Due date: Week 12 (TBA)
Submission: Online through Turn it in under Assessment tab
Marks: 15 marks for each question, total 30 marks

Guidelines:
1. You will need to select two of the three following questions and answer in the short answer style (maximum 1000 words in each question).
2. You are welcome to draw diagrams or figures. You may want to explain these with sentences. You can give examples to help illustrate the points you want to make.
3. The answer should be clear, logical and cover all aspects of assignment question
4. The answer should bring in the concepts, theories, and analysis tools to case questions.
Question 1:

Amazon’s business model was initially based on books delivered direct from supplier to customer, with its web site as the intermediary channel. Amazon also lost huge amounts of money for some years. Eventually it created a distribution network able to deliver around the world. Answer the following questions:
1. Explain the original distribution model
2. Explain the current model
3. What are the important features of the current distribution model?
4. Amazon is now an outsourced logistics provider in its own right. Explain how.
Hint: Start with searching amazon distribution network.

Question 2:

Answer these questions regarding to how to use Facebook as a business intelligence tool.
1. How can Facebook features be used to set up home delivery business model (think of an example – for instance, online fashion, etc)?
2. What Facebook strategy would you use to make your business successful?
3. How would you structure your supply chain (include use of outsourcing or other relationships)?
4. What are the ethics issues and how can they be rationalised or justified?
Hint: Start with exploring Facebook and look closely at its features. Read this article, which is from a marketer’s perspective: http://www.investopedia.com/financial-edge/1012/how-to-use-facebook-as-a-marketing-tool.aspx

Question 3:

The economics of e-grocery:
Online grocery sales are a surprising success. Certain customer segments value this service, and it is possible for grocery retailers to make good profits. However, these services are most successful in dense suburban environments; middle to large cities. Answer the following questions:
1. From the perspective of an online retailer, develop an Excel model that can be used to calculate profits. It should incorporate distance, price and customer demand.
2. What infrastructure (physical and ICT) should be used?

Hint: You should start your search by looking at Coles Online, Woolworths online and Tesco’s online. Then think about the pricing and services being offered and apply that knowledge to your model. Your model should be generic enough to be useful for a wide variety of cities and customer locations. You can use a diagram to indicate the infrastructure you would suggest.

Assessment Marking Criteria
1. Comprehensive 25%
2. Appropriate findings and recommendation, conclusion 25%
3. Supporting the answer with facts and figures 25%
4. Structure, presentation of the report 25%
Total 100%

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