solution

Which of the following is not an advantage realized by Amazon due to their scale?

1. Amazon’s scale gives them bargaining power with suppliers.

2. Amazon’s scale enables them to receive lower prices and extended payment terms from suppliers.

3. Amazon’s costs for real estate, energy, and security are higher than those of brick-and-mortar rivals.

4. Employee efficiency at Amazon outpaces its competitors due to Amazon’s shift-oriented business fulfilment process.

1. Which of the following is not one of Amazon’s own brands?

1. Kirkland.

2. Mama Bear.

3. Denali.

4. Happy Belly.

2. Which of the following is one of Amazon’s acquisitions?

1. Instagram.

2. Whole Foods.

3. Oculus VR.

4. What’s App.

3. Which of the following companies has the highest cash conversion cycle?

1. Barnes and Noble.

2. Amazon.

3. Target.

4. Best Buy.

4. Jeff Bezos reputedly sketched his original Amazon “Wheel of Growth” model on a napkin. It includes three “pillars” for running the Amazon business. Which of the following is not one such pillar?

1. Large selection.

2. Convenience (aka Customer Satisfaction).

3. Lower prices.

4. Favorable financing.

5. Amazon’s order fulfillment operations include the use of robots. Which of the following is true of these robots?

1. The robots routinely handle bulky items such as flat-screen TVs and lawn mowers.

2. The robots are produced by Kiva Systems; Kiva is an Amazon acquisition.

3. The order fulfillment process – “SLAM” – entails these steps: “Sort”, “Label”, “Apply”, and “Manifest”.

4. The “random stow” fulfillment process is not used by Amazon.

6. Which of the following statements is true?

1. Amazon’s warehouses and third-party selections offer the equivalent of virtually limitless selection.

2. The two-side network effect occurs when products and services become less valuable as two distinct categories of participants (e.g., buyers and sellers) expand.

3. “A/B tests” are typically difficult to run via the Internet.

4. In general, there is typically little money to be made in selling obscure items.