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.

Accepted Answer

The cost of creating and maintaining an independent online division can be significant, and there is no guarantee of success in the competitive online marketplace. This can pose a risk to the brick-and-mortar company's financial stability.

Question 2

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

Accepted Answer

Google and eBay have different core competencies. Google's core competency is in search engine technology and online advertising, whereas eBay's core competency is in online auctions and e-commerce.

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.

Accepted Answer

In the strategy initiation phase, organizations conduct a thorough analysis of themselves, their environment, and the potential benefits of emerging technologies such as the Internet to their operations. Through this evaluation, they aim to identify opportunities, risks, and constraints that may affect the development of their strategic plans.

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.

Accepted Answer

Disintermediation refers to the process of eliminating intermediaries in the chain of distribution and buying products directly from producers or suppliers.

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.

Accepted Answer

A business plan is a document that outlines a company's goals and the strategy for achieving them, while the description given refers to the Balanced Scorecard, a strategic planning and management system used to evaluate performance across four perspectives: financial, customer, 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.

Accepted Answer

While being a first mover can offer advantages such as market dominance and brand recognition, it does not always guarantee success. Later entrants can learn from the mistakes of first movers, improve upon their offerings, and sometimes overtake them in the market.

Question 7

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

Accepted Answer

A value proposition is a statement that explains the benefits a product or service provides to its target market, and how it solves their problems or meets their needs. It is not a financial statement.

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.

Accepted Answer

This statement is true. The strategic planning process involves evaluating where the company currently stands, establishing goals for where it wants to go, and determining the best way to reach those goals. This is true regardless of the size of the organization.

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.

Accepted Answer

In the strategy implementation phase, the focus is on executing the specific strategies and plans that were developed during the strategy formulation phase, rather than developing general long-term plans.

Question 10

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

Accepted Answer

A competitor analysis grid focuses on comparing a company's products, services, and strategies directly with those of its competitors, rather than surveying external opportunities and threats and relating them to internal strengths and weaknesses, which is the purpose of a SWOT analysis.

Question 11

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

Accepted Answer

Strategies are typically designed with specific performance indexes in mind, which serve as both targets and measures of success. These indexes may include things like revenue growth, market share, customer satisfaction, or employee engagement, among others, and are used to guide decision-making and track progress toward strategic goals.

Question 12

Any contemporary strategy-setting process must include the Internet.

Accepted Answer

The internet has become an integral part of modern business operations, and any strategy-setting process that fails to account for its impact is likely to be incomplete or ineffective. Online channels play an increasingly important role in reaching customers, promoting products and services, and gathering information about competitors and industry trends. Therefore, any contemporary organization must prioritize the role of the internet in their strategy-setting process.

Question 13

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

Accepted Answer

Strategy maps are a visual representation of a business strategy, including key objectives, perspectives, and measures. They illustrate the cause-and-effect relationships between different elements and provide a framework for decision-making and performance evaluation. However, strategy maps are not hypothetical models but rather a tool used to communicate and implement a business strategy.

Question 14

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

Accepted Answer

Porter argued that the Internet tends to increase competition which can erode company margins and profitability, thus having a negative impact on most of the five competitive forces.

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.

Accepted Answer

The statement accurately describes Travelocity's initial strategy and the challenges it faced.

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.

Accepted Answer

The answer of An organizational strategy is a detailed plan...

Question 17

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

Accepted Answer

The statement is true, as social networking tools have become an integral part of marketing strategies for businesses in various activities like 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.

Accepted Answer

This statement accurately describes the basic method of scenario planning.

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.

Accepted Answer

Strategy assessment involves regular monitoring and evaluation of progress towards the organization's strategic goals, and making necessary corrections or changes to ensure that the strategy remains effective. Therefore, the statement is true.

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.

Accepted Answer

The answer of Resource allocation refers to the process of...

Quiz 12: EC Strategy, Globalization, and Smes