14188-37032_Ch12_Solutions - Electronic Commerce 7th...

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Electronic Commerce, 7th Edition Solutions 12-1 Electronic Commerce, 7th Edition 14188-37032 Chapter 12 Solutions Review Questions 1. Name three benefit objectives that a business might decide to measure in an electronic commerce business plan. Answer: Responses will vary, but might include identifying new vendors, increasing sales in existing markets, and opening new markets. 2. In two paragraphs, explain why some firms approved online business initiatives without taking a close look at the return on investment numbers of those projects during the first wave of electronic commerce. Answer: Responses will vary, but might include a reference to wanting to position themselves early in a new market to ‘get the jump’ on the competition. 3. In one paragraph, explain why late outsourcing is seldom used in electronic commerce projects. Answer: Most e-commerce initiatives tend to lend themselves to early outsourcing, so most projects do not use late outsourcing. 4. In fewer than 200 words, name and briefly describe four factors that a company should evaluate when selecting an ISP, ASP, or CSP to provide Web hosting services. Answer: Responses will vary, but might include such factors as functionality, reliability, security, and cost. 5. In about 250 words, explain why the head of the business management function of an electronic commerce initiative should be an employee of the company implementing the project even if most of the work is outsourced. Answer: Reponses will vary, but should note that employees should be included since they know the corporate structure and corporate objectives. Exercises
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Electronic Commerce, 7th Edition Solutions 12-2 1. The Grover Cams Company manufactures cams and other components for diesel engines. As Web site manager for Grover, you created an attractive Web site that includes information about the company’s history, its financial statements, and digitized depictions of the company’s main products. You have been talking with your manager, chief information officer Tom Buckles, for several months about adding electronic commerce features to the Web site that will allow your smaller customers to order directly from Grover instead of through their local distributors. Tom finally created a capital
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14188-37032_Ch12_Solutions - Electronic Commerce 7th...

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