FINAL EXAMINATION

NOVEMBER 2019 SEMESTER

COURSE : INTRODUCTION TO E -BUSINESS

COURSE CODE : PMS3243
DURATION : 2 HOURS 30 MINUTES
FACULTY : BUSINESS AND ACCOUNTANCY
DEPARTMENT : MANAGEMENT INFORMATION SYSTEMS AND
BUSINESS ANALYTICS
PROGRAMME : BACHELOR OF BUSINESS MANAGEMENT
(HONS)
LECTURER : MDM. NUR HAFIZAH BINTI HIDAYAT
MDM. NOOR SYAHIRAH BINTI MUSA

INSTRUCTIONS TO CANDIDATES

This paper consists of two (2) sections:

Section A – 6 questions (short essay questions)

Section B - 2 questions (case study questions)

Answer all questions in Section A and in Section B.

All answers of:

Section A and B must be answered in the answer booklet provided.

The answer for each question must start on a new page.

Candidates are NOT ALLOWED to bring any unauthorized items into the exam hall
except with the permission of your invigilator.

Do Not Open the Question Paper Until Instructed

This Question Paper Consists of Five (5) Printed Pages

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SECTION A: SHORT ESSAY QUESTIONS (60 MARKS)

ANSWER ALL QUESTIONS

QUESTION 1 (10 MARKS)

A revenue model is a framework for generating revenues. It identifies which revenue

source to pursue, what value to offer, how to price the value, and who pays for the value.
It is a key component of a company's business model.

Source: Wikipedia encyclopedia (https://en.wikipedia.org/wiki/Revenue_model).

Describe the FIVE (5) primary revenue models used by e-commerce firms.
(10 marks)

QUESTION 2 (10 MARKS)

You and partners decided to create an Internet marketing plan to gain awareness on your
business services. Describe FIVE (5) ways of your Internet marketing plan on how each
plays a role in growing the business.
(10 marks)

QUESTION 3 (10 MARKS)

Facebook, Inc. is an American social media and technology company based in Menlo
Park, California. TheFacebook.com—today's Facebook, popular global social networking
website. It is considered one of the Big Four technology companies along with Amazon,
Apple, and Google. Facebook is one of the world's most valuable companies. Facebook
ranked No. 76 in the 2018 Fortune 500 list of the largest United States corporations by
revenue. Most comes from advertising. One analysis of 2017 data determined that the
company earned US$20.21 per user from advertising. Significant revenue comes from
bulk data access sold to the third parties.

Source: Wikipedia encyclopedia (https://en.wikipedia.org/wiki/Facebook).

Based on short case study on Facebook,

a. Describe any TWO (2) basic Facebook marketing tools.

(5 marks)

b. Identify FIVE (5) ways that you can measure the results of a Facebook social
marketing campaign?
(5 marks)

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QUESTION 4 (10 MARKS)

A data breach is the intentional or unintentional release of secure or private/confidential

information to an untrusted environment. Other terms for this phenomenon include
unintentional information disclosure, data leak, information leakage and also data spill.

Discuss any FIVE (5) leading causes that lead to data breach.
(10 marks)

QUESTION 5 (10 MARKS)

Starting 1 January 2020, a 6% service tax will be implemented for digital service
providers in the country. The Service Tax (Amendment) 2019 Bill was approved by
Dewan Rakyat on April 8 this year to introduce tax on foreign registered persons
providing digital services to consumers in the country.

a. Elaborate any TWO (2) advantages in approval of taxation for e-commerce in

Malaysia.
(5 marks)

b. Explain any TWO (2) in opposition of taxation for e-commerce.

(5 marks)

QUESTION 6 (10 MARKS)

Social commerce is a subset of electronic commerce that involves social media, online
media that supports social interaction, and user contributions to assist online buying and
selling of products and services. One of the most significant benefits of social commerce
is the engagement and reach that businesses can get whenever they share content and
encourages people to connect with a business through two-way communication.

Elaborate any FIVE (5) major social shopping models that have appeared in recent years.
(10 marks)

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SECTION B: CASE STUDY QUESTIONS (40 MARKS)

ANSWER ALL QUESTIONS

INTEL: SUPPLY CHAIN COST CHALLENGE

Most companies begin with the best intentions to achieve successful and sustainable
supply chain cost management, but somehow seem to lose momentum, only to see costs
increase again in short order. One of the world’s largest manufacturers of computer chips,
Intel needs little introduction. However, the company needed to reduce supply chain
expenditure significantly after bringing its low-cost “Atom” chip to market. Supply chain
costs of around $5.50 per chip were bearable for units selling for $100, but the price of
the new chip was a fraction of that, at about $20.

Somehow, Intel had to reduce the supply chain costs for the Atom chip, but had only one
area of leverage—inventory. The chip had to work, so Intel could make no service trade-
offs. With each Atom product being a single component, there was also no way to reduce
duty payments. Intel had already whittled packaging down to a minimum, and with a high
value-to-weight ratio, the chips’ distribution costs could not be pared down any further.
The only option was to try to reduce levels of inventory, which, up to that point, had been
kept very high to support a nine-week order cycle. The only way Intel could find to make
supply chain cost reductions was to bring this cycle time down and therefore reduce
inventory.

Intel decided to try what was considered an unlikely supply chain strategy for the
semiconductor industry: make to order. The company began with a pilot operation using
a manufacturer in Malaysia. Through a process of iteration, they gradually sought out and
eliminated supply chain inefficiencies to reduce order cycle time incrementally. Further
improvement initiatives included:

 Cutting the chip assembly test window from a five-day schedule, to a bi-weekly,
2-day-long process
 Introducing a formal S&OP planning process
 Moving to a vendor-managed inventory model wherever it was possible to do so

Through its incremental approach to cycle time improvement, Intel eventually drove the
order cycle time for the Atom chip down from nine weeks to just two. As a result, the
company achieved a supply chain cost reduction of more than $4 per unit for the $20
Atom chip—a far more palatable rate than the original figure of $5.50.

Source: https://www.logisticsbureau.com/

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QUESTION 1 (20 MARKS)

a. Briefly describe the TWO (2) challenges faced by Intel in the case study above.
(5 marks)

b. Explain FIVE (5) benefits of conducting a B2B E-Commerce for a company like
Intel.
(15 marks)

QUESTION 2 (20 MARKS)

There are so many ways the Internet can be used to support the exchange of goods and
payments among organizations. At the most basic level, B2B e-commerce is about
changing the procurement process. As an E-Procurement Executive at Intel, you are
required to highlight to the top management of the company about the e-procurement
process.

a. Define procurement process.

(2 marks)

b. Elaborate the SEVEN (7) steps in the e-procurement process to be used in

improving the inventory management system of Intel.
(18 marks)

END OF QUESTION PAPER

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