
gained 700 million adherents in its first four years of existence.
Tik Tok
Which of the following is cited as a reason why some firms have grown quickly while spending relatively little in advertising?
Viral Marketing
How are sites and services from the Internet's first phase (Web 1.0) different from those that are classified as social media or peer-production efforts?
Web 2.0 services foster collaboration and information sharing, as opposed to static transaction-oriented Web 1.0 efforts.
cross-side exchange benefit
When an increase in the number of users on one side of the market creates a rise in the other side.
Which of the following describes why Zara has been successful at implementing RFID technology, unlike some other major retailers?
Zara's vertical integration gives them direct access to inventory in their warehouses to add RFID tags.
FreshDirect monitors website and app use to provide customers
a personalized experience
Moore's Law is
a prediction based on past observations.
Money owed for products and services purchased on credit to be paid at a later date is known as _____.
accounts payable
Which factors led to Netflix dominance versus Blockbuster and Walmart?
advantages created by leveraging technology and timing
A manager's decision making is often shaped by their perception of the competition. Which of the following does Netflix see as being in competition with the firm?
all of the above
Without spending money or time, a firm can expect to enhance its offering by ____.
allowing other firms to contribute to its platform
same-side exchange benefits
benefits derived by interaction among members of a single class of participant
A firm's period between paying suppliers for products and collecting funds from customers who purchase these products is referred to as the _____.
cash conversion cycle
Netflix conducted a coding contest to improve ____, their collaborative filtering engine.
cinematch
Fresh Direct's business model helped them outperform traditional rivals because they leveraged the power of
data
An online grocery start-up specializing in fresh produce is searching for a warehouse location and service area. They must factor in product-market fit when selecting the location for the distribution warehouse and customer service area. As a member of the strategy team, which location would you recommend?
densely populated city with few grocery stores
Today Netflix is primarily focused on _____________, the default option for consumers.
digital distribution
Apple successfully leveraged their _____ to become the industry leader in all retail chain categories in the United States.
distribution channels
Apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that:
firms with strong market dominance can enjoy substantial bargaining power over partners.
One of the most popular frameworks for examining a firm's competitive environment is Porter's ______ forces.
five
Costs that do not vary according to production volume are called _____.
fixed costs
Firms like Blockbuster, Sotheby's, and Barnes & Noble were put at risk by operating under the following platitude:
follow, don't lead
Which three-tier model is used by FreshDirect?
from farm or sea to our house to your house
Personal digital assistants are:
handheld computing devices meant largely for mobile use outside an office setting.
Zara's staff members regularly collect data from customers at Zara stores. This data is used to:
inform designers on customer preferences and staff on store sales results.
Zara is susceptible to any disruption in northern Spain because:
it moves all of its deliveries through just two locations, both in Spain.
Zara holds a competitive advantage over its rivals in spite of:
keeping large portions of its production processes in-house.
Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over traditional video stores?
larger entertainment selection
Technological ____ is a competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy vis exchange, switching costs, and complementary benefits.
leapfrogging
Firms that cannot generate cash quickly enough are referred to as having _____.
liquidity problems
Which primary reasons caused New York based consumers to be receptive to FreshDirect's online grocery model?
lower cost and larger selection
Netflix uses ______a type of artificial intelligence which leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming.
machine learning
The _____ is the part of a computer that executes the instructions of a computer program.
mircroprocessor
FreshDirect gives suppliers the opportunity to offer_____ shelf-constrained grocers.
more products than
One way to address the problem of densely-packed, overheating chip designs is with ____ microprocessors
multicore
The long tail is a phenomenon whereby firms can make money by:
offering a selection of products or services vastly greater than conventional retailers.
A market dominated by a small number of powerful sellers is known as a(n) ____.
oligopoly
A ____ - feedback loop is inherent in network effects.
positive
APIs
programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data
Multicore microprocessors are formed by:
putting two or more lower power processor cores on a single chip.
Which of the following is an example of volatile memory?
random-access memory
Showing ads for products and services from a site that a user has previously visited is known as
retargeting
Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that internet businesses are more _____.
scalable
Michael Porter says that the reason many firms suffer margin-eroding competition is because they have defined themselves according to operational effectiveness rather than
strategic positioning
The term _____ refers to computers that are among the fastest of any in the world at the time of their introduction.
supercomputers
When a firm's financial performance consistently outperforms its industry's peers, it can be said that the firm benefits from _____.
sustainable competitive advantage
Crowdsourcing is:
the act of taking a job traditionally performed by a designated agent and contracting it out to an undefined generally large group of people in the form of an open call.
When Blockbuster and Walmart added collaborative filtering to their DVD services, the percentage of consumers who left Netflix the following year decreased. This form of attrition is known as
the churn rate
Many firms are offering six-figure starting salaries to graduating seniors from top universities because
there is a high demand for scarce technical talent.
Network effects earned OpenTable the position of world's largest online restaurant reservation system because
they made the restaurant reservation market more efficient.
Economists call the video game market a ____.
two-sided market
In an industry where nearly every major player outsources manufacturing to low-cost countries, Zara is highly _____, keeping huge swaths of its production process in-house.
vertically integrated
Storage that is wiped clean when power is cut off from a device is known as _____.
volatile memory
