*KNOW INDUSTRY AND TECHNOLOGY

INDUSTRY- MORE VENDORS, CARRIERS, AND alliances

TECHNOLOGY- local and global digital networks

APPLICATION-

STRATEGIC CAPABILITIES

1. geographic barriers- capture info about business stuff from diff. locations

2. TIme barriers- provide info immediately

3. cost barriers- reduce cost of more traditional means

4. structural barriers- support linkages for competitive advantages

SYNCHRONOUS- at same time

POPULAR USES OF THE INTERNET

-E MAIL  - TELNET  -INTERNET RELAY

-ECOMMERCE   -SURFING  -FTP 

*KNOW VPN

TCO-total cost of ownership is major determinant on choosing PC.

Do ex. 3-3

*learn terms

________________________________CEO___________________________________

VP SALES                                          VPADMIN                             VPPRODUCTION

1. SCIENTIFIC MANAG.  

-inefficiencies

-workers attitude

-merit promotions

-organized hierarchy

-merit promotions

2. BUREAUCRACY

-div of labor

3. HUMAN RELATIONS

- encourage workers

-redesign jobs

-improve comm.

4. PSYCHOLOGICAL APPROACHES

-reinforcement

-cognitive theory

            -expectancy

            -equity

            -goal

5. Content Theories

-maslow

-herzberg

-alsderfer

ORGANIZATION STRUCTURE- division of labor, decision rights, boundaries, politics, etc.

Trend: toward smaller, faster, more reliable, and less costly

Trend: easy to purchase, easy to maintain.

3-6-03

7 LAYERS OF OSI MODEL

1. PHYSICAL LAYER- Defines the electrical, mechanical, functional, and procedural specifications for the hardware that connects a device to the network. Cables, NIC cards, and repeaters.

2. DATA LINK LAYER- Procedures that are followed in order to achieve reliable point to point transfer of information between two devices on a network. The transfer of information across a network (The passing of packets as well).

3. NETWORK LAYER-Provides the mechanisms for transporting a packet from the source network to the destination network. The router passes packets to another network that gets the packet closer to its destination.

4. TRANSPORT LAYER- Provides reliable and unreliable transport protocols.  The reliable protocol is called the TCP.  It ensures the packet sent is the same packet received by an application program in the destination computer.  It provides end-to-end error detection and recovery.  The unreliable is USER DATAGRAM PROTOCOL (UDP). It places no constraints on the network.  It sends it without carrying if it gets there or not.

You use it when youre in a hurry.

5. SESSION LAYER- The thing necessary to open and close multiple logical connections between processes on different PCs.

6. PRESENTATION LAYER- Provides an interface between the application layer and the layer below the presentation layer.  It also translates transfer syntax into matching language used by the local machine.

7. APPLICATION LAYER- contains software that provides common services needed by application programs such as word processors, spreadsheets, and e-mail.

Real World Case: Amazon.Com:

Challenges of an E-Commerce Leader

1. What problem does Amazon have that is very similar to traditional bricks companies? 

It had to write down $39 million in inventory in the fourth quarter of 1999, mostly toys and consumer electronics which Amazon.com said it purposely overstocked to avoid disappointing customers during the holidays. But since Bezos plans to keep adding new products more this year than ever balancing demand and inventory is a ticklish problem that may plague Amazon.com for a long time to come.

            And the stakes are higher than ever. Insiders say the company, even though it has ballooned to $1.6 billion in annual sales and 7,500 employees, is stretched to the breaking point. Over the holidays, hundreds of administrative workers had to help out in distribution centers and customer service to keep up with demand, raising the specter of execution snafus as Amazon.com keeps growing.

In January 2000 when Amazon.com fired 150 employees, or 2% of its staff.

2. What infrastructure or organizational problems did growth create for Amazon?

He quickly recognized that as he added more products and customers, the virtual model would not work. To offer not just the biggest selection but also the nearly instant gratification customers demanded, he needed to stock and ship his own inventory. So he spent an unprecedented $300 million to build five new distribution centers last year, and hired hundreds of customer-service operators.

3. For the first half of 2002, answer the following financial questions:

a.        Are revenues increasing, decreasing, or steady? By what percentage?

Revenues are increasing.  Revenues are increasing by 31.7%.

b.        Is Amazon making a profit or loss? How much? Is the bottom line making progress towards (more) profitability? Justify your conclusion.  What has had the most impact on more profits / lower loss?

Their making a loss. Their loss is 4 million.  They should be profitable in 2003.

c.        How would you summarize the diversity of products Amazon currently offers? Is it being effective? Which products are creating more profitability?

            They have a diverse line of products.  They are currently cutting back on unprofitable products. They are currently being effective.

4. For 2002, is Amazon making a profit or loss? How much?