Deck 13: E-Commerce Strategy and Global EC

Question 1

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

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

The primary reasons for writing a business plan are to acquire funding and nonfinancial resources,to recruit senior management,and to force the business owner to think ahead,set achievable goals,seek out and analyze competitors.

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

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 7

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.

Question 8

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

Question 9

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 10

SWOT analysis is one method for scanning the business environment to collect and interpret relevant information about direct competitors,indirect competitors,and potential competitors.

Question 11

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 12

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

Question 13

Any contemporary strategy-setting process must include the Internet.

Question 14

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

Question 15

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

Question 16

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

Question 17

Entrepreneurs in start-up companies use business plans to get funding from investors,such as a venture capitalist or a bank.

Question 18

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

Question 19

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 20

A business plan begins with an executive summary that is a a synopsis of the key points of the entire business plan.

Question 21

All of the following are elements of a company's strategy except:

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

Question 22

At the implementation stage,firms may need to dramatically change business processes to accommodate the changes an EC strategy brings.In those instances,business process reengineering (BPR)is usually necessary.

Question 23

Capabilities of the Internet that have made it more difficult for companies to capture profits include all of the following except:

A)The Internet makes information widely available.
B)The Internet reduces the difficulty of purchasing,marketing,and distribution.
C)The Internet allows buyers and sellers to find and transact business with one another more easily.
D)The Internet makes it easier to make secure payments.

Question 24

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 25

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

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

Question 26

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 27

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 28

The purpose of GlobalNetXchange,which was founded by major retailers such as Sears,was to reduce procurement costs and product prices for its members while making the purchase process more efficient.

Question 29

Disposing of excess equipment was the motivation behind the implementation of forward e-auctions at General Motors.This is an example of a technology-driven strategy because GM had a specific problem that an EC application could solve.

Question 30

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 31

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 32

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

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

Question 33

________ 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 34

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 35

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 36

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

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

Question 37

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 38

________ 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 39

All of the following about the strategic planning process are 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 40

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 41

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

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

Question 42

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

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

Question 43

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 all 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 44

In the ________ phase,the organization examines itself and its environment.The principal activities include setting the organization's mission and goals,examining organizational strengths and weaknesses,assessing environmental factors impacting the business,and conducting a competitor analysis.

Question 45

________ is 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.

Question 46

All of the following are situations when a business plan should be done except:

A)when an existing business is deploying a CRM system
B)when a new business is seeking start-up funds and other resources
C)when an existing company is planning to create a separate division
D)when an existing company is planning to launch the company in a new direction

Question 47

________ are the hottest applications in today's business environment.

A)Virtual worlds
B)Rich media
C)Social networking technologies
D)Online brands

Question 48

Implementing EC often requires significant investments in infrastructure.Therefore,a good way to start is to undertake ________.

A)a large,non-trivial EC project
B)one or a few small EC pilot projects
C)a multi-divisional EC project
D)a single division EC project

Question 49

________ refers to the benefit that a company's products or services provide to a company and its customers.

Question 50

The risks of being a first mover include all 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 51

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 52

A ________ is a form of business alliance composed of several business partners that share the costs and resources for the development or production of a product or service.

A)temporary corporation
B)supply chain
C)virtual corporation
D)co-opetition

Question 53

________ is the development of strategies to exploit opportunities and manage threats in the business environment in light of corporate strengths and weaknesses.

Question 54

________ is the process for developing a strategy and plans for aligning information systems and EC applications with the business strategies of an organization.

Question 55

Which of the following about business plans and business cases is not correct?

A)The content of a business case is similar to that of a business plan.
B)One difference is that the business plan concentrates on the viability of a company,whereas a business case assesses both the viability of the project and the fit of the initiative with the firm's mission and goals.
C)The audiences are the same-senior management and the board or directors.
D)The purposes are the same-to justify a specific investment of funds.

Question 56

All of the following determine the degree of collaboration between offline and online activities in a business except:

A)corporate culture
B)the ability of top management to introduce change properly
C)the pricing strategy
D)the use of innovative processes that support collaboration

Question 57

The most important objectives of strategic assessment are all 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 58

Factors that determine whether a first mover succeeds or fails in the EC marketplace include all 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 59

The most efficient way to expand an organization's scope is:

A)to introduce new products or services into new or existing markets without increasing production facilities or staff.
B)by increasing the size or scale of the business.
C)by expanding the firm's appeal to a new set of customers.
D)to buy a company with complementary products or services.

Question 60

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 61

A ________ is a business plan for a new initiative or large,new project inside an existing organization.

Question 62

________ is a methodology that surveys the opportunities and threats in the external environment and relates them to the organization's internal strengths and weaknesses.

Question 63

________ is the analysis of click-stream data to understand visitor behavior on a Web site.

Question 64

________ is a methodology for conducting a comprehensive redesign of an enterprise's processes.

Question 65

________ is a method for business restructuring that combines workflow systems and redesign methods;covers three process categories people-to-people,systems-to-systems,and systems-to-people interactions.

Question 66

________ is 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.

Question 67

Many companies use different names,colors,sizes,and packaging for their overseas products and services.This practice is referred to as ________.

Question 68

________ refer to the unique combination of the resources and experiences of a particular firm,which take time to build and tend to be difficult to imitate.

Question 69

One popular EC partner strategy is ________,which is the use of an external vendor to provide all or part of the products and services that could be provided internally.

Question 70

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

Question 71

________ involves scanning the business environment to collect and interpret relevant information about direct competitors,indirect competitors,and potential competitors.

Question 72

In strategy assessment,specific measures called ________ assess the progress of the strategy.

Question 73

________ refers to selling the same good but with different selection and delivery characteristics.

Question 74

A form of business alliance called a(n)________ is an organization composed of several business partners sharing costs and resources for the production or utilization of a product or service.

Question 75

The ________ is the person who ensures that the project gets the time,attention,and resources required and defends the project from detractors at all times.

Question 76

It has always been the case that ________ is intimately linked to how well an organization manages its relationships with employees,customers,partners,and suppliers.

Question 77

A ________ is a strategic planning tool that highlights points of differentiation between competitors and the target firm.

Question 78

________ means identifying business,technological,political,economic,and other relevant trends that are currently affecting the business or that have the potential to do so in the future.

Question 79

________ describes when two or more companies cooperate on some activities for mutual benefit,even while competing against each other in the marketplace.

Question 80

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