KENYA METHODIST UNIVERSITY

END OF 3RD TRIMESTER 2019 (FT) EXAMINATION

SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
COURSE CODE : BUSS 342
COURSE TITLE : E-COMMERCE
TIME : 2 HOURS

INSTRUCTIONS
 Answer Question One and any other Two Questions.

Question 1 [One] – [30 Marks]

Nairobi Logistics limited is a start-up company that is involved in the business of offering a wide
range of procurement and supplies services to its customers. It has been relying heavily on
traditional methods of operations but is now considering the prospects of starting an E-
Commerce site.
a) What will be the advantages of E-Commerce to the Company? [10
marks]
b) Discuss the security threats that the company might be exposed to in an E-Commerce
environment. [10 marks]
c) It is not generally easy to develop and deploy electronic systems. Firms are likely to face
significant implementation issues. List and discuss at least five implementation issues that
would apply to this company. [10 marks]

Question 2 [Two] – [20 Marks]

a) Discuss five principal attributes that may propel customers towards using an internet based
platform for various transactions. [10 marks]
b) Electronic marketing comes with a long list of merits. However its operating environment is
faced with operational challenges which affect both consumers and businesses. List and describe
at least five of these operational challenges. [10 marks]
Question 3 [Three] – [20 Marks]

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a) The internet is a channel through which the information from source to destination. This
information is vulnerable to specific attacks as it transverses across the net. List and describe the
four general classes of such attacks. [10 marks]

b) Define E-commerce and explain the benefits of e-commerce to the following:

i. Company
ii. Customer. [10 marks]

Question 4 [Four] – [20 Marks]

a) A firm can survive and succeed in the long run if it successfully develops strategies to
confront the forces that shape the structure of competition within its industry environment. In
line with this, discuss Michael Porter’s five competitive forces.
[10 marks]
b) List and describe five competitive strategies that businesses can implement to counter the
threats of competitive forces within their environment. [10 marks]

Question 5 [Five] – [20 Marks]

a) Website hacking can have a significant impact upon a business running an e-commerce
service. Discuss the potential business implications to an organization. [10
marks]
b) E-commerce has changed boundaries of business world. Briefly discuss this statement.

[10 marks]

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