Assignment 3 (100 marks)

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(Covers Modules 6, 7, and 8)
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Question 1 (20 marks)
Note: For multiple-choice questions, select the best answer. Incorrect answers will be marked as zero. No marks will be awarded for any explanations you may offer.
Multiple choice (2 marks each) a. Which of the following is a key tactical decision in e-commerce planning? 1. What products to sell through a web channel, rather than a physical channel 2. What market segment to target 3. What design features to incorporate into the website 4. What discount (if any) to give for self-service customers

b. Which of the following technologies would be most likely to significantly change the way e-business advertising is conducted? 5. GPS enabled cellular phones 6. Personalization software 7. Radio frequency identification 8. E-payment systems

c. Pivot tables represent a decision support alternative for organizations where the design and use is in the hands of the users. Which of the following statements do pivot tables not support? 9. A pivot table helps a manager see patterns and extract meaningful information otherwise unnoticed in standard tables. 10. Pivot tables simplify the complexity of OLAP concepts. 11. Pivot tables are integrated into spreadsheet applications like Excel and OpenOffice.org’s Calc. 12. Pivot tables can only assemble data from the active table in an open workbook.

d. Which of the following statements about strategic uses of Internet technologies is correct? 13. An intranet facilitates the development of strategic alliances with other organizations. 14. The Internet enhances trust between customers and companies, and is therefore a strategic tool in building a customer base. 15. An extranet links customers and suppliers directly to the supply chain. 16. The Internet has fundamentally redefined business strategy and its role in organizations.

e. Which of the following statements about pricing models for e-commerce is not correct? 17. The advertising model is one of the most effective pricing models. 18. The price of a product sold online is usually lower than the price of the same product sold in a store. 19. In the auction model, the auction owner charges the seller a fee for the services provided. 20. Exchange pricing models are used in both B2C and B2B contexts.

f. In online banking, customers are sometimes asked to answer questions that only they know the answers to, and which were set up when the account was opened. This measure is intended to verify which of the following? 21. Identification 22. Authentication 23. Authorization 24. Privacy

g. A startup organization wants to sell flowers over the Internet. It plans to join FTD, the largest industry association. Beyond the FTD logo on its website, which of the following features should be most helpful in building initial trust among the new company’s consumers? 25. A money-back guarantee 26. A well-orchestrated order fulfillment process 27. A professional website design 28. A clear description of the company history

h. The ability to provide multi-layered information to e-commerce clients around the world best describes which of the following distinguishing characteristics of e-commerce? 29. No tradeoff between richness and reach 30. Ubiquity of access 31. Diminished information asymmetry 32. Reduced transaction costs

i. Which of the following statements is a key statement about XBRL? 33. XBRL is the preferred method of data exchange through EDI. 34. XBRL is primarily a means of publishing financial information electronically. 35. XML is a subset of the XBRL mark-up language. 36. The U.S. Security and Exchange Commission and the Canadian Security Administrators have no plans around the adoption of XBRL.

j. Which of the following factors most complicates the management of telecommunications and networks? 37. The architecture of WANs is intricate. 38. Key decisions must be made about network management. 39. Management lacks direct control due to the dependence on external vendors. 40. Managing LANs requires high bandwidth.

Question 2 (30 marks)
Graphic Designers’ Studio provides graphics services to a variety of organizations. It was started by two graphic designers who began the company out of their home. As the business grew, they continued the “home-based” business model, but with new employees working at different locations. The studio now employs 20 people: 3 support staff, 2 customer service representatives and 15 designers. The owners have decided to open an office where they can consolidate everyone into one location.
The support staff and customer service reps all use Dell computers (both laptops and desktops) running Windows 7. The 15 designers all use Apple Computers running the most current version of Mac OS X, Mountain Lion. The company runs a LAN, which is really just an ad hoc network because there are no servers, although they share the two printers. A single computer is connected to the Internet, and they use it as the shared gateway for all users that need web/e-mail connectivity. It is slow, and getting slower, but it is inexpensive. Each staff member has their own PC; they use USB flash drives to share information as needed because the network is too slow.
In the past, most projects were done by single individuals and did not require coordination. This is changing. The company does have an informational and marketing website hosted by a third party. The contract is up for renewal in 30 days. Graphic Designers’ Studio does not have an IT support person. They rely on manufacturers’ support and purchase upgraded site-service agreements when sourcing new hardware.
You have recently been awarded a consulting contract to help with Graphic Designers’ Studio’s finances, and to investigate the options for Internet access. Any Internet solution selected needs to be able to accommodate the following criteria: 1. High-speed Internet access 2. E-mail accounts for everybody 3. Web access for e-mail 4. Ability to handle up to 10 MB attachments 5. Ability to download and upload large graphic files (up to 100 MB) to customers
Required
* Submit a memo that presents at least two options for sourcing internet services, including your recommendation (which ISP, what services) and rationale. * The memo should be one or two pages in length (excluding exhibits) with proper headings and format. You will be evaluated on the content, format, and professionalism of the memo. * You will need to use the Internet to research this question. Be sure to include links to the websites you used, and properly reference your sources; failure to do so is plagiarism.
Question 3 (50 marks)
Read the case “Zuora Inc. Venturing into Cloud Computing” in the casebook. This case addresses issues related to the business choices facing a software-as-a-service (SaaS) business, as it determines its future with the choice of three possible scenarios: (1) continue to focus on billing for the SaaS industry, (2) expand to capture the broader cloud-computing trend, or (3) grow big fast and try to capture the broader subscription opportunity.
Required
Draft a report on the case using the following suggested case analysis format and section headings, addressing the issues listed within each section. i. EXECUTIVE SUMMARY (3 marks) — Summarize the analysis, including objectives, key issues, and recommendation. ii. CURRENT SITUATION (10 marks) — Clearly analyze Zuora Inc. as a business. Discuss its past and present, its main struggles within the SaaS industry to differentiate itself from the competition, and how cloud computing affects its business model. What are its strengths and weaknesses within its industry? iii. CRITERIA (5 marks) — Identify the criteria that should be used to evaluate any actions Zuora should take, why these are important, and how they will be measured. iv. ALTERNATIVES AND RECOMMENDATION (15 marks) — Analyze the three business choices facing Zuora and make your recommendation regarding which option Zuora Inc. should pursue, and why. Are there any alternative choices they have not considered? It is important that you make your recommendation rather than just describe options. v. RISK ANALYSIS (15 marks) — Explain the risks involved in implementing your recommendation. The risk analysis should be as specific as possible. Include an analysis of how the company’s history, development strategy, strategy, culture, and decision-making strategy have led it to your recommendation. What are the risks of implementing your recommendation? What are the risks if it fails? Consider responsibilities and contingencies, list IT requirements, describe IT conversion strategy if applicable, and so on.
Provide clear justification for your arguments in the alternatives and recommendation section.
Note: Two marks are allocated for using the proper case format, and for clarity, coherence, and professionalism in writing. For an example of case writing and analysis, review the two practice exams (found under Exam Preparation).
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