Ch-4 Business Strategy

8/18/2019 Ch-4 Business Strategy

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Chapter-4

Business Strategy


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Introduction to Business Strat

StrategyFormulation

e-CommerceStrategy

e-CommercePlan

BusinessImplementation

TechnicalImplementation

Evaluation

update

revise

improve

TechnologyEvaluationBusiness

EnvironmentBusinessCapability

BusinessStrategy

BusinessStrategy


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Introduction to Business Strat

‘Corporate strategy is the pattern o ma!or ob!ectives"

goals and essential policies or plans or achieving those

in such a #ay as to deine #hat business the company

be in and the $ind o company it is or is to be%&

'nd

Corporate strategy


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Strategy Formulation Four Stages of Strategy Formulation:

Consideration o environmental changes that br

opportunities and pose ne# threats%

'ssessment o the internal strengths and #ea$nesses

and in particular its ability to respond to those opportunit

' decision-ma$ing process inluenced by the values"

po#er o interested parties%

' strategy generating process concerned #ith genera

evaluating them%

eedle ()**4,

Introduction to Business Strategy


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'lternative strategies

Strategy ormulation is both rational and intuitive . organis

the same environmental circumstances and #ith similar busmay #ell develop entirely opposite strategies%

Car assemblers may go for:

/olume production that competes on price" or

0igher margins in 1uality and niche mar$ets%

Retailers may choose to:

S#itch strategy to online selling% 2evelop their agent net#or$%

Enhance traditional retail outlets%

Whatever the selected strategy:

Strategy ormation is an ongoing process%

The strategy needs to become part o the abric o the or

Introduction to Business Strategy


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Strategic Implications o IT

IT . initially used or administrative automation%

ICT (inormation and communications technology, use

Intra-organisational systems

Inter-organisational systems

Public access networs !Internet"

#obile data communications

The use o ICTs can have strategic implications or

organisations%


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e-Commerce strategy input

Traditionally an IT Strategy #ould be subservient t

Strategy%

For e-Commerce the IT Strategy becomes a centra

the determinant actor, in Business Strategy%

In$uts to an e-Commerce %usiness Strategy are:

Technology

Business Environment

Business Capability

Eisting Business Strategy


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Technology

e-Commerce technologies:

&'I:

Streamline supply logistics%

Facilitate decreases in trade cycle times%

&lectronic #arets:

5edeine the operation o a mar$et sector%

Internet e-Commerce:

e# direct sales opportunities

ovel business to business and business

applications


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Technology (cont6,

The organisation Source of business value

Improve it product promotion

new direct sales channel

direct savings

time to market

customer service

brand image

Transorm it technological and organisation

learning customer relations

5edeine it new product capabilities

new business models


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(ll businesses o$erate within an e)ternal e

&nvironmental factors that interact with business in

The &conomy:

The State:

Sets the regulatory rame#or$ (For e-Commerce

spread" the eect o state regulation can be ambig

Technology: (the topic o the previous section,

The +abour #aret: e-Commerce - need special s$ills%

e-Commerce can result in do#nsi7ing%

Culture:

e-Commerce varies across countries%


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Business capability ,a$ analysis:

‘A knowledge of the resources and an organisation

what can be done with them, is a prerequisite for f

establishes whether a gap exists between what manlike to do and what they can do.’

e-Commerce needs ne# s$ills and" in all probability" a

#hich business is done%

&)isting %usiness Strategy:

/ery possibly the organisation already has a busine

this can and should be part o the evaluation o t

strategy%


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Strategy Formulation 8 Implementation P

The Strategy Formulation is based on the in$uts:

Technology


Business Capability

Eisting Business Strategy

Strategy Formulation then involves discussion an

stages can include:

Identiying 9ptions

Evaluating 9ptions Selecting Strategy

The out$uts are:

The e# Business Strategy

'n e-Commerce Strategy

St t F l ti 8 I l t ti Pl i


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Strategy Formulation 8 Implementation Planning

Fig.: e-Commerce Strategy Formulation

StrategyFormulation

e-CommerceStrategy

e-Commerce

Plan

BusinessImplementation

TechnicalImplementation

Evaluation

update

revise

improve

TechnologyEvaluationBusiness

EnvironmentBusinessCapability

BusinessStrategy BusinessStrategy

C I l t ti


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e-Commerce Implementatio

The approach to technical implementation o an

system depends on the business ob!ectives" busines

and the technologies that have been selected%

Technical im$lementation:

Ease o :se

Functionality

Bac$ 9ice Systems

%usiness Im$lementation:

Business Inrastructure

;ar$eting

C I l t ti (


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e-Commerce Implementation (co

Technical Im$lementation

The ease of use of the system by the intended end us

It is al#ays an important actor in system design but

users are to be members o the public #ith perhaps

literacy and the option to s#itch to an alternative #ebsi

Functionality:

This has to be #hat the users #ant rather than #hat

thin$ they need% :sers o e-commerce are not a capt

can be intervie#ed and evaluated li$e the users o

development%

C I l t ti (


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e-Commerce Implementation (co %ac .ffice Systems:

Customers o an online service 1uite reasonably e

response and the bac$ oice systems need to be ab

re1uirement% For a volume e-commerce system this

the customer ront end integrates #ith the IS systems

%usiness Im$lementation

Put in $lace the business infrastructure to su$$o

commerce facility*

#aret the new e-commerce facility to the intended u

C E l ti


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e-Commerce Evaluation

&valuate:

Feedbac$ rom :sers

Feedbac$ rom those #ho gave up


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e-Commerce Evaluation (cont +oo$bac from the evaluation is shown in three levels

Im$rove it:

• Implementing an e-commerce site remains an ineact scien

customers and testing using people not involved in the sit

indicate #here changes are needed> the site can be im$rove

Revise it:

• Business results rom the use o e-commerce may indicate the

e-commerce strategy 8 the implementation plan> the $lanning

/$date it:

• 2evelopments in the competitive position" changes in th

emergence o ne# e-commerce technologies may indicate th

strategic process> the strategy can be u$dated %

Ch-4 Business Strategy

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Transcript of Ch-4 Business Strategy