BUS 1101-Widdel
Final Exam B1101-90 Fall 12.docx
Introduction to Business – Sec 90
Final Application Exercise
Textbook chapters as specified
Deadline:
Start of class, 6:30 PM, Dec 18
Value:
5 points per correct answer unless otherwise indicated; 100 points possible
2 points per reference notation for each question; 40 points possible.
Submission:
Select a tentative answer for every question in the exercise by circling the best
response for each given question – in PENCIL.
In the margins of this document, jot down notes to which you can refer, if you are
called upon during class to explain your answer to a particular question.
Special Note:
 If you do not attend the final exam session, you need to email your
answers (and notes) to mark.widdel@anokaramsey.edu by 7:30 PM,
Tuesday, December 18.
The following questions are based upon information from the textbook (chapters are
specified when appropriate) as well as the posted article and related information about
Spanx Inc.
1.
(Ch. 1) Spanx is fortunate because due to the ‘lipstick effect’ affecting the sales of
women’s undergarments, the shapewear industry remains recession-proof.
a.
b.
c.
2.
True
False
Somewhat
(Ch. 2) Spanx plans to give their employees enough free product to make sure that they
wear the garments themselves and can tell customers exactly what works and why.
This action:
a.
b.
c.
is socially-responsible.
is ethical.
is something other than one of the above.
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BUS 1101-Widdel
3.
(Ch. 3) Spanx is now sold at nearly 12,000 retailers worldwide, in 40 countries from
Europe to Australia, as well as on the Internet. This makes them a multinational firm.
a.
b.
c.
4.
b.
c.
d.
e.
Mission
Strategic plan
Goal
Objective
(Ch. 6) A core competency of Spanx is:
a.
b.
c.
d.
e.
8.
her plucky start-up company tackled the male-dominated $2 billion hosiery
industry.
she invested $5,000 of her personal savings to produce and market her first
product, a footless bodyshaping pantyhose.
she acted upon the discovery that there wasn’t a footless bodyshaping item on
the market.
she built a successful business based upon personal desire and resources.
of something other than one of the above.
(Ch. 6) “To help women feel great about themselves and their potential,” represents the
company’s:
a.
b.
c.
d.
7.
sole proprietor.
limited partner.
shareholder in a closed corporation.
shareholder in an open corporation.
(Ch. 5) Sara Blakely would be classified as an entrepreneur because:
a.
6.
True
False
Who knows, there isn’t enough information.
(Ch. 4) Sara Blakely invented Spanx and founded the company. It’s likely that she has
retained controlling interest of the company as a:
a.
b.
c.
d.
5.
Final Exam B1101-90 Fall 12.docx
focusing on the sale of their merchandise in brick and mortar stores versus
online.
creating bodyshaping garments.
solving the body image problems of women.
devising garments for both women and men.
something other than one of the above.
(Ch. 7) To become recognized as the world’s youngest, self-made female billionaire by
Forbes Magazine in 2012, Sara Blakely had to be particularly good at accomplishing which
managerial function?
a.
b.
c.
d.
Organizing
Directing
Controlling
Leading
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BUS 1101-Widdel
9.
(Ch. 7) The ‘You go, girl’ aesthetic at the Spanx brick-and-mortar stores as well as the
hot pink walls at the company’s Atlanta headquarters along with the feeling of women
helping women about things that women need is an expression of Spanx’s:
a.
b.
c.
d.
10.
Undifferentiated
Concentrated
Differentiated
(Ch. 11) Which of these possible influences on the consumer’s decision making process
is likely to have the greatest impact on their decision about whether or not to purchase a
Spanx undergarment?
a.
b.
c.
15.
women.
women and men.
women who perceive the need for a slimming undergarment.
women who have self-image problems.
something other than one of the above.
(Ch. 11) Spanx uses what type of approach to target marketing?
a.
b.
c.
14.
True
False
Somewhat
(Ch. 11) The target market for Spanx products are:
a.
b.
c.
d.
e.
13.
its garment quality.
its brand.
its service.
the breadth of the product line.
its pricing.
(Ch. 11) Sara Blakely’s development process for the first Spanx product illustrates the
marketing concept.
a.
b.
c.
12.
mission.
promotional message.
differential advantage.
corporate culture.
(Ch. 8) It appears that Spanx has a differential advantage of:
a.
b.
c.
d.
e.
11.
Final Exam B1101-90 Fall 12.docx
Situational influences
Psychological influences
Social influences
(Ch. 12) The addition of Assets’ Red Hot Label by Spanx and Love your Assets’ by Sara
Blakely represent which branding strategy?
a.
b.
c.
Individual
Family
Extension
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BUS 1101-Widdel
16.
(Ch. 13) The new free-standing brick and mortar stores being launched Blakely would be
classified a:
a.
b.
c.
d.
17.
the company’s need to reach a customer not currently served.
the company’s need to better control their promotional mix.
the company’s need to expand their product lines.
the need to support declining online sales.
(Something other than one of the above.)
The number one factor of success for the new free-standing Spanx stores is for them to
provide a significant differential advantage to the target market over and above the one
provided by their online store.
a.
b.
c.
20.
Producer to consumer
Producer to retailer to consumer
Producer to wholesaler to retailer to consumer
Producer to agent to wholesaler to retailer to consumer
The primary motive for building the free-standing stores for Spanx appears to be based
upon:
a.
b.
c.
d.
e.
19.
department store.
warehouse showroom.
traditional specialty store.
category killer.
(Ch. 13) The new free-standing brick and mortar stores represent which of the following
distribution channels?
a.
b.
c.
d.
18.
Final Exam B1101-90 Fall 12.docx
True
False
Somewhat
According to the ten principles of effective web design handout, the Spanx website
a.
b.
c.
is excellent.
is good, but lack several critical consumer-related features.
is poor.
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