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Part A: Short-Answer Questions (20 marks total)
Answer each question in one to two paragraphs. (5 marks each)
1. What are some of the reasons a company would separate its online operations into a new company?
2. Explain why supply chain management should be aligned with corporate strategy. Justify your answer with an example.
3. What are the challenges and issues companies face with managing their online banner ads? How can banner ads be made more effective?
4. A vintage clothing store located in Vancouver, Canada would like to expand its market internationally using the Internet. What are the best advertising tools and actions for moving this traditional business to the Internet marketplace? Explain your choices.
Part B: Case Analyses (80 marks total)
Your analysis of each case should be from two to three paragraphs in length and should not exceed one page for each case.
Case 1 (20 marks)
You have been hired as the e-procurement manager for a car manufacturing company. In the face of fierce competition, senior management is asking you to evaluate the best options for better solutions to their e-procurement process for raw materials (e.g., steel, electronics, parts, tools, supplies). The company may choose to purchase their raw material mainly from an exchange or from a consortium trading exchange.
a) Describe the benefits and limitations of each option. (10 marks)
b) Make a clear recommendation to senior management about which option is more suitable to their needs. (10 marks)
Case 2 (20 marks)
Read the “Netflix Increases Sales Using Movie Recommendations and Advertisements” case (Turban et al., pp. 394–395) and answer the following questions.
a) What main advertising actions and methods has the company taken and used to promote their products? (10 marks)
b) Do you think these actions are successful in building customer satisfaction and loyalty? Explain why or why not. (10 marks)
Case 3 (20 marks)
Read the “Focusing on Quality over Quantity at Warner Music Group” case (Turban et al.,
p. 592) and answer the following questions.
a) Describe the major strategic initiatives adopted by the company. Were these strategies successful? (10 marks)
b) What type of ad arrangement did the company have with Outrigger? Would you recommend it? (10 marks)
Case 4 (20 marks)
Read the “New EC Strategies Enable Travelocity to Move Ahead in the Online Travel Market” case (Turban et al., p. 584) and answer the following questions.
a) Has Travelocity’s fundamental business model changed significantly since its early years? Explain why or why not. (5 marks)
b) Explain the major strategic challenges and issues the company is facing. What strategies and initiatives has the company adopted to address these challenges?
c) What tools and mechanisms did the company use to measure its e-commerce strategies? (5 marks)
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