Question 1

_____ involves outsourcing production to third-party firms.

Accepted Answer

A)  Vertical integration 
B)  Long tailing 
C)  Peer production 
D)  Contract manufacturing 
E)  Viral production 
A)  Vertical integration 
B)  Long tailing 
C)  Peer production 
D)  Contract manufacturing 
E)  Viral production D

Question 2

_____ are critical for capturing sales data, and are usually linked to systems which manager a firm's inventory.

Accepted Answer

A)  Point-of-sale systems 
B)  Legacy systems 
C)  CRM systems 
D)  Server farms 
E)  Data aggregators 
A)  Point-of-sale systems 
B)  Legacy systems 
C)  CRM systems 
D)  Server farms 
E)  Data aggregators A

Question 3

In retail in general and fashion in particular, having _____ is considered the kiss of death.

Accepted Answer

A)  excess inventory 
B)  storefronts in expensive districts with costly rents 
C)  a large labor force 
D)  limited production runs 
E)  dispersed production facilities 
A)  excess inventory 
B)  storefronts in expensive districts with costly rents 
C)  a large labor force 
D)  limited production runs 
E)  dispersed production facilities A

Question 4

Many firms have developed and deployed innovative information systems, only to see these systems go unused by key staff members. How has Zara helped ensure its systems will be used by staff?

Accepted Answer

A)  employees are monitored by in-store cameras 
B)  employee time on information systems is recorded each time the system is engaged 
C)  system use drives store success and as much as 70 percent of salaries are tied to sales performance 
D)  all employees must have a Fair Factories Clearinghouse account, which is used to log and report employee activity 
E)  systems were designed by employees, who feel a sense of ownership in the technology deployed 
A)  employees are monitored by in-store cameras 
B)  employee time on information systems is recorded each time the system is engaged 
C)  system use drives store success and as much as 70 percent of salaries are tied to sales performance 
D)  all employees must have a Fair Factories Clearinghouse account, which is used to log and report employee activity 
E)  systems were designed by employees, who feel a sense of ownership in the technology deployed

Question 5

The strengthening of the euro relative to the dollar has insulated Zara against financial vulnerabilities.

Accepted Answer

A) True 
 B)False

Question 6

A(n) _____ is a transaction process that captures customer purchase information.

Accepted Answer

point-of-s

Question 7

Zara encourages employee use of technology by tying employee salaries to sales performance.

Accepted Answer

A) True 
 B)False

Question 8

Zara store staff gain as much as three hours in prime selling time to assist customers at stores. Which of Zara's practices is instrumental in these time savings?

Accepted Answer

A)  Concepts going from ideas to appearances in stores in fifteen days on an average. 
B)  Three hundred member-strong design teams churning out up to thirty thousand items a year. 
C)  Distribution centers ironing clothes in advance and packing them on hangers, with security and price tags affixed. 
D)  Collecting data from customers on what kind of clothes to stock in stores, using PDAs. 
E)  Tweaking shipping models through Air France-KLM Cargo to coordinate outbound shipments with return legs loaded with raw materials. 
A)  Concepts going from ideas to appearances in stores in fifteen days on an average. 
B)  Three hundred member-strong design teams churning out up to thirty thousand items a year. 
C)  Distribution centers ironing clothes in advance and packing them on hangers, with security and price tags affixed. 
D)  Collecting data from customers on what kind of clothes to stock in stores, using PDAs. 
E)  Tweaking shipping models through Air France-KLM Cargo to coordinate outbound shipments with return legs loaded with raw materials.

Question 9

Factors such as weather, natural disaster, terrorism, labor strife, or political unrest can shut down a firm's operations. Which of the following is one of the measures taken by firms to hedge such risks?

Accepted Answer

A)  Driving up profitability by increasing prices of market goods 
B)  Spreading productions facilities across the globe 
C)  Requesting government intervention in the form of subsidies or nationalization 
D)  Sourcing raw materials from countries with low labor costs 
E)  Diverting marketing and advertising budgets to accommodate greater production 
A)  Driving up profitability by increasing prices of market goods 
B)  Spreading productions facilities across the globe 
C)  Requesting government intervention in the form of subsidies or nationalization 
D)  Sourcing raw materials from countries with low labor costs 
E)  Diverting marketing and advertising budgets to accommodate greater production

Question 10

Zara's clothing lines are designed:

Accepted Answer

A)  by star designers like Stella McCartney. 
B)  in collaboration with celebrities and pop artists. 
C)  by design school graduates to suit customer demand. 
D)  by designers who win talent shows sponsored by Zara. 
E)  mostly by foreign designers in European design hotspots of Paris and Milan. 
A)  by star designers like Stella McCartney. 
B)  in collaboration with celebrities and pop artists. 
C)  by design school graduates to suit customer demand. 
D)  by designers who win talent shows sponsored by Zara. 
E)  mostly by foreign designers in European design hotspots of Paris and Milan.

Question 11

Contract manufacturers used by the apparel industry are often criticized because:

Accepted Answer

A)  they hike up the costs of producing goods. 
B)  firms cannot maintain high profit margins by employing them. 
C)  they charge exorbitant labor costs that drive down sales. 
D)  they are known to grossly overprice their services. 
E)  of poor working conditions. 
A)  they hike up the costs of producing goods. 
B)  firms cannot maintain high profit margins by employing them. 
C)  they charge exorbitant labor costs that drive down sales. 
D)  they are known to grossly overprice their services. 
E)  of poor working conditions.

Question 12

The U.S. Justice Department initially reviewed the Fair Factories Clearinghouse but eventually approved the effort as described in readings and class. What was the government initially concerned about?

Accepted Answer

Price-fixi

Question 13

Zara's production costs could rise at higher rates than its competitors because many of the firm's costs are tied to the _____.

Accepted Answer

A)  euro 
B)  dollar 
C)  yen 
D)  pound 
E)  franc 
A)  euro 
B)  dollar 
C)  yen 
D)  pound 
E)  franc

Question 14

???????????????_______are goods to be further customized based on designer/manager collaboration.

Accepted Answer

The answer of ???????????????_______are goods to be further customized based...

Question 15

What were the problems encountered by Gap in the early part of the decade following the 1990s? What were the measures taken to overcome these problems?

Accepted Answer

Gap was an industry leader for much of t

Question 16

According to an independent study, Zara books some 85 percent of its products at full price compared to the industry average markdown ratio of 50 percent. This is made possible by:

Accepted Answer

A)  keeping a major part of the production processes under direct proprietary control. 
B)  coordinating the outbound shipments of all Inditex brands with return legs loaded with return materials and half-finished items. 
C)  applying data analytics to purchase trends. 
D)  the practice of having limited production runs of its designs. 
E)  leveraging contract manufacturers to produce only staple items with longer shelf-lives, which account for one-eighth of dollar volume. 
A)  keeping a major part of the production processes under direct proprietary control. 
B)  coordinating the outbound shipments of all Inditex brands with return legs loaded with return materials and half-finished items. 
C)  applying data analytics to purchase trends. 
D)  the practice of having limited production runs of its designs. 
E)  leveraging contract manufacturers to produce only staple items with longer shelf-lives, which account for one-eighth of dollar volume.

Question 17

Maintaining large inventories is highly essential for the viability of the fashion industry.

Accepted Answer

A) True 
 B)False

Question 18

Due to limited production runs, Zara's customers:

Accepted Answer

A)  tend to delay their shopping until the products go on sale. 
B)  visit the stores more often. 
C)  buy products at discounted rates after a few weeks. 
D)  visit stores less often. 
E)  create a greater opportunity for increased markdowns and writeoffs. 
A)  tend to delay their shopping until the products go on sale. 
B)  visit the stores more often. 
C)  buy products at discounted rates after a few weeks. 
D)  visit stores less often. 
E)  create a greater opportunity for increased markdowns and writeoffs.

Question 19

Describe how Zara's counterintuitive practice of making limited production runs is profitable and effective in maintaining a competitive advantage over the firm's rivals.

Accepted Answer

While running out of bestsellers might b

Question 20

Most fashion retailers place orders for a seasonal collection a few days before these lines make an appearance in stores.

Accepted Answer

A) True 
 B)False

_____ involves outsourcing production to third-party firms.

_____ are critical for capturing sales data, and are usually linked to systems which manager a firm's inventory.

In retail in general and fashion in particular, having _____ is considered the kiss of death.

Many firms have developed and deployed innovative information systems, only to see these systems go unused by key staff members. How has Zara helped ensure its systems will be used by staff?

The strengthening of the euro relative to the dollar has insulated Zara against financial vulnerabilities.

A(n) _____ is a transaction process that captures customer purchase information.

Zara encourages employee use of technology by tying employee salaries to sales performance.

Zara store staff gain as much as three hours in prime selling time to assist customers at stores. Which of Zara's practices is instrumental in these time savings?

Factors such as weather, natural disaster, terrorism, labor strife, or political unrest can shut down a firm's operations. Which of the following is one of the measures taken by firms to hedge such risks?

Zara's clothing lines are designed:

Contract manufacturers used by the apparel industry are often criticized because:

The U.S. Justice Department initially reviewed the Fair Factories Clearinghouse but eventually approved the effort as described in readings and class. What was the government initially concerned about?

Zara's production costs could rise at higher rates than its competitors because many of the firm's costs are tied to the _____.

???????????????_______are goods to be further customized based on designer/manager collaboration.

What were the problems encountered by Gap in the early part of the decade following the 1990s? What were the measures taken to overcome these problems?

According to an independent study, Zara books some 85 percent of its products at full price compared to the industry average markdown ratio of 50 percent. This is made possible by:

Maintaining large inventories is highly essential for the viability of the fashion industry.

Due to limited production runs, Zara's customers:

Describe how Zara's counterintuitive practice of making limited production runs is profitable and effective in maintaining a competitive advantage over the firm's rivals.

Most fashion retailers place orders for a seasonal collection a few days before these lines make an appearance in stores.

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Filters

Exam 3: Zara: Fast Fashion From Savvy Systems

_____ involves outsourcing production to third-party firms.

_____ are critical for capturing sales data, and are usually linked to systems which manager a firm's inventory.

In retail in general and fashion in particular, having _____ is considered the kiss of death.

Many firms have developed and deployed innovative information systems, only to see these systems go unused by key staff members. How has Zara helped ensure its systems will be used by staff?

The strengthening of the euro relative to the dollar has insulated Zara against financial vulnerabilities.

A(n) _____ is a transaction process that captures customer purchase information.

Zara encourages employee use of technology by tying employee salaries to sales performance.

Zara store staff gain as much as three hours in prime selling time to assist customers at stores. Which of Zara's practices is instrumental in these time savings?

Factors such as weather, natural disaster, terrorism, labor strife, or political unrest can shut down a firm's operations. Which of the following is one of the measures taken by firms to hedge such risks?

Zara's clothing lines are designed:

Contract manufacturers used by the apparel industry are often criticized because:

The U.S. Justice Department initially reviewed the Fair Factories Clearinghouse but eventually approved the effort as described in readings and class. What was the government initially concerned about?

Zara's production costs could rise at higher rates than its competitors because many of the firm's costs are tied to the _____.

???????????????_______are goods to be further customized based on designer/manager collaboration.

What were the problems encountered by Gap in the early part of the decade following the 1990s? What were the measures taken to overcome these problems?

According to an independent study, Zara books some 85 percent of its products at full price compared to the industry average markdown ratio of 50 percent. This is made possible by:

Maintaining large inventories is highly essential for the viability of the fashion industry.

Due to limited production runs, Zara's customers:

Describe how Zara's counterintuitive practice of making limited production runs is profitable and effective in maintaining a competitive advantage over the firm's rivals.

Most fashion retailers place orders for a seasonal collection a few days before these lines make an appearance in stores.

Setting the Stage: Technology and the Modern Enterprise

Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

Moores Law and More: Fast, Cheap Computing and What This Means for the Manager

Disruptive Technologies: Understanding the Giant Killers and Considerations for Avoiding Extinction

Amazoncom: an Empire Stretching From Cardboard Box to Kindle to Cloud

Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World

Social Media, Peer Production, and Web 20

The Sharing Economy, Collaborative Consumption, and Creating More Efficient Markets Through Technology

Facebook: a Billion-Plus Users, the High-Stakes Move to Mobile, and Big Business From the Social Graph

Rent the Runway: Entrepreneurs Expanding an Industry

Understanding Software: a Primer for Managers

Software in Flux: Open Source, Cloud, Vittualized and App-Driven Shifts

The Data Asset: Databases, Business Intelligence, Analytics, Big Data, and Competitive Advantage

A Managers Guide to the Internet and Telecommunications

Information Security: Barbarians at the Gateway and Just About Everywhere Else

Google in Three Parts: Search, Online Advertising, and an Alphabet of Opportunity

Filters