Internet Exercises


1			The sparkle seems to be back in the world of champagne. However, makers of champagne, the bubbly wine that is produced in the Champagne region of France, are facing new competition from producers of sparkling wine from the U.S., Spain, and Australia. Despite the fact that only the wine that is produced in France’s Champagne region can be called champagne, sparkling wine is gaining popularity as a good alternative to the traditional fizzy. Now champagne makers are trying to differentiate their product from the others with the goal of creating enough cachet around the leading brands to justify a higher price. To build their brands, champagne producers are developing numerous trendy packaging options, and making their product readily available at "happening" locations like fashion shows and A-list parties. Go to the Comite Interprofessionnel du Vin de Champagne’s (CIVC) web site (http://www.champagne.fr/), click on professionals and explore the information provided. Notice too, the efforts of the CIVC in the U.S. to distinguish true champagne from sparkling wine. The sale of champagne is directly related to the mood of the consumer. In 2003, 2004, and 2005, Canadian sales of ice wine from the Niagara region have developed well, see http://www.winesofcanada.com/icewine.html and http://www.foodreference.com/html/art-canadian-icewine.html. How does the positioning of ice wine compare to both champagne and sparkling wine? Go to http://www.champagnemagic.com/stats.htm and explore exports statistics provided. Then, discuss how producers of champagne can protect themselves from the variations in demand. Source: "After a Two-Year Dry Spell, Champagne gets Its Fizz Back," The Wall Street Journal, 12/24/02, p. B1.




2			There is a revolution of sorts taking place in export financing. After centuries of relying on physical paperwork to facilitate export and import transactions, some companies are now turning to the Internet, and using electronic paperwork instead. One of the companies leading the way is Neptune Orient Lines (NOL). The Singapore-based shipping company is at the forefront of the effort to eliminate the paper-based shipping process, and replace it with a Web-based application instead. NOL’s American President Lines (APL) has moved 38% of its customers to an electronic system for their bills of lading and letters of credit. The shift to electronic paperwork has released employees from the tedious paper-pushing involved with the traditional multiple copies of paperwork process, and instead allowed them to concentrate on value-enhancing activities such as sales support and problem-solving. All told, the move to utilize the Internet to enhance the company’s operations has allowed APL to increase its shipment volume by double-digits while at the same time, dropping costs by some 20%. NOL views its shift to Internet-based paperwork not as e-business, but rather simply business. See http://www.nol.com.sg/ Look at APL’s site (www.apl.com) and explore the companies’ operations further. Discuss how NOL and APL have integrated the Internet into their operations. Then, consider what the companies’ efforts mean to customers. Instead of having to physically speak with an APL representative regarding their shipments, customers can now access the Web interface that APL established and check the status of their shipments 24/7. What are the advantages and disadvantages of this strategy? As an importer, how do you feel about Internet-based letters of credit? Do your feeling change if you are an exporter? Are there occasions when a traditional paperwork trail is still necessary? Source: "Business’ Killer App: The Web," Businessweek Online, 4/15/02.

Your Results:

E-mail Your Results