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Passage One

"Drive to the store? Wait by the mailbox for a catalog? Why bother? The Internet's World Wide Web is the modern marketplace. You can sit down at your computer and quickly find what you want, when you want."

    This is how the cyberspace sales pitch goes. Can this shopper's paradise be real? I decided to find out. My mission is simple (and enviable): Spend money. I draw up a list of life's basics, ranging from life-changing purchases to pocket-change niceties. Can you buy such things online? Are they any less expensive? Is it any more convenient? Armed with Netscape Navigator browsing software on my PC, and looked into the Web via the CompuServe network and a 14 400bps modem, I am going cyber-shopping.

    If the Web isn't always the best deal, it's the fastest way to shop, isn't it? Not necessarily. As I learn when buying groceries online, ordering is one thing—delivery is another. The only Web store I can find resembling a grocer is American Supply International, which caters mostly to Americans abroad hungering for homegrown staples like Froot Loops, Pringles, and Cheez Whiz. But ASI also delivers in the United States, so I order a $34 care package with all the essentials: Doritos, canned tuna, Raisin Bran, and assorted other yummies.

    Don't order on an empty stomach. It took nine days for ASI to get my order out the door, and about a week more via parcel post to arrive at my doorstep. As you might suspect, ASI doesn't sell perishables. But my purchases seem to get easier, even pleasurable, as I go down my list. Indeed, my online wine merchant, Virtual Vineyards, is worthy of a B - school case study in how to conduct business over the Web—at least in comparison to other Web sites.

    The Virtual Vineyards site offers something few others do: guidance. It singles out monthly specials. It has sampler packs of Cabernets, Chardonnays, and medium-bodied reds. It has a special button to limit your search to wines under $15. And it has copious descriptions of each wine it carries—far more helpful and believable than your usual liquor-store employee.

    My curiosity is piqued by a Pinot Blanc from Domaine St. Gregory, so I investigate. I read a short review brimming with wine talk like "full malolactic fermentation".

    I'm sold. I drop the wine into my virtual shopping basket and head to the checkout page, a secure credit card order form. I try not to think about the shipping charge, which runs $7.89 for the $12 bottle of wine. Fedex delivers it two days later, in a box discreetly labeled "Virtual" but not "Vineyards".

(440 words)

1. The passage is a story about ________.  ( )

(a) the rules of shopping on the net

(b) buying things online

(c) an imaginary shoppers' paradise

(d) the cyberspace sales pitch

2. The author seems to be ________.   ( )

(a) an American who lives overseas

(b) a person who lives in America

(c) a person who lives overseas

(d) none of the above

3. The author's experiences tell us that ________. ( )

(a) things bought on the net are less expensive

(b) it is convenient to do shopping on the net

(c) buying on the net is not always enjoyable

(d) net shopping is mainly for food and drink

4. ________ is the brand name of a wine.  ( )

(a) Virtual Vineyards

(b) Chardonnays

(c) Domaine St. Gregory

(d) Medium-bodied reds

5. The delivery of a Pinot Blanc will cost the author ________.  ( )

(a) nothing if the purchase is made 

(b) more than the wine itself

(c) more than half the price of the wine

(d) more than the wine bottle

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Passage Two

     For all sorts of goods, Hong Kong likes to think of itself as the perfect market; and for home-delivery web retailing it could almost be true. Nowhere else has 6m affluent, shopping-mad consumers crammed into clusters of easy-to-reach apartment towers, connected by some of the most advanced telecoms networks in the world. That, at least, is the thinking behind adM@art, a new venture by one of Hong Kong's most innovative tycoons, Jimmy Lai, whose keen commercial instincts created Hong Kong's second-most popular newspaper, one of its leading clothing retailers and a stable of successful magazines. So why is adM@art proving such a disaster?

    adM@art seems to have plenty of advantages. For a start, the groceries-to-electronics firm is following a model that has tuned Webvan, a similar home-delivery retail firm based in San Francisco, into one of the most keenly followed Internet companies. Like Webvan's backer, who founded Borders Books, Mr. Lai is a deep-pocketed entrepreneur (he has already spent $26m of a planned $130m on the venture) with a well-deserved reputation for winning in the face of adversity.

    Since adM@art launched in late June, it has blanketed the city with delivery vans and triggered a bruising supermarket price war, thanks to amazing discounts and constant promotion in Mr. Lai's Apple Daily newspaper. In a city with some of the most expensive retail space in the world, it has the benefit of being mostly virtual, with its fleet of vans operating from warehouse hubs in cheap industrial space. And it has proved particularly adept at exploiting the shadowy parallel import market, bringing in cut-price Coca-cola and beer, to the fury of Hong Kong's distributors.

    Yet adM@art is losing an estimated $130 000 a day. Needing 30 000 orders a day to break even, it is reportedly getting just 3 000 - 4 000 (Mr. Lai and adM@art managers declined to be interviewed for this article). Despite the trendy @sign, its barely functional website cannot take orders; the site broke down within days of the launch and for a while the company had to close every Tuesday to repair the chaos of the previous week. Orders now come in by phone or fax, which need lots of operators. Between the limitations of the gray market, no prior grocery experience and a bare-bones supply chain, its grocery selection is a meagre few hundred items, almost randomly selected: a can of tuna next to an electrical adapter next to a box of instant noodles.
    These minor details aside, it has a further substantial problem. Hong Kong is still a face-to-face shopping culture, in which home shopping has never really taken off in any form.

(434 words)

  

6. We can learn from the passage that Hong Kong ________. ( )

(a) is a perfect market for all sorts of goods

(b) has a population of 6 000 000

(c) is the world's telecommunications centre

(d) has an efficient web retailing system

7. Jimmy Lai is one of Hong Kong's influential ________. ( )

(a) industrialists

(b) adventurers

(c) newspaper agents

(d) tailors

8. adM@art's similarity to Webvan lies in that ________. ( )

(a) they are both joint venture businesses

(b) their founders are both editors by profession

(c) they work in the same way on the Internet

(d) they are both successful in retailing business

9. One of the advantages that adM@art has is ________. ( )

(a) the number of its delivery vans

(b) the promotion in Apple Daily

(c) the expensive retail space in the world

(d) the benefit of being virtual                              

10. The latest development in adM@art shows that ________. ( )

(a) it is going to close in the near future

(b) it has overworked for too long

(c) it will not work without operators

(d) it is working with problems

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Passage Three

    Getting into a new market based on new technology is always risky and expensive. Developing an E-commerce business right now is like trying to sell cars when the roads haven't been built. It takes faith to make an investment in technology that isn't producing immediate returns for most people.

    Faith is not a bad word to invoke here. In the United States, we have faith in technology. If it's new technology, it must be better. But there's another F word hereFear. The fear is probably less about Web security than about choosing the wrong technology. What if you pick Betamax and your strongest competitor selects VHS?

    The first rule is to pick standards, and that's been decently addressed. The thing making the Web possible is that it is standards-basedthat's one of the reasons its growth has been explosive. We have a standard architecture using TCP/IP and Java. Pick either Netscape or Internet Explorer as a browser and both do the job about the same way. We're probably going to get Extensible Markup Language (XML) as a standard for financial documents, joining its cousin, Hypertext Markup Language (HTML), the graphics standard.

    However, there aren't standards how you do business and what comprises the characteristics of an organization that will succeed in E-business. Maybe the rule is just plunging ahead. If you spend too much time thinking about it, you're behind it.

    It seems that the old rules of business still apply, no matter how much anybody talks about Web being a level playing field and giving a global reach. You must know the capabilities of your organization. If you're providing the same goods that are already sold through mail order or telephone sales, there's probably not much change in product delivery. But if you're providing services, such as product support, can you deliver that support to a client 3 000 miles away? And if you're selling goods, can you deliver in volume if Web-based marketing suddenly triples your orders?

    You must be able to find out what customers want and how they are responding to your services. This doesn't require conducting Gallup polls. A friend of mine is a research director for a Wall Street investment firm that is currently putting money into new restaurant chains in Europe. He described a recent trip to England as follows: "I go to a restaurant for dinner, eat a little, count the number of patrons, then go to another restaurant, eat a little and count the number of patrons."

    That kind of research works as part of the formula for making investment decisions. Counting heads, tallying hits on the Web, getting feedback, are all ways to avoid shifts in the market that leave you far behind competitors, and they can make up for betting on the wrong software partner or computer system.

(468 words)

11.Developing an E-commerce business right now is like trying to sell cars when the roads haven't been built. This statement implies that ________. ( )

(a) E-business is mostly conducted in automobile sales

(b) E-business takes risks, like anything new

(c) technology seldom produces immediate gains

(d) the future of E-business is still not certain

12. The fear that people have about new technology is ________.  ( )

(a) the wrong choice of it

(b) the security of the Web

(c) the explosiveness of its growth

(d) the inability to produce immediate returns

13. The Web is based on standards such as ________. ( )

(a) Netscape and IE

(b) Betamax and VHS

(c) TCP/IP

(d) XML and HTML

14. The rule in E-business is just "plunging ahead", because ________.  ( )

(a) there are no other standards as to how you do business

(b) it is one of the old rules that have always been applied

(c) Web is like a playing field, where one needs to plunge

(d) too much thinking gets one behind other competitors

15. A friend of the author's has recently been ________.   ( )

(a) conducting a Gallup Poll of eating out

(b) investing in restaurant chains

(c) working at a company in Wall Street

(d) doing a market survey of restaurants

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