SCENARIO 10-6 Security in Electronic Transactions in the Banking, Communications

question 11

Multiple Choice

SCENARIO 10-6 Security in electronic transactions in the banking, communications and data exchange industry is still a major problem despite new technological advances.Many transactions are subject to misuse, and the Internet has certainly suffered more than its fair share of abuse and eavesdropping.
Jennifer Barr, CEO of cTech Group, is in the business of developing hardware and software aimed directly at improving computer security.The company is based in eastern Canada with a few branches in the U.S.Part of Barr's biggest problem is convincing people that their systems are secure.It is difficult to establish a confidence level within existing and potential customers that transmission of highly sensitive data can actually be very secure; customers like to have consistency of project managers and customer service personnel and this seems to be helpful in boosting customer confidence.
The company manufactures hardware in the form of stand-alone devices and plug-in boards, depending upon the application and type of computers being used.Corresponding software is custom-designed for mainstream clients such as banks, financial institutions, the Internet and others who deal with data transmission and receiving.cTech is about eight years old and has achieved its reputation through hard work and dedicated effort.
Jennifer's position is that the company should make substantial profits while maintaining a strong social presence in the business community.Openness, ethical business practices, empowerment, environmental concern and planned giving programs are hallmarks of the company.Despite this, the company is experiencing some stress in hiring and turnover.Some of the practices that are contributing to people leaving and new people not accepting jobs include:
(1) The stringent work ethic expecting employees to routinely work a 12-hour day.
(2) The achievement orientation of the organizations has become a "survival of the fittest" attitude, and for new employees there is little opportunity for training and mentoring.
(3) Personal and social life is not supported by work practices.
(4) The need to balance family life with the work situation is not recognized.
There is a serious shortage of individuals who are both qualified and available to take a job in the company.Potential employees are careful in selecting a company to work for and they have many opportunities as their skills are in demand.In what way is cTech's organizational culture a liability

• A)the business and cultural background the founders established is no longer relevant
• B)the formal rules and regulations around the workplace are not flexible
• C)the culture is entrenched and is no longer appropriate to a changing environment
• D)the culture is not supportive to mergers and acquisitions
• E)the kind of benefits that employees receive at cTech are not legal

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Definitions:

English Auction

A bidding process where the price of the item for sale ascends with each bid, and the highest bid at the auction's close wins.

Reservation Price

Maximum price that a customer is willing to pay for a good.

Bargaining Power

The ability of a party (individual, group, company) to exert influence over the terms and conditions of an agreement or negotiation.

Winner's Curse

The Winner's Curse is a phenomenon that occurs in auctions, where the winner tends to overpay due to estimating the value of an item more highly than its true value.