signment$-$Instructions.pdf

Read the Capital One Case Study $($TEAMS $>$ Class Materials $>$ Assignments$)$ and answer the following questions:

It seems pretty clear that the defender should always enjoy an information advantage, relative to a competitor

attempting to capture its most profitable customers. That is$,$ the attacker is making educated guesses about who

might be profitable and who might not be; the defender it would appear always has more accurate information on

who has been profitable and who has not been.

a$.$ Given this apparent advantage, why do some defenders $($when attacked$)$ appear unable to duplicate the

attackers' strategies and thus unable to defend themselves effectively? $(4$ points$)$

b$.$ What specific factors prevented other banks from countering Signet Bank's initial attack? $(4$ points$)$

Consider Capital One $($actually$,$ at the time, Signet Bank$)$ and its initial attack on AT&T Universal, CitiBank, and Chase.

Capital One clearly had higher operating expenses than the large, scale$-$intensive issuers it$.$was attacking and Capital

One clearly was charging lower prices, with lower APRs and sometimes lower annual fees. How could it also have

become the most profitable issuer, following a low$-$price, high$-$cost strategy? $(4$ points$)$

With great enthusiasm the expert management team at Capital One concluded that information$-$based strategy and

test$-$and$-$learn would allow them to dominate in online gift retailing. After all who, better than a credit card

company, could predict what you or someone like you would want to buy? How successful has Capital One been as

an online merchant? Why? $(4$ points$)$

Provide an example of one industry $($other than credit card, the other industries discussed in the Capital One Case

Study, and those discussed in any class lectures$)$ that have a strong customer profitability gradient $($c$.$p$.$g$.)$ and

describe the c$.$p$.$g$.$ for the industry. Again, please do not use an example discussed in class or course readings; for

example, please do not respond to this question by summarizing our discussion of the music industry. I want to

hear your insights about an industry that we have not discussed. I want to learn something from your answer. $(4$

points$)$

Homework Assignment $2($Organizational Strategy and IS$)$

Read Managing and Using IS $($Ch$.3)$ and answer the following questions:

Explain how IT might change a manager's job. $(5$ points$)$

Explain the advantages and disadvantages of monitoring an employee's computer work from a manager's

perspective? Explain the advantages and disadvantages from the employee's perspective? $(10$ points$)$