MIS 301 Ch 3

___ is Zara's second largest market.
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___ is Zara's second largest market.
China
Identify each statement about Zara founder Amancio Ortega as true
He is one of the world's wealthiest individuals.
Nearly ____% of Zara's merchandise is produced in-house..
60 %
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
Factors such as weather, natural disaster, terrorism, labor strife, and 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?
Spreading production facilities across the globe
Zara is susceptible to any disruption in northern Spain because:
It moves all of its deliveries through just two locations, both in Spain.
Zara is often described as a leader in _____
Fast fashion
Zara's model has evolved to support this type of commerce, adding 52 special stockrooms globally.
e-commerce
Zara's clothing lines are designed:
By design school graduates to suit customer demand.
It is ____ that helps Zara identify and manufacture the clothes customers want, gets those products to market quickly, and eliminates costs related to advertising, inventory missteps, and markdowns.
Technology
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.Identify the following as being an advantage of RFID systems used by Zara.Reduce time needed to account for inventory Help find a product a customer wants which isn't available in storeZara holds a competitive advantage over its rivals in spite of:Keeping large portions of its production processes in-house.Contract manufacturers used by the apparel industry are often criticized because:Of poor working conditionsThe Prada example shows that copying technology alone is not a guarantee of success. The firm should have benefited from understanding that Information Systems are made up of which four critical components?Hardware, software, people, and procedures_____ are critical for capturing sales data and are usually linked to systems which manage a firm's inventory.Point-of-sale systemsPersonal digital assistants are:Handheld computing devices meant largely for mobile use outside an office setting.Zara offers roughly ___ times more unique products than Gap.TenThe US Justice Department almost scuttled the creation of the Fair Factories Clearing House, despite the potential for the effort to improve labor conditions among contract manufacturers. The United States government was concerned about _____.Buyer collusionZara receives new styles _____ times faster than Gap.TwelveIn retail, generally, and in the fashion industry, particularly, having _____ is considered the kiss of death.Excessive inventoryThe Zara experience involves a regular supply of new stock on the shelves, because of which customers tend to visit Zara's stores more often than they visit other retailers' stores. However, such a policy will become more expensive to maintain if:Fuel costs raiseZara's security tags include ____ technology.RFIDHaving too much _____ in the retail apparel industry is the kiss of death.InventoryHaving the wrong items in its stores hobbled ____ for roughly a decade.GapWhy statements are true about why Zara offers limited runs of products?It increases the likelihood customers will buy products right away and at full price It reduces the impact of "guessing wrong" Customers are more likely to receive a unique design from their Zara purchase than at rival retailersWhat was considered the source of Mickey Drexler's inventory problems at Gap?The firm guessed wrong about fashion, placing big bets on trends that consumers didn't want.Zara's production costs could fluctuate at higher rates than its competitors because many of the firm's costs are tied to the _____.Euro______ is considered a "graveyard of European retailers."United StatesMany 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?System use drives store success and as much as 70 percent of salaries are tied to sales performance._____ involves outsourcing production to third-party firms.Contract manufacturing