Spring 2021-2022

E-Business
Section 5
Instructor: Dr. Shaimaa El Gendy
TAs: Abdullah Gazia Amir Mikhael
George Shawky Mariam Hosny
Mayar Salama Naglaa Ashraf
Omar Anwar
“ Important Note
▸ The next slides do not contain the whole content of the lectures, but only a short
summary.
▸ You should always study from lecture materials.

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 Lecture 7 Summary
▸ Benefits of Strategic Planning
▹ Provides analysis of the requirements for doing business for different types of e-business.
▹ Outlines e-business goals.
▹ Allows e-business to determine how to differentiate itself from competitors.
▹ Allows e-business to develop an offering that appeals to a group of customers.
▹ Offers an analysis of the legal, economic, and competitive environment.
▹ Provides for the coordination of firm’s total efforts.
▹ Encourages anticipation and avoidance of crises.
▸ Developing an Overall Strategy
▹ Controllable Variables: include store location, managing business, merchandise, management and
pricing, and communicating with customer.
▹ Uncontrollable Variables: include consumers, competition, technology, economic conditions, seasonality,
and legal restrictions.
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 Lecture 7 Summary
▸ Legal Environment
▹ Store Location: blue laws, environmental laws, direct selling laws, leases and mortgages.
▹ Managing the Business: such as licensing provisions, personnel laws, franchise agreements, business
taxes, and recycling laws.
▸ Legal Environment and Retailing
▹ Merchandise Management and Pricing: such as trademarks, merchandise restrictions, product liability
laws, sales taxes, unit-pricing laws, sale prices, price laws.
▹ Communicating with the Customer: provide truth-in-advertising and selling laws, truth-in-credit laws,
telemarketing laws, bait-and-switch laws, inventory laws, labeling laws, cooling-off laws.
▸ Ownership and Management Alternatives (Legal Forms of Organization and Partnerships):
▹ Sole proprietorship is an unincorporated firm owned by one person.
▹ A partnership is an unincorporated firm owned by two or more persons, each with a financial interest.
▹ A corporation is firm that is formally incorporated under state law; it is a legal entity apart from its officers.
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 Lecture 8 Summary
▸ Getting your E-Business off the Ground
▹ The first step is to determine the type of industry and the type of products or services for your e-business.
▹ The second step is to define your e-business strategy.

Selected Kinds of Business for Goods and Service Establishments:

▸ Durable Goods Stores: Automotive group – Furniture and appliances group – lumber, building, and hardware
group – jewelry stores.
▸ Nondurable Goods Stores: Apparel group – Food group – General merchandise group – Gasoline service stations.
▸ Service Establishments:
▹ Personal: Laundry and dry cleaning – Beauty/barber shops – Funeral services – Health-care services.
▹ Amusement: Movie theaters – Bowling alleys – Dance halls – Golf courses.
▹ Repair: Automobile repair – Car washes – Consumer electronics repair – Appliance repairs.
▹ Hotel: Hotels – Motels – Trailer parks – Camps.
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 Lecture 8 Summary
▸ What is e-business strategy?
It refers to the actions that managers take to attain the goals of the firm. Firms need to pursue strategies
that increase profitability and profit growth.
▹ Profitability is the rate of return the firm makes on its invested capital.
▹ Profit growth is the percentage increase in net profits over time.

To increase profitability and profit growth, firms can:

▹ Add value
▹ Lower costs
▹ Sell more in existing markets
▹ Expand internationally

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 Review
Questions

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Multiple Choice Questions
▸ 1. Which of the following is a benefit of Strategic Planning?
A. Encourages anticipation and avoidance of crises.
B. Outlines e-business goals.
C. Provides analysis of the requirements for doing business for different types of e-business
D. All of the above
Answer:
▸ 2. In developing an Overall Strategy, which of the following is one of the controllable variables?
A. Consumers
B. Merchandise
C. Competition
D. Technology
Answer:

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Multiple Choice Questions
▸ 1. Which of the following is a benefit of Strategic Planning?
A. Encourages anticipation and avoidance of crises.
B. Outlines e-business goals.
C. Provides analysis of the requirements for doing business for different types of e-business
D. All of the above
Answer: D
▸ 2. In developing an Overall Strategy, which of the following is one of the controllable variables?
A. Consumers
B. Merchandise
C. Competition
D. Technology
Answer: B

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Multiple Choice Questions
▸ 3. In developing an Overall Strategy, which of the following is one of the uncontrollable variables?
A. Seasonality
B. Legal restrictions
C. Store location
D. A and B
Answer:
▸ 4. In the Legal Environment, which of the following is not related to the store location?
A. Business taxes
B. Environmental laws
C. Direct selling laws
D. All of the above
Answer:

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Multiple Choice Questions
▸ 3. In developing an Overall Strategy, which of the following is one of the uncontrollable variables?
A. Seasonality
B. Legal restrictions
C. Store location
D. A and B
Answer: D
▸ 4. In the Legal Environment, which of the following is not related to the store location?
A. Business taxes
B. Environmental laws
C. Direct selling laws
D. All of the above
Answer: A

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Multiple Choice Questions
▸ 5. Providing truth-in-advertising and selling laws is related to ______ in the Legal Environment and Retailing.
A. Managing the Business
B. Merchandise Management and Pricing
C. Communicating with the Customer
D. Store Location
Answer:
▸ 6. Trademarks and merchandise restrictions are related to ______ in the Legal Environment and Retailing.
A. Managing the Business
B. Merchandise Management and Pricing
C. Communicating with the Customer
D. Store Location
Answer:

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Multiple Choice Questions
▸ 5. Providing truth-in-advertising and selling laws is related to ______ in the Legal Environment and Retailing.
A. Managing the Business
B. Merchandise Management and Pricing
C. Communicating with the Customer
D. Store Location
Answer: C
▸ 6. Trademarks and merchandise restrictions are related to ______ in the Legal Environment and Retailing.
A. Managing the Business
B. Merchandise Management and Pricing
C. Communicating with the Customer
D. Store Location
Answer: B

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Multiple Choice Questions
▸ 7. ______ is an unincorporated firm owned by two or more persons, each with a financial interest.
A. Sole proprietorship.
B. Partnership
C. Corporation
D. None of the above
Answer:
▸ 8. An example of durable goods store can be:
A. Movie theatres
B. Automotive repair
C. Automotive group
D. All of the above
Answer:

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Multiple Choice Questions
▸ 7. ______ is an unincorporated firm owned by two or more persons, each with a financial interest.
A. Sole proprietorship.
B. Partnership
C. Corporation
D. None of the above
Answer: B
▸ 8. An example of durable goods store can be:
A. Movie theatres
B. Automotive repair
C. Automotive group
D. All of the above
Answer: C

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Multiple Choice Questions
▸ 9. Laundry and dry cleaning is a(n) ______ service establishment.
A. Personal
B. Amusement
C. Repair
D. Hotel
Answer:
▸ 10. General merchandise group is a kind of:
A. Nondurable Goods Store
B. Personal Service Establishment
C. Durable Goods Store
D. Amusement Service Establishment
Answer:

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Multiple Choice Questions
▸ 9. Laundry and dry cleaning is a(n) ______ service establishment.
A. Personal
B. Amusement
C. Repair
D. Hotel
Answer: A
▸ 10. General merchandise group is a kind of:
A. Nondurable Goods Store
B. Personal Service Establishment
C. Durable Goods Store
D. Amusement Service Establishment
Answer: A

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True or False Questions
▸ 1. Strategic Planning enables you to determine how to differentiate your business from competitors, as well
as, providing a product that interests to your targeted customers.

▸ 2. In developing your overall strategy, merchandise management and seasonality can be considered as
controllable variables.

▸ 3. Licensing provisions and franchise agreements are related to store location.

▸ 4. Sole proprietorship is an unincorporated firm owned by one person only.

▸ 5. The first step to get your E-Business off the Ground is to define your e-business strategy.

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True or False Questions
▸ 1. Strategic Planning enables you to determine how to differentiate your business from competitors, as well
as, providing a product that interests to your targeted customers.
True
▸ 2. In developing your overall strategy, merchandise management and seasonality can be considered as
controllable variables.
False, seasonality is an uncontrollable variable
▸ 3. Licensing provisions and franchise agreements are related to store location.
False, related to managing the business
▸ 4. Sole proprietorship is an unincorporated firm owned by one person only.
True
▸ 5. The first step to get your E-Business off the Ground is to define your e-business strategy.
False, determine the type of industry and the type of products or services

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True or False Questions
▸ 6. Furniture and appliances groups, lumber, building, and hardware groups, and jewellery stores are all types
of nondurable goods store.

▸ 7. Firms need to pursue strategies that increase profitability and profit growth

▸ 8. Profit growth refers to the actions that managers take to attain the goals of the firm.

▸ 9. Profitability is the rate of return the firm makes on its invested capital.

▸ 10. A firm can increase its profitability and profit growth by either selling more in existing markets or
expanding internationally.

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True or False Questions
▸ 6. Furniture and appliances groups, lumber, building, and hardware groups, and jewellery stores are all types
of nondurable goods store.
False, durable goods store
▸ 7. Firms need to pursue strategies that increase profitability and profit growth
True
▸ 8. Profit growth refers to the actions that managers take to attain the goals of the firm.
False, e-business strategy
▸ 9. Profitability is the rate of return the firm makes on its invested capital.
True
▸ 10. A firm can increase its profitability and profit growth by either selling more in existing markets or
expanding internationally.
True

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THANKS!
Let us know if you have any questions
You can find us at:
▸ Agazia@eelu.edu.eg
▸ Ahanaa@eelu.edu.eg
▸ Gshawkat@eelu.edu.eg
▸ Mbishay@eelu.edu.eg
▸ Mmagdysalama@eelu.edu.eg
▸ Nmorsy@eelu.edu.eg
▸ Oelminshawy@eelu.edu.eg
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