Deck 12: EC Strategy, Globalization, and Smes

Question 1

The disadvantages a brick-and-mortar company faces by creating an independent online division are that it may be very costly,risky,or both.

Answer 1

True

Question 2

The two major and successful Internet-based businesses,Google and eBay,have similar core competencies.

Answer 2

False

Question 3

In the strategy initiation phase,the organization examines itself,its environment,and the potential contribution that the Internet and other emerging technologies can make to the business.

Answer 3

True

Question 4

Disintermediation is the process by which the consumer bypasses the services of an intermediary or intermediaries in the chain of distribution to purchase products directly from those who supply or produce them.

Question 5

A business plan is a tool that is an alternative to narrowly focused financial assessments that measures organizational performance in four areas: finance,customers' assessments,internal business processes,and learning and growth.

Question 6

In e-commerce,evidence shows that there is always a real advantage to being the first mover in an industry or market segment.

Question 7

A value proposition is actually a financial statement that summarizes the annual revenue and profit targets.

Question 8

Regardless of organizational size,the strategic planning process forces executives,general managers,or business owners to assess the current position of the firm,where it should be,and how to get from here to there.

Question 9

In the strategy implementation phase,general long-term plans are developed for carrying out the projects that had been agreed on in the strategy formulation phase.

Question 10

A competitor analysis grid is a methodology that surveys external opportunities and threats and relates them to internal strengths and weaknesses.

Question 11

Strategies are based on performance indexes that are used as targets and measures of success.

Question 12

Any contemporary strategy-setting process must include the Internet.

Question 13

Strategy maps represent a hypothetical model of a business or one of the focus areas of the business.

Question 14

In Porter's view,the majority of the Internet's impacts on the five competitive forces have been positive.

Question 15

Travelocity's initial strategy was to concentrate on airline ticketing,hotel booking,and selling advertisements on its Web site.This business model worked very well until the airlines eliminated travel agents' commissions and competitors entered the market successfully.

Question 16

An organizational strategy is a detailed plan for how a business is going to accomplish its mission,what its goals should be,and what plans and policies it will need to accomplish these goals.

Question 17

Marketers are increasingly using social networking tools in a wide range of activities,including advertising,public relations,customer service,and product development.

Question 18

The basic method in scenario planning is that a group of analysts generates simulation games for policy makers.The games combine projected factors about the future,such as demographics,geography,and industrial information with plausible alternative social,technical,economic,and political trends.

Question 19

Strategy assessment is the continuous evaluation of progress toward the organization's strategic goals,resulting in corrective action and,if necessary,strategy reformulation.

Question 20

Resource allocation refers to the process of making the selected applications and projects a reality,such as hiring staff; purchasing equipment; licensing,purchasing,or writing software; and contracting vendors.

Question 21

In a click-and-mortar business,the allocation of resources between offline and online activities can create difficulties,especially in sell-side projects because the two activities could be competitors.

Question 22

Business process management is a method for business restructuring that combines workflow systems and redesigned methods.It covers three process categories including people-to-people,systems-to-systems,and systems-to people interactions.

Question 23

For ________ companies,it may be even more important to change strategies quickly.

A) traditional
B) pure play
C) service
D) retail

Question 24

Identifying failing projects as soon as possible and determining why they failed to avoid the same problems on subsequent projects is an important strategic implementation objective.

Question 25

General strategies for competitive advantage include each of the following except

A) customer or supplier lock-in.
B) entry barriers.
C) stabilization.
D) growth.

Question 26

An internal issue many firms face at the strategic alignment stage is the need to change business processes to accommodate the changes an EC strategy brings.

Question 27

A broad-based formula for how a business is going to accomplish its mission,what its goals should be,and what plans and policies will be needed to carry out those goals best defines

A) strategy.
B) business case.
C) business focus.
D) business objective.

Question 28

A metric is a specific,measurable standard against which actual performance is compared.

Question 29

Outsourcing can create strategic advantages for firms in that it provides access to highly skilled,low-cost labor and provides potential market opportunities.

Question 30

The use of key performance indicators makes assessing EC easy.

Question 31

A major advantage of EC is the ability to do business at any time,from anywhere,and at a reasonable cost.

Question 32

E-collaboration is the use of an external vendor to provide all or part of the products and services that could be provided internally.

Question 33

Having a strong project champion on an e-commerce project is seldom important to the success of the project because of interpersonal conflicts caused by a powerful champion.

Question 34

Social networking sites are a particular good fit for smaller businesses because SMEs often do not have a peer group nearby with which to discuss relevant topics.

Question 35

Risk management plans are a specific outcome associated with the strategy implementation process.

Question 36

By using a currency exchange service,it is feasible to offer prices and payments in all currencies.

Question 37

One of the most contentious areas of global EC is the resolution of international legal issues.

Question 38

Technological e-commerce challenges include each of the following except

A) cost.
B) integration.
C) software standards.
D) distrust.

Question 39

The geographical issues of shipping goods and services across international borders are not well known.

Question 40

The formulation and execution of a vision of how a new or existing company intends to do business electronically best defines

A) e-commerce policy.
B) e-commerce strategy.
C) e-commerce case.
D) e-commerce focus.

Question 41

A specific outcome of the strategy initiation phase is a clear statement of the company's ________,which summarizes the customer segment,competitor target,and the core differentiation of one's product from the offerings of competitors.

A) company analysis
B) value proposition
C) core competency
D) functional strategy

Question 42

The development of strategies to exploit opportunities and manage threats in the business environment in light of corporate strengths and weaknesses best defines

A) strategy alignment.
B) strategy formulation.
C) strategy initiation.
D) strategy completion.

Question 43

Specific activities and outcomes from strategy implementation include

A) resource allocation.
B) identifying business opportunities.
C) creating a business plan.
D) company analysis.

Question 44

________ is the continuous evaluation of progress toward the organization's strategic goals,resulting in corrective action and,if necessary,strategy reformulation.

A) SWOT analysis
B) Competitor analysis grid
C) Scenario planning
D) Strategy assessment

Question 45

Which of the following involves scanning the business environment to collect and interpret relevant information about direct competitors,indirect competitors,and potential competitors?

A) environmental evaluation
B) competitor evaluation
C) corporate espionage
D) competitor analysis

Question 46

The unique combination of resources,experiences,and expertise within a particular firm is called their

A) corporate strategy.
B) core competencies.
C) functional strategy.
D) competitive advantage.

Question 47

The initial phase of strategic planning in which the organization examines itself and its environment best defines

A) value proposition.
B) feasibility study.
C) strategic alignment.
D) strategy initiation.

Question 48

Specific outcomes from the strategy initiation phase include each of the following except

A) competitor analysis.
B) forecasts.
C) day-to-day operations.
D) company analysis.

Question 49

An analytical tool in which a company looks for points of differentiation between competitors and itself is called

A) SWOT analysis.
B) competitor analysis grid.
C) scenario planning.
D) strategy assessment.

Question 50

A strategic planning methodology that generates plausible alternative futures to help decision makers identify actions that can be taken today to ensure success in the future best defines

A) business case.
B) communications matrix.
C) information systems planning.
D) scenario planning.

Question 51

Each of the following about the strategic planning process is true except

A) the strategic planning process is cyclical and continuous.
B) the process of developing a strategy may be even more important than the strategy.
C) the strategic planning process forces corporate executives, a company's general manager, or a small business owner to assess the current position of the firm, where it should be, and how to achieve objectives.
D) the strategic planning process begins with strategy formulation.

Question 52

Google's ________ is its expertise in information search technology.

A) company analysis
B) value proposition
C) core competency
D) functional strategy

Question 53

________ is the process of making the selected applications and projects a reality by hiring staff; purchasing equipment; licensing,purchasing,or writing software; and contracting vendors.

A) Project management
B) Resource allocation
C) Project planning
D) Strategy assessment

Question 54

Specific activities and outcomes from strategy formulation include each of the following except

A) risk analysis, assessment, and management.
B) cost-benefit analysis.
C) project plan.
D) business plan.

Question 55

A process for developing a strategy and plans for aligning information systems with the organization's business strategies best defines

A) business planning.
B) business case.
C) strategic information systems planning.
D) strategic alignment.

Question 56

A tool that delineates the relationships among the key organizational objectives for all four BSC perspectives defines

A) business plan.
B) competitor analysis.
C) SWOT analysis.
D) strategy map.

Question 57

Projections of the business technological,political,economic,and other environments are called

A) forecasts.
B) SWOT analysis.
C) competitive intelligence.
D) value propositions.

Question 58

A methodology that surveys external opportunities and threats and relates them to internal strengths and weaknesses best defines

A) business case.
B) business plan.
C) SWOT analysis.
D) competitor analysis grid.

Question 59

A specific outcome of the strategy initiation phase is the ________,which includes the vision,mission,value proposition,goals,capabilities,constraints,strengths,and weaknesses of the company.

A) company analysis
B) value proposition
C) core competency
D) functional strategy

Question 60

Many of the outcomes from the first two phases of the strategic planning process,such as a determination of goals,competitor analysis,strategic opportunities,and risk analysis come together in a ________.

A) technology audit
B) SWOT plan
C) value proposition
D) business plan

Question 61

After four years in business,a magazine publisher decides to add the online distribution of its magazine to its existing traditional publishing business.The company would need to develop a

A) business strategy.
B) business plan.
C) business case.
D) business metric.

Question 62

Separating a company's online operations into a new company makes sense in each of the following situations except

A) when the volume of anticipated e-business is large.
B) when the subsidiary can be created without dependence on current operations and legacy systems.
C) when the company is unable to form new alliances, attract new talent, or raise additional funding.
D) when a new business model needs to be developed apart from the constraints of current operation.

Question 63

The risks of being a first mover include each of the following except

A) the high cost of pioneering EC initiatives.
B) the chance that a second wave of competitors will eliminate a first mover's lead through lower cost and innovation.
C) the risk that the move will be too late.
D) over the long run, first movers being substantially less profitable than followers.

Question 64

The most dangerous risk to a company engaged in e-commerce is

A) threats posed by hackers.
B) business risk.
C) negligent loss of data.
D) customer and business partner risk.

Question 65

Selling the same good,but with different selection and delivery characteristics best defines

A) channel marketing.
B) versioning.
C) selective distribution.
D) cost-plus marketing.

Question 66

Security issues that need to be considered when setting an EC strategy include

A) accidental alterations to or destruction of electronic information and records.
B) costs to mitigate a covered loss.
C) liability for damage to a third-party's computer system.
D) all of the above.

Question 67

With the balanced scorecard approach,the term balance arises because the combined set of measures is supposed to encompass indicators that are each of the following except

A) core and non-core.
B) financial and nonfinancial.
C) leading and lagging.
D) quantitative and qualitative.

Question 68

Internet technologies can provide consumers with easier access to pricing information,which increases their bargaining power.To remain competitive and profitable,sellers need smarter pricing strategies,which include each of the following strategies except

A) greater precision in setting prices.
B) more adaptability in changing prices.
C) new ways of customer segmentation for differentiated pricing.
D) reducing prices.

Question 69

Factors that determine whether a first mover succeeds or fails in the EC marketplace include each of the following except

A) the size of the opportunity.
B) the speed of market entry.
C) the nature of the product.
D) whether the company can be the best in the market.

Question 70

A management tool that assesses organizational progress toward strategic goals by measuring performance in a number of different areas is

A) balanced scorecard.
B) BCG growth-share matrix.
C) SWOT analysis.
D) Web analytics.

Question 71

Which of the following can occur when a company waits to see what competitors in the industry do?

A) market-driven strategy
B) competitor-driven strategy
C) technology-driven strategy
D) second-mover strategy

Question 72

The person who ensures the EC project gets the time,attention,and resources required and defends the project from detractors at all times best defines

A) project gladiator.
B) project manager.
C) project champion.
D) project referee.

Question 73

The most important objectives of strategic assessment include each of the following except

A) measure the extent to which the EC strategy and ensuing projects are delivering what they were supposed to deliver.
B) determine if the EC strategy and projects are still viable in the current environment.
C) reassess the initial strategy in order to learn from mistakes and improve future planning.
D) identify what competitors are doing to avoid head-on competition.

Question 74

When planning a successful online EC strategy that includes social media,an important issue to consider is

A) develop a consistent online and offline brand strategy.
B) sell globally as well as locally.
C) effectively market to existing customers.
D) all of the above.

Question 75

The likelihood that a negative outcome will occur in the course of developing and operating an electronic commerce strategy best defines

A) business risk.
B) technology risk.
C) e-commerce risk.
D) competitor risk.

Question 76

Advanced performance measuring and analysis approach that embraces planning and strategy best defines

A) metric.
B) key performance indicator.
C) corporate performance management.
D) dashboard.

Question 77

The ________ pricing strategy means adding up all the costs involved,such as material,labor,rent,overhead,and so forth,and adding a percentage mark-up as profit.

A) cost-plus
B) competitor model
C) revenue markup
D) price percentage

Question 78

The analysis of clickstream data to understand visitor behavior on a website best defines

A) clickstream tracking.
B) cookies.
C) splogging.
D) web analytics.

Question 79

A methodology for conducting a comprehensive redesign of an enterprise's processes best defines

A) business case.
B) corporate makeover.
C) redesign strategy.
D) business process reengineering.

Question 80

A quantifiable measurement,agreed to beforehand,that reflects the critical success factors of a company,department or project best defines

A) key performance indicator.
B) dashboard measurement.
C) spot check.
D) splog.