Archive for August 2017

Each of the following apply to EC in developing economies except

Each of the following apply to EC in developing economies except 





A) developing economies struggle with various issues that create too many business and technology risks to justify investment in those economies at this time.
B) developing economies, such as China and India, represent a significant opportunity for EC to connect businesses to customers, as well as other businesses.
C) developing economies often face power blackouts and unreliable infrastructure and delivery mechanisms creating limitations that make it difficult for firms to predict whether EC investments will pay off, and when.
D) the potential volume of transactions in developed countries can make EC investments more attractive for established firms than new firms because established firms have already recovered the costs of their IT infrastructures.




Answer: A

One of the strengths of EC is the ease with which its adopters can reach a global population of consumers. However, EC-driven businesses must consider the critical elements affecting the value of EC across cultures. These elements include each of the following except

One of the strengths of EC is the ease with which its adopters can reach a global population of consumers. However, EC-driven businesses must consider the critical elements affecting the value of EC across cultures. These elements include each of the following except 



A) perceived trust.
B) political influences.
C) consumer loyalty.
D) delivery delays.







Answer: D

A structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. This best describes

A structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. This best describes 



A) usability testing.
B) change management.
C) employee empowerment.
D) acceptance testing.





Answer: B

Referencing capabilities needed by Webstore users, sellers need the ability to do each of the following except

Referencing capabilities needed by Webstore users, sellers need the ability to do each of the following except 



A) select products to purchase and negotiate or determine their total price.
B) provide an electronic shopping cart in which buyers can assemble their purchases.
C) track shipments to ensure that they are delivered.
D) arrange product delivery.





Answer: A

Referencing the capabilities needed by Webstore users, buyers need the ability to

Referencing the capabilities needed by Webstore users, buyers need the ability to 





A) create the capability for cross-selling and up-selling.
B) analyze purchases in order to customize buyers' experiences.
C) provide Web-based postsale support.
D) track orders once they are shipped.




Answer: D

A Web-based seller of CDs carefully monitors the prices charged by its competitors for identical products. This company has the ability to change a given price within three minutes in response to changes by competitors. This is an example of EC

A Web-based seller of CDs carefully monitors the prices charged by its competitors for identical products. This company has the ability to change a given price within three minutes in response to changes by competitors. This is an example of EC 




A) core competency.
B) product or service differentiation.
C) competitive advantage.
D) agility.




Answer: D

The fair market value of a business or the price at which a property would change hands between a willing buyer and a willing seller who are both informed and under no compulsion to act best describes

The fair market value of a business or the price at which a property would change hands between a willing buyer and a willing seller who are both informed and under no compulsion to act best describes 



A) feasibility.
B) agility.
C) valuation.
D) reusability.




Answer: C

McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. This is an example of ________ to attract customers who value this automatic update.

McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. This is an example of ________ to attract customers who value this automatic update. 



A) agility
B) product or service differentiation
C) core competency
D) competitive advantage




Answer: B

The average-cost curves (AVC) of physical products and digital products

The average-cost curves (AVC) of physical products and digital products 




A) are both L-shaped.
B) are different because the AVC of physical products declines as quantity increases forming an L-shape, while the AVC of digital products is U-shaped.
C) are different because the AVC of digital products declines as quantity increases forming an L-shape, while the AVC of physical products is U-shaped.
D) are both U-shaped.







Answer: C

Justifying information security projects

Justifying information security projects 




A) is not done because ROI calculators are not available.
B) is not needed because it is well-known that preventing network security problems is less labor intensive than cleaning up virus infections.
C) should be done because employee security training is usually poorly done.
D) should focus on defending against external threats such as hackers and malware.




Answer: C

Which of the following advanced methods for EC justification and evaluation uses a combination of brainstorming and consensus-reaching methodologies to determine how much a company should invest in large EC infrastructures?

Which of the following advanced methods for EC justification and evaluation uses a combination of brainstorming and consensus-reaching methodologies to determine how much a company should invest in large EC infrastructures? 



A) balanced scorecard
B) management by maxim
C) benchmarks
D) scoring methodologies




Answer: B

Which of the following advanced methods for EC justification and evaluation uses the idea of critical success factors and focuses on key organizational objectives and the potential impacts of the proposed EC project on each of them?

Which of the following advanced methods for EC justification and evaluation uses the idea of critical success factors and focuses on key organizational objectives and the potential impacts of the proposed EC project on each of them? 



A) performance dashboard
B) management by maxim
C) benchmarks
D) information economics





Answer: D

The disadvantage of the NPV method for evaluating EC and IT is

The disadvantage of the NPV method for evaluating EC and IT is 





A) it is difficult to compare projects of unequal lives or sizes.
B) it assumes reinvestment at the same rate.
C) it may be difficult to classify outlays as expenses or investments.
D) the true benefits are difficult to measure.



Answer: A

According to Gartner's hype cycle, which of the following stages is the point at which the technology becomes unfashionable and the media abandons the topic, because the topic did not live up to its inflated expectations?

According to Gartner's hype cycle, which of the following stages is the point at which the technology becomes unfashionable and the media abandons the topic, because the topic did not live up to its inflated expectations? 



A) peak of inflated expectations
B) plateau of productivity
C) trough of disillusionment
D) slope of enlightenment




Answer: C

According to Gartner's hype cycle, which of the following is the stage of over enthusiasm and unrealistic projections during which a flurry of publicized activity by technology leaders may result in some successes but more failures as the technology is pushed to its limits?

According to Gartner's hype cycle, which of the following is the stage of over enthusiasm and unrealistic projections during which a flurry of publicized activity by technology leaders may result in some successes but more failures as the technology is pushed to its limits? 



A) trough of disillusionment
B) slope of enlightenment
C) peak of inflated expectations
D) plateau of productivity




Answer: C

The major steps in the process of justifying large-scale EC and IT projects include each of the following except

The major steps in the process of justifying large-scale EC and IT projects include each of the following except 




A) do not leave out strategic benefits, including long-term ones.
B) document and verify all figures used in the calculation. Clarify all assumptions.
C) be careful not to overestimate cost and underestimate benefits (a tendency of many managers).
D) lay an appropriate foundation for analysis with your vendor, and then conduct your ROI.




Answer: C

Productivity benefits from using EC are difficult to measure because

Productivity benefits from using EC are difficult to measure because 




A) EC gains in certain areas of the company may be offset by losses in other areas.
B) the payoffs are too short.
C) qualitative benefits do not count.
D) there is no time lag in EC gains.



Answer: A

For governments, an example of an intangible EC metric is

For governments, an example of an intangible EC metric is 




A) risk reduction.
B) reelection of candidates.
C) increase in participation in government programs.
D) lower tax rates.



Answer: B

Tangible metrics include

Tangible metrics include 



A) reelection of candidates.
B) lower tax rates.
C) flexibility in changing a purchase.
D) ease of use of EC.




Answer: B

Metrics can

Metrics can 




A) define the value proposition of business models.
B) be the basis for specific goals and plans.
C) assess the health of companies by using tools such as balanced scorecards and performance dashboards.
D) do all of the above.






Answer: D

Not all EC investments need to be formally justified. Each of the following is a case where formal evaluation may not be needed except

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 relevant data are not available, are inaccurate, or are too volatile.
B) when the value of the investment is relatively small for the organization.
C) when the EC project is mandated and must be done regardless of the costs and benefits.
D) when competitors have made that type of investment.




Answer: D

One basic way to categorize different EC investments is to distinguish between investments in infrastructure and investments in specific EC applications because benefits from infrastructure investments

One basic way to categorize different EC investments is to distinguish between investments in infrastructure and investments in specific EC applications because benefits from infrastructure investments 



A) are very complex.
B) have a low return.
C) depend on the EC applications.
D) are made for the long-term.




Answer: D

CIOs need to effectively communicate the value of proposed EC projects in order to gain approval for each of the following reasons except

CIOs need to effectively communicate the value of proposed EC projects in order to gain approval for each of the following reasons except 




A) the success of EC projects may be assessed in order to pay bonuses to those involved with the project.
B) some large companies, and many public organizations, mandate a formal evaluation of requests for funding.
C) companies now realize that EC is not necessarily the solution to all problems.
D) demand for expanding or initiating e-business projects is no longer strong so there are fewer requests for funding.





Answer: D

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

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) quantitative and qualitative.
D) leading and lagging.



Answer: A

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

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




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





Answer: D

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

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) new ways of customer segmentation for differentiated pricing.
C) reducing prices.
D) more adaptability in changing prices.




Answer: C

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

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




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



Answer: D

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

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




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




Answer: B

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

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





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




Answer: D

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

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





Answer: D

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 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) scenario planning.
C) communications matrix.
D) information systems planning.




Answer: B

_____ 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.

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





Answer: D

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 ________.

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




Answer: A

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

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




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



Answer: A

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




Answer: C

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 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) functional strategy
C) core competency
D) value proposition




Answer: A

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

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





A) 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.
B) the strategic planning process is cyclical and continuous.
C) the strategic planning process begins with strategy formulation.
D) the process of developing a strategy may be even more important than the strategy.





Answer: C
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