Question 1

Strategy has been, and remains, focused on questions about organizational fit, trade-offs, profitability, and value.

Accepted Answer

Strategy involves making decisions that align with an organization's goals, considering the trade-offs between different options, and focusing on actions that enhance profitability and create value.

Question 2

The threat of substitute products or services is a major force that can endanger a company's position in a given industry.

Accepted Answer

The threat of substitute products or services is one of Porter's Five Forces that shapes the competitive structure of an industry. It refers to the risk that a company's products or services can be replaced by different products or services that fulfill the same need, potentially reducing demand for the company's offerings and endangering its position in the market.

Question 3

In the strategy initiation phase, the organization examines itself and its environment.

Accepted Answer

During the strategy initiation phase, an organization assesses both its internal environment (strengths and weaknesses) and external environment (opportunities and threats) to understand its current position and the landscape it operates in.

Question 4

Core competency refers to the unique combination of the resources and experiences of a particular firm.

Accepted Answer

Core competency is a concept in management theory that refers to a firm's unique ability to integrate a set of resources and capabilities, which distinguishes it from its competitors and creates a competitive advantage.

Question 5

Google and eBay have similar core competencies.

Accepted Answer

Google's core competencies lie in search engine technology, digital advertising, and data analytics, while eBay's core competencies are in online auctions, e-commerce marketplaces, and facilitating consumer-to-consumer and business-to-consumer sales.

Question 6

In the strategy implementation phase, general long-term plans are continuously evaluated.

Accepted Answer

The answer of In the strategy implementation phase, general long-term...

Question 7

Every business needs a business plan to acquire funding and to ensure that a realistic approach is being taken to implement the business strategy.

Accepted Answer

A business plan is essential for acquiring funding as it demonstrates to investors or lenders the viability and potential profitability of the business. It also serves as a roadmap for the business, outlining goals, strategies, and how to achieve them, ensuring a realistic and structured approach to implementing the business strategy.

Question 8

A business plan is the quantitative expression of critically important metrics.

Accepted Answer

A business plan is a comprehensive document that outlines a company's goals, strategies, market analysis, financial needs, and projections, not just the quantitative expression of metrics.

Question 9

Companies need to justify their EC investments as part of strategy formulation for a number of different reasons, but a majority of companies lack the knowledge or tools to do ROI calculations.

Accepted Answer

Many companies struggle with calculating the Return on Investment (ROI) for Electronic Commerce (EC) investments due to a lack of knowledge, expertise, or appropriate tools, making it challenging to justify these investments as part of their strategic planning.

Question 10

A metric is a specific, measurable standard against which actual performance is compared. Metrics are used to describe costs, benefits, or the ratio between them.

Accepted Answer

Metrics are quantifiable measures used to track and assess the status of specific processes, performance, or outcomes, often including aspects like costs, benefits, and their ratios, to facilitate comparison and evaluation against predefined standards or goals.

Question 11

Spam messages are at least 70 percent longer than legitimate e-mails.

Accepted Answer

Studies have shown that spam messages are often shorter than legitimate emails, as spammers tend to keep their messages brief to avoid detection and to quickly convey their deceptive messages.

Question 12

Intellectual property law is the area of the law that includes copyright law, patent law, trademark law, trade secret law, and other branches of related law, such as licensing and unfair competition.

Accepted Answer

Intellectual property law encompasses various legal rights and regulations designed to protect creations of the mind, including copyright law (for literary and artistic works), patent law (for inventions), trademark law (for brand identity), and trade secret law (for confidential business information), among others. These areas work together to safeguard and enforce the rights of creators and innovators.

Question 13

Blue computing is the study and practice of ecofriendly computing resources.

Accepted Answer

The answer of Blue computing is the study and practice...

Question 14

EPEAT-registered products must meet 42 mandatory environmental criteria.

Accepted Answer

EPEAT-registered products must meet a baseline of criteria, but the exact number varies by product category, not a fixed number like 42 for all products.

Question 15

EC will become an increasingly important method of reaching customers, providing services, and improving operations of organizations.

Accepted Answer

Electronic Commerce (EC) leverages digital platforms to facilitate the buying and selling of goods and services, making it a crucial tool for organizations to reach customers globally, offer enhanced services, and streamline operations efficiently.

Question 16

Net neutrality is a trend that will speed EC and Web 2.0 activities.

Accepted Answer

Net neutrality is a principle that all internet traffic should be treated equally, without discriminating or charging differently by user, content, site, platform, application, or method of communication. It doesn't directly speed up or slow down EC (Electronic Commerce) and Web 2.0 activities but ensures equal access to resources.

Question 17

Internet capabilities that make it more difficult for companies to capture profits include each 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 makes it easier to make secure payments.
D) The Internet allows buyers and sellers to find and transact business with one another more easily.

Accepted Answer

The Internet making it easier to make secure payments does not make it more difficult for companies to capture profits. Instead, it facilitates transactions, potentially increasing sales and profits by making it easier for customers to pay securely online.

Question 18

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 best defines
A) forecasting.
B) SWOT analysis.
C) competitive intelligence.
D) value proposition.

Accepted Answer

Forecasting involves predicting future trends and events that could impact a business, including business, technological, political, and economic trends.

Question 19

Not all EC investments need to be formally justified. Each of the following is a case where formal evaluation may not be needed except
A) when the value of the investment is relatively small for the organization.
B) when competitors have made that type of investment.
C) when the relevant data are not available, are inaccurate, or are too volatile.
D) when the EC project is mandated and must be done regardless of the costs and benefits.

Accepted Answer

Formal evaluation may not be needed in cases A, C, and D because the investment might be too small to justify the cost of evaluation, data issues make evaluation impractical, or the project is mandated, respectively. However, just because competitors have made a similar investment (choice B) does not mean an organization should forego formal evaluation; understanding the specific costs, benefits, and strategic implications for the organization itself is crucial.

Question 20

Tangible metrics for a B2C seller include each of the following except
A) profit per customer.
B) customer retention rate.
C) customer loyalty.
D) market share.

Accepted Answer

Customer loyalty, while important, is considered more of a qualitative metric rather than a tangible or quantitative one. It is often measured through surveys and feedback rather than direct numerical data, unlike profit per customer, customer retention rate, and market share, which can be directly quantified.

Quiz 11: EC Strategy and Implementation: Justification, Globalization, Smes,