OIM 210 EXAM 2 - 3 QUESTIONS & ANSWERS
A low _____ is usually key to a firm's profitability because acquiring a customer is more
expensive than keeping one. - Answer -Churn rate
Churn rate is a term that refers to the: - Answer -rate at which customers leave a
product or service.
Collaborative filtering is a classification of software that: - Answer -monitors trends
among customers to personalize an individual customer's experience.
Costs that do not vary according to production volume are called _____. - Answer -
fixed costs
Marginal Costs: - Answer -are associated with each additional unit produced.
The long tail is a phenomenon whereby firms can make money by: - Answer -offering a
near-limitless selection of products or services.
What is e-waste? - Answer -Discarded, often obsolete technology, also known as
electronic waste
Moore's Law states that chip performance per dollar triples every 18 months - Answer -
false
Amazon got its start selling _____ online. - Answer -books
Amazon's moves are largely motivated by: - Answer -customer focus
Dynamic pricing: - Answer -refers to pricing that shifts over time.
Firms that can't generate cash quickly enough are referred to as having _____. -
Answer -liquidity problems
Identify the true statement about Amazon. - Answer -Amazon's profitability has varied
widely and analysts continue to struggle to interpret the firm's future.
In Amazon, warehouse pickers are in charge of: - Answer -building one's order from a
warehouse's inventory.
The firm's period between shelling out money and collecting funds associated with a
given operation is referred to as the _____. - Answer -cash conversion cycle
What does the statement "Inventory turns of a store is high." mean? - Answer -
Merchandise in the store sell quickly
,Which of the following is a goal of Amazon? - Answer -Keep inventory turns high
Which of the following is the world's largest online retailer? - Answer -Amazon
Which of the following is true of Amazon? - Answer -Its cloud computing business is
one of the largest players in that category.
Which of the following strategies was followed by Amazon's founder? - Answer -He
postponed profit harvesting.
Netflix competition - Answer -Walmart & Blockbuster
*Netflix was able to beat them because of competitive advantage: Brand, scale, data
Long Tail - Answer -Build a businesses that can profitably offer a great volume of less
popular products
an example of scale
Windowing - Answer -content is available to a given distribution channel for a specified
period of time
First Sale Doctrine - Answer -Firms can distribute (sale, rent, lend) legally acquired
physical products of trademarked or copyright goods. Does not apply to streaming!
The Qwikster Debacle - Answer -When Netflix separated their DVD and streaming
businesses
*Elmo smoking a joint
Collaborative Filtering - Answer -An example of data; data provided by Cinematch is a
switching cost
Moore's Law - Answer -Show rough trajectory of price/performance advancement for
key technologies
Chip performance per dollar doubles every eighteen months:
Microprocessors -> calculation doubles
Storage -> storage doubles
The "Per Dollar" is what is important in this definition:
-> things are getting faster and/or cheaper
, Semiconductor - Answer -in a business context refers to 'computer chips' (e.g. the
semiconductor industry is the chip business) Could be talking about microprocessors or
storage chips
microprocessor - Answer -the calculating brain of a computer. Intel dominates this
market in PCs, ARM (licensed) dominates smart phones
volatile memory - Answer -requires a charge to hold its value (e.g. the RAM in your PC,
which loses data when the power is cut)
non-volatile memory - Answer -retains value even when not charged (e.g. the flash
memory in your camera)
solid state - Answer -electronics without moving parts
Multi-core - Answer -many processor 'cores' on a single chip
Multi-processor - Answer --many chips in one device
-delivering massively-parallel supercomputing
Grid & cluster computing - Answer -multiple devices working in tandem as one
computer
bitcoin - Answer -
In the case of Netflix, the shift from DVD-by-mail to the streaming business poses new
challenges: - Answer --Content availability
-Content acquisition costs
-The legal and regulatory environment
-Potential opportunities for revenue and expansion
-Potential partners
-Competitors and their motivation
Disruptive technologies - Answer -initially offers a lower performance according to what
the mainstream market has historically demanded, at the time provides some new
performance attributes and eventually displaces the former technology
Bitcoin - Answer -An open-source, decentralized payment system that operates in a
peer-to-peer environment, without bank or central authority
Two Key characteristics of disruptive technologies - Answer -1. Come to market with a
set of performance attributes not initially valued by existing customers
2.Performance attributes that customers do value improve to the point where the new
tech invades the established market
A low _____ is usually key to a firm's profitability because acquiring a customer is more
expensive than keeping one. - Answer -Churn rate
Churn rate is a term that refers to the: - Answer -rate at which customers leave a
product or service.
Collaborative filtering is a classification of software that: - Answer -monitors trends
among customers to personalize an individual customer's experience.
Costs that do not vary according to production volume are called _____. - Answer -
fixed costs
Marginal Costs: - Answer -are associated with each additional unit produced.
The long tail is a phenomenon whereby firms can make money by: - Answer -offering a
near-limitless selection of products or services.
What is e-waste? - Answer -Discarded, often obsolete technology, also known as
electronic waste
Moore's Law states that chip performance per dollar triples every 18 months - Answer -
false
Amazon got its start selling _____ online. - Answer -books
Amazon's moves are largely motivated by: - Answer -customer focus
Dynamic pricing: - Answer -refers to pricing that shifts over time.
Firms that can't generate cash quickly enough are referred to as having _____. -
Answer -liquidity problems
Identify the true statement about Amazon. - Answer -Amazon's profitability has varied
widely and analysts continue to struggle to interpret the firm's future.
In Amazon, warehouse pickers are in charge of: - Answer -building one's order from a
warehouse's inventory.
The firm's period between shelling out money and collecting funds associated with a
given operation is referred to as the _____. - Answer -cash conversion cycle
What does the statement "Inventory turns of a store is high." mean? - Answer -
Merchandise in the store sell quickly
,Which of the following is a goal of Amazon? - Answer -Keep inventory turns high
Which of the following is the world's largest online retailer? - Answer -Amazon
Which of the following is true of Amazon? - Answer -Its cloud computing business is
one of the largest players in that category.
Which of the following strategies was followed by Amazon's founder? - Answer -He
postponed profit harvesting.
Netflix competition - Answer -Walmart & Blockbuster
*Netflix was able to beat them because of competitive advantage: Brand, scale, data
Long Tail - Answer -Build a businesses that can profitably offer a great volume of less
popular products
an example of scale
Windowing - Answer -content is available to a given distribution channel for a specified
period of time
First Sale Doctrine - Answer -Firms can distribute (sale, rent, lend) legally acquired
physical products of trademarked or copyright goods. Does not apply to streaming!
The Qwikster Debacle - Answer -When Netflix separated their DVD and streaming
businesses
*Elmo smoking a joint
Collaborative Filtering - Answer -An example of data; data provided by Cinematch is a
switching cost
Moore's Law - Answer -Show rough trajectory of price/performance advancement for
key technologies
Chip performance per dollar doubles every eighteen months:
Microprocessors -> calculation doubles
Storage -> storage doubles
The "Per Dollar" is what is important in this definition:
-> things are getting faster and/or cheaper
, Semiconductor - Answer -in a business context refers to 'computer chips' (e.g. the
semiconductor industry is the chip business) Could be talking about microprocessors or
storage chips
microprocessor - Answer -the calculating brain of a computer. Intel dominates this
market in PCs, ARM (licensed) dominates smart phones
volatile memory - Answer -requires a charge to hold its value (e.g. the RAM in your PC,
which loses data when the power is cut)
non-volatile memory - Answer -retains value even when not charged (e.g. the flash
memory in your camera)
solid state - Answer -electronics without moving parts
Multi-core - Answer -many processor 'cores' on a single chip
Multi-processor - Answer --many chips in one device
-delivering massively-parallel supercomputing
Grid & cluster computing - Answer -multiple devices working in tandem as one
computer
bitcoin - Answer -
In the case of Netflix, the shift from DVD-by-mail to the streaming business poses new
challenges: - Answer --Content availability
-Content acquisition costs
-The legal and regulatory environment
-Potential opportunities for revenue and expansion
-Potential partners
-Competitors and their motivation
Disruptive technologies - Answer -initially offers a lower performance according to what
the mainstream market has historically demanded, at the time provides some new
performance attributes and eventually displaces the former technology
Bitcoin - Answer -An open-source, decentralized payment system that operates in a
peer-to-peer environment, without bank or central authority
Two Key characteristics of disruptive technologies - Answer -1. Come to market with a
set of performance attributes not initially valued by existing customers
2.Performance attributes that customers do value improve to the point where the new
tech invades the established market
