Nama : yosias Wellem kainama

Nim : 231210055

Review question

Page 229

1. Electronic exchange is the process of exchanging information or financial

transactions through a computer system or electronic network. This
process can operate with the following steps:
a. Identification of the parties involved: The parties involved in the
electronic exchange must be identified, such as the recipient and
sender of the information or funds.
b. Transmission of information: The information to be exchanged,
such as messages, data, or instructions, is transmitted over an
electronic network, such as the internet or a company’s internal
network.
c. Validation and authentication: The information received usually
goes through a validation and authentication process to ensure its
authenticity and integrity.
d. Transaction execution: If a financial transaction is authorized,
funds can be allocated and recorded in the relevant financial
system.
e. Confirmation and reconciliation: The parties involved usually
receive confirmation of the transaction and perform reconciliation
to ensure that the transaction was completed correctly.
2. Pros and cons of participating in electronic exchange:
Pros:
- Efficiency: Electronic exchanges can increase efficiency in
business processes by reducing the time and costs
associated with manual transactions.
 - Speed: Electronic transactions can be processed quickly,
which allows customers or businesses to get services or
products faster.
- Accuracy: With process automation, human error rates can
be reduced, potentially improving accuracy.
- Accessibility: Transactions can be conducted from almost
anywhere with an internet connection.
Cons:
- Security: Electronic exchanges are vulnerable to security
risks such as hacking and data theft.
- Dependence on technology: Depending on technology
means vulnerability to technical glitches or system failure.
- Digital isolation: Electronic exchanges can reduce social
interaction in transactions, which can remove the human
aspect of business.
- Implementation costs: Implementation of electronic
exchanges requires investment in infrastructure and
training.

Critical thinking

1. Strategic and competitive issues that may complicate consortium

formation may include:
a. Competition between members: When several major competitors
in the industry work together in a consortium, it may be difficult to
reach agreement on strategic issues or divide profits fairly.
b. Differences in corporate culture: Companies in the consortium
may have different cultures and philosophies, which may hinder
cooperation and coordination.
c. Security and trust issues: When it comes to customer data and
sensitive information, security and trust issues can be significant
barriers to consortium formation.
d. Regulatory and legal: The regulations and laws of the hospitality
sector and travel companies may restrict or regulate the formation
of consortia.
2. Recommendation for Marriott to continue to explore the feasibility of
forming a consortium depending on a number of factors, including
strategic objectives and company readiness. Some considerations may
include:
- Will the consortium help Marriott to overcome challenges
or capitalize on significant business opportunities?
- Does Marriott have the necessary capabilities and
resources to collaborate effectively with competitors in the
consortium
- To what extent can Marriott manage strategic issues such
as competition and corporate culture in the context of the
consortium.
- How do the risks, benefits and potential advantages of
forming a consortium compare with other alternatives.