36.

For ________ companies, it may be even more important to change strategies quickly.
A)
retail
B)
traditional
C)
service
D)
pure play
Answer:
D
Dif: 1
Type: MC
Page Ref: 619
AACSB:
Objective:

37.
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 defnes
A)
business case.
B)
strategy.
C)
business objective.
D)
business focus.
Answer:
B
Dif: 1
Type: MC
Page Ref: 619
AACSB:
Objective:

38.
The formulation and execution of a vision of how a new or existing company intends to do business electronically best
defnes
A)
e-commerce policy.
B)
e-commerce case.
C)
e-commerce strategy.
D)
e-commerce focus.
Answer:
C
Dif: 1
Type: MC
Page Ref: 620
AACSB:
Objective:

39.
General strategies for competitive advantage include each of the following except
A)
entry barriers.
B)
stabilization.
C)
growth.
D)
customer or supplier lock-in.
Answer:
B
Dif: 1
Type: MC
Page Ref: 621
AACSB:
Objective:

40.
Technological e-commerce challenges include each of the following except
A)
integration.
B)
cost.
C)
distrust.
D)
software standards.
Answer:
C
Dif: 3
Type: MC
Page Ref: 622
AACSB:
Objective:

41.
A process for developing a strategy and plans for aligning information systems with the organization's business strategies
best defnes
A)
strategic information systems planning.
B)
strategic alignment.
C)
business planning.
D)
business case.
Answer:
A
Dif: 3
Type: MC
Page Ref: 622
AACSB:
Objective:

42.
The initial phase of strategic planning in which the organization examines itself and its environment best defnes
A)
feasibility study.
B)
strategic alignment.
C)
strategy initiation.
D)
value proposition.
Answer:
C
Dif: 2
Type: MC
Page Ref: 623
AACSB:
Objective:

43.
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 frm, 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
Dif: 3
Type: MC
Page Ref: 622
AACSB:
Objective:

44.
A specifc 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
Dif: 2
Type: MC
Page Ref: 623
AACSB:
Objective:

45.
Specifc outcomes from the strategy initiation phase include each of the following except
A)
day-to-day operations.
B)
forecasts.
C)
competitor analysis.
D)
company analysis.
Answer:
A
Dif: 2
Type: MC
Page Ref: 623
AACSB:
Objective:

46.
A specifc outcome of the strategy initiation phase is a clear statement of the company's ________, which summarizes the
customer segment, competitor target, and the core diferentiation of one's product from the oferings of competitors.
A)
core competency
B)
company analysis
C)
value proposition
D)
functional strategy
Answer:
C
Dif: 2
Type: MC
Page Ref: 623
AACSB:
Objective:

47.
The unique combination of resources, experiences, and expertise within a particular frm is called their
A)
functional strategy.
B)
corporate strategy.
C)
competitive advantage.
D)
core competencies.
Answer:
D
Dif: 2
Type: MC
Page Ref: 624
AACSB:
Objective:

48.
Projections of the business technological, political, economic, and other environments are called
A)
forecasts.
B)
competitive intelligence.
C)
SWOT analysis.
D)
value propositions.
Answer:
A
Dif: 1
Type: MC
Page Ref: 624
AACSB:
Objective:

49.
The development of strategies to exploit opportunities and manage threats in the business environment in light of
corporate strengths and weaknesses best defnes
A)
strategy initiation.
B)
strategy completion.
C)
strategy formulation.
D)
strategy alignment.
Answer:
C
Dif: 2
Type: MC
Page Ref: 624
AACSB:
Objective:

50.
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
Dif: 2
Type: MC
Page Ref: 624
AACSB:
Objective:

51.
Specifc activities and outcomes from strategy formulation include each of the following except
A)
project plan.
B)
business plan.
C)
cost-beneft analysis.
D)
risk analysis, assessment, and management.
Answer:
A
Dif: 2
Type: MC
Page Ref: 624
AACSB:
Objective:

52.
Google's ________ is its expertise in information search technology.
A)
company analysis
B)
functional strategy
C)
value proposition
D)
core competency
Answer:
D
Dif: 1
Type: MC
Page Ref: 624
AACSB:
Objective:

53.
Many of the outcomes from the frst 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
Dif: 2
Type: MC
Page Ref: 625
AACSB:
Objective:

54.
________ is the process of making the selected applications and projects a reality by hiring staf; purchasing equipment;
licensing, purchasing, or writing software; and contracting vendors.
A)
Project planning
B)
Strategy assessment
C)
Resource allocation
D)
Project management
Answer:
D
Dif: 2
Type: MC
Page Ref: 625
AACSB:
Objective:

55.
________ is the continuous evaluation of progress toward the organization's strategic goals, resulting in corrective action
and, if necessary, strategy reformulation.
A)
Strategy assessment
B)
SWOT analysis
C)
Scenario planning
D)
Competitor analysis grid
Answer:
A
Dif: 2
Type: MC
Page Ref: 625
AACSB:
Objective:

56.
Specifc activities and outcomes from strategy implementation include
A)
resource allocation.
B)
company analysis.
C)
identifying business opportunities.
D)
creating a business plan.
Answer:
A
Dif: 2
Type: MC
Page Ref: 625
AACSB:
Objective:

57.
A tool that delineates the relationships among the key organizational objectives for all four BSC perspectives defnes
A)
competitor analysis.
B)
strategy map.
C)
business plan.
D)
SWOT analysis.
Answer:
B
Dif: 2
Type: MC
Page Ref: 626
AACSB:
Objective:

58.
An analytical tool in which a company looks for points of diferentiation between competitors and itself is called
A)
SWOT analysis.
B)
scenario planning.
C)
competitor analysis grid.
D)
strategy assessment.
Answer:
C
Dif: 2
Type: MC
Page Ref: 627
AACSB:
Objective:

59.
A methodology that surveys external opportunities and threats and relates them to internal strengths and weaknesses
best defnes
A)
competitor analysis grid.
B)
business plan.
C)
SWOT analysis.
D)
business case.
Answer:
C
Dif: 2
Type: MC
Page Ref: 627
AACSB:
Objective:

60.
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 defnes
A)
business case.
B)
scenario planning.
C)
communications matrix.
D)
information systems planning.
Answer:
B
Dif: 2
Type: MC
Page Ref: 627
AACSB:
Objective:

61.
A management tool that assesses organizational progress toward strategic goals by measuring performance in a number
of diferent areas is
A)
BCG growth-share matrix.
B)
balanced scorecard.
C)
Web analytics.
D)
SWOT analysis.
Answer:
B
Dif: 2
Type: MC
Page Ref: 627
AACSB:
Objective:

62.
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
Dif: 2
Type: MC
Page Ref: 628
AACSB:
Objective:

63.
The risks of being a frst mover include each of the following except
A)
the chance that a second wave of competitors will eliminate a frst mover's lead through lower cost and innovation.
B)
the high cost of pioneering EC initiatives.
C)
over the long run, frst movers being substantially less proftable than followers.
D)
the risk that the move will be too late.
Answer:
D
Dif: 3
Type: MC
Page Ref: 630
AACSB:
Objective:

64.
Factors that determine whether a frst mover succeeds or fails in the EC marketplace include each of the following except
A)
the size of the opportunity.
B)
the nature of the product.
C)
the speed of market entry.
D)
whether the company can be the best in the market.
Answer:
C
Dif: 2
Type: MC
Page Ref: 630
AACSB:
Objective:

65.
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
Dif: 2
Type: MC
Page Ref: 631
AACSB:
Objective:

66.
When planning a successful online EC strategy that includes social media, an important issue to consider is
A)
efectively market to existing customers.
B)
develop a consistent online and ofine brand strategy.
C)
sell globally as well as locally.
D)
all of the above.
Answer:
D
Dif: 1
Type: MC
Page Ref: 634
AACSB:
Objective:

67.
Which of the following can occur when a company waits to see what competitors in the industry do?
A)
technology-driven strategy
B)
competitor-driven strategy
C)
market-driven strategy
D)
second-mover strategy
Answer:
C
Dif: 1
Type: MC
Page Ref: 635
AACSB:
Objective:

68.
The most dangerous risk to a company engaged in e-commerce is
A)
customer and business partner risk.
B)
threats posed by hackers.
C)
business risk.
D)
negligent loss of data.
Answer:
C
Dif: 2
Type: MC
Page Ref: 636
AACSB:
Objective:

69.
The likelihood that a negative outcome will occur in the course of developing and operating an electronic commerce
strategy best defnes
A)
competitor risk.
B)
business risk.
C)
technology risk.
D)
e-commerce risk.
Answer:
D
Dif: 1
Type: MC
Page Ref: 636
AACSB:
Objective:

70.
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
Dif: 1
Type: MC
Page Ref: 636
AACSB:
Objective:

71.
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 proft.
A)
price percentage
B)
revenue markup
C)
competitor model
D)
cost-plus
Answer:
D
Dif: 1
Type: MC
Page Ref: 637
AACSB:
Objective:

72.
Selling the same good, but with diferent selection and delivery characteristics best defnes
A)
versioning.
B)
selective distribution.
C)
channel marketing.
D)
cost-plus marketing.
Answer:
A
Dif: 2
Type: MC
Page Ref: 637
AACSB:
Objective:

73.
Internet technologies can provide consumers with easier access to pricing information, which increases their bargaining
power. To remain competitive and proftable, 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 diferentiated pricing.
C)
reducing prices.
D)
more adaptability in changing prices.
Answer:
C
Dif: 2
Type: MC
Page Ref: 638
AACSB:
Objective:

74.
The person who ensures the EC project gets the time, attention, and resources required and defends the project from
detractors at all times best defnes
A)
project referee.
B)
project champion.
C)
project gladiator.
D)
project manager.
Answer:
B
Dif: 1
Type: MC
Page Ref: 638
AACSB:
Objective:

75.
A methodology for conducting a comprehensive redesign of an enterprise's processes best defnes
A)
corporate makeover.
B)
business case.
C)
redesign strategy.
D)
business process reengineering.
Answer:
D
Dif: 2
Type: MC
Page Ref: 641
AACSB:
Objective:

76.
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
Dif: 2
Type: MC
Page Ref: 641-642
AACSB:
Objective:

77.
A quantifable measurement, agreed to beforehand, that refects the critical success factors of a company, department or
project best defnes
A)
key performance indicator.
B)
spot check.
C)
splog.
D)
dashboard measurement.
Answer:
A
Dif: 1
Type: MC
Page Ref: 642
AACSB:
Objective:

78.
Advanced performance measuring and analysis approach that embraces planning and strategy best defnes
A)
dashboard.
B)
key performance indicator.
C)
metric.
D)
corporate performance management.
Answer:
D
Dif: 1
Type: MC
Page Ref: 643
AACSB:
Objective:

79.
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)
fnancial and nonfnancial.
C)
quantitative and qualitative.
D)
leading and lagging.
Answer:
A
Dif: 2
Type: MC
Page Ref: 644
AACSB:
Objective:

80.
The analysis of clickstream data to understand visitor behavior on a website best defnes
A)
splogging.
B)
clickstream tracking.
C)
cookies.
D)
web analytics.
Answer:
D
Dif: 2
Type: MC
Page Ref: 644
AACSB:
Objective: