State University Of New York - Binghamton
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1 In the context of doing business online, midsize and smaller 
companies religiously use self-hosting services. 
 True 
 False (True Answer ) 
2 With dedicated hosting, the client shares the server with other 
clients of the service provider. 
 True 
 False (True Answer ) 
3 Electronic commerce sites vary greatly in terms of size, purpose, 
audience, and other factors. 
 True (True Answer ) 
 False 
4 In a co-location service, the client installs its own software and 
maintain...
CASE DISCUSSION QUESTIONS 
1. What is the strategic fit between Nomura and Lehman? 
Strategic fit is a parameter that can be used to evaluate merger and acquisition opportunities. It refers to 
how well the new acquisition will fit in with the acquiring company’s scheme of things or strategies. If 
growth is the goal of such mergers, these transactions must yield a better return than “organic” growth. 
According to the Differential Efficiency Theory, the acquiring firm should be able to in...
1 All electronic commerce initiatives have the goal of providing 
revenue. 
 True 
 False (True Answer ) 
2 Companies can adapt their catalog revenue model online by 
replacing or supplementing their print catalogs with information 
on their Web sites. 
 True (True Answer ) 
 False 
3 A disadvantage of the Web catalog revenue model is that the 
products sold in physical stores cannot be sold on the Web. 
 True 
 False (True Answer ) 
4 Web catalog retailers typically refrain fr...
1 All electronic commerce initiatives have the goal of providing 
revenue. 
 True 
 False (True Answer ) 
2 Companies can adapt their catalog revenue model online by 
replacing or supplementing their print catalogs with information 
on their Web sites. 
 True (True Answer ) 
 False 
3 A disadvantage of the Web catalog revenue model is that the 
products sold in physical stores cannot be sold on the Web. 
 True 
 False (True Answer ) 
4 Web catalog retailers typically refrain fr...
INTEGRATIVE CASE STUDY 15 
BANK OF AMERICA’S CORPORATE SOCIAL RESPONSIBILITY AND THE OCCUPY WALL 
STREET MOVEMENT 
OVERVIEW 
Although Bank of America invested $268.8 billion in CSR- related activities in 2010, it was a leading 
target for the Occupy Wall Street protestors in 201. In July 2008, Bank of America had acquired 
Countrywide Financial to become the largest mortgage lender and consumer bank in the US, which made 
it the lender in one of every four US home loans. Public outcry demanded...
NTEGRATIVE CASE STUDY 14 
BAOSTEEL EUROPE 
OVERVIEW 
The South Korean Ministry of Education (MOE) recently announced plans to spend $2 billion providing 
tablet PCs with digital textbooks to a vast majority of students in South Korea by 2015. Many textbook 
publishers are also beginning to identify the massive opportunity that digital textbooks provide. While 
publishers certainly face challenges in adapting and developing content for digital textbooks, the most 
compelling reason to enter this ...
INTEGRATIVE CASE STUDY 1 
3i GROUP’S PRIVATE EQUITY INVESTMENT IN CHINA’S LITTLE SHEEP 
OVERVIEW 
In 1999, an entrepreneur called Zhang Gang founded Little Sheep Catering Chain Co. in Inner Mongolia, 
one of the most remote and underdeveloped corners of the world. Zhang managed to open two additional 
restaurants within two months, with a very enthusiastic customer response. Notwithstanding this success, 
To prepare for an initial public offering (IPO), he believed that the company needed to...
INTEGRATIVE CASE STUDY 04 
WYNN MACAU: GAMBLING ON THE EDGE OF CHINA 
OVERVIEW 
Las Vegas-based Wynn Resorts entered Macau in 2002, the year the casino monopoly of Stanley Ho’s 
S.T.D.M. ended. In Macau, the GGR pie is now shared by six players who own 34 casinos among them. In 
2011, the Wynn Macau casino was reported by Macau Business to be the most productive single casino 
property with gross gaming revenues at US$4.375 billion. Wynn has emerged as the industry leader in 
just ten years. D...
1 The keys to successful implementation of any information 
technology project are planning and execution. 
 True (True Answer ) 
 False 
2 A successful business plan for an electronic commerce initiative 
should include activities that identify the initiative's specific 
objectives and link those objectives to business strategies. 
 True (True Answer ) 
 False 
3 Organizations of different sizes will have different objectives for 
their electronic commerce initiatives. 
 True (T...
Review Questions 
1. In about 100 words, discuss issues that arise when processing small payments 
(under $10) for online transactions. Be sure to include a discussion of possible 
solutions to any problems you identify. 
Answer: Mobile telephone carriers are currently the most widely used small payments 
services. Buyers make their purchases using their mobile phones and the charges 
appear on the buyers’ monthly mobile phone bill. The use of this micropayment 
system has been held back by th...